Sep 30, 2011 IN FOCUS "Nothing is more hopeless than a scheme of merriment."– Johnson, Samuel. Weekly Indicators Indicators Current Last Week IMD sees dry weather over most parts of country till Oct 4 Sensex 16,454 16,162 The IMD said most parts of the country will experience dry weather for the next few Nifty 4,943 4,868 days, till Oct 4, as the southwest monsoon withdrawal is in full swing. It said dry Food Inflation 9.13% 8.84% north-westerly winds are prevailing over northwest and central India in lower levels.
The southwest monsoon has been subdued over Arunachal Pradesh, Gangetic West Exchange Rates Bengal, Odisha, Jharkhand, east Madhya Pradesh, Vidarbha, Chhattisgarh, Currency Current Last Week Rayalaseema, coastal Karnataka, and Kerala. The withdrawal line currently passes US$1 Rs.48.9253 Rs.49.6730 through Bahraich, Lucknow, and Jhansi in Uttar Pradesh; Bhopal and Indore in Madhya € 1 Rs. 66.6458 Rs. 66.9815 Pradesh; and Baroda and Veraval in Gujarat. On Sep 23, the monsoon current began JP¥ 100 Rs. 63.90 Rs. 65.10 its withdrawal from the mainland—22 days behind schedule. IMD also forecast fairly widespread rains over Andaman and Nicobar Islands and scattered rains over £ 1 Rs. 76.5192 Rs. 76.5064 northeastern states till Oct 2. India got 33% below normal rainfall at 24.1 mm during
the week ended Sep 28. During the week to Sep 28, rains were excess--20% or more Global Economic and Corporate News above normal--in seven of 36 meteorological subdivisions, normal in two, deficit in Nokia to cut 3,500 jobs worldwide. three, and scanty in 24. Nationwide Mutual to buy Harleysville India, Myanmar to raise trade to $3 bn by 2015 for $760 mln. India and Myanmar decided to double the bilateral trade to $3 bn by 2015 by ensuring S&P raises GM credit rating by two greater cooperation in sectors such as oil and gas, infrastructure, agricultural products notches. and pharmaceuticals. Both neighbours also vowed to increase two-way trade through the land route by strengthening the necessary infrastructure. India and Myanmar have Nokia and Siemens invest 1 bln euros implemented the India-Asean (Association of Southeast Asian Nations) Free Trade in joint venture. Agreement (FTA) since Sep 1 last year. India had also implemented the Duty Free US to probe HTC's complaint against Tariff Preference (DFTP) scheme for Myanmar in Jan 2009, under which Myanmar Apple. would gain market access for 94% of India‘s products at zero duty. India and Myanmar have also expanded the list of items for border trade from 22 to 40. India BP may sell some global assets to RIL. said that businesses of both sides merited encouragement so as to use DFTP and BAE Systems to cut 3,000 jobs at sites Asean FTA channels to diversify trade. across Britain. CRISIL Research lowers FY12 car sales growth forecast to 0-3% S&P may face SEC charges over CDO CRISIL Research expects domestic car sales to grow at a mere 0-3% in the current rating. financial year that started Mar due to hike in interest rates and rising fuel prices. In a study released, the organisation said it expects the overall domestic passenger vehicle Boeing to deliver first 787 Dreamliner sales--cars and utility vehicles--to grow merely by 2-4% as against its Jul forecast of to All Nippon after 3 yr delay. 8-10%. It had forecast a 14-16% growth in May but pared the figures due to AB Invev seen in $80 bln deal with subsequent fuel price hikes and rise in Repo Rate of the Reserve Bank of India. Car SABmiller. sales had grown by nearly 30% in 2010-11 (Apr-Mar). Rise in Repo Rate has a cascading effect on lending rates of banks and hits car sales as most vehicle purchases Boeing hands over first 787 in India are done on credit. Sales growth is expected to reach to the levels comparable Dreamliner to ANA. to 2008-09, when the domestic car sales grew by only 1.4% due to global recession. Apple opens first Hong Kong store as Greece meeting with troika "positive": reports retail spending surges. The Greek government's meeting with officials from the European Union, the Ford Motor may build electric cars in International Monetary Fund and the European Central Bank on Sep 29 was held in a China with partner, CEO Mulally says. "positive and constructive" atmosphere, according to media reports. The meeting is part of a review by the so-called troika to determine whether Greece has met its AstraZeneca settles Seroquel patent reform targets to receive the next installment of bailout funds. The review team will litigation. continue to meet with Greek officials in the coming days, the reports said. Separately, Rusal may sign $4.75 bn loan from Greek Finance Minister Evangelos Venizelos welcomed the German parliament's banks support for the euro-zone rescue fund and stressed that Greece is committed to meeting its obligations. "Those are not obligations towards the troika, Greece's SAIC agrees to $20 mln settlement on institutional partners and creditors, but towards the country itself and most of all Navy billing towards its young generation," the Finance Ministry said in a statement. Isuzu to build new pickup truck plant Japan auto sales seen at 34-year low after quake in Thailand Auto sales in Japan are expected to fall to a 34-year low in the current fiscal year that PdVSA forms joint venture with ends in Mar due to a sharp drop in production after the Mar 11 earthquake and Brazil's Odebrecht tsunami. But the Japan Automobile Manufacturers Association also expects sales to pick up over the second half of the year as companies iron out production bottlenecks S&P takes Fortune Brands off caused by the disasters and ramp up output to make up for lost time. Marking the first downgrade watch time it has released a sales outlook for the current fiscal year, JAMA said it expects domestic auto sales to fall 3.3% from a year earlier to 4.450 mn vehicles. That would
Nishita Shah Parsekar be the lowest since the fiscal year ended in Mar 1978. [email protected]
Please refer to important disclosures at the end of the report For Private Circulation Only. Sushil Financial Services Private Limited Member : BSEL, SEBI Regn.No. INB/F010982338 | NSEIL, SEBI Regn.No.INB/F230607435. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected]
Info-Spectrum Bridging the Information Gap in Corporate Landscape
INDEX
1. India’s Data Watch 03-05
2. Economy 06-14
3. Infrastructure 15-26 4. Sectors 27-59 A. IT & ITeS 27-28 B. Pharma & Healthcare 29-31 C. Telecom 32-34 D. Banking & Financial Services 35-38
E. Steel, Metals & Minerals 39-43 F. Auto & Auto Ancillaries 44-47 G. Miscellaneous 48-59 5. IPO Watch 60-62
6. Mergers & Accquistion 63
7. Ratings 64-72
8. Global Economy & Business 73-79
A. Global Economy 73-76 B. Global Business 77-79
Weekly Newsletter 2 Info-Spectrum Bridging the Information Gap in Corporate Landscape
INDIA’S DATA WATCH India adds 5.33 mn GSM mobile users in Aug vs 7.64 mn Jul India added 5.33 mn GSM subscribers in Aug taking the total GSM user base in the country to 611.76 mn. However, the addition of GSM subscribers declined month-on-month from 7.64 mn in Jul. Idea cellular added the maximum number of subscribers during the month at 2.33 mn taking its total GSM subscriber base to over 98 mn. In Jul, the company had added 1.0 mn users. India's largest telecom company Bharti Airtel Ltd added 1.15 mn users in Aug while Vodafone Essar Ltd added 1.13 mn. Going ahead, GSM monthly subscriber additions are likely to fall further due to stricter subscriber verification norms that have led to rationalisation in the reporting of subscriber additions. IMD sees dry weather over most parts of country till Oct 4 The India Meteorological Department said most parts of the country will experience dry weather for the next few days, till Oct 4, as the southwest monsoon withdrawal is in full swing. "Weather would continue to remain mainly dry over many parts of the country," the weather bureau said. It said dry north-westerly winds are prevailing over northwest and central India in lower levels. The southwest monsoon has been subdued over Arunachal Pradesh, Gangetic West Bengal, Odisha, Jharkhand, east Madhya Pradesh, Vidarbha, Chhattisgarh, Rayalaseema, coastal Karnataka, and Kerala. The withdrawal line currently passes through Bahraich, Lucknow, and Jhansi in Uttar Pradesh; Bhopal and Indore in Madhya Pradesh; and Baroda and Veraval in Gujarat. On Sep 23, the monsoon current began its withdrawal from the mainland—22 days behind schedule. IMD also forecast fairly widespread rains over Andaman and Nicobar Islands and scattered rains over northeastern states till Oct 2. "Isolated rains would occur over remaining parts of the country outside Gujarat, northwest and central India where weather would be mainly dry," it said. India got 33% below normal rainfall at 24.1 mm during the week ended Sep 28, the IMD said. During the week to Sep 28, rains were excess--20% or more above normal--in seven of 36 meteorological subdivisions, normal in two, deficit in three, and scanty in 24, the weather department said. India Aug core sector growth 3.5% vs 4.4% year ago Growth in India's key infrastructure industries fell to 3.5% in Aug compared with 4.4% a year ago due to a sharp decrease in the output of coal, crude oil and natural gas. Data released by the commerce and industry ministry showed that growth in coal production during Aug contracted 15.3%, compared with a 1.0% growth a year ago, while natural gas production contracted 5.3% against a growth of 11.9% a year ago. In Jul, India's key infrastructure industries had grown 7.8%. The core sector data for Aug is based on the 2004-05 series, which has eight items. Key infrastructure industries now comprise data from two more sectors-- natural gas and fertilisers. Earlier, the series had a base year of 1993-94 and included six items--electricity, cement, coal, steel, crude oil and petroleum refining. Crude oil production grew 1.6% on year in Aug, while output of petroleum products grew 3.9%. On the other hand, steel and cement output grew 7.7% and 7.2% compared with a growth of 10.8% and 1.6%, respectively a year ago. During Apr-Aug, the country's key infrastructure industries comprising electricity, cement, coal, steel, crude oil, petroleum refining, natural gas and fertilisers grew 5.3%, compared with 6.1% a year ago. With the inclusion of fertilisers and natural gas, the eight key infrastructure industries account for 37.9% of the Index of Industrial Production. The Central Statistics Office will detail the industrial production data for Aug on Oct 12. The ministry detailed index of core sector output in Apr-Aug as follows:
Apr-Aug 2011 Apr-Aug 2010 Yr-on-Yr Change (%) Coal 121.0 124.0 -2.4 Steel 159.5 145.9 9.3 Crude oil 113.7 107.2 6.1 Refinery 134.1 128.1 4.7 Cement 165.6 161.0 2.8 Electricity 148.8 136.1 9.3 Natural gas 154.6 169.6 -8.9 Fertilisers 102.8 101.6 1.2 Overall Index 140.2 133.2 5.3
Weekly Newsletter 3 Info-Spectrum Bridging the Information Gap in Corporate Landscape
India’s Sep 17 food articles inflation again gallops past 9% After a brief reprieve, India's food inflation was back above 9% during the week to Sep 17 due to higher prices of gram, fish, fruit, and vegetables, data released by commerce ministry showed. Food inflation for the week ended Sep 17 surged to 9.13%, against 8.84% a week ago. The food index rose a whopping 0.8% on week to 197.3 and more than offset the positive impact of a high base. A year ago, the index for food articles had risen 0.55% to 180.8. "The food inflation is perilously close to the double-digit mark...the rise in food inflation is a grave concern," Finance Minister Pranab Mukherjee told reporters. Inflation for primary articles, however, fell to 11.43% for week to Sep 17 compared to 12.17% a week ago even as the index rose 0.4% in the same period. Inflation for minerals declined further to 24.73% from 25.84% a week ago, with the index declining 0.9% to 303.6 because of lower prices of copper ore, chromite, and bauxite, the commerce ministry said. The fuel group inflation rate also rose sharply to 14.69% from 13.96% in the previous week. The fuel index rose 0.7% to 169.4. Fuel group inflation has risen on higher prices of petrol, light diesel oil, and aviation turbine fuel. State-owned oil marketing companies had raised petrol prices by Rs.3.14 per ltr with effect from Sep 16. The headline inflation rate based on Wholesale Price Index for Aug rose to a near one-year high of 9.78%, compared to 9.22% in Jul. The Reserve Bank of India estimates the headline inflation rate at 7% at the end of the current financial year. Today's inflation data show indices for primary articles, and fuel and power were as follows in the week ended Sep 17: --Primary articles index rose 0.4% to 202.7 from 201.9 in the previous week; food articles index rose 0.8% to 197.3 from 195.7; non-food articles index was down 0.3% to 184.8 from 185.4 a week ago. --Fuel and power group index rose 0.7% to 169.4 from 168.2 a week ago. Below are the provisional levels, week-on-week and year-on-year changes, in per cent, in the indices of key commodity groups: Sep 17 wk-on-wk Yr-on-Yr Commodity groups Weight 2011 % change % change I. PRIMARY ARTICLES 20.12 202.7 0.40 11.43 Food articles 14.34 197.3 0.82 9.13 Cereals 3.37 176.1 (-)0.28 3.83 Rice 1.79 172.7 (-)0.35 3.48 Wheat 1.12 167.5 (-)0.36 (-)2.67 Pulses 0.72 205.0 3.48 4.86 Vegetables 1.74 218.7 3.31 11.98 Potatoes 0.20 161.1 1.07 14.91 Onions 0.18 256.2 3.94 17.04 Fruits 2.11 175.0 (-)0.85 12.47 Milk 3.24 196.1 0.77 10.35 Egg, Meat & Fish 2.41 218.3 0.78 13.17 Non-food articles 4.26 184.8 (-)0.32 12.89 Fibres 0.88 235.9 3.33 24.42 Oilseeds 1.78 158.9 (-)2.03 13.50 Minerals 1.52 303.6 (-)0.88 24.73 II. FUEL & POWER 14.91 169.4 0.71 14.69 Liquefied petroleum gas 0.91 147.3 0.00 14.27 Petrol 1.09 181.1 5.05 29.45 High speed diesel 4.67 167.8 0.00 9.32
Weekly Newsletter 4 Info-Spectrum Bridging the Information Gap in Corporate Landscape
INDIA DATA CALENDAR Oct 01 Manufacturing PMI for September, by HSBC Oct 01 Trade data for August, by commerce and industry ministry Oct 05 Services PMI and composite PMI for September, by HSBC Oct 05-10 Major port traffic in September, by Indian Ports Association Oct 05-10 Cement production, despatches in September, by CMA Oct 05-10 Foreign tourist arrivals in Sep, by tourism ministry Oct 03-07 Power generation for September, by Central Electricity Authority Oct 07-12 Automobile sales data for September, by SIAM Oct 07 Bank deposits and credit as on Sep 23, by RBI Oct 10-15 GSM mobile subscribers data for Sep, by COAI Oct 12 Index of Industrial Production for August, by CSO Oct 14 WPI inflation for Sep, by commerce and industry ministry Oct 18 CPI for rural, urban areas and combined for September, by CSO Oct 20 CPI for rural and farm labourers for September, by Labour Ministry Oct 20-25 Crude, refinery output for Sep, from petroleum ministry Oct 30 Core sector growth for September, by commerce ministry Nov 30 GDP growth estimate for Jul-Sep, and Apr-Sep, by CSO
Sources: Government of India, Reserve Bank of India, Securities and Exchange Board of India, stock exchanges, and various industry and trade bodies.
Weekly Newsletter 5 Info-Spectrum Bridging the Information Gap in Corporate Landscape
ECONOMY ECONOMY: After meeting Manmohan Singh in US, minister Pranab mum on 2G note. Finance minister Pranab calls home minister Chidambaram valued colleague. Narendra Modi accuses govt of running parallel govt in Gujarat. ATS may lose seven-year turf war to crime branch. BJP President Nitin Gadkari mulls Parliament debut. AICC general secretary Rahul Gandhi to visit J&K for two days. Nepal tourist plane crash kills 19 including 10 Indians. 'Rail roko' protest paralyses Telangana for second day. Supreme Court to examine guidelines for issuing security to VIPs. 'Investigators on the verge of cracking 13/7 blasts case'. No war within govt; PC won't resign, law minister Khurshid says. 11 die in Orissa flood; 3003 villages marooned. Defence minister Antony asks Indian Air Force to fully support Orissa. Ex-Lokayukta chief Hegde: Time constraint in nailing Bellary culprits. Singer Jagjit Singh still critical; on ventilator support. Geologists say another quake may affect Teesta course. CBI registers case in virus attack on T-3 security. CVC for dedicated wing to probe important cases. Rupee's drop in 'so short a time' is a concern, RBI deputy Gokarn says. India to monitor rupee before acting, as RBI warns of growth risks. Expert Mistry says India may import 250,000 tn palmolein in Oct. MD sees Ruchi Soya FY12 soymeal export 1.1 mn tn. Food secy defends 24.6 mn tn sugar estimate yr to Sep 2012. Expert Fry sees crude palm oil at 2,525 ringgit/tn by Mar. Adani Wilmar sees India yr to Sep 2012 soy output 11 mn tn. SC to resume 2G hearing; petitioner Swamy vows more revelations. Home minister Chidambaram says always favoured auction route. Telangana stir turns violent; Hyderabad bandh called Sep 30. Sonia steps in, holds talks with Pranab, Chidambaram. Sonia demands report on illegal mining in Goa. Gujarat governor seeks details of expenditure on Modi's fast. Baba Ramdev's supporter dies, family blames police. Rahul Gandhi strikes chord with Kashmiri youth. Mayawati suspends MLA Haji Yaqoob from BSP. CIDCO seeks revised land acquisition rates for new Mumbai airport. Govt reviews options to put divestment on track. Growth in emerging mkts can counter slowdown, GE head Jeff Immelt says. Indian rice ready to set sail; 95,000 tn at Krishnapatnam Port. India Jul pulses import from Myanmar at 82,805 tn vs 83,149 tn Jun. FIEO sees "unimaginable" export growth slowdown from Oct. CRISIL sees India Inc Jul-Sep revenue growth slow, margin pressured. Govt targets 2.78 mn tn additional pulses output in rabi season. USDA sees India yr to Sep 2012 oilmeal export dn 11% at 4.9 mn tn.
Weekly Newsletter 6 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Home Minister P. Chidambaram met Sonia Gandhi and offered to resign. The finance ministry has ordered an overhaul of the government's disinvestment strategy for the year. Opposition restless to force early polls, says PM. Don't expect high margin victory, says Mamata. Cash scam: Advani's former aide Kulkarni arrested. Pranab to speak on 2G issue, if needed, after meeting PM. No selective approach to fight terror, India tells US. We are autonomous, Centre can't dictate us, says CBI. Finance Ministry to monitor PSB promotions. Plan panel wants Nilekani's UIDAI to be monitored. RBI Subbarao says fisc consolidation must for policy to aid growth. RBI Subbarao says no textbook solutions for real life policy. India Aug infrastructure sector growth 3.5% vs 4.4% yr ago. Co-op sugar body urges govt to create 2 mn tn buffer stock 2011-12. The Supreme Court has adjourned hearing on a plea on Home Minister P. Chidambaram's role in the 2G spectrum allocation scam. May relax Life Insurance of India's equity exposure cap in order to boost the market. Has released the draft of a national public-private partnership policy seeking to ensure transparency. SC seeks ex-finance secy's files on 2G spectrum spending. Pranab writes to PC, defends home minister Chidambaram. Mamata Banerjee wins Bhowanipore assembly by poll. Singur land act upheld by Calcutta high court. CBI says enough proof to book Marans in Aircel deal issue. Court refuses bail to Amar Singh in cash-for-votes issue. J&K assembly ruckus kills Parliament-attacker Afzal's mercy plea. Rich must pay higher tax, home minister Chidambaram says. RBI Gokarn says high oil prices hurting monetary policy flexibility. Econ affairs secy says not pruning FY12 divest aim; have other options. RBI ED Mohanty says maintaining current pace of growth a challenge. Madhya Pradesh official refutes talk of stock limit on chana. Tea Board official sees India FY12 export earnings up 30%. RBI Deputy Governor Subir Gokarn has said high energy prices are obstructing the flexibility of the central bank's monetary policy. Finance Minister Pranab Mukherjee has written to Prime Minister Manmohan Singh and Congress chief Sonia Gandhi on the 2G spectrum scam. Mukherjee, Chidambaram try to end 2G note issue; opposition unmoved. 2G note just a background paper, says Pranab. CBI probing Anil Ambani in 2G spectrum allocation case. 2G scam: CBI opposes monitoring of probe by experts. All 269 accused found guilty in Vatchathi rape case. BJP seeks all-party meet on Telangana. Bombay Muncipal Corp defers property tax proposal, eye on upcoming polls. Activist Aruna Roy says plan panel needs reality check. Rangarajan says hope govt doesn't exceed borrowing target for FY12. Rangarajan says cannot afford to sacrifice growth at current stage. Economic adviser Basu confident of India's growth prospects.
Weekly Newsletter 7 Info-Spectrum Bridging the Information Gap in Corporate Landscape
India Sep 17 primary articles inflation 11.43% vs 12.17% wk ago. Govt to borrow 528 bln rupees extra during Oct-Mar via gilts. Fin secy says can't divest PSU stake without considering mkt scenario. AGRICULTURE: National Bank for Agricultural and Rural Development has disbursed loans worth Rs.5.2 trn in the year to Mar so far. EXPORTS: Federation of Indian Export Organisations President Ramu Deora expects exports to rise merely 13.82% to $280 bn during 2011-12 (Apr-Mar). TAXATION: High-value share market transactions in the secondary market, insurance premiums, bank accounts and debit card payments may come under income tax department's watch. The government may impose 5% customs duty on the import of power equipment for mega projects. India to become world’s third-largest economy India is expected to overtake Japan to become the world‘s third-largest economy in 2011 in terms of gross domestic product (GDP), measured according to the domestic purchasing power of the rupee, also called purchasing power parity (PPP). The PPP is a method which estimates the size of an economy by leveling differences in prices that occur between countries when converting to a single currency. A dollar should be able to procure the same quantity of goods worldwide and the exchange rates between different currencies are adjusted accordingly under this method. In 2010, the Japanese economy was worth US$ 4.31 trn, with India trailing close at US$ 4.06 trn. Due to the devastating tsunami and earthquakes in Mar 2011, Japan, however, is expected to contract in 2011. The International Monetary Fund‘s (IMF) estimates state that the Japanese economy will contract by 0.7% this year while the Indian economy will grow at 8.2%. According to IMF forecasts, India and Japan were at par in 2011, but the disaster in Japan has brought the event forward. As suggested by an earlier report by consultant Price Waterhouse Coopers (PwC), the Indian economy would move ahead of the Japanese economy in 2012. The University of Pennsylvania‘s PPP tables state that India has already moved ahead of Japan in 2010. It is estimated that the Indian economy will reach a size of almost US$ 5 trn by the end of 2011. ―India should overtake Japan in 2011 to become the third-largest economy in the world at purchasing power parity,‖ said Sunil Sinha, head of research and senior economist at Crisil. Countries from all over the world now consider India to be a fast growing economy with great opportunities. The benefit of having a bigger economy gives the government more bargaining power and clout abroad. ―A bigger economy would also mean more clout in international forums,‖ said Madan Sabnavis, Chief Economist at ratings firm Care. "India has the advantage of size. The scope of growth and excess capacity present in terms of resources would drive growth in the future," said Sabnavis. A change in the ranking points to broad trends in the growth trajectories of nations. ―It‘s a long process of development, but this shows that the markets are expanding and there is robust demand within the economy,‖ said Siddhartha Sanyal, Chief Economist, Barclays Capital. India, Myanmar to raise trade to $3 bn by 2015 India and Myanmar decided to double the bilateral trade to $3 bn by 2015 by ensuring greater cooperation in sectors such as oil and gas, infrastructure, agricultural products and pharmaceuticals. Both neighbours also vowed to increase two-way trade through the land route by strengthening the necessary infrastructure. India and Myanmar have implemented the India-Asean (Association of Southeast Asian Nations) Free Trade Agreement (FTA) since Sep 1 last year. India had also implemented the Duty Free Tariff Preference (DFTP) scheme for Myanmar in January 2009, under which Myanmar would gain market access for 94% of India‘s products at zero duty. India and Myanmar have also expanded the list of items for border trade from 22 to 40. India said that businesses of both sides merited encouragement so as to use DFTP and Asean FTA channels to diversify trade. ―Outsourcing of manufacturing and sourcing of raw materials can also boost trade,‖ pointed out Commerce and Industry Minister Anand Sharma. The minister said construction of the Kaladan Multimodal Transit Transport Project comprising waterway and roadway components would transform the trade between the country‘s Northeast and the rest of the world. The project costing $120 mn is expected to be completed by 2013. The aim is to create a direct trade corridor between Indian ports on the eastern side and Sittwe Port in Myanmar and then through riverine transport and by road to Mizoram, thereby providing an alternate route for transport of goods to Northeast India. In the last fiscal, pulses and wooden products accounted for 97.5% of Myanmar‘s export to India, while it imported mainly buffalo meat
Weekly Newsletter 8 Info-Spectrum Bridging the Information Gap in Corporate Landscape and pharmaceuticals. Both sides have also issued notifications for upgrading the border trade to normal trade at Moreh in India and Tamu in Myanmar. In the meeting both the ministers decided to open another border trade point connecting Zowkhatar in Mizoram to Rhi in Myanmar. There had been talks to look at some more potential trading points from Pangsau Pass (in Arunachal Pradesh) and Avangkhung (in Nagaland). Govt clears FDI proposals worth Rs.243 cr The government cleared 12 FDI proposals worth Rs.242.88 crore, including one from Indian Rotorcraft to carry out the assembly of both military and civil helicopters. The Foreign Investment Promotion Board (FIPB), however, deferred decisions on 15 FDI proposals and rejected seven applications. Indian Rotorcraft had sought permission to induct foreign equity to carry out the business of final assembly of both military and civil versions of helicopters. The proposal, if implemented, would attract Rs.17.42 crore in FDI. Also approved was an Allcargo Global Logistics' proposal for FDI worth Rs.141.36 crore. The company had sought ex-post facto approval for the issuance and allotment of optionally convertible warrants to raise funds for setting up multi-modal transport operations and inland container depot/container freight stations as part of its logistics business. Gujarat-based Checkmate Services had sought the government's permission for induction of foreign equity in its private security services business. The proposal is worth Rs.66 crore. Besides, the board deferred a decision on Bangladesh-based Rahimafrooz Batteries' proposal to set up a wholly-owned subsidiary to undertake the import and wholesale distribution of batteries and provide services in India. A decision on Vodafone Essar's request to transfer shares from a resident to a non-resident to carry out activities relating to its telecommunications business was deferred. The proposals that were rejected include those of Jadoli Systems (Bangalore) and AOS Holding India SAS France. Forex reserves rise by $266 mn to $316.76 bn India's foreign exchange reserves rose by $266 mn to $316.763 bn in the week ended Sep 16, according to Reserve Bank of India's ‗Weekly Statistical Supplement'. This rise in reserves, which is mainly on account of change in currency valuation, follows a huge decline in reserves in the previous week. In the previous week ended Sep 9, India's foreign exchange reserves fell by $4.29 bn to $316.497 bn. The reserves rose due to an increase of $202 mn in the country's foreign currency assets to $280.903 bn. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the euro, sterling and yen held in reserves. In the week under consideration, the euro strengthened against the dollar. Gold was unchanged at $28.319 bn. SDRs declined by $2 mn to $4.549 bn. India's reserve position in the IMF rose by $62 mn to $2.992 bn. After a sharp fall this week, when it almost touched levels of 50 against the dollar, the rupee is likely to trade between 49.30 and 49.70/90, next week. There would be pressure on the rupee due to pressure of half-yearly closing and settlement of import bills. Starting Oct the rupee could be back to levels of 47, said the treasury head of a public sector bank. Govt reconstitutes RBI's central board; 7 new directors appointed The government has reconstituted the Central Board of Directors of the Reserve Bank of India and appointed seven new directors for a period of four years, a RBI release said. The government notified the reconstitution of the RBI board on Sep 30. Four existing members, K.M. Birla, Azim Premji, H.P. Ranina and Lakshmi Chand will continue as board members. The seven new directors are Dipankar Gupta, sociologist, Najeeb Jung, vice chancellor, Jamia Milia Islamia, G.M. Rao, chairman, GMR Group, Ela Bhatt, founder, Self- Employed Women's Association Indira Rajaraman, professor emeritus, Emeritus, National Institute of Public Finance & Policy, Anil Kakodkar, former chairman of Atomic Energy Commission Chairman and Kiran Karnik, former chairman of NASSCOM. The new directors' induction came into effect between Sep 20-23. M.M. Sharma, Sanjay Labroo, Suresh Kumar Neotia, A. Vaidyanathan, U.R. Rao and Y.H. Malegam have now retired as directors of the central board of the RBI. RBI notifies norms for external commercial borrowings in yuan The Reserve Bank of India notified Indian infrastructure companies could raise up to $1 bn annually via yuan-denominated external commercial borrowings. The RBI has permitted fundraising in the Chinese currency through the approval route. Nods to companies will be valid for three months from the date of issue of the approval letter. The RBI has also provided details on how the companies can go about registering and executing their loan applications for yuan loans. Category-1 authorised dealers have been permitted to open Nostro accounts in yuan, and monitor the end use of funds. Indian banks have not been allowed to provide any guarantee for such loans. On Sep 15, the government had added the yuan to the list of currencies in which Indian companies could borrow funds from overseas. The industry had been seeking liberalisation of external commercial borrowings as many Indian companies are looking to raise money
Weekly Newsletter 9 Info-Spectrum Bridging the Information Gap in Corporate Landscape overseas because of high interest rates in the domestic market. Since March 2010, the RBI has raised its repo rate 11 times by a total of 350 basis points to curb inflationary pressures. The repo rate is currently at 8.25%. In most overseas markets, policy rates are lower than 1%, which translates into cheaper loans for Indian firms. Co-op sugar body urges govt to create 2 mn tn buffer stock 2011-12 India would have to create a buffer stock of 2 mn tn sugar and more than double exports of the sweetener in 2011-12 to safeguard the industry amid higher output estimated for the new season, National Federation of Co-operative Sugar Factories President Jayantilal B. Patel said. The federation has projected India's sugar output in 2011-12 (Oct-Sep) at 26.5 mn tn, up 9% from 24.3 mn tn produced in the current year. "To save sugar factories from the crisis of surplus, a buffer stock of 2 mn tn of sugar will have to be created and 4 mn tn sugar exported under open general licence," he said at the federation's Annual General Meeting. The government has allowed exports of 2.6 mn tn sugar in 2010-11, including 1.5 mn tn under the open general licence route. Patel said the higher exports and buffer stock would stabilise the domestic market and ensure that sugar factories get reasonable realisation. The federation has projected carryover stocks in 2011-12 at 5.6 mn tn, up 12%. Sugarfed Punjab sells sugar for export at 3,020 rupee/tn premium The sharp fall in global sugar prices over the last two weeks has more than halved the hefty margins mills were getting on sale of export quotas for the sweetener. The Punjab State Federation of Cooperative Sugar Mills Ltd or Sugarfed Punjab, sold 2,567.7 tn sugar for export at a premium of Rs.3,020 a tn over the ex-mill price in a tender to Shree Renuka Sugars Ltd, an official from the federation said. This is a sharp fall in value of export quota premiums, which were over Rs.8,500 a tn last month. An industry official said the premiums in the Punjab tender, however, are slightly better than those quoted in the Andhra Pradesh tender last week. Nabard loan for Madurai water supply schemes National Bank for Agriculture and Rural Development (Nabard) has sanctioned a loan of Rs.264.74 crore for implementing rural drinking water supply schemes in Madurai district under its Rural Infrastructure Development Fund (RIDF). The projects involve an investment of Rs.311.46 crore. While Nabard has sanctioned Rs.264.74 crore to the State Government, the State Government has contributed the balance Rs.46.72 crore. The projects would be implemented by the Tamil Nadu Water Supply and Drainage Board at Alanganallur, Palamedu, Singampunari, Melur, Kottampatti, Madurai east, Madurai west, Tirumangalam, Tiruparankundram and Vadipatty taluks. The projects when complete will ease the drinking water supply situation and benefit over 11.87 lakh people. Ruchi Soya earmarks Rs.600 cr on capex Ruchi Soya Industries Ltd has earmarked Rs.600 crore for capacity expansion of its palm oil refinery by 1.1 mn tonnes by next fiscal. The company currently has palm oil refining capacity of 2.1 mn tonnes per annum at its refineries in Mumbai, Kandla and Haldia. The capex will be funded through internal accruals and debts and will be completed by Mar 2012. The company, which sells edible oils under Nutrela Soyumm, Ruchi Gold and Sunrich brands, is also in the process of raising palm plantation acreage by 10,000 hectare in the country by this fiscal-end. Currently, the company has 20,000 hectare under palm plantation. Nabard sanctions Rs.400 cr The National Bank for Agriculture and Rural Development has sanctioned Rs.399.22 crore under its Rural Infrastructure Development Fund (RIDF) for the Indira Jala Prabha project to be implemented across 22 districts in Andhra Pradesh. The loan is sanctioned to provide irrigation facilities across 490,029 acres of land in 16,472 villages of the 22 districts. It includes drilling of 26,262 bore-wells, purchase of 25,278 pump-sets, electric motors, diesel engines and other irrigation work, benefiting 480,000 farmers in the state. Bajaj Hindusthan's rights share issue to open Sep 29, close Oct 13 Bajaj Hindusthan Ltd's rights issue of 456.71 mn shares will open Sep 29 and close Oct 13, the company said in a notice in The Financial Express. The company, which will issue two shares for every one held at Rs.36 each on rights basis, will use the issue proceeds to prepay and repay debt worth Rs.17.2 bn. The Mumbai-based sugar and ethanol maker's debt stood at around Rs.40 bn as on Mar 31. INTERVIEW: FIEO sees "unimaginable" export growth slowdown from Oct The country's exports have grown a robust 54% during Apr-Aug, the first five months of the current financial year. Go beneath the number and the picture appears grim. Move beyond to the prospects for the
Weekly Newsletter 10 Info-Spectrum Bridging the Information Gap in Corporate Landscape coming months, and the export story will seem further awry, with the global meltdown seen eating into demand for the country's merchandise. INTERVIEW: Frequent base yr update to trim data volatility, says CSO Chief Statistician of India T.C.A. Anant has been striving to make data more representative and less volatile in a country where statistics collated by government agencies are often taken with a pinch of salt. Duty drawback rate on sugar gets doubled to 2% as DEPB sop goes The duty drawback rate on raw and white sugar has been doubled to 2% from last financial year's 1% after the government discontinued the Duty Entitlement Passbook Scheme benefits with effect from Oct 1. FOCUS: Rupee fall may upset RBI's inflation mgmt but not stance The Indian rupee's sharp fall over the past two weeks will perhaps upset the Reserve Bank of India's careful considerations on inflation outlook because the depreciating currency has wiped out most of the positives that could be derived from falling global commodity prices. Trade secy says FX rates may remain volatile on global uncertainty The Indian rupee is likely to remain volatile amid uncertain global conditions, Commerce Secretary Rahul Khullar said. "Exchange rates are going to remain volatile as long as economic condition in these large economies remain uncertain," he said at a media briefing here. SC split on govt plea against special team probe into black money A two-member Supreme Court bench gave a split verdict on the maintainability of government's application seeking recall of the apex court order to set up a Special Investigation Team to probe black money cases and referred the issue to the Chief Justice of India for the constitution of a larger bench. Southwest monsoon begins withdrawal from parts of northwest India The southwest monsoon began withdrawing from the Indian mainland 22 days behind normal schedule. "The southwest monsoon has withdrawn from parts of Punjab, Haryana, Rajasthan, Gujarat and north Arabian Sea," the weather bureau said. Food minister says 2011-12 sugar output unlikely to top 25 mn tn India's sugar output in the new season starting Oct 1 is unlikely to cross 25 mn tn, Food Minister K.V. Thomas said. "One view that I have received is that our 2011-12 production will be to the tune of 24.2-24.5 mn tn...," Thomas told. Gokarn says mustn't view RBI FX policy with just inflation in mind The Reserve Bank of India's exchange rate policy must not be viewed within the narrow boundaries of inflation management and the central bank is not likely to change this policy, Deputy Governor Subir Gokarn said. Uttar Pradesh govt seeks bids to set up 202 bus stations The Uttar Pradesh government invited bids to set up 202 bus stations on public private partnership mode. The project will be on a Design Build Finance Operate Transfer basis, an advertisement by the state government in The Economic Times said. BRICS nations seek structural steps from US, Europe; promise reform Advanced economies must adopt structural reforms, and responsible macroeconomic and financial policies as such steps are critical to lift growth and create jobs, finance ministers and central bankers of the BRICS nations said in a joint release. RBI Subbarao says US, Eurozone econ woes affecting emerging mkts Reserve Bank of India Governor D. Subbarao said renewed fears of a recession in the US, and deepening Eurozone sovereign debt crisis have adversely affected emerging market economies through various channels. Telangana stir turns violent; Hyderabad bandh called Friday The ongoing agitation seeking a separate statehood for Telangana region of Andhra Pradesh turned violent with the agitators attacking several government and private offices and blocking roads across the region.
Weekly Newsletter 11 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Former BJP strategist Kulkarni sent to jail in cash-for-vote scam Former Bharatiya Janata Party strategist Sudheendra Kulkarni was sent to judicial custody in the cash-for- votes case, which was allegedly organised to save the United Progressive Alliance government in 2008 when the Left Front withdrew its support to protest India's nuclear deal with the US. India, Greece working on strategic partnership In a meeting here last week on the sidelines of the annual meeting of the IMF and the World Bank, Finance Minister Pranab Mukherjee and his Greece counterpart Evangelos Venizelos discussed a wide range of bilateral and global issues including the current economic crisis in Europe. India-Japan trade to rise substantially after CEPA During his meeting with Japanese counterpart Jun Azumi, Finance Minister Pranab Mukherjee is believed to have told him CEPA will further strengthen Indo-Japan economic ties to the benefit of both countries immensely. Commerce secy says govt mulling relief package for exporters The government is planning a relief package for exporters as the country's economic growth is seen moderating in the wake of the ongoing turmoil in developed nations, India's largest export destinations, Commerce Secretary Rahul Khullar said. Pranab says tough to sustain high growth over longer period of time The fundamentals of the Indian economy are intact, but sustaining high growth rate over an extended period of time was getting "more difficult", Finance Minister Pranab Mukherjee said. INTERVIEW: NSL Sugars joint MD says may tap pvt equity for funds Hyderabad-based NSL Sugars Ltd is planning to raise funds through private equity in a year to fund its next stage of expansion, Joint Managing Director K.V. Hari said. Pranab says govt priority to make growth inclusive, sustainable Finance Minister Pranab Mukherjee has said the priority of the government is to make economic growth in the country more inclusive and sustainable. Market abuzz with talk RBI enquired about rupee levels post drop The foreign exchange market is abuzz with talk the Reserve Bank of India enquired about the dollar-rupee levels, after the rupee opened with a negative gap of 45 paise against the greenback, dealers said. Farm minister sees yr starting Oct sugar output at 25.5-26.0 mn tn The agriculture ministry seems to be more bullish than the food ministry on the country's 2011-12 (Oct-Sep) sugar output with Farm Minister Sharad Pawar saying production will be 25.5-26.0 mn tn. FOCUS: Sugar exporters see looming defaults as global prices tumble The sharp fall in global sugar prices over the last three days has raised questions about the fate of some of the export deals, signed at lucrative premiums as late as last month. Pranab says commodity, food price rise grave threat to global econ Finance Minister Pranab Mukherjee said the recent commodity and food price rise was a "grave threat" to economic growth and food security. Sugar industry reiterates India's output seen 26 mn tn in 2011-12 The sugar industry reiterated the country is likely to produce 26 mn tn sugar in the new season starting next month, an estimate substantially higher than the food ministry's projection of 24.6 mn tn. RBI Gokarn downplays rupee fall, says volatility part of game now The Reserve Bank of India appears unperturbed by the 7% fall in the rupee against the dollar this month, with Deputy Governor Subir Gokarn saying volatility is "part of the game now". Pranab says BRICS nations must explore role amid global challenges Finance Minister Pranab Mukherjee said Brazil, Russia, India, China and South Africa--that have been key drivers of global growth--should explore their role amid challenges and look at synergies to tap growth. Shree Renuka Sugars raises Rs.4 bn Shree Renuka Sugars Ltd raised Rs.4 bn through issue of three-year bonds that had opened for subscription Wednesday and closed, merchant bankers said.
Weekly Newsletter 12 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Godrej sees India FY12 farm growth over 4% on good rains India's farm sector growth may exceed 4% in 2011-12 (Apr-Mar) due to good rainfall across the country, Godrej Group Chairman Adi Godrej said. MD sees Ruchi Soya FY12 soymeal export 1.1 mn tn Ruchi Soya Industries Ltd is likely to export 1.1 mn tn soymeal in 2011-12 (Apr-Mar) as against 700,000 tn exported in the previous year, Managing Director Dinesh Shahra said. India disappointed over slow progress in Doha talks Leaders of the world's most influential countries, including the US and the European Union, Brazil and India had agreed for concluding WTO talks for a multi-lateral agreement in 2011. CRISIL sees India Inc Jul-Sep revenue growth slow, margin pressured Steep interest rates, inflation, and high input costs may lead to a moderation in Indian companies' Jul-Sep revenue growth, and lower operating profit margins, CRISIL Research said in a note. RBI Subbarao says fiscal consol must for policy to support growth Reserve Bank of India Governor D. Subbarao said it is important for fiscal consolidation to take firm roots for monetary policy to take more cognizance of growth concerns. Food ministry asks PM econ panel head to look into sugar decontrol Food ministry has asked Prime Minister's Economic Advisory Council Chairman C. Rangarajan to look into issues relating to deregulation of the sugar industry, Food Minister K.V. Thomas said. RBI Subbarao says fisc consolidation must for policy to aid growth Reserve Bank of India Governor D. Subbarao said it is important for fiscal consolidation to take firm roots for monetary policy to take more cognizance of growth concerns. WRAP: RBI Subbarao says no textbook solutions for real life policy Central bankers, including US Federal Reserve chairman Ben Bernanke, European Central Bank head Jean- Claude Trichet have been often criticized even for the best of their policies. RBI Subbarao says every policy action involves complex judgement Reserve Bank of India Governor D. Subbarao has defended the central bank's calibrated approach to rate tightening adopted last year saying, "every monetary policy action involves complex judgement." Govt readies contingency for more pulses output Govt has prepared a contingency plan for more production of pulses in the rabi season 2011-12 through area expansion and productivity enhancement. '130 lakh tonne of paddy arrival expected in Punjab' Procurement agency Food Corporation of India (FCI) expects 130 lakh tonne of paddy arrival in Punjab in the crop procurement season starting from Oct 1. 'Farm loan to exceed target, touch Rs.5.20 lakh cr' Farm loan disbursal is expected to exceed the target of Rs.4.75 lakh crore and touch Rs.5.20 lakh crore in 2011-12 on the back of good monsoon, National Bank for Agriculture and Rural Development said. India needs to focus on agri research: UGC Chairman India needs to lay more emphasis on farm research programmes to help increase agricultural productivity, University Grants Commission (UGC) Chairman Ved Prakash said. US Cong may revive trade benefits to India, others The US Congress is likely to approve trade preferences for the least developed and developing countries in the next few weeks, a move which will help Indian exporters as well. US to invest in Indian infra, defence and edu sectors US companies are looking at investing in sectors like energy, education, communications and infrastructure in India, thererby further deepening economic ties between the two countries. Follow Punjab & Rajasthan on farm land reforms: CII Amid growing concerns over shrinking agriculture land holdings, industry chamber CII called for replication of farm land reforms initiated by Rajasthan and Punjab by other states.
Weekly Newsletter 13 Info-Spectrum Bridging the Information Gap in Corporate Landscape
RBI Gokarn says high oil prices hurting monetary policy flexibility Reserve Bank of India Deputy Governor Subir Gokarn said high energy prices are obstructing the flexibility of the monetary policy formulated by the central bank. India, Pakistan aim to double bilateral trade in 3 years India and Pakistan will in November seek to lay down timelines to dismantle non-tariff trade barriers and normalise all commerce relationships as the two countries aim to double their bilateral trade in three years from $2.7 bln now. Telangana stir intensifies, 32 Telugu Desam legislators quit Raising the ante for a separate statehood, 32 Telugu Desam Party legislators from the Telangana region today resigned from their posts in the Andhra Pradesh state assembly. Econ affairs secy says not pruning divest aim; have other options Economic Affairs Secretary R. Gopalan said the government can look at options other than launching public issues of state-owned companies to meet its divestment aim of 400 bln rupees for the current financial year ending March. Calcutta HC upholds Bengal act to return Singur land to farmers The Calcutta High Court today upheld the validity of the Singur Land Rehabilitation and Development Act 2011, which will allow the West Bengal government to return the Singur land to farmers. RBI Gokarn says high oil prices hurting monetary policy flexibility Reserve Bank of India Deputy Governor Subir Gokarn said high energy prices are obstructing the flexibility of the monetary policy formulated by the central bank. RBI ED Mohanty says maintaining current pace of growth a challenge Maintaining the current pace of economic growth is a challenge for policymakers and requires reforms as well as a conducive global environment, Reserve Bank of India Executive Director Deepak Mohanty said. Fin secy says need to monitor mkt situation before divestments Finance and Revenue Secretary R.S. Gujral said the market situation needs to be monitored before the government divests its stake in state-owned companies. Rangarajan says cannot afford to sacrifice growth at current stage The government cannot afford to sacrifice growth at the current stage, Prime Minister's Economic Advisory Council Chairman C. Rangarajan said. FOCUS: Shock & awe as govt bombs mkt with 528 bln rupee extra borrow "It is time for bond dealers to leave the country," was the terse reaction of a jilted bond dealer after the government shocked the market today with an extra borrowing of 528 bln rupees for Oct-Mar. Pranab takes Chidambaram home, discards 2G note as not his view Finance Minister Pranab Mukherjee again did what has come to be his second job--that of a troubleshooter. Only this time, he himself is in the throes of the trouble--his ministry's note on the 2G spectrum mess that has sent this government's former minister, bureaucrat and corporate executives behind bars and shaken the very foundations of it. Trade minister says to announce export relief package before Diwali Commerce and Industry Minister Anand Sharma said the government may announce a relief package for exporters before Diwali, which falls on Oct 26, after having a high-level consultation with exporters' body. Adviser Basu confident on India growth prospects, safe haven appeal Economic Adviser to the Finance Ministry Kaushik Basu expressed confidence in the economy's growth prospects as well as the country's reputation as a safe haven for investments. IMD sees dry weather over most parts of country till Tue The India Meteorological Department said most parts of the country will experience dry weather for the next few days, till Oct 4, as the southwest monsoon withdrawal is in full swing. Rangarajan says hope govt doesn't exceed borrowing target for FY12 The Prime Minister's Economic Advisory Council Chairman C. Rangarajan said he hoped the government would not exceed its market borrowing target for 2011-12 (Apr-Mar).
Weekly Newsletter 14 Info-Spectrum Bridging the Information Gap in Corporate Landscape
INFRASTRUCTURE INFRASTRUCTURE: Air India launches austerity drive; to shrink overseas staff size. Deal with Vedanta to cost Cairn Energy $1.5 bn as tax. Leela, AAI spar over land lease terms. DGH pulls up Mukesh Ambani's RIL over CBM block. Alok Industries' arm to sell Mumbai office building. Goldman Sachs buys green energy co stake for Rs.1 trn. Mazagon-Pipavav JV put on hold. DLF sells land for Rs.2.8 bn, plans sale of Rs.4 bn plot. Defence ministry puts Mazagon Dock-Pipavav partnership on hold. Bajaj Electricals sees margin pressure in FY12, sales growth 20%. MD says Mercator Lines to invest more in non-shipping ops in near term. Parsvnath shareholders OK raising up to Rs.20 bn via QIP. PBA Infra gets Rs.304 mn orders; shrs off intraday high of 4%. Minister Patel says market not appropriate for BHEL FPO. GMR to sell 30% stake in GMR Energy Singapore to PETRONAS. Bajaj Electricals head sees sales growth at 20% in FY12. Reserve Bank of India has liberalised external commercial borrowings policy for the infrastructure sector. The National Highways Authority of India will develop 60 service plazas on major highway stretches across the country and set up such complexes every 50-50 km along the roads. CAG probing Sasan power project coal diversion issue. India Aug infrastructure sector growth 3.5% vs 4.4% yr ago. IOC seeks predictable business landscape in fuel pricing, subsidy. Tanti Holdings stake in Suzlon Energy rises to 17.05% vs 7.33%. GMR Infrastructure gets highway project from NHAI on PPP basis. GSK eyes $1 bn-$2 bn buys in India, but reluctant to pay premium. Official says Ansal Prop to mull debt recast via overseas borrowing. Areva T&D gets Rs.400-mn sub-station order from Reliance Power. RInfra CEO says Mumbai Metro line 1 to be commissioned in 2012. Infrastructure sector grew at 3.5% in Aug compared with 4.4% a year ago. The sector grew 5.3% in Apr-Aug against 6.1% a year ago. Reserve Bank of India has allowed infrastructure companies to raise up to $1 bn annually via yuan- denominated external commercial borrowings. Govt may levy import duty on power equipment for mega projects. Railways may get Airports Authority of India-like authority. Rail ministry plans setting up Stations Authority of India. CEO Dudley says restoring gas output at D6 block BP's top priority. RIL Chairman Ambani says expect KG-D6 gas output to rise from 2014. NTPC arm achieves fincl closure for Bihar project stage II. Kingfisher Air chairman says will exit low-cost Kingfisher Red ops. Punj Lloyd gets 11.95 bln rupee power equipment order from CESC arm. The credit scheme of Indian Infrastructure Finance Co may be delayed further as the finance ministry asks the company to launch a pilot for few months before final launch. Minister Dinesh Trivedi has said that he would consider setting up an authority on the lines of the Airport Authority of India to monitor modernisation of railway stations.
Weekly Newsletter 15 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Sources say L&T MF looking at Bhattacharya, Nanavati, Naqvi as CEO. Atomic energy secy hopes Parliament to OK civil nuclear bill soon. HCC Concessions completes 14.5% stake sale to The Xander Group. REC aims 280 bln rupee disbursal FY12, so far disbursed 100 bln. BG India to supply 2.5 mtpa LNG to Gujarat State Petroleum. POWER: Around 8,000 MW of new gas-based power capacity may get stranded due to lack of fuel as the domestic gas output continues to fall with no signs of recovery in sight. The new Indonesian coal law has added to the power companies' concerns by increasing costs and upsetting their viability calculations. Maharashtra State Electricity Distribution Co is proposing a nearly 40% tariff hike for domestic users who consume up to 100 units a month. Hitachi and SFO Technologies Pvt Ltd to set up a joint venture in advanced control systems for thermal power plants. ENERGY: Essar Group is in talks with four of China's largest oil and gas producers for resource quest. SBI Capital Markets to complete valuation of Adani Energy's city gas distribution assets in Lucknow in mid-October, paving way for the merger of assets in Green Gas, a joint venture of GAIL INDIA. HOUSING: Centre may unlock Mumbai's 5,000-acre salt pan road for housing purposes. ELECTRICITY: Rural Electrification Corp will raise $200 mn through Swiss franc-denominated bonds. Oil India joins rush for energy assets, lines up Rs.4k crore for buys Oil India, the country's second largest oil explorer, plans to spend up to Rs.4,000 crore in buying oil and gas assets abroad, joining bigger state-run rival ONGC in the quest to boost India's energy security. "We have Rs 12,000 crore in cash reserves, of which we plan to invest Rs.4,000 crore on overseas acquisitions," said Chairman NM Borah. OIL, in which the government owns a 78% stake, is looking at oil and gas blocks in Africa, Australia and Latin America. Borah said it had already conducted due diligence and was in advanced stages of negotiation with the target companies, but he refused to name them. "We (could) either own 100% of an acreage or pick up stakes of foreign companies that own blocks in these countries." Oil India, whose exploration and production activities are spread mostly in the North East, sells its output at government-determined prices, sharing the subsidy burden with the downstream oil companies. Its shares took a beating earlier this week after the finance ministry said the fuel subsidy outgo for the upstream oil company could almost double this fiscal year. Upstream firms bear a third of the revenue loss that oil marketing companies suffer on account of selling diesel, domestic LPG and kerosene at governmentment- controlled rates. ET had reported earlier that the ministry wanted the upstream share to be fixed at Rs.56,707 crore, or one-third of the revenue loss estimated before the June price hike and the cut in customs and excise duty. Of this, ONGC's share would be Rs.47,640 crore and the rest would be split between Oil India and GAIL India. Asked if there was on any clarity on the subsidy-sharing formula, Borah said, "No, we don't want to put undue focus on that as it is really not in our control." Oil India plans to begin production from its oil block in Venezuela from the second half of 2012. "We could start production from Carabobo 1 Norte and Carabobo 1 Centro blocks, located in the Orinoco Heavy Oil Belt... The total reserves there are of 3 bn barrels, but the initial production target is of 400,000 barrels, of which our share is 15,000 barrels," said BN Talukdar, director, exploration. These Venezuelan oil blocks are being jointly developed by an international consortium comprising Petronas, which holds 11% stake, Spain-based Repsol 11%, ONGC Videsh 11 %, Indian Oil Corporation 3.5% and Oil India with 3.5% shareholding. The company also said to relinquish its twin acreage in Libya. "Even after all efforts we had to concede that there is no potential for commercial hydrocarbon discovery in the area," said Talukdar. The company had invested Rs 56.8 crore there. On E&P in India, the company said, "We would like to bid for shale gas assets and are eagerly awaiting the policy announcement from the government but plan to be very cautious with our investments in new exploration frontiers as we want to de-risk our exploration portfolio to some extent by investing in discovered targets," Talukdar said. On their presence in the Krishna-Godavri basin, Talukdar said, "We have
Weekly Newsletter 16 Info-Spectrum Bridging the Information Gap in Corporate Landscape done our initial surveys and should drill our first well in the basin by the middle of next fiscal." Discussing the firms' downstream ambitions, Borah said, "We are very keen to diversify into city-gas distribution and will be partnering with Hindustan Petroleum Corporation especially as we have already signed an MoU with them to jointly pursue business in areas of mutual interest like city gas distribution, pipeline projects and green-field refineries." Goldman Sachs invests Rs.1,000 cr in ReNew Wind Global investment banker Goldman Sachs has invested about Rs.1,000 crore in ReNew Wind Power. Globally, Goldman Sachs has over $1.5 bn investment in alternative/clean energy-related companies, including Horizon Wind Energy and Nordex AG. ReNew Wind Power has several wind projects under development, including a 25 MW project in Gujarat and a 60 MW farm in Maharashtra. The company says it has business framework agreements with Kenersys, Regen Powertech and Suzlon Energy to establish and operate wind farms in India and will expand its portfolio by 200-300 MW annually. Mr Sumant Sinha, Chairman and CEO, ReNew Wind Power, said: ―Goldman Sachs' global experience and network in the alternative/clean technology industry will provide us with additional momentum. ―Our vision is to be the leading renewable energy generation company in India.‖ Mr Ankur Sahu, co-head of private equity in Asia at Goldman Sachs said, ―ReNew Wind Power stands out as an example of Indian entrepreneurial excellence and we look forward to teaming with the management to help the company become a leader in India's renewable energy sector.‖ Wind power companies in India are raising money to fund expansion as the nation plans to add 2,400 MW of wind energy capacity in the financial year ending March 31, 2012 and had 14,723 MW as of Jul. ReNew Wind will invest the money in renewable energy and acquire projects on an opportunistic basis, Mr Sinha said in a telephone interview. He said Goldman's investment will be made over time. India, the biggest market for new wind park installations after China and the US, is dominated by Ahmedabad-based Suzlon, which installed 41 per cent of new capacity in the last financial year. Goldman will have representatives on ReNew Winds board and the company may consider trading publicly in the future, Mr Sinha said. There are no listing plans in the near future but several years down the road, that could be the exit possibility for an investor. Maharashtra power utility seeks 40% tariff hike for low-end users Maharashtra State Electricity Distribution Co Ltd, also called Mahavitaran, is proposing a nearly 40% hike in the tariff of power supplied to domestic users who consume up to 100 units a month, Maharashtra Electricity Regulatory Commission said in a notice. Mahavitaran, which supplies power across Maharashtra except Mumbai, has proposed raising the tariff to Rs.4 a unit from Rs.2.86 now. The Maharashtra electricity regulator has called for public feedback on the proposal between Oct 7 and Oct 25 across the state. Mahavitaran also wants to restore the system of fixed charge to ensure recovery of fixed cost from all consumers, MERC said. The utility also wants to increase the rebate to industrial consumers to Rs.2.50 a unit from 85 paise now for power consumed between 2200 IST and 0600 IST the next day. Mahavitaran also proposes the creation of a new sub-category within low-tension and high-tension commercial consumers without increasing the existing tariff for government-owned or 100% government-aided educational institutions and government hospitals. Omaxe shelves Rs.800-bn invest plan in low cost housing Delhi-based realty company Omaxe Ltd has shelved its plan to invest Rs.800 bn in developing one mn affordable houses across India over five years, according to a report by Press Trust of India. "The project could not take off after the slowdown impacted all the developers in 2008," Omaxe Chairman and Managing Director Rohtas Goel was quoted as saying by the agency. "We tried to develop some houses at some locations... The project is shelved now," he said. In May 2008, the company had announced an elaborate plan to build 1 mn affordable houses in tier II and III cities at a price ranging between Rs.300,000 and Rs.1.5 mn. The company had tied-up with farmers in Gujarat and Maharashtra to acquire land for developing the affordable houses, he added. "However, it did not finally materialise," Goel said. He, however, declined to divulge if the company had put in any money in initiating the project. Omaxe had formed a subsidiary, National Affordable Housing and Infrastructure Ltd, for the low-cost housing project and had also initiated an international design competition, besides publishing advertisements. Later, the company divested 51% stake in National Affordable Housing to a promoter group firm. Commercial Engg & Body Builders expects large Railways orders soon Commercial Engineers & Body Builders Co Ltd is expecting large orders from the Ministry of Railways shortly, the company said in its annual report for the year to Mar 2011, released. Commercial Engineers also said it has bid for supplying around 15,000 wagons to the Indian Railways, and is hopeful of getting the
Weekly Newsletter 17 Info-Spectrum Bridging the Information Gap in Corporate Landscape order. The company is setting up a 1,200-wagon-a-year manufacturing plant at Deori in Madhya Pradesh, in order to cash in on the Railways' requirement of 290,000 wagons by 2020, projected in the Indian Railways' Vision 2020 document. Also, with a view to expand its presence in the power sector, the company has set a target to manufacture 2,000 tn per month over the next 18 months. The company builds power structurals for boilers and electrical standard products for Larsen & Toubro Ltd. The company aims to increase its revenues fourfold by 2014. Its total income for 2010-11 (Apr-Mar) stood at Rs.2.36 bn. GMR Infra to sell 30% stake in GMR Energy Singapore to Petronas GMR Infrastructure Ltd has agreed to sell 30% stake in subsidiary GMR Energy (Singapore) Pte Ltd to Petronas International Corp Ltd, a subsidiary of Malaysia's Petronas, the company said in a release. Financial details of the deal were not disclosed. had reported earlier this month that GMR Infrastructure is looking to sell 30% in the Singapore subsidiary. "Petronas is one of the largest groups in south east Asia with substantial resources in oil and gas. This relationship would pave the way for other possible opportunities between the groups in India as well as internationally," GMR said in the release. The Singapore arm of GMR is developing an 800 MW combined cycle gas turbine power plant on Jurong Island in Singapore. A consortium of Siemens AG and Samsung C&T Corp will develop the power generating facility at this plant. In July, GMR announced achieving financial closure for the project by tying up loans from six banks. The company said the plant is expected to start commercial production in 2013. RBI eases external commercial borrowings policy for infra sector With a view to ease the external commercial borrowing norms for the infrastructure sector, the Reserve Bank of India has allowed foreign investors to provide credit enhancements without seeking prior approval from the central bank, a release said. Credit enhancement by all eligible non-resident entities will henceforth be permitted under the automatic route with immediate effect. A direct foreign equity holder holding minimum 25% of the paid-up capital and indirect foreign equity holder holding at least 51% of the paid-up capital will now be permitted to provide credit enhancement for the domestic debt raised by Indian infrastructure companies through issue of capital market instruments. The credit enhancement can also be availed by domestic non-banking finance companies falling under the category of infrastructure finance companies. Brigade Group unveils 'Brigade Exotica' Brigade Group, has unveiled its 35 storeys apartment project 'Brigade Exotica' in Bangalore. Each apartment in the project is modelled on contemporary design with abundant light and ventilation. This unique apartment design lends to a striking facade for the 35 floor towers. The project is pre-certified Gold by IGBC Green homes. 'Brigade Exotica, spread over of 10 acres offers 6 apartment sizes of 3 & 4 bedroom apartments and will have 80 per cent of the area set aside for green open spaces with a lifestyle clubhouse, department store and coffee shop. The Tropland Studio of Thailand will undertake the landscaping of the area and will include theme gardens, lawns, water bodies and a heavily wooded area. DB Realty in talks to jointly develop 2 Mumbai properties DB Realty Ltd is in talks with major real estate companies to jointly develop two of its prime properties in Mumbai that are valued around Rs.30 bn. The first property is located in the Bandra Kurla Complex, which has a development potential of 1 mn sq ft. The second one at Kala Nagar in Bandra has a potential of 500,000 sq ft. Quoting sources, the report said DB's bankers are in talks with Mumbai-based Rustomjee, which is looking at the deal seriously. The Bandra Kurla Complex project operating entity, MK Malls & Developers Pvt Ltd, has UK-based Trinity Capital and IL&FS Investment Managers as main investors. The Kala Nagar land was bought by DB's promoters from the Wadias of Bombay Dyeing. "The idea of the joint development is that Rustomjee could bring execution skills, construction finance and other expertise, DB will share the development profits while continuing to hold the land," the report quoted a person as saying. GAIL eyes stakes in LNG plants of Chevron, Algerian co State-owned GAIL (India) Ltd is in talks with at least two international energy companies, including US- based Chevron Corp, to acquire stakes in their liquefied natural gas plants in Australia and Algeria. The company is aggressively pursuing Chevron for equity interest in its Gorgon plants in Australia and Algeria's state-run firm Sonatrach for a stake in some of its plants in the country, the report quoted two people familiar with the development. "We are keen to pick up an equity stake in Chevron's Gorgon LNG plants in Australia and the LNG plant of an Algerian company," the paper said quoting a senior GAIL executive as saying. The move by the company to acquire stakes in LNG plants is prompted by falling output and rising demand of fuel in the domestic market.
Weekly Newsletter 18 Info-Spectrum Bridging the Information Gap in Corporate Landscape
GMR Infra to tie up debt for Gujarat highway project by Apr GMR Infrastructure Ltd expects to achieve financial closure for the Kishangarh-Udaipur-Ahmedabad highway project in six months, A. Subba Rao, GMR group chief financial officer, told. "We are trying for a debt equity of 75:25. Roughly, I can say it (financial closure) may happen by April of the next calendar year," Rao said. The cost of the project, received from the National Highways Authority of India, is approximately Rs.72 bn. On completion of the project, the company expects Rs.6.6 bn a year as toll revenue, Rao said. The highway project is on a design-build-finance-operate-transfer basis and will be implemented under a public-private partnership model. The concession period for the project is 26 years, the company said. PBA Infra gets Rs.304-mn orders PBA Infrastructure Ltd has bagged three orders worth a total sum of Rs.304 mn for building roads in Pune, Nagpur, and in Jammu & Kashmir, it said in a notice to the National Stock Exchange. The company has received orders worth Rs.205.33 mn from Pimpri Chinchwad Municipal Corp for widening, developing, and treating roads with hot mix and bituminous. It has won another Rs.63.02-mn order for re-carpeting of taxi ways and existing apron at Dr. Babasaheb Ambedkar International Airport at Nagpur from MIHAN India Ltd. The last order worth Rs.35.66-mn is from Jammu & Kashmir Rural Roads Development Agency. BEML gets Rs.2.30-bn mining equipment orders Aug-Sep BEML Ltd received orders totalling Rs.2.30 bn during Aug and Sep for supplying 100 tn and 60 tn dump trucks to two subsidiaries of Coal India Ltd. Placed by Central Coalfields Ltd and Northern Coalfields Ltd, these two orders have taken BEML's order book to Rs.47.12 bn, without mentioning the value of each of the orders or the date by when the company would execute them. BEML has set a target of Rs.42 bn turnover for the current financial year and Rs.50 bn for 2013-14 (Apr-Mar), as per the release. Its revenue in 2010- 11 was Rs.36.23 bn. PSA-ABG consortium gets Rs.67-bn cargo terminal project The consortium of Singapore's PSA International Pte Ltd and India's ABG Ports Pvt Ltd, has won a Rs.67-bn project for the fourth container terminal at Mumbai's Jawaharlal Nehru Port. At Rs.67-bn, the project will mark the highest direct foreign investment into India's port sector, the paper said. The consortium's bid of sharing 50.8% of the revenue with the government was the highest, leading the JN Port Trust to approve it, the daily reported. ABG Ports will hold 26% stake in the project, the report said. GMR Infrastructure gets highway project from NHAI on PPP basis GMR Infrastructure Ltd has received a contract from the National Highways Authority of India for six laning the 555 km Kishangarh-Udaipur- Ahmedabad highway. The highway project will on a design-build-finance- operate-transfer basis and will be implemented under a public-private partnership model. The total cost of the highway project is around Rs.72 bn, A. Subba Rao, GMR group chief financial officer told television news channel CNBC-TV18. The concession period for the project is 26 years, the company said. Mauritius-based FII Xander Investment ups stake in HCC to over 5% Mauritius-based foreign institutional investor Xander Investment Management Ltd has raised its stake in Hindustan Construction Co Ltd to 5.03% from 4.99%, the latter said in a notice to the bourses. Xander Investment acquired 200,000 shares of HCC through secondary market purchases on Sep 20, 2011. It now holds 30.48 mn shares of the company, the notice said. Airports authority, Leelaventure spar over land lease terms Serious differences have cropped up between Hotel Leelaventure and Airports Authority of India over the terms for renewal of the lease agreement of the land where the company's Hotel Leela near the Mumbai international airport is situated. AAI has demanded that the hotel company should fork out 7.5% of gross turnover of the hotel as royalty. Tanti Holdings stake in Suzlon Energy rises to 17.05% vs 7.33% Tanti Holdings Pvt Ltd's stake in Suzlon Energy Ltd has increased to 17.05% from 7.33% following the merger of Sanman Holdings Pvt Ltd with Tanti Holdings. Sanman Holdings held 173 mn shares or 9.7% stake in Suzlon Energy, which, by virtue of merger, has been transferred to Tanti Holdings. Tanti Holdings now holds 303 mn shares of Suzlon. Areva T&D gets Rs.400-mn sub-station order from Reliance Power Areva T&D India Ltd said it has received a Rs.400-mn order from Reliance Power Ltd for constructing a 220- kV substation for the latter's 350 MW solar power plant in Rajasthan. Areva T&D's transmission unit, now a
Weekly Newsletter 19 Info-Spectrum Bridging the Information Gap in Corporate Landscape part of Alstom Grid, will execute the order on a turnkey basis. The order includes design and construction of transformers, monitoring systems and civil work of the plant, Areva T&D India said in a release. Govt mulling reversal of excess capex allowed to RIL on D6 block The oil ministry is considering reversal of excess capital expenditure allowed to Reliance Industries Ltd for its D6 block in Krishna-Godavari basin, due to lower than estimated gas output, CNBC-TV18 reported quoting sources. Tata Power eyes coalmine in Australia, Africa, Asia for Mundra unit Tata Power Co Ltd is scouting for additional coalmines overseas, possibly to hedge against the uncertainties on import of the commodity from Indonesia that was to fuel its upcoming 4,000 MW ultra mega power project in Mundra, Gujarat. Power min may factor in costly coal for new ultra mega plant bids The government may consider including a clause in the bid document for new ultra-mega power projects that will allow developers to factor in any unforeseen rise in fuel prices in the tariff, said G.B. Pradhan, special secretary at the power ministry,. Power min may factor in coal price rise in new UMPP bid paper The government may consider including a clause in the bid document for new ultra-mega power projects that will allow developers to factor in any unforeseen rise in fuel prices in the tariff, said G.B. Pradhan, special secretary at the power ministry,. Essar Energy allocated coal from Amelia block for Mahan power unit Essar Energy Plc, the London Stock Exchange-listed parent company of Essar Oil Ltd, has been allocated a share of coal from the Amelia coal block by the Madhya Pradesh government to fuel its 1,200 MW Mahan-I power project. L&T gets Rs.7-bn order from Oman co to set up gas treating unit Larsen & Toubro Ltd said its hydrocarbon division has received a Rs.7-bn order from Petroleum Development Oman LLC for setting up a gas treatment plant that will treat 3 mscmd of gas and supply it to the government gas plant at Yibal in Oman. JSW Energy 1,200 MW Ratnagiri plant to go full stream in a week JSW Energy Ltd will commission the final 300 MW unit of its 1,200 MW Ratnagiri power project in Maharashtra by the end of this month, but has not yet managed to tie up firm coal supplies, L.K. Gupta, managing director and chief executive officer, told. GVK says moving slum dwellers from Mumbai airport land a challenge Shifting slum dwellers occupying 276 acres of airport land in Mumbai is the "mother of all challenges," said Isaac George, chief financial officer of GVK Power & Infrastructure Ltd that operates the Chhatrapati Shivaji International Airport. FOCUS:Oil cos in limbo as rupee's fall offsets weak crude oil price While the recent sharp fall in crude oil prices buoyed hope that state-owned oil marketing companies' profitability would improve, the equally sharp decline in the rupee against the US dollar wiped out all such optimism. Two GAIL pipelines delayed on land issues, more may get affected GAIL (India) Ltd is facing a tough time completing its gas pipeline expansion projects across the country over rising public resentment against land acquisition, which has already delayed two of its projects, Ashutosh Karnatak, executive director-projects, said. HPCL plans to raise $750 mn overseas loans in FY12 for capex Hindustan Petroleum Corp Ltd plans to raise $750 mn through external commercial borrowings in the current financial year ending March, to fund its capital expenditure, three senior officials of the state-owned oil refiner and retailer told. Indraprastha Gas mulling nominal hike in CNG, PNG prices Indraprastha Gas Ltd is planning a slight hike in prices of compressed natural gas and piped natural gas because of increase in gas prices and the depreciation in rupee against the dollar, Managing Director Rajesh Vedvyas said.
Weekly Newsletter 20 Info-Spectrum Bridging the Information Gap in Corporate Landscape
HPCL plans to raise $750 mn overseas loans in FY12 for capex Hindustan Petroleum Corp Ltd plans to raise $750 mn through external commercial borrowings in the current financial year ending Mar, to fund its capital expenditure, three senior officials of the state-owned oil refiner and retailer told. HPCL plans 450-bn-rupee capex by FY17, to expand ops, new refinery State-owned Hindustan Petroleum Corp Ltd plans to invest around Rs.450 bn over the next five years ending Mar 2017 on expanding its operation, including on setting up a new refinery in Maharashtra, S. Roy Choudhury, chairman and managing director, said. Tata Housing head sees realty prices falling 10-15% in near term Prices of residential properties, especially in the luxury segment, are likely to decline 10-15% in the near- term due to subdued demand, said Brotin Banerjee, managing director and chief executive officer, Tata Housing Development Co Ltd. HPCL-Mittal Energy plans to raise 20 bn Rs. via IPO HPCL-Mittal Energy, a joint venture between Hindustan Petroleum Corp Ltd and Mittal Energy, plans to raise Rs.20 bn through a public issue. Part of the proceeds will be used to lay crude pipeline from Bhatinda to Lahore in Punjab for export of petroleum products to Pakistan. Climate funding must not hurt emerging mkts: India In this regard, India wants a global levy on shipping and aviation-related carbon emissions to be considered as a climate-funding measure only after ensuring an eventual refund of revenues collected from the developing nations. Delhi govt considering buying gas from intl market As uncertainty continues over the fate of 1,500 MW Bawana power plant after Reliance Industries'' refusal to supply gas, Delhi government is now considering procuring 20% of fuel from the international market to commission the plant built at a cost of Rs.4,500 crore. AAI seeks exemption from Union Cabinet for sale or long-term land lease The Airports Authority of India has asked for selective exemption from the Union Cabinet for selling or long- term lease of any land of the government or a government-controlled statutory body. The airports operator is estimated to have a land bank of 45,000 acres across all airports. Adani Power plans to move SC against electricity regulator order Adani Power Ltd plans to file a petition in the Supreme Court soon against electricity regulator's recent judgement declaring illegal the company's move to unilaterally terminate power purchase agreement signed with the Gujarat Urja Vikas Nigam Ltd. Cairn Energy may have to pay $1.5 bn as tax for Vedanta deal Cairn Energy will have to pay about $1.5 bn as tax for its 40% stake sale in its Indian arm, Cairn India, to UK-based Vedanta Resources Plc in a deal valued at $6.5 bn. The company has already sold 10% holding in Cairn India to Vedanta and the remaining 30% is awaiting final approval. Kirloskar Oil Engines gets Rs.3.96-bn order Kirloskar Oil Engines Limited has informed that the Company has received an order of Rs.396 Crores from Nuclear Power Corporation of India Limited (NPCIL) for the supply of 16 nos. emergency Diesel Generating sets of 4.2 MW each. This order is to be executed over next 42 months. KS Oils board discusses sale of wind power ops KS Oils Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 26, 2011, inter alia, has approved the following; 1. Appointment of Mr. Ramesh Chand Garg as Chairman aim Managing Director (CMD). 2. The Board has discussed the matter for sale of Wind power segment of the Company. Minister Patel says market not appropriate for BHEL FPO The government is likely to wait for conducive market conditions before it launches the follow-on public offer of state-owned Bharat Heavy Electricals Ltd, Praful Patel, minister for heavy industries and public enterprises, said.
Weekly Newsletter 21 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Defence ministry puts Mazagon Dock-Pipavav partnership on hold The defence ministry has put on hold the proposed joint venture between state-owned Mazagon Dock Ltd and Pipavav Shipyard Ltd for manufacturing submarines and warships after rivals Larsen and Toubro Ltd and ABG Shipyard Ltd raised objections to the deal, CNBC-TV18 reported. Alok Ind's realty arm may sell Lower Parel commercial property at a loss Alok Realtors, the real estate arm of Alok Industries Ltd, may sell a commercial building in Lower Parel, Mumbai that it had bought from Peninsula Land Ltd, at a loss. Alok Realtors had bought the building for Rs.10.75 bn in 2007. DLF sells 10.8-acre Gurgaon land parcel for Rs.2.8 bn DLF Ltd has sold 10.8 acres land parcel in Gurgaon to a Dubai-based Indian investor for Rs.2.8 bn as part of efforts to reduce its debt burden. The company is also in talks with other investors to sell another 20 acres in Gurgaon, which is expected to fetch around Rs.4 bn. Petron Engineering gets order worth Rs.665 mn Petron Engineering Construction Ltd has informed that the Company have been awarded a contract by Lafarge India Pvt. Ltd., Mumbai for Mechanical Erection, Electrical and Automation Installation for its 5000 TPD Cement Plant Project at Chittaurgarh, Rajasthan, India, for an apprx. Contract Value of Rs.66.50 Crores. Reliance Infra to get revenue from 20 of its 27 projects by Mar Within the next six months Reliance Infrastructure Ltd will start earning revenue from 20 of the 27 projects it is working on, Chief Executive Officer Lalit Jalan told the shareholders at the company's annual general meeting. IOC eyes second LNG terminal on east coast to meet captive need State-owned Indian Oil Corp Ltd is considering setting up a second liquefied natural gas import terminal along the east coast to mainly meet the requirement at its upcoming refinery at Paradip in Orissa, Chairman and Managing Director R.S. Butola said. IOC seeks predictable business landscape in fuel pricing, subsidy The state-owned oil marketing companies need a "predictable business landscape" on fuel pricing and subsidy payout to help undertake their investment needs, R.S. Butola, chairman and managing director of Indian Oil Corp Ltd said. NTPC slashes Ramagundam plant capacity by 25% on coal shortage The state-owned NTPC Ltd has slashed the power generation capacity of its 2,600 MW Ramagundam project in Andhra Pradesh's Karimnagar district by 25% because of shortage of coal, a senior company official told. IVRCL consortium wins Rs.15-bn Arunachal Pradesh road order A consortium of IVRCL Ltd's arm and Sushee Infra Pvt Ltd has received a Rs.14.9-bn order to widen a 311- km road in Arunachal Pradesh into a two-lane road, the former said in a press release. Govt to table real estate regulator bill in House winter session The government is likely to seek Parliament's approval for the real estate regulator bill in the winter session, Minister for Housing and Urban Poverty Alleviation Kumari Selja said. REpower shareholders OK Suzlon's offer to buy balance stake in co Shareholders of German wind turbine maker REpower Systems SE have allowed majority shareholder Suzlon Energy Ltd to acquire the remaining 4.8% stake in the company for 142.77 euro a share, a Suzlon release said. Air India cuts its monthly working loss to Rs.2.66 bn Aug State-owned carrier Air India's monthly operational loss has come down to Rs.2.66 bn in Aug from Rs.5.07 bn in Apr, the airline said in a release. McNally Bharat says FY13 to be "tough year" due to project delays McNally Bharat Engineering Co Ltd expects 2012-13 (Apr-Mar) to be a "tough year" for the company due to delay in projects and payment from clients, Executive Chairman Deepak Khaitan told shareholders.
Weekly Newsletter 22 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Petronet says spot LNG prices doubled in past mos to $15/mBtu now Petronet LNG Ltd is buying liquefied natural gas at around $15 an mBtu on spot basis, which is almost double the price the country's largest gas importer used to pay a few months ago, Director-Finance R.K. Garg said. Tata BP Solar commissions 1-MW solar power plant in Andhra Pradesh Tata BP Solar India Ltd's 1-MW solar power plant was synchronised with the Andhra Pradesh electricity grid, the company said a press release. Peninsula Land to launch 12 new projects over next 1 year Peninsula Land Ltd will launch around 12 new projects over the next one year, and will aim to complete its existing three projects in the near term, Executive Vice-President Rajeev Piramal said. Promoter Nutan Jain ups stake in Parsvnath Developers to 10.09% Nutan Jain, one of the promoters of Parsvnath Developers Ltd, increased her stake in the company to 10.09% from 10.02% on Sep 22, according to a disclosure to the Bombay Stock Exchange. Individual investor Rao ups Exelon Infra stake to 14.50% vs 4.74% Exelon Infrastructure Ltd said that individual investor M. Srinivas Rao has increased his stake in the company to 14.50% from 4.74% through off-market and open market share purchases from Sep 19 to Sep 21. Mexico to emulate MGNREGA scheme Impressed with the functioning of MGNREGA and rural road construction schemes in the country, Mexico has said it would its own welfare programmes for poor on these initiatives. Bajaj Electricals sees margin pressure in FY12, sales growth 20% Bajaj Electricals Ltd's profitability may be hit in 2011-12 (Apr-Mar) following a slowdown in real estate and depreciation of the rupee against the dollar, Chairman and Managing Director Shekhar Bajaj said. Parsvnath gets shareholder OK for up to 20-bn-rupee QIP Real estate major Parsvnath Developers Ltd has received shareholder approval to raise up to Rs.20 bn via qualified institutional placement of shares, the company said in a notice to the Bombay Stock Exchange. ONGC OK to Cairn-Vedanta deal; Cairn to agree to royalty cess norms The board of Oil & Natural Gas Corp Ltd has decided to give its consent to Cairn India for the latter's deal with Vedanta Resources Plc. CEO says RPower on course to achieve 5,000 MW capacity by Dec 2012 Reliance Power Ltd is on course to achieve power generation capacity of 5,000 MW by December 2012, J.P. Chalasani, chief executive officer, reiterated at the company's annual general meeting here. HPCL raises Rs.800 mn through sale of 6.35%, 2024 oil bonds Hindustan Petroleum Corp Ltd raised Rs.800 mn through sale of oil bonds in the secondary market, merchant bankers said. Official says Ansal Prop to mull debt recast via overseas borrows Ansal Properties and Infrastructure Ltd would consider restructuring its debt through external commercial borrowings, Dinesh Chander Gupta, assistant vice president-investor relation, told. HPCL to raise at least Rs.1 bn via 6.35%, 2024 oil bonds' sale Hindustan Petroleum Corp Ltd will raise at least Rs.1 bn through the sale of oil bonds in the secondary market, merchant bankers said. New global air navigation system to boost air safety A new global air navigation system with its base in Mumbai would connect China and Pakistan by the year end giving a fillip to air safety across the region. Bangla finds new one trillion cubic feet gas reserve "This reserve will significantly help reduce the country''s perennial gas crisis," Chairman of Petrobangla, Hussain Monsur, told PTI.
Weekly Newsletter 23 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Hitachi, SFO Technologies to set up JV in India Hitachi Ltd and Kochi-based SFO Technologies, a NeST Group company, announced that they have agreed to set up a joint venture for advanced control systems for thermal power plants. NTPC arm achieves fincl closure for Bihar project stage II NTPC Ltd today said its arm, Kanti Bijlee Utpadan Nigam Ltd, has tied up 23.41-bln-rupee loan from a consortium of Indian banks for the second stage of its 390 MW Muzaffarpur Thermal Power Project in Bihar. Kingfisher Air to exit low cost flight ops; focus on premium svc Kingfisher Airlines Ltd is planning to exit its low cost, no frills service Kingfisher Red, Chairman Vijay Mallya said. Rail ministry plans setting up Stations Authority of India The Ministry of Railways is planning to set up the Stations Authority of India to develop stations as multi- purpose hubs, Railway Minister Dinesh Trivedi said. Pipavav Ship, SKIL Infra, Airbus form JV for aircraft repair unit Pipavav Shipyard Ltd has inked a memorandum of understanding with its promoter SKIL Infrastructure Ltd and European aircraft maker Airbus to form a joint venture to set up a facility in India for maintenance, overhaul and repair of civil and defence aircrafts. Dewan Housing OKs merger of arms First Blue, DHFL Holdings with co Dewan Housing Finance Ltd's board has approved the merger of subsidiaries First Blue Home Finance Ltd and DHFL Holdings Pvt Ltd with the company. Chartered Logistics in pact with Arshiya Intl, Jindal Vector Road transportation services provider Chartered Logistics Ltd said that it had tied up with Arshiya International Ltd for its foray into rail logistics and with Jindal Saw Ltd's subsidiary--Jindal Vector Water Ways Ltd--for transportation of bulk cargo through the sea route. CEO Dudley says restoring gas output at D6 block BP's top priority BP Plc wants to focus on restoring gas production from the D6 in the Krishna-Godavari Basin, Robert Dudley, group chief executive officer, told reporters after meeting Petroleum and Natural Gas Minister S. Jaipal Reddy and Commerce and Industry Minister Anand Sharma in Delhi. Punj Lloyd gets 11.95 bln rupee power equipment order from CESC arm Punj Lloyd Group today said it was won an 11.95-bln-rupee order from Haldia Energy Ltd, a wholly-owned subsidiary of CESC Ltd. Godrej Ind cuts stake in Godrej Properties to 69.5% vs 70.6% Godrej Industries Ltd has cut its stake in Godrej Properties Ltd to 69.49% from 70.63% through inter-se transfer, the latter said in a notice to the exchange. UN body grants 1.37 mln carbon credits to SRF, 16,435 to KRBL SRF Ltd has been allotted 1,374,957 certified emission reductions or carbon credits, the United Nations Framework Convention on Climate Change said in a statement. Power Grid seeks bids by Nov 4 to lease out 29,800 telecom towers State-owned transmission utility Power Grid Corp of India Ltd, which also owns a large telecommunication infrastructure across the country, has invited bids from mobile service providers and telecom infrastructure operators to lease out 29,800 telecom towers in four states, officials familiar with the development told. Bangalore Metro seeks bids for developing property around terminus Bangalore Metro Rail Corp Ltd today invited initial bids for developing property around metro terminus at Baiyappanahalli in the city, according to a tender notice on its website. Court asks Lanco to give Perdaman notice before securitising asset Australia's apex court has asked Lanco Infratech to give a 10-day notice to Perdaman Chemicals and Fertilisers Pty Ltd before securitising any of Griffin Coal's assets. Maharashtra regulator refuses interim relief to power distributor The Maharashtra Electricity Regulatory Commission has refused to allow Maharashtra State Electricity Distribution Co Ltd's petition seeking to immediately recover 48.47 bln rupees from its consumers through a uniform additional charge.
Weekly Newsletter 24 Info-Spectrum Bridging the Information Gap in Corporate Landscape
INTERVIEW: REC head sees 15-20% growth in disbursals annually The monetary tightening by Reserve Bank of India has pinched banks and non-banking finance companies alike, whose disbursals have taken a beating due to the spiralling interest rates. But Rural Electrification Corp Ltd is better placed than most in its league, because of its ability to keep borrowing costs under check. HCC Construction arms closes 2.4-bln-rupee stake sale to Xander HCC Concessions, a subsidiary of Hindustan Construction Co Ltd, said it has closed a 14.5% stake sale deal with the investment firm Xander Group for 2.4 bln rupees. Nuclear Power Corp, Areva to start talks post France govt review Nuclear Power Corp of India Ltd will begin talks with Areva SA for setting up a nuclear power project in Maharashtra only after the government receives the French Nuclear Safety Authority review of Areva's proposal, Srikumar Banerjee, chairman of the Indian Atomic Energy Commission, said. PFC to raise at least 2 bln rupees via tax-saving infra bonds Power Finance Corp Ltd will raise at least 2 bln rupees through retail issue of tax-saving infrastructure bonds that open for subscription Nov 4 and close the same day, the company said. Power Company of Karnataka invites bids for 700 MW power supply Power Company of Karnataka Ltd, a special purpose vehicle set up by the government of Karnataka for helping the state bridge its power deficit, has invited bids for supply of 700 MW power between Nov 1 and Jun 15, 2013, the company said in public notice. Karnataka government arm invites bids for 700 MW power supply Power Co of Karnataka Ltd, a state government-owned public sector undertaking, invited bids from generating companies for supplying total 700 MW power from Nov 1, 2011 to Jun 15, 2013. RELIANCE INDUSTRIES: Directorate General of Hydrocarbon has said that newer natural gas finds in the eastern offshore KG- D6 block are not economically viable at the government stipulated price of $4.205 per mmBtu. To formulate a strategy with government to ramp up output from the KG-D6 block by 30-35 mmscmd. The oil ministry representative on the panel that oversees operations in the company's KG-D6 block has not approved eight gas finds the company has made. DEWAN HOUSING FINANCE CORP: Plans to merge arm First Blue Home with self and raise funds through qualified institutional placement. Deutsche Postbank Home Finance board will meet Wednesday to consider amalgamation of company with Dewan Housing Finance Corp. Has approved merger of subsidiaries First Blue Home and DHFL Holdings with self. First Blue shareholders will get 10 shares of Dewan Housing for 97 held. The company has approved raising up to 10 bln rupees through QIP. DLF: Government allows special economic zone promoted by DLF Ackruti Info Parks in Pune to change majority ownership. Sells Gurgaon land to a Dubai-based Indian investor for Rs.2.8 bn. To reduce debt burden by a third in 2010-11 (Apr-Mar). RELIANCE INFRASTRUCTURE: Shareholders approve issue of equity shares to qualified institutional buyers and raising funds from overseas markets. Within the next six months, the company will start earning revenue from 20 of the 27 projects it is working on. OIL AND NATURAL GAS CORP: Has issued a no-objection certificate to CAIRN INDIA for deal with Vedanta Resources, subject to pact on royalty and cess norms. ALOK INDUSTRIES: Arm to sell Mumbai office building in Lower Parel at a loss to cut down debt of Rs.106.85 bn; may exit real estate business.
Weekly Newsletter 25 Info-Spectrum Bridging the Information Gap in Corporate Landscape
PIPAVAV SHIPYARD: The defence ministry has put on hold a proposed joint venture between the company and state-owned Mazagon Dock. RELIANCE POWER: Shareholders approve issuing equity shares to qualified institutional buyers and raising funds from overseas. BAJAJ ELECTRICALS: Says profitability may be hit in 2011-12 (Apr-Mar) due to slowdown in real estate and depreciation in the rupee. DB REALTY: Is in talks with major real estate firms for jointly developing two of its prime properties in Mumbai valued at Rs.30 bn. GMR INFRASTRUCTURE: Agrees to sell 30% stake in subsidiary GMR Energy (Singapore) to Malaysia's Petronas International Corp. KS OILS: Apr-Jun net loss Rs.3.55 bn against Rs.505.1 mn. Profit year ago, company discusses sale of wind power operations. SUZLON ENERGY: Company's Saurashtra wind power project faces hurdles as locals protest over land allotment. PETRON ENGINEERING CONSTRUCTION: Has received a contract worth around Rs.665 mn from Lafarge India. GLOBAL OFFSHORE SERVICES: Promoter Clearwell has raised stake to 5.27% from 4.44%. BEML: Has received Rs.2.30-bn mining equipment order in Aug-Sep. ABAN OFFSHORE: Shareholders have approved raising up to $400 mln via equity overseas and raising up to 25 bln rupees through QIP. CAIRN INDIA: The petroleum ministry has objected the company's plans to start production at Rajasthan block by end of this fiscal. GVK POWER & INFRASTRUCTURE: Has planned to raise stake in Hancock Assets by increasing its holding to 47% in 2-3 years. NTPC: Has tied up a syndicated loan worth 23.41 bln rupees from a consortium of Indian banks for its 390- MW Muzaffarpur thermal power project in Bihar. PIPAVAV SHIPYARD: Has inked a pact with promoter SKIL Infrastructure and Airbus to set up a joint venture aircraft maintenance facility in India. SUZLON ENERGY: Shareholders have approved raising up to 50 bln rupees through issue of securities.
Weekly Newsletter 26 Info-Spectrum Bridging the Information Gap in Corporate Landscape
IT & ITeS INFORMATION TECHNOLOGY: Infosys eyes deals in UK public sector. Advent closes in on BT's stake in Tech Mahindra. Infonet IT Solutions seeks OK for 600-mn IPO. SMART Tech appoints HCL Info as distributor for S Asia, India. General Electric to invest $200 mn in a multi-technology and multi-business facility in Pune. Telecom Regulatory Authority of India plans to impose a termination charge of five paisa for every commercial SMS on the service provider from whom it originates. Cognizant has acquired Zaffera LLC, a strategic SAP retail consulting and software development firm also based in the US. HCL Tech opens delivery centre in Redmond Indian IT services company HCL Technologies has opened a new global delivery centre in Redmond, Washington. The initial investment of $4 mn will create more than 400 jobs in the Seattle area over the next two years, an HCL statement said. With a 350-seat capacity, the ‗Collaborative Engineering Hub' will be a focal point for HCL's near-shore engineering programs and will provide both engineering and product development services in the areas of internationalisation and mobility. The centre was inaugurated by the Washington State Director of the Department of Commerce, Mr Rogers Weed, in the presence of officials from HCL and Microsoft. HCL also announced Microsoft as its first official enterprise customer, and Mr Weed pledged $200,000 from the Workforce Investment Act Fund to HCL to assist with the training of future employees from the Seattle area. In addition, HCL will work closely with several local universities to recruit graduates, including the University of Washington, University of Washington-Bothell Campus, University of Washington-Tacoma, Seattle University, and Seattle Pacific University. Alok Bharadwaj named President of MAIT Hardware association MAIT has appointed Dr Alok Bharadwaj, Senior Vice-President at Canon India, as its new President. J.V. Ramamurthy, President and COO of HCL Infosystems, is its new Vice-President for 2011- 12, the association said in a release. The new office-bearers were announced at MAIT's 28th Annual Session held in the Capital. Dr Bharadwaj said that although the current environment is challenging as growth in IT industry is slowing down, the long-term demand. SMART Tech appoints HCL Info as distributor for South Asia, India Nasdaq-listed SMART Technologies has appointed HCL Infosystems Ltd as an authorised distributor for its products in South Asia, including India, Sri Lanka, the Maldives, Nepal, Bhutan and Bangladesh. HCL Infosystems will also provide after-sales support for SMART products, the Noida-based company said in a press release today. "SMART is well positioned to become the preferred supplier of interactive whiteboards and other education technology products through HCL's sales activities and channel, and it will provide extensive training for HCL staff and resellers on an ongoing basis," HCL Infosystems said. Zenith Infotech spins off MSD division Zenith Infotech Limited has informed that the Company have spun off one Division of the Company Business Known as MSD Divsion to M/s Zenith Monitoring Services Pvt. Ltd. Mumbai which will be a Subsdiary of Zenith RMM LLC, by way of an Asset Purchase Agreement. However, Zenith Infotech Ltd is going to be a major shareholder. Wipro mulls options to sell some assets of US arm Infocrossing Wipro is evaluating options to sell data centres and other hardware assets of its US subsidiary, Infocrossing, to unlock value from its non-core business. India's third biggest software exporter has already received initial offers from several medium to large US companies for the assets. INTERVIEW: Persistent Systems looks to buy "niche, boutique" IT cos Close on the heels of acquiring Agilent Technologies' French software marketing and development business, Pune-based software developer Persistent Systems Ltd is on the prowl to buy out niche technology firms.
Weekly Newsletter 27 Info-Spectrum Bridging the Information Gap in Corporate Landscape
HCL Tech opens delivery centre in Washington HCL Technologies Ltd has opened an engineering-focused global delivery centre at Washington with an initial investment of $4 mn and Microsoft as its first official enterprise customer, the company said in a notice to the stock exchanges. INTERVIEW: Fall in rupee to aid Infotech Enterprises Jul-Sep margin The recent sharp fall in the rupee may be spooking domestic markets, but for software service providers like Infotech Enterprises Ltd, this is a time to rejoice. Standard Chartered downgrades Infosys to in-line from outperform Standard Chartered Securities (India) Ltd has cut its rating on Infosys Ltd to 'in-line' from 'outperform' and has also cut the target price to Rs.2,290 per share from Rs.3,150 as the information technology company sees early signs of a slowdown in the banking, financial institution vertical. Highlights of Infotech Enterprises CMD Reddy's interview Infotech Enterprises Ltd Chairman and Managing Director B.V.R. Mohan Reddy plans to focus on Australia, Japan to de-risk business, even as the company holds talks with clients to up billing prices. Open China market to Indian IT, Pharma: Montek "I believe the Chinese side is aware of our market access concerns," said Planning Commission Deputy Chairman Montek Singh Ahluwalia at the first Strategic Economic Dialogue (SED) between the two countries here. Promoter T. Mohan Reddy sells entire 0.93% stake in Acropetal Tech Acropetal Technologies Ltd's promoter T. Mohan Reddy sold his entire 0.93% stake in the company for Rs.5.4 mn through inter-se transfer, the company said in a notice to the National Stock Exchange. Solix Tech, SRA OSS tie up to offer data management solutions in US Solix Technologies Ltd's said that its parent company Solix Technologies Inc has entered into a partnership with SRA OSS Inc to jointly provide data management governance solutions in the US. HCL INFOSYSTEMS: Nasdaq-listed SMART Technologies appoints the company as an authorised distributor for its products in South Asia, including India. TATA CONSULTANCY SERVICES: Mulling acquisitions in France, Germany, Japan and the US as it sees further rising demand despite global economic concerns. ECLERX SERVICES: Shareholders approve raising foreign institutional investment limit to 100%.
Weekly Newsletter 28 Info-Spectrum Bridging the Information Gap in Corporate Landscape
PHARMA & HEALTHCARE PHARMACEUTICALS & HEALTHCARE: Maira panel says 'CCI must clear pharma M&As'. Glenmark arm gets US FDA tentative approval for generic of Zomig. US FDA gives tentative nod to new Cipla drug for HIV-1 infections. Dr Reddy's ends pact to buy JB Chem's Russia prescription drug ops. US Food and Drug Administration to up India staff. Finance ministry confirms there will be no cap on foreign direct investment in the sector. GlaxoSmithKline is looking for acquisitions in the range of $1 bn-$2 bn in India. Dr Reddy's ends pact to buy JB Chem's Russia prescription drug ops Dr Reddy's Laboratories Ltd has called off the Rs.1.37-bn deal to acquire JB Chemicals & Pharmaceuticals Ltd's prescription drugs business in Russia and Commonwealth of Independent States countries, just three weeks after the latter got approval of its shareholders. The deal was signed on Jul 22 and expected to be completed by this month. "...The proposed business deal...has been mutually terminated in the overall business interest of both parties," the press release stated. Had the sale gone through, JB Chemicals would have completely exited from the said regions, having earlier sold its over-the-counter business in Russia and Commonwealth of Independent States countries and global rights for three brands to Johnson & Johnson for Rs.11.57 bn in May. The pact to sell the inventory of its wholly-owned subsidiary in Russia to Dr Reddy's arm in the region for $3.9 mn also stands terminated, JB Chemicals said in a disclosure to the National Stock Exchange. JB Chemicals planned to use the proceeds of the deal with Dr Reddy's, and that from Johnson & Johnson to expand Indian operations. When the deal was announced, analysts said it would help Dr Reddy's expand its prescription, hospital, and over-the-counter portfolio, Russia being a key market for the company. In Apr-Jun, Dr Reddy's revenue from Russia and CIS region was Rs.2.49 bn, around 30% of which came from over-the-counter segment. Both companies have expressed their commitment to furthering their business in Russia. GSK eyes $1 bn-$2 bn buys in India, but reluctant to pay premium GlaxoSmithKline Plc is looking for acquisitions in the range of $1 bn-$2 bn in India, Group Chief Executive Officer Andrew Witty said. In a sign that multinational companies now see the Indian pharmaceutical acquisition space as overheating, he stressed big ticket acquisitions were not what the group had in mind, and that it was under no such pressure to do so. "We are disciplined in how we allocate funds...We are not going to give a strategic premium for the buy," said Witty. "We are happy not to do it also." This is in sharp contrast to acquisitions that have taken place in recent years in the domestic pharmaceutical space, wherein global majors have paid a huge sum to gain a hold and ground in India. One of the prime examples remains Abbott acquiring Piramal Healthcare Ltd's domestic formulations business for a whopping $3.72 bn or nine times its sales. This was the second-largest deal in the Indian pharmaceutical space after Japan's Daiichi Sankyo snapped up Ranbaxy Laboratories in 2008 for $5.4 bn. Witty said GSK was looking for acquisitions whose business would compliment its existing operations and may even consider buying manufacturing facilities. He was talking at the annual general meeting of the Organisation of Pharmaceutical Producers of India. Vivimed Labs raises Rs.1.27 bn from 2 private equity cos Vivimed Labs Ltd announced raising Rs.1.27 bn from two private equity firms, which the Hyderabad based pharmaceutical and specialty chemical products manufacturer will utilise for ongoing expansion at its existing facilities in Karnataka and Hyderabad. NYLIM Jacob Ballas India Fund III LLC has invested Rs.670 mn in the company by way of compulsorily convertible preference shares. The Jacob Ballas Capital India- owned fund will get 13.2% stake in Vivimed on conversion of the preference shares within 18 months at Rs.315 per share. The other private equity firm, Kitara Capital has invested Rs.600 mn into the company by subscribing to similar instruments at 327 per share and will get 11.4% stake in the company after 18 months. Vivimed is also setting up a special economic zone unit at Visakhapatnam near Pydibhimavaram and a US Food and Drug Administration-compliant facility for pharmaceuticals at Choutuppal near Hyderabad. The company is also considering acquisition of pharmaceutical manufacturing units in India and Europe.
Weekly Newsletter 29 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Glenmark arm gets US FDA tentative approval for generic of Zomig Glenmark Generics, the US arm of Glenmark Pharmaceuticals Ltd, has received tentative nod from the US Food and Drug Administration for its drug Zolmitriptan, according to the information available on the regulator's website. Zolmitriptan, an anti-migraine drug, is a generic version of AstraZeneca's Zomig. The drug is a triptan and is used in acute treatment of migraine attacks with or without cluster headaches. According to the regulator, the company has received the US FDA approval for two different strengths of the Zomig generic - 2.5 mg and 5 mg in tablet form. AstraZeneca also markets the drug as Zomigon in Argentina, Canada and Greece, as AscoTop in Germany and Zomigoro in France. India-Latin America pharma meet from A three-day pharma business meet of India, Latin America and Caribbean (LAC) countries will begin. ―The objective of the meeting is to provide business opportunity to Indian pharma exporters, especially Small and Medium Enterprises,‖ Dr P V Appaji, Executive Director, Phamaceutical Export Promotion Council said. About 14 important Latin American countries with huge potential for exports from India were identified, he added. During the conference, four business sessions and a conclave of chief executive officers of pharma companies, would be organised. Over 500 delegates from India, 250 exporters and 76 delegates from the LAC region are likely to participate. US FDA gives tentative nod to new Cipla drug for HIV-1 infections Cipla Ltd has received US Food and Drug Administration's tentative nod for a new combination drug-- lamivudine and zidovudine tablet--used in treatment of HIV-1 infections, according to the US regulator. According to a posting on the US drug regulator's website, the Mumbai-based drug maker has got a tentative nod to sell fixed dose combination tablet containing lamivudines and zidovudine in 30 mg and 60 mg, respectively. The drug is used, along with other anti-retrovirals, for the treatment of HIV-1 infections in children of three months and older weighing at least 5 kg. Orchid Chemicals says fire at arm's Chennai unit Orchid Chemicals & Pharmaceuticals Ltd has informed BSE that there was a fire that broke out in a portion of the New Drug Discovery Laboratories located in the Company's research subsidiary Orchid Research Laboratories Limited, Sholinganallur, Chennai. The fire was brought under control by the Tamil Nadu Fire Services squad assisted by the Orchid safety team. There was damage to office and laboratory equipment, furniture and building interiors. However, there were no injuries to anyone. Pharma company officials say operations hit by Sikkim quake The earthquake that affected Sikkim and Nepal on Sunday has hit operations of several pharmaceutical companies' manufacturing plants, including Sun Pharmaceutical Industries Ltd, Torrent Pharmaceutical Ltd, and Cadila Healthcare Ltd, industry officials said. Some drugs of Aventis, Novartis get dearer as NPPA OKs price hike Prices of Aventis Pharma's Combiflam tablets and Novartis' Vitalux Plus TR tablets are set to go up soon as the National Pharmaceutical Pricing Authority has allowed these companies to hike rates of these drugs within 15 days, a source said. NPPA OKs price hike of select drugs of Aventis, Novartis Prices of Aventis Pharma's Combiflam tablets and Novartis' Vitalux Plus TR tablets are set to go up soon as the National Pharmaceutical Pricing Authority has allowed these companies to hike rates of these drugs within 15 days, a source said. Plan panel suggests lowering 100% FDI cap in pharma via automatic route A high-level expert panel of the Planning Commission on universal health has recommended lowering the present cap of 100% foreign direct investment in pharmaceutical sector through the automatic route to below 49% "to retain predominance of Indian pharmaceutical companies". Open China market to Indian IT, Pharma: Montek "I believe the Chinese side is aware of our market access concerns," said Planning Commission Deputy Chairman Montek Singh Ahluwalia at the first Strategic Economic Dialogue (SED) between the two countries. Differences in Govt over FDI filter in pharmaceuticals
Weekly Newsletter 30 Info-Spectrum Bridging the Information Gap in Corporate Landscape
An expert group headed by Planning Commission member suggested that all mergers and acquisitions (M&As) in the pharmaceutical industry should be cleared by competition watchdog, CCI, a proposal strongly opposed by Industry Ministry. Maira panel to submit report on M&As in pharma sector to PM A high-level committee headed by Planning Commission Member Arun Maira will submit its report on mergers and acquisitions in the pharmaceutical industry to Prime Minister Manmohan Singh and Deputy Chairman of Planning Commission Montek Singh Ahluwalia. Dr. Reddy's launches generic of dementia drug Exelon in US Dr. Reddy's Laboratories launched the generic version of brand Novartis' Exelon used for the treatment of dementia due to Alzheimer and Parkinson's disease in the US on Sep 15. Deutsche Bk sees little impact of Europe crisis on India pharma cos Indian pharmaceuticals companies may not face a major setback because of worsening economic scenario in Europe as they have limited exposure to that market, Deutsche Bank AG said in a note. Ind Swift Lab gets Australia drug regulator's nod for 7 bulk drugs Ind Swift Laboratories Ltd said it has received an approval from Australia's drugs regulator to supply seven of its active pharmaceutical ingredients to that market. Promoter Semit Pharma pledges 1 mn more shares of Elder Pharma Elder Pharmaceuticals Ltd's promoter Semit Pharmaceuticals & Chemicals Pvt Ltd pledged 1 mn shares of the company on Monday, the former said in a notice to the stock exchanges. Sun Pharma US arm gets FDA nod to sell generic of Zantac syrup Sun Pharmaceutical Industries' US arm has received the US Food and Drug Administration's approval to sell ranitidine hydrochloride syrup, the generic version of GlaxoSmithKline Pharmaceuticals' Zantac. Fire at Orchid Chemicals' Chennai unit; no casualty Orchid Chemicals & Pharmaceuticals said a fire broke out at its Chennai-based research subsidiary's facility but no one was injured in the accident. DR REDDY'S LABORATORIES: Has called off the 1.37-bn-rupee deal to acquire JB CHEMICALS & PHARMACEUTICALS' prescription drugs business in Russia and Commonwealth of Independent States countries. ELDER PHARMACEUTICALS: Shareholders approve final dividend of 30% for the financial year-ended Mar 31, 2011. VIVIMED LABS: Will raise Rs.1.27 bn from two private equity firms for expansion of its existing facilities. DIVI'S LABORATORIES: Promoter has gifted 20.35% stake in the company to his daughter Motaparti and 12.05% stake to son Kiran Divi. TRANSGENE BIOTEK: To mull opening date for $20 mn GDR issue on Sep 30. UNICHEM LABORATORIES: Has earmarked Rs.1.2 bn for capital expenditure in 2011-12.
Weekly Newsletter 31 Info-Spectrum Bridging the Information Gap in Corporate Landscape
TELECOM TELECOMMUNICATION: Telenor to change partner if rift with Unitech widens. Telenor's Indian joint venture Unitech Wireless initiates rights issue of Rs.82 bn to secure long-term funding. Anil Ambani reiterates RComm to cut debt via tower arm stake sale. Telecom secy says examining 3G spectrum bid norms for roaming pacts. Telecom Authority of India has issued notices to BHARTI AIRTEL, Vodafone and IDEA CELLULAR for providing 3G services in the states where they do not own spectrum for offering such services. Reliance Telecom, accused in 2G spectrum scam, has sought discharge from the case contending before a Delhi court that a report of the Law Ministry exonerated it as its stake in alleged beneficiary Swan Telecom was below 10%. Nokia has announced the launch of Near Frequency Communication smart phones in India market. Anil Ambani faces 2G probe; clean chit for Tatas. Bharti signs pact with Nokia Siemens for 2G, 3G svcs in Africa. Sistema Shyam gets 3-yr loan of $200 mln from ICICI Bk, Barclays Bk. Bharti signs pact with Nokia Siemens for 2G, 3G services in Africa. TRAI plans termination fee of 5 paise/commercial SMS from Oct 15 The Telecom Regulatory Authority of India is planning to charge a termination charge of 5 paise per commercial short message service from Oct 15 to curb the increasing number of unsolicited SMSs to users. "From Oct 15, we plan to come out with a regulation to impose on commercial SMS a termination charge of 5 paise," TRAI Chairman J.S. Sarma said at a press conference to address the issue of unsolicited SMSs and calls. "These termination charges do not apply to personal SMS and are only for commercial messages," he said. A telecom operator pays another operator termination fee for calls that end on the latter's network. Under new TRAI regulations that have came into force from Sep 27, the number of SMSs from one particular number has been capped at 100 SMSs per day. The SMS limit, however, does not apply to telecom service dealers and direct-to-home service operators for electronic recharge requests. Directory services, social networking sites, and e-ticketing agencies have also been exempted. The new rule also mandates all telemarketers to be registered with TRAI, and now need to have phone numbers prefixed with 140 to make commercial calls. Sarma also said that the Mobile Number Portability scheme that was available pan-India from Jan has been well accepted by users and around 20 mn requests for porting of numbers have been received since its launch. Requests for mobile number portability have touched 15.55 mn as of Jul 31, according to last data. Gemini Comm OKs share buyback at up to Rs.45 each Gemini Communication Ltd has informed that consequent to the discussions at the Annual General Meeting of the Company held on Sep 09, 2011, the Board of Directors, of the Company at its meeting held on Sep 24, 2011, have provided final approval for the buy-back of equity shares of the Company. Further, in compliance with Companies (Passing of the Resolution by Postal Ballot) Rules, 2011, they have also finalized proceedings for approval of shareholders through postal ballot. The buy-back would be through open market purchases from the BSE Ltd and the NSE of India Ltd at a maximum price of Rs.45 per equity share, and the maximum amount utilized for the buy-back shall be Rs.2978.43 Lakhs, which is within 25% of the Companys fully paid-up Equity Share Capital and Free Reserves as per the Audited Balance Sheet as on Mar 31, 2011. Further, the promoter and promoter group of the Company shall not participate in the proposed buy-back process. Tata Comm inks pact with Pakistan co for providing ethernet svcs Tata Communications Ltd has entered into a partnership with data and voice communication provider Multinet Pakistan Pvt Ltd for an undisclosed amount for providing global ethernet services. The new services are ideal for banking, financial services, and insurance companies that want to grow their presence in Pakistan, or for companies wanting to migrate from international private lines to multi-protocol label switching or Ethernet. Ethernet services use high bandwidth fibre optic media to deliver data at very high speeds.
Weekly Newsletter 32 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Telenor to invest up to Rs.15,500 cr in India Norwegian telecom giant Telenor proposes to invest around Rs.15,500 crore in Indian operations in joint venture with Unitech Wireless. The joint venture operates mobile services under the brand of Uninor in India. Telenor holds 67.25% stake in Uninor, the rest is with real estate firm Unitech. The company had received licence to roll out services in 21 of the 22 circles in India and it has launched its services in only 13 circles. CBI to study fin min note to PM on 2G scam, govt counsel tells SC The Central Bureau of Investigation would study the finance ministry note sent to the Prime Minister's Office on the 2G spectrum allocation case, and may cover the issue in its next status report, government counsel P.P. Rao told the Supreme Court. Apex court told CBI to study finance ministry note to PM on 2G scam The Central Bureau of Investigation would study the finance ministry note sent to the Prime Minister's Office on the 2G spectrum allocation case, and may cover the issue in its next status report, government counsel P.P. Rao told the Supreme Court. Bharti more than doubles 3G data offer at same rate in some plans India's largest telecom services provider Bharti Airtel Ltd has more than doubled data download limit in some 3G plans for the same price. Bharti is offering revised 3G data plans in nine circles including Mumbai, Maharashtra, Karnataka, Tamil Nadu, and Chennai, for pre-paid and post-paid users. INTERVIEW: CFO sees telecom data svcs driving Tech Mahindra growth Even as information technology majors such as Infosys Ltd and Tata Consultancy Services Ltd see growth in their telecom vertical business slowing, Tech Mahindra Ltd is planning to increase penetration into the sector, the only one it services. Telecom department may fine Bharti airtel for alleged breach of norms Bharti Airtel may face the telecom department's ire for allegedly camouflaging its calling-line identification mechanism while making promotional calls to non-Airtel customers. The department also plans to slap a Rs.500 mn fine on Bharti for breach of licence norms. 2G: Anand Sharma says PC shouldnt be targeted "The Supreme Court is hearing the matter. Let us leave it to the Court and not prejudge. What has been said by some opponents, critics against Home Minister P Chidambaram is very unfair," Sharma told reporters here on the sidelines of an investment forum. Norway's Telenor may rope in new partner in Unitech Wireless Norwegian company Telenor's Group Chief Executive Officer Fredrik Baksaas has said it will look at inducting another partner for its India operations, Unitech Wireless Ltd, if its existing joint venture partner Unitech does not meet its obligations and participate in the proposed Rs.82 bn rights issue. PE co Advent in talks to buy British Telecom's stake in Tech Mahindra Private equity firm Advent International has intensified negotiations with British Telecom to acquire its stake in Tech Mahindra Ltd. As on Jun 30, BT held 23.27% stake in Tech Mahindra equalling to 29.5 mn shares. Pranab, Chidambaram meet Congress head as 2G fire refuses to die Home Minister P. Chidambaram offered to resign during his meeting with Congress President Sonia Gandhi to discuss the finance ministry's note on allocation of 2G spectrum, news channel CNN-IBN reported. Anil Ambani reiterates RComm to cut debt via tower arm stake sale Reliance Communications Ltd's Chairman Anil Ambani today reiterated the company is looking to reduce its huge debt by selling stake in its mobile tower arm Reliance Infratel Ltd, and is in "advance talks" with various global private equity consortiums for the same. INTERVIEW: Maverick Swamy's 2G can of worms in times of UPA turmoil Maverick, enfant terrible, Hindu Taliban... These are just some of the sobriquets that Janata Party's President Subramanian Swamy has earned over the years as he has pursued a host of issues with dogged determination. Essar Telecom Kenya selects Tata Comm to route international calls
Weekly Newsletter 33 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Essar Telecom Kenya, a unit of the Essar Group, has selected Tata Communications Ltd as its sole provider of international voice termination, the Indian company said in a release to the exchanges. Pranab to meet PM; may discuss fin min note on 2G Finance Minister Pranab Mukherjee will have an unscheduled meeting with Prime Minister Manmohan Singh in New York, according to a report the Business Standard. Telecom secy says examining 3G spectrum bid norms for roaming pacts The Department of Telecommunications is looking into the regulatory norms pertaining to the roaming pacts signed among telecom operators for 3G services in the country. RIM launches BlackBerry Curve 9360 for Rs.19,990 Canadian firm Research In Motion (RIM) launched its new BlackBerry Curve smartphone in the country, priced at Rs.19,990. Bharti signs pact with Nokia Siemens for 2G, 3G svcs in Africa Bharti Airtel Ltd said it has signed an agreement with Nokia Siemens Networks to expand its 2G network, deploy 3G network and manage services in seven African countries. GSM industry body says BSNL disconnected pvt operators in Punjab Cellular Operators Association of India, the industry body representing operators providing services based on global system for mobile communications technology, has alleged that state-owned Bharat Sanchar Nigam Ltd withdrew its interconnect with them in Punjab on non-payment of dues. Sistema Shyam gets 3-yr loan of $200 mn from ICICI Bk, Barclays Bk Telecom operator Sistema Shyam TeleServices Ltd, a joint venture between Russia's Sistema, the Russian Federation and the Shyam Group, said it has raised a total of $200 mn from ICICI Bank and Barclays Bank. Bharti cuts rate on new DTH pack for captive cell, broadband users Bharti Airtel Ltd is leveraging its advantage of having the largest mobile subscriber base and the fourth largest internet service subscriber base in the country by offering its direct-to-home platform to captive users at cheapest prices. GEMINI COMMUNICATION: Has approved buyback of shares at up to Rs.45 each and will spend up to Rs.297.8 mn on the share buyback. NET4INDIA: Has tied up with Finland-based Smart Phone solutions to launch operator-independent push mail solutions in India.
Weekly Newsletter 34 Info-Spectrum Bridging the Information Gap in Corporate Landscape
BANKING & FINANCIAL SERVICES BANKING & FINANCE: SBI head says govt to soon decide quantum, time for fund infusion. Reliance Cap keen to enter banking, expand other major businesses. Corporation Bk arm to start loan syndication, broking ops Diwali. Royal BANK OF Scotland's efforts to sell its retail and commercial banking businesses in India to Hongkong and Shanghai Banking Corp may miss deadline as RBI is yet to approve the deal. Finance Ministry to monitor public sector bank promotions. Private bank promoters may be allowed 15% stake. RBI says Aadhaar not enough to open bank accounts. Bank of Baroda ED sees 8-bln-rupee cash infusion from govt Oct-Dec. Source says Indian Overseas Bk may hire advisor for fincl svcs foray. The RBI may raise the stake-holding limit of the private bank promoters to 15% from 10%. Due to volatile markets, banks have deferred foreign fund-rasing plans through medium-term notes and are finding alternative routes. Banks make U-turn on prepayment; bks want charges capped, not waived. Source says YES Bank defers $350 mln-$500 mln capital raising plan. Axis Bank offers lifetime fixed interest home loan plan at 11.75%. Banks, NBFCs allowed to sponsor infra debt funds The Reserve Bank of India (RBI) has allowed banks and non-banking financial companies (NBFC) to sponsor infrastructure debt funds (IDF), which can be set up as mutual funds and NBFCs. The move follows Finance Minister Pranab Mukherjee‘s announcement in the 2011-12 budget of setting up of IDFs in order to accelerate and enhance the flow of long-term debt in infrastructure projects. Infrastructure debt funds which can be set up as NBFCs should have a minimum net-owned fund of Rs.300 crore and a capital adequacy ratio of 15%, the RBI said in a statement. Banks acting as sponsors of infrastructure debt funds as MFs have been subjected to existing limits, including limits on investments in financial services companies and on capital market exposure. A bank‘s capital market exposure has been capped at 40% of its net worth, both through direct and indirect routes. In case of NBFCs, it should have a minimum net owned funds (NOF) of Rs.300 crore to act as a sponsor, and should be able to maintain the same level of NOF even after investing in the fund. Also, the NBFC should maintain a capital adequacy ratio of 15% after investment. The entity should also have good track record for five year and been profitable for the last three years. Banks and NBFCs keen on sponsoring an IDF-NBFC must contribute at least 30% and a maximum of 49% of the total capital of the fund, besides meeting the other requirements prescribed for floating an IDF-MF. ―The guidelines will be big boost for the infrastructure sector which needs long term funds. NBFCs taking part in it would be able to diversify their borrowing portfolio. We have other fund like gold fund. Hence we would be keen to launch an infrastructure debt fund,‖ said G S Sundararajan, managing director of Shriram Capital. RBI further said an infrastructure debt fund set up as an NBFC should have a minimum net worth of Rs.300 crore and at the least should have a credit rating of ‗A‘ or its equivalent by CARE, Fitch, Icra and Crisil. The NBFC‘s Tier-II capital should not exceed Tier-I capital, while the minimum capital adequacy ratio should be 15%. ―For the purpose of computing capital adequacy of the IDF, bonds covering PPP and post commercial operation date projects in existence over a year of commercial operation shall be assigned a risk weight of 50%,‖ said RBI. The fund can have an exposure of up to 50% towards a borrower or a group of borrowers. The limit can be increased by up to 60% if the board of the IDF-NBFC agrees. Limited additional extension beyond 60% can be granted only after RBI approval. Global CEOs flying into India to review operations and look at growth opportunities India's significance as an emerging market is growing steadily with more global CEOs flying into the country to review operations and look at growth opportunities. While the trickle used to start closer to the winters, this year it seems to have picked up pace early. The latest to join the list is GlaxoSmithKline CEO, Andrew Witty who will be in Mumbai on September 26 for a two-day visit. Around the same time the top leadership team of GE, including CEO Jeff Immelt, top bosses of Tokio Marine Holdings, Shuzo Sumi, and EMA Partners International, James Douglas, would also be flying down, while that of German giant Siemens Peter Loescher and Reckitt Benckiser, Rakesh Kapoor are already here. Other top bosses like that of Walt Disney and ANZ
Weekly Newsletter 35 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Grindlays were also on a visit here recently. Sources said Witty will hold a review of the domestic company's operations and discuss future plans of the subsidiary. GSK India has 4.2% share of the Rs 60,000 crore organized retail market, and grew around 8% in August ( IMS Health). Overall, the pharma market had a growth of around 16%. One of the top products of the company, antibiotic drug Augmentin is the largest selling retail brand with sales of around Rs 240-odd crore. The company is ranked fourth in terms of market share and has been posting a strong growth over the last couple of years. In an attempt to improve access to medicine, Witty has been making key changes in the company's strategy, and `tier pricing' policy in developing countries like India is a step in this direction. India is becoming a key driver for global companies, with its growing domestic market, steady growth rate and burgeoning middle class. Emerging economies like China, Russia, Brazil and India are attractive to global companies across sectors as most developed markets are stagnant. As against this, emerging markets, particularly for pharma, are growing at a faster rate, mostly double-digit. Not just the global CEOs, even celebrity Paris Hilton is in India this weekend to get a piece of the growing luxury market, and launch her exclusive line. Other CEOs slated to visit later this year include Jeffrey Joerres of Manpower group, and Ben J Verwaayen of Alcatel-Lucent France. RBI tweaks draft securitisation norms, moots cut in holding period The Reserve Bank of India has proposed to cut the minimum period banks are supposed to hold loans before securitisation, and also the minimum retention required. In its revised draft guidelines released, the RBI said to securitise loans with quarterly repayments and original maturity of up two years, banks must hold them for nine months from date of full disbursement, or three months from the due date of second instalment of interest or principal. In the original draft norms, released on Apr 19, the RBI had proposed that banks must hold such loans for nine months from date of full disbursement or date of first instalment., the RBI also said that for loans with maturity of more than two years, banks must hold them for up to one year from date of full disbursement or three months from the due date of the third instalment. "The single-repayment non- amortising loans where interest is also due only on maturity will not be eligible for securitisation," the RBI said. Once securitised, banks will have to retain a portion of the securitized loan pool in their books. The central bank proposes that banks retain a minimum of 5% of the book value of the securitised loans with an original maturity of up to two years. For loans having original maturity of more than two years, banks must retain 10% of their book value, the draft norms suggested. In the earlier draft norms, the central bank had proposed a minimum retention requirement of 10% for all loans securitised. IBA response on ending floating rate loan prepayment fee by Sep 30 The Indian Banks' Association is likely to respond to the Reserve Bank of India's directive to stop levying prepayment charge on floating rate loans by the month end, Banking Ombudsman M. Rajeshwar Rao said. "Banks have sought more time on this (prepayment charge). I expect them to respond by the end of this month," Rao told reporters. Earlier this month, the central bank had asked banks to stop levying any prepayment charge on floating rate loans on borrowers who may be looking to prepay loans, especially for homes. Banks typically levied high penalty on foreclosure of loans prior to the directive, unless the borrower proved that the prepayment was from his/her own funds. ICSA, Chinese co bag Rs.1.39-bn order in Tamil Nadu ICSA (India) Ltd, along with partner Dongfang Electronics Co Ltd of China, has secured a Rs.1.39-bn order from the Tamil Nadu Generation & Distribution Co Ltd for implementing a programme aimed at cutting transmission and distribution losses. The order is part of the central government's Restructured Accelerated Power Development & Reforms Programme. ICSA will help establish supervisory control and data acquisition / data management system in seven cities of Tamil Nadu. Hyderabad-based ICSA provides technology solutions to power utilities. M&M Fincl arm gets IRDA nod to enter reinsurance broking Mahindra & Mahindra Financial Services Ltd has informed BSE that Mahindra Insurance Brokers Ltd. (MIBL), a 100% subsidiary of the Company has received the approval from the Insurance Regulatory and Development Authority (IRDA) to enter the Reinsurance Broking business. MIBL has been in the Direct Broking business since May 2004 and has now been granted the Composite Broking license, allowing it to also undertake Reinsurance Broking. Gomti Finlease OKs 2 mn shares, warrants pref issue Gomti Finlease (India) Ltd has informed BSE that the Board of Directors of the Company at its meeting held on Sep 26, 2011, inter alia, has considered the following business : 1. Approved issue of security of the
Weekly Newsletter 36 Info-Spectrum Bridging the Information Gap in Corporate Landscape company in the form of upto 20, 00, 000 equity shares or/and convertible warrants of Rs.10 each on preferential basis, subject to the approval of the members at the ensuing Annual General Meeting. Deutsche Postbank to mull merger with Dewan Housing Wed Deutsche Postbank Home Finance Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on Sep 28, 2011, inter alia, to consider the amalgamation of the Company with its ultimate holding Company i.e., Dewan Housing Finance Corporation Limited, in accordance with the procedure set out under Section 391 - 394 of the Companies Act, 1956. Tashi India OKs merger of 3 cos with self Tashi India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on September 29, 2011, inter alia, to consider and approve the proposed scheme of Amalgamation of M/s Luk Bedrocics Pvt. Ltd., M/s Twinstar Plasticoats Pvt. Ltd. and M/s. Bajaj Polymin Pvt. Ltd. (Transferor Company) with M Tashi India Ltd (Transferee Company). FOCUS: Bank offers galore but high realty rates keep homebuyers away Banks and mortgage lenders are falling over each other to please home loan customers, offering concessions, discounts, and other freebies. But customers are a wanting due to skyhigh property prices and high interest rates. Corporation Bk arm to start loan syndication, broking ops Diwali Corporation Bank's arm CorpBank Securities Ltd has received Reserve Bank of India and Securities and Exchange Board of India approvals to launch its loan syndication and broking operations, and will start the same by Oct 26, the bank's Chairman and Managing Director Ramnath Pradeep told. RBI imposes Rs.100,000 penalty each on two co-operative banks The Reserve Bank of India has imposed a Rs.100,000 penalty on Porbandar Vibhagiya Nagarik Sahakari Bank Ltd and Shri Mahavir Urban Co-operative Bank Ltd each for violating regulatory guidelines, the central bank said in a notice. Bank of India finalises partner for AMC ops; announcement next qtr Bank of India has finalised a partner for re-entry into the asset management business and will announce the tie-up in the next quarter, Executive Director N. Seshadri told. IFC plans to invest $35 mn in Ambit Pragma, Forum Synergies' funds International Finance Corp, the private sector investment arm of the World Bank, proposes to invest $20 mn in Ambit Pragma Fund II, a growth capital private equity fund. SBI takes membership of Experian Credit Information Co of India State Bank of India took membership of Experian Credit Information Company of India Pvt Ltd, the bank said in a release. RBI allows banks, NBFCs to sponsor infrastructure debt funds The Reserve Bank of India said banks and non-banking finance companies will be eligible to sponsor infrastructure debt funds. INTERVIEW: Corporation Bank CMD moots stock-split to boost liquidity A week from retiring after a 35-year-long career, Ramnath Pradeep, chairman and managing director of Corporation Bank, is a satisfied man. CRISIL Ratings sees bks gross NPAs rising to 3.0% FY12 vs 2.3% Sharp increase in interest rates over the last 18 months may push up banks' gross non-performing assets ratio in 2011-12 (Apr-Mar) to 3.0% from 2.3% a year ago, CRISIL Ratings said in a report. SBI head says govt to soon decide quantum, time for fund infusion The government is expected to soon finalise the quantum, mode and timing of fund infusion in State Bank of India, its Chairman Pratip Chaudhuri said over the weekend. EXIM Bank to raise Rs.1.5 bn this week Export-Import Bank of India will raise Rs.1.50 bn through 10-year bonds this week, a company official said. SEBI asks merchant bankers to disclose performance of past issues The Securities and Exchange Board of India has asked merchant bankers managing public issues of Indian companies to disclose price performance of past issues managed by them. Subbarao says central bks can't remain indifferent to asset bubble
Weekly Newsletter 37 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Disagreeing with the "Greenspan orthodoxy", Reserve Bank of India Governor D. Subbarao said central banks cannot remain indifferent to asset price bubbles in the post-crisis scenario. IL&FS to raise Rs.2 bn via 5-yr bonds Infrastructure Leasing & Financial Services Ltd will raise Rs.2 bn through five-year bonds, merchant bankers said. Anil Ambani exploring setting up 'Reliance Bank' Industrialist Anil Ambani said that his group's financial services arm Reliance Capital will explore all possible opportunities to enter the banking sector and plans to unlock value in all its major businesses. Indian Overseas Bk scouting for consultant to set up fincl svc arm State-owned Indian Overseas Bank is scouting for consultants to advise on setting up a financial services subsidiary in the current financial year ending March, a source close to the development told. RBI allows banks to use customer's Unique ID for opening accounts The Reserve Bank of India today allowed banks to open accounts of customers using their Unique Identification Authority of India letters. INTERVIEW:ED says Bk of Baroda to get 8-bln-rupee govt funds by Dec Bank of Baroda is likely to receive capital infusion of around 8 bln rupees from the government by December, that will take the promoter's shareholding to 58%, Executive Director N.S. Srinath told in an interview. L&T Finance mulls bank foray; studying unbanked area norm viability L&T Finance Holdings Ltd believes that the opportunity to get a banking licence can't be ignored, but the norm to open at least 25% branches in the unbanked rural areas may prove to be a stumbling block, and hence must be evaluated. Deputy MD says SBI may hold loan rates until festival season ends State Bank of India may hold the hike in its lending rates until at least the end of the ongoing festival season, Santhosh Nayar, deputy managing director - corporate banking told. Small savings' big blow - govt ups Oct-Mar borrow by 528 bln rupee A fall in collections from its small saving schemes has forced the government to borrow more via gilts during Oct-Mar, the latter half of the current financial year. Banks' treasury bleed as gilts end 10 bps up on extra govt borrow Banks' treasury performance, which is already under pressure from high interest rates and volatile foreign exchange markets, faced the additional pain of government borrowing announcement occurring in the last hour of trade. Govt banks on 10-14 yr gilts for borrow, hints new bond unlikely The central government will rely the most on the 10-14 year segment to raise funds in the second half of 2011-12 (Apr-Mar), in line with market expectations. Axis Bank offers home loans at 11.75% fixed rate for entire tenure Axis Bank launched a home loan scheme with fixed interest rate of 11.75% for the entire tenure, the bank said in a release. Borrowers can take the loan for a maximum tenure of 20 years, the bank said. FOCUS: NBFCs cry foul as proposed RBI norms may hurt growth, up NPA Non-banking financial companies believe that the Reserve Bank of India working group's recommendations have raised serious concerns over growth as these norms propose higher capital requirements and tougher identification of non-performing assets. Source says YES Bank defers $350 mn capital raising plan YES Bank Ltd has deferred plans to raise $350 mln in equity to the second half of 2012-13 (Apr-Mar), a source close to the development told. AXIS BANK: Securities Appellate Tribunal has upheld a SEBI order against Axis Bank. The bank was asked to pay Rs.200,000 fine for alleged violations of debenture trustee norms. GOMTI FINLEASE INDIA: Board approves issue of up to 2 mn shares or convertible warrants on preferential basis. DEWAN HOUSING FINANCE CORP: Arm Deutsche Postbank to mull merger with the company.
Weekly Newsletter 38 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Weekly Newsletter 39 Info-Spectrum Bridging the Information Gap in Corporate Landscape
STEEL, METALS & MINERALS STEEL & MINING: JSW Steel's Vijaynagar unit running at 30% capacity on ore shortage. RCF plans Rs.60 bn coal gas fertiliser project in Indonesia. Gallantt Ispat to issue 2.5 mn FCCBs on pref basis. Hindustan Zinc cuts zinc price by Rs.3,200/tn to 115,700 rupee on Sep 26. JSW Steel says Vijaynagar unit output cut by 30% from Sat. Coal minister says power sector should arrange higher coal import. Minerals worth Rs.2.26 bn were illegally mined in various states in 2010-11. The steel ministry's agenda envisages a jump of almost two and a half times in India's steel capacity to 200 mn tn by 2020. Government mulling commercial coal mining. Environment min cancels clearance of Sesa Goa Pirna mines. NMDC targeting 1 mn tn/month iron ore output in Karnataka. NMDC aims to ink JV with Severstal for 3-mtpa Karnataka unit by Dec. JSW Steel ups prices by up to 750 rupee/tn; plans another hike Oct. Government plans to allot captive coal blocks to private miners such as BHP Biliton, Rio Tinto, and SESA GOA on conditions that these firms have tied up approved end users for supply. Second round of the iron ore e-auction in Karnataka scheduled. SAIL in talks with Rajasthan govt to jointly mine manganese ore. GAIL to buy 20% in Carrizo shale asset; to invest $300 mn in 5 yrs. Tata Steel opens upgraded rail production facility in France. JSW Steel may shut Vijaynagar plant if iron-ore shortage persists JSW Steel Ltd may have to shut its Vijayanagar plant in Karnataka, if the company continues to face severe shortage of iron ore, Vice Chairman and Managing Director Sajjan Jindal told reporters. He said the company was unlikely to meet its 2011-12 (Apr-Mar) output forecast of 10 mn tn due to the shortage. He did not give a revised target for current financial year, but said the cut in production target would depend on duration of iron-ore mining ban. JSW Steel had announced a production cut at its 10-mn-tn Vijaynagar plant to 30% of capacity after the Supreme Court restricted sales of iron ore produced by NMDC Ltd in Karnataka to online auctions. JSW Steel has been facing severe shortage of iron ore since the past two months, after Supreme Court banned all mining activities in Karnataka's Bellary, Tumkur and Chitradurga districts due to allegations of widespread illegal mining in the region. Since then, the company has been depending on the court- appointed auction system to procure iron ore. JSW Steel does not have any inventory of iron ore currently and expects to get some supply when another 1.1 mn tn of iron ore is auctioned. The company had also said that the supply of iron ore through the auction system was inadequate to meet its needs. The company has made a representation to the Central Empowered Committee and Monitoring Committee to ensure adequate supply of iron ore at a fair price to restore normal production. NMDC buys 50% in Australia's Legacy Iron Ore for Rs.92 crore State-run NMDC Ltd will buy 50% stake in Australia's Legacy Iron Ore for Rs.92 crore, marking the navratna company's first overseas foray and one that will give it access to key mineral resources down under. In a filing to the Australian Securities Exchange, Legacy Iron said its board has agreed to the NMDC proposal though the deal would be subject to regulatory and shareholder approval. Legacy shareholders are likely to meet in Nov to approve the deal, which breaks the jinx of PSUs pitching for assets overseas but losing out to rivals in the final lap. "This is only an initial investment into Legacy and NMDC's involvement will depend on various projects that may be taken up later," NMDC company secretary Kumar Raghavan said. On Sep 14, NMDC had put in a binding bid for acquiring a 50% stake in Legacy, which holds prospective iron ore tenements in both the central Yilgarn and Pilbara areas of Western Australia. It had first signed a memorandum of understanding with the Perth-based company on Mar 24.
Weekly Newsletter 40 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Shah Alloys not in a position to redeem FCCBs Shah Alloys Ltd has informed that the Company had issued zero coupon Unsecured Foreign Currency Convertible Bonds (FCCB) amounting to US$ 10 mn in Sep 2006. The Company is required to redeem the Bonds on Sep 22, 2011 in cash at 148.255% of the principal amount of the Bonds. Since the Company has been declared as Sick Industrial Company under section 3(1) (o) of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) by the order of Honble Board for Industrial and Financial Reconstruction (BIFR) issued on Sep 13, 2010, Cash Flow of the Company does not permit redemption of aforesaid Bonds. On the directions of the lenders, Company appointed M/s. Mecon Ltd. to carry out the Techno Economic Viability (TEV) Report for Draft Rehabilitation Scheme (DRS) in coordination with Union Bank of India, Operating Agency appointed by Honble BIFR. Once the DRS is finalized and approved by Hon'ble BIFR Company shall be in the position in schedule repayment of the said FCCB. JSW Steel's Vijaynagar unit running at 30% capacity on ore shortage JSW Steel Ltd has cut production at its 10-mn-tn Vijaynagar plant to 30% of capacity after the Supreme Court restricted sales of iron ore produced by NMDC Ltd in Karnataka to online auctions. "The abrupt disruption of supplies to JSW Steel (long-term customer) by NMDC cut the lifeline to run the furnaces in safe condition," JSW Steel said in a statement. After banning all mining activities in Karnataka's Bellary, Tumkur and Chitradurga districts, the Supreme Court on Sep 2 ordered release of 1.5 mn tn of iron ore every month through e-auction. NMDC is the only company allowed to mine iron ore from Karnataka. "This measure (e- auction) has not given any relief as 31% of the total auctioned material was not bought by any of the participants in the e-auction due to improper pricing for low grade ore," JSW Steel said. It said continuing steel production even at current levels is very challenging unless iron ore supply of required quality and quantity is restored expeditiously. The company, which buys more than 80% of the raw material from NMDC and other miners in the state, had to cut output last month as supplies dried up following the ban. RCF plans Rs.60 bn coal gas fertiliser project in Indonesia Rashtriya Chemicals and Fertilizers Ltd plans to set up a coal gasification-based fertiliser project in Indonesia at an investment of around Rs.60 bn, Chairman and Managing Director R.G. Rajan said. He said a memorandum of understanding has already been signed with the Indonesian authority concerned for the proposed project, which could have a capacity of around 1.15 mn tn per year. The investment will be through Urvarak Videsh Ltd, a joint venture with National Fertilizers Ltd. Besides Indonesia, Urvarak Videsh is pursuing a gas-based fertiliser project in Ghana of a similar capacity. On the domestic front, RCF is preparing for the Rs.40 bn expansion of its Thal project in Maharashtra next year, and is waiting for clarity on gas allocation and launch of the new urea policy to kick-start the project. Rashtriya Ispat seeks bids for cement JV; co to take 26% stake Rashtriya Ispat Nigam Ltd has invited bids from cement manufacturers to set up a 2.5-3.0 mtpa cement plant in a joint venture. The state-owned steel maker will hold 26% stake in the joint venture, while its partner(s) will take the rest. The primary objective of the joint venture is to use the dry fly ash generated from Rashtriya Ispat's captive power plant at its Visakhapatnam steel plant as an input in the manufacture of cement. The government is planning to sell 10% stake in the fully-owned Rashtriya Ispat through an initial public offering. The IPO is expected to be floated in the next financial year. Govt sees 2.5 times rise in steel capacity to 200 mn tn by 2020 Steel ministry's agenda, released, envisages almost two-and-a-half times jump in steel capacity in the country to 200 mn tn by 2020. India's steel production capacity is seen at 93 mn tn by Mar-end from 83 mn tn currently. The agenda also aims to have a proactive mechanism to ensure time-bound progress for all projects undertaken by public sector undertakings. Tata Steel gets Bombay HC nod to merge Centennial Steel with self Bombay High Court has approved amalgamation of Centennial Steel Co Ltd with Tata Steel Ltd. The effective date of amalgamation will be Sep 27. Centennial Steel has now become the wholly-owned subsidiary of Tata Steel. Tata Steel incorporated Centennial Steel in Aug 2009 to jointly implement the expansion of capacity at Jamshedpur to 9.7 mtpa by 2011-12. Coal India to hike prices only after wage revision "The quantum of price revision will be done on the basis of the wage revision. We had two meetings since August this year on wage revision. A third meeting of the Wage Committee is going to happen in November,
Weekly Newsletter 41 Info-Spectrum Bridging the Information Gap in Corporate Landscape but the final decision is unlikely to be taken before Dec. Price revision will happen after that," CIL Chairman N C Jha told PTI here. Govt wants Coal India to focus on local output, not overseas assets The ministry is not keen on Coal India Ltd acquiring assets overseas, but instead wants the state-owned behemoth to work on improving its domestic output instead, Union Coal Minister Sriprakash Jaiswal said. Head says timely project completion key to Hindalco's profitability Even as almost all of Hindalco Industries Ltd's Greenfield projects are running behind schedule, Chairman Kumar Mangalam Birla said that timely execution would be key factor to enhance cost competitiveness of the company. Hindustan Zinc cuts zinc price by Rs.3,200/tn to Rs.115,700 on Sep 26 Hindustan Zinc Ltd cut zinc price by Rs.3,200 per tn to Rs.115,700. The company also cut lead price by Rs.5,000 to Rs.125,200 per tn. The Vedanta group company aligns its product prices in line with London Metal Exchange. INTERVIEW: Coal, oil to help Mercator sail as ships turn dead weight With the volatile freight market making survival difficult, Mercator Lines Ltd no longer wants to bet all its cards on plain vanilla shipping. The company is diversifying into trading and mining of coal, hydrocarbon exploration and wants to provide integrated logistics solutions to its clients as well. Cos may lose coal blocks for not filing quarterly reports Companies that fail to provide quarterly details of progress on their captive coal blocks may face forfeiture of bank guarantee or even de-allocation of blocks unless they are able to explain such lapses within a fortnight. NALCO facing production loss of Rs.10 mn/day on coal shortage State-owned National Aluminium Co Ltd is facing a production loss of about Rs.10 mn per day due to coal shortage. The company has cut down its daily production to 1,000 tn against the normal rate of output at 1,200 tn at the Angul smelter unit in Orissa due to coal shortage. ICSA, Chinese co bag 1.39-bln-rupee order in Tamil Nadu ICSA (India) Ltd, along with partner Dongfang Electronics Co Ltd of China, has secured a Rs.1.39-bn order from the Tamil Nadu Generation & Distribution Co Ltd for implementing a programme aimed at cutting transmission and distribution losses. Tata Steel to spend Rs.1.71 bn on employee bonus in FY12 Tata Steel Ltd will spend Rs.1.71 bn for paying annual bonus to its 30,155 employees in 2011-12 (Apr-Mar), the company said in a release. SAIL head sees steel product prices firming up next month Steel Authority of India Ltd Chairman and Managing Director C.S. Verma said he expects steel prices to firm up around the festival Period, which will peak in Oct. Kerala proposes NMDC JV for beneficiation plant in Lanka, Vietnam The Kerala government is keen that NMDC Ltd partners it in setting up mineral beneficiation plants not only in the state but also in Sri Lanka and Vietnam, according to a government press release issued. Environment min to de-list pending mining projects in Karnataka The environment ministry will delist all proposed mining projects in Karnataka, which are awaiting environmental clearance or are at different stages of consideration, the ministry said. NMDC to buy 50% in Australia's Legacy Iron Ore for A$18.89 mn State-owned NMDC Ltd will buy 50% stake in Australian exploration company Legacy Iron Ore Ltd for Australian $18.89 mn, the latter said in a notice to the Australian Securities Exchange. GVK says due diligence for stake in Hancock assets done by 1 co GVK Coal Developers (Singapore) Pte Ltd is in talks with coal miners in Indonesia and China for inducting a strategic partner, Isaac George, Chief Financial Officer of the GVK Group said. Kerala proposes NMDC JV for beneficiation plant in Lanka, Vietnam The Kerala government is keen that NMDC Ltd partners it in setting up mineral beneficiation plants not only in the state but also in Sri Lanka and Vietnam, according to a government press release issued. Steel minister seeks hike in iron ore export duty to 30% from 20%
Weekly Newsletter 42 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Steel Minister Beni Prasad Verma said he has sought an increase in export duty on iron ore to 30% from 20% in a letter written to the finance ministry last week. Promoter co ups stake in Jindal Steel to 8.18% from 8.08% Opelina Finance and Investment Ltd, one of the promoters of Jindal Steel & Power Ltd, has raised its stake in the company to 8.18% from 8.08%, the former informed the Bombay Stock Exchange. Coal ministry may mull revoking de-allocation of NTPC coal blocks Coal Minister Sriprakash Jaiswal his ministry was willing to consider requests of public sector companies, including NTPC Ltd, to revoke the de-allocation of their coal blocks. Gujarat Venture Capital cuts 20 Microns stake to 4.3% from 7.66% Gujarat Venture Capital Fund has cut its holding in 20 Microns Ltd to 4.3% from 7.7%. On Sep 23, the fund sold 4,81,525 shares in 20 Microns worth Rs.27.29 mn. Coal Minister says power sector should arrange higher coal import Coal Minister Sriprakash Jaiswal said that the ministry of power should plan for higher coal imports, as local availability of the fuel is inadequate to match domestic demand. GAIL eyes stakes in LNG plants of Chevron, Algerian co State-owned GAIL (India) Ltd is in talks with at least two international energy companies, including US- based Chevron Corp, to acquire stakes in their liquefied natural gas plants in Australia and Algeria. JSE steel's K'tka plant may shut of iron ore shortage Sajjan Jindal-led JSW Steel said it may have to shut down its 10 mn tonnes per annum (MTPA) Vijayanagar plant in Karnataka due to a continuous shortage of iron ore. JSW Steel ups prices by up to Rs.750/tn; plans another hike Oct JSW Steel Ltd has increased the prices of its products across categories by up to Rs.750 a tn to pass on the surge in input costs and leverage the likely rise in demand in the festival season, Sharad Mahendra, senior vice president (sales), told. Tata Metaliks in pact to sell Redi pig iron unit for Rs.1.8 bn Tata Metaliks Ltd has decided to sell its pig iron facility in Redi, Maharashtra as a sharp increase in iron ore prices has severely affected its "structural competitiveness", the company said in a release. Essar Steel Chhattisgarh ops normal; co denies paying extremists Essar Steel Ltd's iron ore mining operations in Chhattisgarh have not been affected due to the arrest of General Manager D.V.C.S. Varma on charges of payment of "protection" money to Left-wing extremists, a senior official of the company told. Jindal Steel starts production at 2nd unit of Patratu steel plant Jindal Steel & Power Ltd has started production of the second unit of the proposed 6-mn-tn steel plant at Patratu in Jharkhand, the company said in a release. NMDC targeting 1 mn tn/month iron ore output in Karnataka NMDC Ltd is targeting iron ore production of 1 mn tn a month in Karnataka soon, a senior company official told. NMDC aims to ink JV with Severstal for 3-mtpa Karnataka unit by Dec NMDC Ltd expects to sign a joint venture agreement with Russia's OJSC Severstal by December to set up a 3 mtpa steel plant at Bailadila, Karnataka, Chairman and Managing Director Rana Som said. GAIL to buy 20% in Carrizo shale asset; to invest $300 mn in 5 yrs GAIL India Ltd arm, GAIL Global (USA) Inc, has agreed to acquire 20% stake in Houston-based Carrizo Oil & Gas Inc's Eagle Ford Shale acreage, with an investment of $300 mn over the next five years, the state- owned gas utility major said in a statement. BG India in pact to sell 2.5 mtpa LNG to Gujarat state co from 2014 BG India, a subsidiary of British natural gas major BG Group plc, said it has inked a preliminary pact to supply 2.5 mn tn liquefied natural gas annually to Gujarat State Petroleum Corp Ltd on a long-term basis. Tata Metaliks plans to set up sinter plant, increase coke linkage
Weekly Newsletter 43 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Tata Metaliks, a subsidiary of Tata Steel Ltd, is planning to set up a sinter plant and increase its coke linkages to make the company more competitive at a time when volatility in raw material prices is putting pressure on margins of metal companies. Uranium Corp to set up 3,000 tn/day ore processing unit in Andhra Uranium Corp of India Ltd is setting up a uranium extraction and processing plant in the Kadapa district of Andhra Pradesh with daily capacity to process 3,000 tn ore, Deputy General Manager A.K. Sarangi said. SAIL in talks with Rajasthan govt to jointly mine manganese ore Steel Authority of India Ltd is in talks with Rajasthan State Mines and Mineral Ltd to form a joint venture to explore, develop and operate manganese ore mines in the state, a SAIL official, familiar with the development, told. Additional capacity at Tata Steel's France rail unit goes on stream Additional capacity at Tata Steel Ltd's rail making facility at Hayange in the Lorraine region of France went on stream today, the company said. Hindustan Zinc cuts zinc price by Rs.1,900 rupee/tn to Rs.113,800 on Sep 29 Hindustan Zinc Ltd cut zinc price by Rs.1,900 per tn to Rs.113,800, according to the company's website. The company also cut lead price by Rs.3,300 rupees to Rs.121,900 per tn. ESSAR STEEL: The general manager of the company's Kirandul project in Chhattisgarh, D.V.C.S. Verma was arrested on charges of alleged cash payment to Naxalites as protection payoff. STEEL AUTHORITY OF INDIA: Some of the projects have suffered delays ranging between six and nine months. TATA METALIKS: Has signed a pact to sell its 300,000-tn-a-year pig iron unit in Redi in Maharashtra to Fomento Resources for Rs.1.8 bn. GAIL: Arm to buy 20% in Carrizo Oil's shale gas assets in the US. The company will invest $300 mn over five years in Carrizo Oil JV. JINDAL STEEL & POWER: Has planned to invest Rs.1 trn in Jharkhand for setting up steel and power plants. 20 Microns: Gujarat Venture Capital has cut its stake in the company to 4.3% from 7.66%. TATA STEEL: Has got the Bombay High Court's nod to merge Centennial Steel with self. EASTCOAST STEEL: To mull merger of Mind Factory Entertainment with self. GALLANTT ISPAT: To issue 2.5 mn fully convertible debentures at Rs.160 each. JSW STEEL: Cuts production at Vijaynagar by 30% on iron ore shortage.
Weekly Newsletter 44 Info-Spectrum Bridging the Information Gap in Corporate Landscape
AUTO & AUTO ANCILLARIES AUTOMOBILES: Maruti to expand its sourcing as Japanese yen rises. Maruti says made 700 Swift units; car's bookings at 108,000. JK Tyre plans to raise overseas sales to offset domestic slowdown. Domestic manufacturers oppose free trade agreements, as the tariff structures will adversely affect them. Mahindra & Mahindra and Honda to launch two new vehicles this week. Maruti Suzuki says restarted SX4 production at Manesar unit. Honda Siel launches Brio hatchback at Rs.395,000, ex-Delhi. Punjab-based Sonalika Group is planning to launch a tractor priced below Rs.200,000 for small and marginal farmers. Hino Motors Sales, an Indian subsidiary of Japanese car maker Toyota Motor has trimmed sales team in India by sacking nearly half the staff at its sales office in Mumbai. Toyota Kirloskar Motor, the Indian arm of Toyota Motor, will invest Rs.1 bn in a spare parts warehouse in Rajasthan. Maruti Suzuki says A-Star car production resumed at Manesar plant. Tata Motors says to study Calcutta HC judgement on land rehabilitation. Ashok Leyland prices LCV Dost at Rs.379,000-437,000 ex-Mumbai. M&M launches SUV 'XUV 500' priced at Rs.1.08-1.29 mn ex-Delhi. Honda Motorcycle to invest Rs.10 bn in new Karnataka unit. Ashok Leyland to supply 723 vehicles to Tanzania govt by Mar. Royal Enfield to set up second plant by 2013 If you have been amongst Royal Enfield lovers and aspirants who have been disappointed by the long waiting periods that the thumpers demand, things look like they are about to change for the better. Eicher Motors, which owns Royal Enfield, recently announced that it will be setting up a new manufacturing facility for its motorcycles at Oragadam near Chennai, which will be able to churn out about 1.5 lakh bikes every year. The facility is expected to be ready by Mar 2013. The proposed 50-acre facility is likely to see a total investment of up to Rs.350 crore over the next five years. Tamil Nadu Chief Minister Jayalalithaa officially allotted land for construction of the plant at the Oragadam SIPCOT Industrial Park, near Chennai. He said the new facility will have an initial installed capacity of 1.5 lakh units per annum, which could be expanded later, depending upon demand. "With addition of new capacities, we will be able to reduce the waiting periods of our bikes. It currently about 6-8 months," Royal Enfield CEO Siddharth Lal said. Following operationalisation of the new plant, Royal Enfield will shift its entire vehicle assembly line here. At present, it has another facility in the state that produces 70,000 bikes every year. Bajaj Auto eyes monthly sale of 4000 boxer bikes in state With its eyes set on the rural market in Saurashtra, Bajaj Auto Ltd rolled out its new Boxer 150 cc variant in Rajkot by announcing its intention of achieving a sale of 4000 bikes every month. The auto giant has launched this new offering in keeping with the demands of the rural market. ―We are aiming to achieve a sale 4000 boxer bikes every month in Gujarat. This new bike is especially designed for rural and small town areas and so we are currently focussing on buyers from the rural areas,‖ said Manish Khatav, zonal manager, Bajaj Auto Ltd speaking at the occasion. He further added that currently Bajaj Auto‘s market share in Gujarat was about 30-33% and with this new launch, the company is expecting to capture about 40% market share in the state by the end of this fiscal. ―With good monsoons, the rural economy is doing well and also with recruitments in urban cities on a high, we are expecting a good demand for the all new Boxer as it is a fuel efficient bike,‖ said Khatav. Big bet on small cars At least seven auto makers will launch small cars in the Rs.2-4 lakh price band over the next few months. While Japan‘s Honda will launch the Brio, Korean giant Hyundai is expected to unveil its Eon during the Diwali week. Maruti Suzuki India — the country‘s top car maker — also plans to launch a car built on the
Weekly Newsletter 45 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Alto platform in 2012. Other auto giants, including Renault, Skoda, Volkswagen and Fiat India, are gearing up to unveil small cars next year. Such cars constitute more than 70% of around 2.5-mn cars sold in the country. According to analysts, there will be a strong demand for entry-level models as more customers graduate from motorcycles. ―This segment will be particularly important as manufacturers focus on rural/semi-urban markets where the buying power will be lower than the urban locations,‖ Kumar Kandaswami, manufacturing leader of Deloitte in India, told The Telegraph. Even in the metros and big cities, the demand for small cars is expected to come from first-time buyers such as young professionals feeling the pressure of rising loan rates and high fuel prices. Industry players said Hyundai was planning to price its Eon lower than Rs.3 lakh, while Maruti‘s replacement of the 800, named Cervo, could come for Rs.2.5 lakh. French car maker Renault is gearing up to compete in the mass market with its new car based on the same V-platform that underpins the Nissan Micra and Sunny. ―We will launch our small car in India by next January,‖ said Len Curran, sales and marketing vice-president at Renault India. The car is expected to be priced at around Rs.3 lakh. Germany‘s Volkswagen is evaluating the possibility to bring in the Up! showcased at the Frankfurt Motor Show 2011. Wabco plans a Rs.60-cr capex Wabco India Ltd, a subsidiary of Belgium-based Wabco Holdings has earmarked a Rs.60-crore capex plan for its Indian operations this fiscal. The company will invest Rs.40 crore to expand cacacity at its export- oriented unit at Mahindra World City SEZ in Chennai to manufacture compressors for overseas markets. The company will also invest an additional Rs.10 crore in a braking system assembly unit at Lucknow in Uttar Pradesh to acter to the plants of Tata Motors and Ashok Leyland. The 7,000 units per annum capacity unit will commence operations in 2012. Maruti Suzuki plans $1.3-bn investment in new plant Auto manufacturer Maruti Suzuki, has planned the investment of around $1.3 bn (Rs.6,300 cr approx) to set up a new plant. The company has not yet finalised the location of its new plant and will take a final decision by Oct-end but is looking Gujarat as the potential location for the plant. "On one plant for a mn capacity, which will be set up over a number of years, the investment will be close to $1.3 bn," RC Bhargava said. The global auto companies are bullish on business in Gujarat and Ford Motor and PSA Peugeot Citroen have also announced plans to invest in the state. JLR to invest Rs.2,650 cr for UK engine plant Tata Motors-owned Jaguar Land Rover will invest 355 mn pounds (about Rs.2,650 crore) to set up an advanced engine facility to manufacture all-new, advanced technology, low-emission engines in the UK. The plant, to be set up at Staffordshire, near Wolverhampton, will manufacture a family of low emission 4- cylinder JLR petrol and diesel engines. However, details regarding the production capacity and the timeline for its operations was not specified. JLR Chief Executive Officer Ralf Speth said: "As part of our long-term strategy for the JLR business, we will design, engineer and manufacture a new family of advanced engines." Nissan plans to double plant capacity Japanese auto Nissan plans to ramp up the annual capacity of its facility at Orgadam near Chennai in Tamil Nadu from the current 2 lakh units to 4 lakh units by 2012. The company is a study for the same. The company in a joint venture with France-based Renault had invested Rs. 4,500 crore spread over a period of seven years for the facility. In Jul, 2010, the company had formally unveiled its first hatchback Micra manufactured at this facility. The company has planned to launch a series of new models and has unveiled the second product the mid-size sedan ―Sunny‖ recently. The company has set a target of retailing 40,000 units this fiscal and plans to take dealership network to 60 from 45 by Mar 2012. Maruti Suzuki resumes production of the SX4 sedan at Manesar Maruti Suzuki India Ltd resumed production of the SX4 sedan after almost a month since labour unrest hit operations at the company's Manesar factory. Maruti Suzuki had stopped making the SX4 and A-Star models after workers struck work at its Manesar plant on Aug 29. Although the company had been able to resume the Swift hatchback production by using temporary staff and plant supervisors, it had decided to wait for the Manesar plant to be fully operational before it resumed production of the SX4 and A-Star models. Maruti Suzuki said it made 725 Swift cars at its two factories in Manesar and Gurgaon. Manufacturing of Swift is being shared between the Manesar and Gurgaon plants till production at Manesar reaches normal levels. India's largest carmaker said it added 120 workers at the strike-ridden Manesar plant to take the total number of workers there to 1,500. Production at the Manesar unit, which typically makes 1,200 units of the Swift, SX4 and A-Star models a day, has been severely impacted since the strike began.
Weekly Newsletter 46 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Nissan India targets three-fold growth in sales after Nissan Sunny launch Japanese car manufacturer Nissan targets over three-fold growth in sales in India in 2011, a company official said. "Nissan India sold 13,000 cars in 2010. In 2011, we are aiming to sell 40,000 cars", Nissan India Managing Director Kiminobu Tokuyama said. Launching its mid-segment sedan Sunny here on Monday, he said the capacity of the Chennai plant would be doubled from the current two lakh per annum by 2015. The company would invest Rs.4,500 crore till 2015, out of which Rs.2,800 crore has been already been done. Tokuyama said Nissan would launch five more models by 2015, of which one would be a Multi Utility Vehicle (MUV). Nissan India's dealership network would increase from 80 to 100 by next year, he added. Honda Siel launches Brio at base price of Rs.395,000, ex-Delhi Having burnt its fingers with the pricey Jazz, Honda Siel India Ltd is now looking to make amends by offering its new hatchback model Brio at a bargain. The company launched the Brio with an entry-level price tag of Rs.395,000, ex-Delhi. The Brio would be competing with Chevrolet Beat, Ford Figo, Hyundai i10, Maruti Suzuki Ritz, Nissan Micra and Toyota Kirloskar's Liva. Nissan Motor India may launch diesel variant of sedan Sunny by Jun Nissan Motor India Pvt Ltd will look to launch the diesel variant of its first sedan Sunny by Jun to capitalise on the spurt of demand for diesel cars in the Indian market, Dinesh Jain, chief executive officer, Hover Automotive India Pvt Ltd told. Maruti makes 670 Swift cars; to up output in coming days Maruti Suzuki said it hopes to scale up production in the coming few days, as employee strength steadily goes up at its plant in Manesar, where workers have struck work since Aug 29 against the company's insistence on a "good conduct" bond. Maruti says made 700 Swift units; car's bookings at 108,000 Maruti Suzuki India Ltd said it manufactured total 700 units of the Swift hatchback at its two factories in Manesar and Gurgaon in Haryana. The company said bookings of the Swift model have touched 108,000. Ratan Tata among corp honchos on revamped NMCC Industry captains, including Tata Group head Ratan Tata and CMD of TVS Motor Venu Srinivasan are among members of the National Manufacturing Competitiveness Council (NMCC), reconstituted by the government. Maruti adds 200 workers at Manesar plant as strike enters 25th day Maruti Suzuki India Ltd said it has "brought in" 200 trained people to join production at the Manesar plant, as the employee strike at the unit entered the 25th day. Govt finalising national auto body; board likely to begin ops Dec The Department of Heavy Industry is close to finalising its plans for the National Automotive Board, a government-led body that would ensure sustainable development of the domestic automotive sector. International Tractors sets up dealership in Myanmar International Tractors Ltd, a part of the Sonalika group, has expanded its operations to Myanmar by setting up a dealership earlier this month, a company release said. Wabco India to set up Rs.100 mn manufacturing plant in Lucknow Wabco India Ltd will set up a commercial vehicle component manufacturing plant in Lucknow, Uttar Pradesh, at an investment of Rs.100 mn, the company told. Edgy Maruti tells vendors FY12 sales growth may, at best, be flat Maruti Suzuki India Ltd has recently told its component suppliers that the carmaker is unlikely to report a growth in sales in the current financial year ending March, one of the company's largest vendors told. JK Tyre plans to raise overseas sales to offset domestic slowdown JK Tyre & industries Ltd is looking to increase its sales in some of the overseas markets to offset the fall in demand in the domestic market, Director, Marketing, A.S. Mehta told. Sonalika Group to launch sub Rs.200,000 tractor soon Punjab-based Sonalika Group plans to launch a tractor priced below Rs.200,000 to target small and marginal farmers, President - international business Rajeev Wahi told. TomTom launches car navigation products in India
Weekly Newsletter 47 Info-Spectrum Bridging the Information Gap in Corporate Landscape
The Netherlands-based automobile navigation system maker TomTom announced expanding its businesses in India, with the launch of products for car buyers in the country. Maruti Suzuki resumes A-Star hatchback production at Manesar Maruti Suzuki India Ltd has resumed production of all the three models at its Manesar unit that were being made at the plant earlier, but the company is still not describing the situation as normal. Hero MotoCorp sees FY12 demand hit if high interest rates persist Hero MotoCorp Ltd has said demand for automobiles would be dampened in 2011-12 (Apr-Mar) if interest rates remained high. Atul Auto extends rights issue closing date to Oct 14 from Sep 29 Atul Auto Ltd has extended the closing date of its rights issue to Oct 14 from Sep 29, the company informed the Bombay Stock Exchange. CRISIL Research lowers FY12 car sales growth forecast to 0-3% CRISIL Research expects domestic car sales to grow at a mere 0-3% in the current financial year that started March due to hike in interest rates and rising fuel prices. Ashok Leyland prices LCV Dost at 379,000-437,000 rupees ex-Mumbai Nissan Ashok Leyland Powertrain Ltd launched a new light commercial vehicle Dost, priced between 379,000 rupees and 437,000 rupees, ex showroom, Mumbai. Fiat India says to begin selling Linea in Sri Lanka this month Fiat India Automobiles Ltd announced its plans to export the Linea sedan to Sri Lanka and also to various other right-hand-drive markets. Maruti Suzuki aims to double sales outlets to 2,000 by 2015 India's largest carmaker Maruti Suzuki India Ltd said it plans to double its sales outlets to 2,000 by 2015. "We target to double our sales network..., in line with the company's sales plan," Managing Director and Chief Executive Officer Shinzo Nakanishi said in a press release. M&M launches SUV 'XUV 500' priced at 1.08-1.29 mln rupees ex-Delhi Mahindra & Mahindra Ltd launched its global sport utility vehicle 'XUV 500' at 1.08-1.29 mln rupees ex- showroom Delhi, with bookings for the three variants starting from Saturday in a phased manner. Three Bajaj Auto promoters up stake in co by 0.12%-0.21% Bajaj Auto said three of its promoters Sanjivnayan Bajaj, Sunaina Kejriwal and Rajivnayan Bajaj have raised their stakes in the company from Sep 23-27 through series of transactions. CEO says Royal Enfield to more than double capacity by FY13 Royal Enfield aims to more than double its production capacity to 150,000 motorcycles by 2012-13 (Apr- Mar), Venki Padmanabhan, the chief executive officer of the unit of Eicher Motors Ltd, said. Honda Motorcycle to invest 10 bln rupees in new Karnataka unit Honda Motorcycle & Scooter India (Pvt) Ltd, a wholly-owned two-wheeler production and sales arm of Honda Motors, said it would invest around 10 bln rupees in its two-wheeler plant in Karnataka. Munjal Auto board approves stock split proposal Munjal Auto Industries said its board has approved a proposal to split its equity share in the ratio of 1:5. MARUTI SUZUKI INDIA: Manufactured 700 units of the Swift hatchback, bookings for the model at 108,000. Has resumed production of the SX4 sedan almost a month after labour unrest hit operations at the company's Manesar factory. Has said production of A-Star car has resumed at its Manesar plant. SHAH ALLOYS: Is not in a position to redeem foreign currency convertible bonds worth $10 mn that matured on Sep 22 as the company is under the purview of the BIFR. TATA MOTORS: The Calcutta High Court will announce the verdict in the Singur land case between the company and the West Bengal government. MAHINDRA & MAHINDRA: Has launched its first global SUV, the UV500, in Pune.
Weekly Newsletter 48 Info-Spectrum Bridging the Information Gap in Corporate Landscape
MISCELLANEOUS MISCELLANEOUS: Govt likely to amend rules to digitise television broadcast. Bleeding global FIs chop jobs in India. Onelife Capital IPO opens Sep 28; price band set at Rs.100-110/share. Official says MCX turnover at record Rs.1.12 trn. Gold falls 2.8%; worst 3-day LME plunge in 28 yrs. Fin min source says govt mulling cut in securities transaction tax. Fin min source says to decide on Oct-Mar borrow calendar Sep 29. RBI notifies external commercial borrowing norms. MD says Vadilal Ind to launch 15-20 frozen food pdts in 2 yrs. Govt reconstitutes National Manufacturing Competitiveness Council. Reliance Broadcast radio revenue to quadruple by FY16. StanChart expects downside risks for rupee to persist in near term. CFO says Reliance Broadcast eyes Rs.10-bn radio revenue by FY16. PVR cuts ticket price by Rs.50 in 3 Delhi sites for early shows. Reliance Cap keen to enter banking, expand other major businesses. FAME INDIA files draft letter of offer with SEBI for Rs.900 mn. SMEs tweak strategies as Eurozone crisis rages. SEBI issues guidelines for listing structured pdts, debentures. Minda Ind signs pact with 2 Japan cos for plastic products JV. Nifty futures rollover lowest since Febraury. Fame India rights issue sets stage for Inox, Ambani battle. New Takeover Code will restrict voluntary open offers. CBI says ADAG executives may turn approvers. Pvt equity bigwig Kejriwal quits Temasek to float new fund. IFCI ups stake in Tourism Finance to 41.54% from 39.43%. Reliance Spot Exchange launches 100 gm, 1 kg e-gold contracts. REGULATORY: SEBI has issued a concept paper on regulating investment advisors and sought feedback by Oct 31. SEBI has put out draft regulations for investment advisers. The United Stock Exchange has come under SEBI scanner for alleged concentration of trades in a single member. RBI proposes to cut the minimum period banks can hold loans before securitisation, and also the minimum retention required. RBI Governor D. Subbarao has said it is important for fiscal consolidation to take firm roots for monetary policy to take cognisance of growth concerns. SEBI has asked merchant bankers to disclose performance of past issues in drafts from Nov 1. SEBI plans to revise interest rate futures rules, to ease rules to help banks, companies and mutual funds to cover their losses from hardening interest rates. SEBI has issued new guidelines for listing structured products and market-linked debentures; issuers must have minimum net worth of 1 bln rupees. CORPORATE: The Ministry of Corporate Affairs may give more time to unlisted companies to convert their share certificates and bonds into dematerialized format.
Weekly Newsletter 49 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Metro Hospitals and Heart Institute are in talks with buyout fund Carlyle Group to divest significant stake in five hospitals to fund expansion. INVESTMENT: US companies are looking at investing in energy, education, communications and infrastructure in India. Lodha Developers Ltd is raising Rs.8.25 bn to buy back debentures issued to Deutsche Bank in 2007. FMCG: Samsung and LG Electronics India has increased prices of consumer durables by 3% due to weakening of the India rupee and rising input costs ahead of festive season. INSURANCE: Insurance Regulatory and Development Authority is planning to allow insurance companies to invest in derivatives. INSURANCE: Star Health to launch a standalone dental insurance policy in a month. RETAIL: Big retailers have reported more than 20% on year rise in same-store sales since May as consumers buy grocery and other daily use items in bulk packs to secure the best deal on offer. Shriram, TPG chart strategy to turn around Vishal Retail. Future Group is closing several stores of its electronic goods chain eZone and moving out of some cities as part of restructuring the loss-making business. BULLION: Prices have turned extremely choppy, magnifying their losses, with a rise in margin calls. COMMODITIES: Speculators cut bets as commodity prices rise the most in 19 months. Raw materials tip into their first bear market since 2008 and investors anticipate more losses. EQUITY: Government plans to abolish or substantially dilute securities transaction tax levied on buying and selling of shares. EDUCATION: Subsidy scheme to make higher-education loans more attractive to poor students has failed to meet its target due to inadequate marketing and lack of coordination among various agencies. EXCHANGES: The BSE and the NSE have resolved their long-standing dispute on algorithmic trading. The BSE and the NSE have agreed to share software platforms that may boost liquidity in equities and derivatives market and benefit brokers of both the exchanges. FUNDING: Samvardhana Motherson plans to raise 17.51 bln rupees via initial public offering. TRAVEL: Online travel portal Expedia has signed a joint venture with Air Asia to sell the carrier's flights and packages, and to operate its own business in Japan, India, Southeast Asia and other East Asian markets. Kerala set to achieve 100% financial inclusion Kerala is set to become the first State in the country to achieve 100% financial inclusion. The formal announcement in this respect is expected to be made by the end of this month, according to Ms Archana S. Bhargava, Executive Director, Canara Bank. She said Canara Bank, which is the Convenor of the State Level Bankers Committee (SLBC), had already covered all the 15 villages allotted to it under the financial inclusion drive, either by appointing customer service providers or through opening of ‗brick and mortar' branches. There are a total of 127 villages in the State and the other banks involved in the inclusion exercise have also committed to complete the task this month itself. Ms Archana said that there are around six lakh villages in the country and only 30,000 of them have any kind of banking facilities. Similarly, just about 40% of the country's population have bank accounts. Under the financial inclusion programme, Canara Bank has opened
Weekly Newsletter 50 Info-Spectrum Bridging the Information Gap in Corporate Landscape
32.25 lakh no-frill accounts, out of which 1.30 lakh accounts are in Kerala. She said that the total business of Canara Bank had crossed Rs 5 lakh crore and the target for the year was Rs 6 lakh crore. The bank opened 170 new branches in the last three months, of which, 100 were in backward and under-banked areas. The plan was to open another 130 branches in the coming months, taking the total number of new branches to 300 in the current year. The bank will open an offshore branch in Bahrain in the next couple of months. Though the bank is holding licences to start branches in South Africa and Germany, it is waiting for the current global economic situation to ease up before going ahead. It is also looking at the possibility opening branches in Brazil, Bangladesh and Sri Lanka and a representative office in Japan. Ms Archana said that Canara Bank was active in granting education loans and had so far given around Rs 4,000 crore through two lakh accounts. In Kerala, the bank has disbursed Rs 830 crore under the head covering 38,000 accounts. Australia’s Boost Juice set to enter Indian market Boost Juice is set to enter the Indian market, adding to a growing list of beverage firms from Australia catching the fancy of Indian juice and wine aficionadas. Boost Juice has signed an agreement with a local partner; the implementation details are being worked out. The first of the stores will open in the next 12 months, according to Simon Feiglin of The Riverside Company, a US-based private equity investment company, which last May bought a 70% stake in the Boost Investment Group (BIG), owners of Boost Juice Bars and Salsa‘s Fresh Mex Grill. ―India is a high growth market and the climate in many parts of India is similar to that in Australia,‖ Feiglin said. ―The economic conditions and the climate are both conducive for folks to appreciate Boost drinks‖, he told Business Standard. The 2000-founded company has 180 stores in the island-continent and 65 overseas from the UK and South Africa to Singapore and Chile amongst others. In the past year, Boost Juice opened a store at Shanghai in China. ―We are very excited to be bringing a world-class, high-quality product to India at an affordable price,‖ Feiglin said. The company‘s range of nutritional juices and fruit drinks, he said, ―will not disappoint the young, besides a growing middle class‖ with increasing disposable incomes, looking for ready and convenience driven products. Boost Juice offers healthy juices, smoothies made with fresh fruit and yogurt, and energy drinks with a shot of vitamins, protein, minerals and antioxidants, all free of preservatives, artificial flavours and colours, he added. The menu will be similar to that on offer in Australia. ―We will predominantly offer smoothies, juices and drinks, adapted and modified for the Indian palate,‖ Feiglin added. Boost Juice Bars was founded by Janine and Jeff Allis in Adelaide and has since expanded throughout Australia and in over a dozen other countries. Since its creation, Boost Juice has grown with an estimated annual turnover of $100 mn and profits of around $6 mn. When The Riverside Company bought into Boost Juice the unlisted retailer had an enterprise value of roughly $65 mn, reports The Age newspaper. UFO Moviez picks up 26% more in digital cinema systems provider Scrabble Entertainment to take total stake to 52% UFO Moviez has picked up 26% equity stake in Scrabble Entertainment, taking its total holding in the Manmohan Shettypromoted digital cinema systems provider to 52%. UFO, a joint venture between the Valuable Group and Apollo International, which is in the same business as Scrabble, had bought 26% stake in the company a few months ago. Both companies help exhibit movies in the digital format, which is replacing traditional film prints. Shetty, a Bollywood film producer who made a killing in 2007 when he sold his production house Adlabs Films to the Anil Dhirubhai Ambani Group, had launched Scrabble with 72% ownership the same year. Following the deal with UFO, his shareholding in Scrabble has fallen to 21%. The other promoters, Ranjit Thakur and Sunil Patil, hold 27% stake in the company. Private equity firm 3i and Providence Equity Partners have invested in UFO. Providence recently invested Rs 260 crore in the company. UFO has 2,350 digital installations across India and Nepal, while Scrabble, India's only 2K digital cinema initiatives (DCI)-compliant entity, is expanding its footprint to Latin America, the Middle East and Eastern Europe. It plans to increase the number of its screens from 300 in India to around 2,500 by 2013. Hollywood's big six studios - Sony, Warner, Disney, Fox, Universal and Paramount - have signed a global initiative whereby their content would only be released in DCI-compliant screens. "We are planning to invest over Rs 150 crore to expand the Scrabble DCI screens and we expect, with this infusion, to reach 800-1000 screens in one and half years," Sanjay Gaekwad, managing director of UFO Moviez, said. "This will help Scrabble Entertainment increase its global footprint. It would have struggled in isolation," said Scrabble's Shetty. Sebi announces IDR rights norms
Weekly Newsletter 51 Info-Spectrum Bridging the Information Gap in Corporate Landscape
The Securities and Exchange Board of India (Sebi) has amended capital raising and disclosure norms, allowing issuers of Indian Depository Receipts (IDRs) to launch a rights issue. Also, merchant bankers have been directed to disclose the performance of their past issues as part of the due diligence certificate. According to Sebi, an IDR issuer will be allowed to come out with a rights issue after making an application to all exchanges where the IDRs are listed, and if there is no breach of ongoing material obligations under the IDR Listing Agreement. IDRs are shares issued by foreign companies and are listed on the Indian exchanges. It basically gives investors an opportunity to own a share of a foreign company. Currently, Standard Chartered Plc, which is listed on London Stock Exchange and Hong Kong Stock Exchange, is the only entity that has listed its IDR in India. The global banking major came out with its IDR issue in May 2010 and was listed on the Bombay Stock Exchange and the National Stock Exchange in June 2010. According to Sebi, an IDR holder can also renounce the rights in favour of any other person if the home country of the issuer company does not have any such restrictions. Further, the issue can be cleared on a fast-track basis if the document has been filed and reviewed by the home country regulator and there are no pending show- cause notices or prosecution proceedings against the promoters or whole time directors. The issuer also should have redressed at least 95% of the complaints received from IDR holders before the end of three months immediately preceding the month of date of filing the offer letter. Meanwhile, investment bankers while managing public issues will now have to disclose the performance of other issues that they have managed in the past. Sebi, in the past, has said that merchant bankers need to disclose their track record, which will help the investor in taking better-informed investment decisions in the primary market. The investment banking fraternity has, however, not been too pleased with the regulator's concept. Among other things, the regulator has laid down the format for the abridged prospectus and the disclosures to be included in the document. The General Information Document will include financial data, summary of business, promoters and management history, risk factors and the basis of price, among other things. SAARC members keen on Indian investments, expertise From the Maldives to the south of India to Bhutan in the north, several SAARC countries are keen to seek Indian investment and expertise. And not without reason, because 55% of the intra-regional trade potential in South Asia remains untapped. Realising this, Bhutan, which has recently come up with a revised foreign direct investment policy and is to shortly announce a new renewable energy policy to promote and develop renewal energy for its current and future needs, is keen to seek Indian investments in four to five sectors including power, tourism, construction and industry. ―In the future, there will be openings for smaller power projects for private sector companies to consider,‖ the Secretary-General, Bhutan Chamber of Commerce and Industry, Mr Phub Tshering, said. These projects will be below 500 MW, he added. The country is also inviting investments from India in the proposed education city project. In Maldives, Indian investors can look at tourism, hotels, ports, airports and fisheries. ―Don't look at the size of the country or the economy. The world has mns of bns. We are trying to attract them. It is for the Indian business community to explore the potential in the Maldives. If India does not look into it there are other countries which are equally rich who can. But we are very comfortable with India. It is our closest neighbour and strategically very important for us,‖ the Maldives High Commissioner to India, Mr Abdul Azeez Yoosuf, said. Sri Lanka, too, is keen to see investments from India touch the $ 1 bn level in the next three years from the current level of about $ 200 mn, the Minister for International Cooperation, Dr Sarath Amunugama, said. RBI notifies external commercial borrowing norms The Reserve Bank of India has notified the annual external commercial borrowing ceiling for companies at $750 mn as against $500 mn earlier, and for services sector at $200 mn versus $100 mn. Companies seeking refinancing of rupee loans via overseas borrowings can use 25% of the money to retire existing debt under the approval route. The remaining 75% must be used for fresh infrastructure projects, the central bank said in a notice on its website. So far this fiscal, Indian companies have raised $15.9 bn via overseas borrowings. On Sep 15, a high-level co-ordination committee on external commercial borrowings also added yuan to the list of acceptable currencies for raising money overseas but imposed a cap of $1 bn on loans in the Chinese currency. Economic Affairs Secretary R. Gopalan had then said the $30 bn limit could be raised if required. Govt reconstitutes National Manufacturing Competitiveness Council The government has reconstituted National Manufacturing Competitiveness Council under the chairmanship of V. Krishnamurthy, the commerce ministry said in a release. The government had set up the council to serve as a policy forum for credible and coherent policy initiatives in the manufacturing sector, it said. Currently, Krishnamurthy is also a member of the Prime Minister's Council on Trade and Industry. The
Weekly Newsletter 52 Info-Spectrum Bridging the Information Gap in Corporate Landscape council will comprise one member from Planning Commission, and secretaries from Department of Industrial Policy and Promotion, commerce and industry, finance ministry, Department of Heavy Industry, micro, small and medium enterprises ministry, and the director-general of the Council for Scientific and Industrial Research. Chief Economic Adviser Kaushik Basu, and Indian Council for Research in International Economic Relations Chairperson Isher Judge Ahluwalia will be the two economists in the reconstituted body, the release said. Ratan Tata, chairman of Tata Group; Venu Srinivasan, chairman and managing director, TVS Motor Co Ltd; A.M. Naik, chairman and managing director, Larsen & Toubro; Y.C. Deveshwar, chairman and managing director, ITC Ltd, among others will represent the industry in the council, it said. PVR cuts ticket price by Rs.50 in 3 Delhi sites for early shows Movie exhibitor PVR Ltd has cut movie ticket prices in three locations in Delhi by Rs.50 for shows before 1300 IST to improve footfalls during the early slots. The discounted prices will be available from Monday to Thursday and will not be applicable on premier class tickets, a company source told. "This exercise is purely to get more footfalls in the morning shows before 1300 IST that do not have large occupancy rates," the source said. Prices have been cut at three locations in the city--Priya, Saket and Vikas Puri. The source, however, said the offer could be modified according to the demand for a movie. "In case of a big release, the offer may not be valid," the source said. MD says Vadilal Ind to launch 15-20 frozen food pdts in 2 yrs In a bid to tap the frozen, ready-to eat market in new cities such as Delhi, Chandigarh and Lucknow, Vadilal Industries Ltd plans to launch 15-20 new products in this segment in the next two years, Managing Director Rajesh Gandhi said. He said the planned expansion is expected to take the company's revenues from frozen food business to nearly Rs.7.5 bn in two years from Rs.3.8 bn now. The company sells frozen food products under two brands--Quick Treat and Garden Fresh--in Maharashtra, Rajasthan and Gujarat. The company also plans to introduce locally sourced frozen exotic vegetables such as lettuce, broccoli, zucchini and baby corn in the domestic market in the next six months, Gandhi said, while addressing a press conference here. "The frozen food market in India is expected to grow at 25%-50% per annum over the next five years," said Gandhi. Redington says no tender offer needed for Turkey co Redington (India) Ltd has informed BSE that: "Redington International Holdings Limited (RIHL), a step-down subsidiary of Redington (India) Ltd., had acquired 49.4% stake in Arena Bilgisayar Sanayi ve Ticaret A.S, Turkey (Arena), a listed Company in Istanbul Stock Exchange, in November 2010. An investor had filed an application with the Capital Markets Board, Turkey (CMB) requesting a directive to be issued to our subsidiary Redington International (Holdings) Ltd. (RIHL) to launch a Mandatory Tender Offer (MTO) in relation to Arena. The CMB decided to turn down this request after which the investor approached a court - 13th Chamber of the Council of State, Turkey. This court subsequently granted a stay of execution on CMB's decision to decline the request for an MTO. Pursuant to this stay of execution, CMB has sent a communication to RIHL requiring it to either file an application for launching a MTO to acquire the balance shares in Arena or make a request seeking exemption from making such a tender offer. This investment by RIHL was made under the applicable laws which as per legal advice received by us do not require a mandatory tender offer to be made. We are taking necessary steps to represent this before the appropriate authorities in order to defend our position under law." Carol Info gets shareholders' nod to sell nutrition ops to Danone Carol Info Services Ltd has received shareholder approval to sell its nutrition product manufacturing unit in Punjab to an affiliate of French company Danone. In Aug, Carol Info Services' parent Wockhardt Ltd had signed a deal to sell the unit to Danone for around 250 mn euro (Rs.15.68 bn). G&K Baby Care Pvt Ltd, an affiliate of the Danone Group, will buy the nutrition business and related industrial operations from Carol Info, which is a contract research and manufacturer for Wockhardt's nutrition products. This was Wockhardt's second attempt to sell this business after its 2009 pact with Abbott Laboratories, at nearly one- third the price of the Danone deal, failed due to differences between Wockhardt's secured and unsecured creditors over rights on the sale proceeds. Reliance Cap keen to enter banking, expand other major businesses Reliance Capital plans to enter the banking sector in the near future and is keeping track of regulatory developments needed to procure a banking licence. The company is currently focusing on unlocking value across all its major businesses. As a first step, the company has entered into a pact to sell 26% stake in Reliance Life Insurance to Nippon life Insurance. "This is the largest FDI (foreign direct investment)
Weekly Newsletter 53 Info-Spectrum Bridging the Information Gap in Corporate Landscape transaction in Indian financial services sector and the life insurance space," the release quoted Anil Ambani, chairman, Reliance Capital, as saying. Early Sep, Reliance Capital had signed a memorandum of understanding with Nippon Life Insurance to evaluate partnership opportunities across all businesses promoted by the company. Further, the non-banking financial company is looking to expand its asset management business into emerging markets and grow its wealth management and private equity business, the company said. MMTC gold imports up 24% at 19.5 tn Aug, silver imports down 25% MMTC Ltd imported 19.48 tn of gold in Aug, up 24% compared with 15.65 tn imported in the corresponding period last year. In Apr-Aug, imports of the yellow metal were 103.8 tn, up from 90.0 tn the company imported during the same period year ago. The imports were higher despite near record high prices of the precious metal in August. On MCX, the benchmark Oct gold hit a record high of Rs.28,286 per 10 gm, up over Rs.4,000 from previous month. MMTC is the second largest gold importer in India, after Scotia Mocatta. In Jul, the state-owned company imported 10.75 tn gold, down 58% on year. MMTC's silver imports declined 25% on year to 52.8 tn in Aug, the official said. In Apr-Aug, MMTC imported 563 tn of silver, sharply up from 460 tn during the same period last year, he said. MMTC's silver imports in July were down 79% on year to 25.5 tn. Motilal Oswal denies stake sale plans in any arm Motilal Oswal Financial Services Ltd ("MOFSL") has informed BSE as under : "In an article in a leading financial daily dated Sep 27, 2011 it has been inter alia published that Mr. Motilal Oswal - Chairman and Managing Director of Motilal Oswal Financial Services Ltd (MOFSL) has stated that MOFSL was looking to sell a little less than 26% stake in its asset management and investment banking businesses and the MOFSL is in talks with global players to offload a minority stake in these two businesses but nothing has been finalised. In this regard the management would like to state that Mr. Motilal Oswal, Chairman and Managing Director, has been misquoted in the news report in financial daily dated Sep 27, 2011. MOFSL has no plans or Board approval to sell stakes in any of its subsidiaries as of now. In the media interview, Mr. Motilal Oswal responded to a question by saying that the Company keeps getting offers to take stakes in various business but has taken no decision on any such offers. If at all, the Company may consider options to sell small minority stakes in the investment banking or asset management businesses if there is an opportunity which can add significant strategic value to those businesses. M&M Financial arm gets IRDA nod to enter reinsurance broking ops Mahindra Insurance Brokers Ltd, a wholly-owned subsidiary of Mahindra & Mahindra Financial Services Ltd, has received Insurance Regulatory and Development Authority approval to enter the reinsurance broking business. Since 2004, Mahindra Insurance Brokers had been offering direct broking and with the composite broking licence received now, it can now also offer reinsurance broking. Mahindra Insurance Brokers Managing Director Jaideep Devare said the company had hired a team of reinsurance professionals to handle the new operation. The team will be headed by Chief Reinsurance Strategist R. Chandrasekaran, who has over three decades of experience of Indian and global markets through his stint with GIC Re. India most-preferred new destination for global retailers: Study India may not have opened its retail industry to foreign investors yet, but it's the most preferred new destination for global retailers who bet on emerging markets to offset worsening economic conditions in the developed world. India topped the list in a survey of 323 international retailers about the markets they entered for the first time last year, done by property agents CB Richard Ellis. "If many retailers are already entering the Indian market, then I don't think there is so much of an entry barrier," said Neville Moss, director - head of EMEA Retail Research at CB Richard Ellis. "International retailers will just be more confident on the sense of ownership given in a foreign country," he added. That could by why several delegates of global retailers at the annual World Retail Congress in Berlin seem to have taken a wait-and- watch approach to investing in India. "We think India has the potential but, honestly, we haven't even studied the market yet," said Janet Grove, vice chair at US department stores chain Macy's, which is now gungho on China. "India is down the road, but first will be China." According to the CB Richard Ellis study, which covered 75 countries, eight retailers entered India last year while seven entered second-placed Turkey. In terms of international retailers present in a country, India still ranks 35 with just about one- fourth retailers present in the country. China is ranked seventh, with 46% retailers' presence, in the list topped by the UK with 57.6% retailers present in 2011. New Delhi ranked as the fourth most popular city for new retail entrants at city level. Retailers are increasingly looking at economies such as India and China, which have the best growth prospects and are least likely to be affected by austerity measures.
Weekly Newsletter 54 Info-Spectrum Bridging the Information Gap in Corporate Landscape
GE to set up integrated manufacturing unit at Pune General Electric (GE) is investing $200 mn (around Rs 1,000 crore) to set up a new technology development-cum-manufacturing facility at Chakan near Pune. The unit will create 2,000 jobs and focus on increasing localising of GE products for the domestic market. GE plans to make healthcare equipments, gas engines and also assemble and test wind turbines including like FlexEfficiency 50 gas turbine and super- critical steam turbines for thermal power generation, mainly for the Indian market.The company launched FlexEfficiency 50 (FE 50) technology, which has the potential to meet the environmental and grid conditions/norms of the important markets, consisting of India. In India, FE 50 would be aimed at gas-based power manufacturers in both state-owned utilities and Independent Power Producers. Saint-Gobain to invest Rs 500 cr in gypsum business Saint-Gobain Gyproc India, the Indian arm of Saint-Gobain of France, proposes to invest around Rs 500 crore to boost gypsum business in India over the next three years. The company has so far invested about Rs 300 crore since 2006 and will ow focus on strengthening existing production capacities, beside setting up new units. The company has three manufacturing units in Haryana, Maharashtra and Karnataka and manufactures building construction materials like plaster boards, gypsum boards, finishing materials and jointing materials. INTERVIEW: IDBI Federal Life COO says new ULIP norms hurt business Marathon runners know how to pace themselves so they don't lose steam before reaching the finishing line. Hans Van Wuijckhuijse, a marathon enthusiast and IDBI Federal Life Insurance Co Ltd's chief operating officer, knows his business is pretty much like a marathon. It's a competitive race, not a dream run, and only the strong will survive. SEBI notifies disclosure norms for rights issues of IDRs The Securities and Exchange Board of India notified disclosure norms for rights issues of Indian depositary receipts, according to a report in the Mint. The capital markets regulator has asked companies to disclose, in the offer document, comparison of accounting ratios of the issuer along with industry average and that of the peer group. There should be consistency in the comparison of financial ratios of the issuer with companies in the peer group to justify pricing of such rights issues, the report said. Standard Chartered Plc is the only company to have its IDRs listed in India. FDI in multi-brand retail soon, Pranab tells foreign investors The Finance Minister, Mr Pranab Mukherjee, has assured foreign investors that foreign direct investment (FDI) would soon be allowed in multi-brand retail. ―A consensus on allowing FDI in multi-brand retail is being evolved and will be operationalised in the near future,‖ Mr Mukherjee said in his address at the India Investment Forum in New York. Currently, foreign investment is not allowed in multi-brand retail. In the case of single-brand outlets, foreign investment is allowed up to 51%. In cash and carry or wholesale trade, up to 100% is allowed. Sanmar group to invest $1.3 bn in Egypt TCI Sanmar Chemicals SAE, the Egyptian division of the Sanmar Group plans to invest USD 1.3 bn in an integrated project to produce annually 2.75 lakh tonnes of caustic soda and 400 tonnes of poly vinyl chloride (PVC) at its plant in South Port Said, Egypt. The Sanmar Group which manufactures caustic soda, chlorine and hydrogen at its plants in Tamil Nadu, Puducherry and Maharashtra in India, had acquired the Egyptian company Trust Chemical Industries LLC (now TCI Sanmar Chemicals SAE) in March 2007. Shoppers Stop opens 6 mothercare stores across India Shoppers Stop Limited has informed the Exchange that the Company has opened 6 Mothercare stores as 'Shop in Shop' stores within Shoppers Stop at (1) Garuda Mall-Bengaluru.(2) Prozone Mall- Aurangabad. (3) Indore, (4) Inorbit - Pune.(5) Shymala-Chennai and (6) Rohini- New Delhi. With opening of these stores, the Company has now 33 'Mothercare' stores with 6 stores on standalone and 27 stores on shop in shop basis. Dabur India sets up export-oriented beverage unit in Sri Lanka Dabur India Ltd said it will set up an export-oriented manufacturing unit in Sri Lanka with an initial investment of $15 mn. Spread over 50 acres in Gampaha near Colombo, the unit will be commissioned by Aug-Sep 2012, the company said in a release. The plant, which will produce a range of fruit-based beverages, will employ 75 people that will be raised to around 200 by 2013-14 (Apr-Mar), the release said.
Weekly Newsletter 55 Info-Spectrum Bridging the Information Gap in Corporate Landscape
SEBI asks merchant bankers to disclose performance of past issues The Securities and Exchange Board of India has asked merchant bankers managing public issues of Indian companies to disclose price performance of past issues managed by them. Merchant bankers will also have to enclose a due diligence certificate after submitting it to the regulator, SEBI said in a notice on its website. P&G cuts Whisper Ultra 7-unit pack price by 43% to Rs.49 Procter & Gamble Hygiene & Health Care Ltd has cut prices of the seven-unit pack of its sanitary napkin brand Whisper Ultra by 43% under a limited period offer, dealers said. Packs from the September batch now cost Rs.49 under the limited period offer, as against the original price of Rs.70. P&G Hygiene also sells sanitary napkins under the brand names Whisper Maxi and low-cost Whisper Choice. IRDA asks insurance cos to extend scope of critical illness cover The Insurance Regulatory and Development Authority has asked companies selling home insurance packages to extend the scope of critical illness cover to include home loan repayment benefit as well. A home insurance package covers critical illnesses, permanent total disability, loss of job and fire and burglary. FOCUS: Rupee's fall, global worry to keep stock mkt on tenterhooks A bleak outlook for global economies, coupled with a steep fall in the Indian currency against the dollar, forced traders to press the "panic button", and experts are bracing for another similar sell-off in the near term. Tata Chemicals arm, 2 US cos in pact to make, market dry sorbents Tata Chemicals Ltd's step-down subsidiary, Tata Chemicals (Soda Ash) Partners, has entered into a pact with two US-based companies--Church & Dwight Co and FMC Corp--to form an equal partnership for manufacturing and marketing dry sorbents, the Tata Group company said in a press release. Warren Buffett's Lubrizol, Astral to set up $245 mn unit in Dahej Warren Buffet-managed specialty chemical company, Lubrizol Corp and Ahmedabad-based Astral Poly Technik Ltd have decided to jointly invest $245 mn in setting up a chlorinated polyvinyl chloride plant in Dahej, a Gujarat government release said late Wednesday. RBI OKs panel's suggestions on security, risk mgmt of card usage The Reserve Bank of India has accepted a working group's recommendations on measures to be adopted by banks to tackle security issues and risk mitigation in respect of card transactions, a notification on the central bank's website said. SEBI notifies new Takeover Code, open offer size raised to 26% The Securities and Exchange Board of India notified the much-awaited amendments to the Takeover Code, making it mandatory for an entity, which buys more than 25% in a listed company, to make an open offer to minority shareholders for at least 26% of the total issued capital of the company. New takeover code may bring EIH in focus on RIL, ITC slugfest hope The notification of the new Takeover Code by the Securities and Exchange Board of India may bring EIH Ltd stock back into action, with prospects of either ITC Ltd or Reliance Industries Ltd raising their holding in the company, market participants said. Balmer Lawrie plans online travel ops, eyes 1-bn-rupee sales 2013 Balmer Lawrie & Co Ltd plans to launch online ticketing operations by March, and expects revenue from online ticket sales to be around Rs.1 bn within a year, Chairman and Managing Director S.K. Mukherjee said at the company's 94th annual general meeting in Kolkata. Fin svcs secy says shortlisted candidates for LIC chief post A government-appointed panel, chaired by Finance Secretary R.S. Gujral, has shortlisted eligible candidates for the post of the chairman of state-owned Life Insurance Corp of India, D.K. Mittal, secretary – Department of Financial Services in the finance ministry, said. BPTP, JPMorgan appoints consultants to value assets, plan exit BPTP Ltd and JPMorgan Chase and Co have appointed Jones Lang LaSalle India and DTZ International Property Advisors to value BPTP's assets. Harbour Victoria Investments Holdings Ltd, an affiliate of JPMorgan that holds 3.86% in property developer BPTP, seeks to exit its investment.
Weekly Newsletter 56 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Blackstone plans to sell India fund Inc to Aberdeen Asset Blackstone Group, the private equity firm, is exiting its biggest India-focused close-ended mutual fund scheme, India Fund Inc. It will transfer the management of the fund to Aberdeen Asset Management Asia. The deal awaits stockholders' approval on Nov 16. Reduced duty drawback to hit carpet exports: KCCI Kashmir Chamber of Commerce and Industry (KCCI) has asked the Centre to review its decision to reduce duty drawback on export of carpets, saying that the industry is already under pressure due to economic slowdown and volatile situation in the valley in the past three years. India to take decision on multi-brand retail: Sharma "Very few sectors are left, where sectoral caps are there and we are very actively engaged in talking to the stakeholders, what more we can do. There will be more policy pronouncements soon," Commerce and Industry Minister Anand Sharma told PTI here. Promoter Gurnam Arora ups stake in Kohinoor Foods to 16.41% Gurnam Arora, one of the promoters of Kohinoor Foods Ltd, has raised stake in the company to 16.41% from 16.07%. Arora bought 96,500 shares of Kohinoor Foods from the open market on Sep 21, taking his total tally to 4.62 mn shares. Confidence Trading to allot 10 mn shrs to non-promoters Confidence Trading Company Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on Sep 27, 2011, inter alia, to allot 1,00,00,000 (One Crore) Equity shares on preferential basis to Non-Promoter at Rs.15 each (i.e. including a premium of Rs.5 per share). SEBI proposes investment advisor regulations, seeks views by Oct 31 The Securities and Exchange Board of India released a concept paper on regulating investment advisors, wealth managers and private bankers with a proposal to make it mandatory to register with the regulator to carry on the activity of offering investment advice. RBI eases external commercial borrow norm for service sector units The Reserve Bank of India said that it would consider the external commercial borrowing proposals into service sector units from foreign equity holders and group companies under the approval route, a release said. INTERVIEW: Cosmo Films eyes Africa foray, mulls inorganic options With operations in India, US, Netherlands and Korea, packaging films maker Cosmo Films Ltd is now turning its attention towards Africa in a bid to cash in on the growing demand for packaging films in the region. StanChart expects downside risks for rupee to persist in near term The rupee is likely to decline against the dollar in the short term on rising fear the European debt crisis may spread to more economies, and due to limited intervention by the Reserve Bank of India, Standard Chartered said in a report. HMT Ltd appoints SG Sridhar as CMD HMT Ltd has informed BSE that Shri S. G. Sridhar has been appointed as Chairman & Managing Director of the Company with effect from Sep 19, 2011, vide Presidential Order dated Sep 19, 2011, vice Shri A. V. Kamat who superannuated from the Company on Mar 31, 2011. DQ Entertainment in 5-yr multi-mn dollar pact for Jungle Book DQ Entertainment International said has signed a five-year multi-mn dollar guarantee pact to receive royalty and licensing fee from SMC Entertainment for licensing and video sales rights in the US for the 'Jungle Book' animation television series, a company release to the stock exchanges said. Varkey makes open offer for 20% more in Everonn at Rs.528/shr Dubai-based Varkey Group Ltd has made an open offer for up to 20% more shares in Everonn Education Ltd at Rs.528 per share, according to a notice in the Business Standard newspaper. Corp affairs min to send competition policy to Cabinet early Dec The corporate affairs ministry hopes to send the proposed National Competition Policy to the Union Cabinet for its consideration by early December, Corporate Affairs Minister Veerappa Moily said.
Weekly Newsletter 57 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Essar Capital ups stake in India Securities to 49.74% from 44.32% Essar Capital Ltd has raised its stake in the Bombay Stock Exchange-listed India Securities Ltd to 49.74% from 44.32% by acquiring 47.5 mn shares, the latter said in a notice to the bourse. SRF buys back 1.08 mn shares from open market as on Sep 20 SRF Ltd bought back 1.08 mn shares from the open market for around Rs.327.80 mn as on Sep 20, according to a notice in The Financial Express newspaper. Zee Entertainment buys back 11.8 mn shares for Rs.1.4 bn Zee Entertainment Enterprises Ltd bought back 11.82 mn shares till Sep 21 for around Rs.1.43 bn through the open market, it said in a notice in The Financial Express newspaper. Tiger's tale ends - Pataudi dies of interstitial lung infection Legendary Indian cricketer Mansur Ali Khan, the Nawab of Pataudi, passed away after battling a chronic lung infection. Stockists say ITC ups some cigarette prices by up to 10% ITC Ltd has increased the prices of its premium cigarette brand Classic by Rs.10 for a pack of 20, and mid- sized brand Wills Navy Cut by Rs.4 for a pack of 10, stockists told. Eveready expects French subsidiary to be profitable in 2-3 years Eveready Industries India Ltd's French subsidiary Uniross, which manufactures rechargeable batteries, is likely to turn profitable in the next two-three years, Non-Executive Chairman Deepak Khaitan said. Film 'Mausam' movie to see 60-80% occupancy over opening weekend Mausam, the Pankaj Kapur film that releases in theatres across the world, is expected to have a good run at the box office in India, with 60-80% occupancy over the weekend, according to leading exhibitors. VA Tech Wabag gets 12.9-mn-euro orders for water treatment plant VA Tech Wabag Ltd has received orders worth 12.9 mn euros for wastewater treatment plants and providing filtration technologies to civic amenities in Switzerland, the company said in a press release. WB govt invites paper industry to open closed units The West Bengal government has asked the paper industry to reopen closed units in the state to help increase employment. Indian bourses beat global leaders with CEO pay hike The Indian stock exchanges may not rank high in volume of business done, but they have beaten global market leaders in pay hikes to their top executives. INTERVIEW: Reliance Broadcast radio revenue to quadruple by FY16 Reliance Broadcast Network Ltd expects its radio business to quadruple over the next four years with the government gearing up for the phase-III auction of radio licenses for private players. Fin min source says govt mulling cut in securities transaction tax The government is mulling a cut in the securities transaction tax levied on buying and selling of shares, a finance ministry official said. Fin min source says to decide on Oct-Mar borrow calendar Sep 29 Officials of the finance ministry and Reserve Bank of India will meet on Sep 29 to decide on Oct-Mar government borrowing calendar, a senior finance ministry official said. Varanasi microfin co Utkarsh gets 250 mn Rs. from PE investors Utkarsh Micro Finance Pvt Ltd has raised 250 mn Rs. from a clutch of investors led by Norwegian Microfinance Initiative-managed NMI Frontier Fund KS. INTERVIEW: I-Sec PD head says corp bonds gave more revenue vs gilt The rise in government bond yields since the beginning of the current financial year has hit treasury profits of most banks and the net interest income of market making primary dealers. PG Electroplast shr up 130% in 2 days since debut on operator play PG Electroplast Ltd has been among the top volume grosser in the market ever since its debut on bourses on Monday, seeing a cumulative of 88.8 mn shares change hands on both exchanges.
Weekly Newsletter 58 Info-Spectrum Bridging the Information Gap in Corporate Landscape
CRISIL says Indian GDRs of 2010 returned negative 52% until Sep 15 Global depository receipts issued by 40 Indian companies in 2010 have accrued negative 52% returns on an average until Sep 15, rating agency said in a report. INTERVIEW: JVL Agro sees turnover rising to Rs.50 bn in 4 yrs Uttar Pradesh-based JVL Agro Ltd sees its turnover more than doubling to Rs.50 bn by calendar year 2015 from 21.80 bn Rs. in 2010-11, according to Director Adarsh Jhunjhunwala. Google to use films to push market share in India Google said it has tied up with Bollywood actor Shahrukh Khan''s production company Red Chillies Entertainment for promoting his coming film Ra.One. Gold decline adds glitter to jewellery exporters A sharp fall in gold prices is a good news for gems and jewellery exporters who will be able to source yellow metal at lower rates and compete better in the global market, industry sources said. Hotel rates in India increased just 1% in H1 of 2011 Hotel room rates in India increased just one% in the first half of this year, thus making the country one of the attractive destination for leisure and business travellers, according to a survey. India exploring ways to criminalise 'foreign bribery' The government said it was "constantly exploring" ways to ban and punish foreign officials involved in corrupt practices in India by becoming a party to global Anti Bribery Convention. Ramco to focus on small and medium enterprises Ramco Systems, a leading software company, said it was targetting a 30-35% growth in its turnover for fiscal ending Mar 2012 and would focus on small and medium enterprises for its cloud based solutions. Punjab asks employees to give details of property The Punjab Government said it asked its employees to submit details of purchasing any movable or immovable property, having value more than one month's salary, to prescribed authorities. Punjab announces Amnesty Scheme for defaulters The Punjab government launched an amnesty scheme, enabling defaulter allottees of industrial plots to make payment with simple interest of 15%. LG Electronics hikes product prices by up to 6% Electronics and IT products maker LG Electronics India announced a hike of up to 6% in prices of its products owing to rupee depreciation. Promoter Future Capital ups Future Ventures stake by 0.08% to 3.08% One of the promoters of Future Ventures India Ltd, Future Capital Investment Pvt Ltd, has raised its stake in the company to 3.08% from 3.00%, the former said in a notification to the National Stock Exchange. BSE, NSE resolve long-standing dispute over algorithmic trading Bombay Stock Exchange and National Stock Exchange have resolved their long-standing dispute on algorithmic trading, the former said in a release. RBI Khan says need FX intervention with flexible currency policy Reserve Bank of India Deputy Governor H.R. Khan emphasised the need for effective intervention to address excessive volatility in foreign exchange markets but said it must be combined with a flexible currency policy. BSE F&O volume surges 66 times as measures to up liquidity kick in The volume in the derivative segment shot up a whopping 66 times on the Bombay Stock Exchange, which marks the launch of its incentive plan aimed at deepening its market. SEBI says 1-bln-rupee net worth must to issue listed structured pdt The Securities and Exchange Board of India issued a fresh set of guidelines for listing structured products and market-linked debentures, making it mandatory for issuers of such instruments to have a minimum net worth of 1 bln rupees. Bombay Stock Exchange gets SEBI nod for SME exchange
Weekly Newsletter 59 Info-Spectrum Bridging the Information Gap in Corporate Landscape
The Securities and Exchange Board of India has approved the Bombay Stock Exchange's proposal to set up an exchange for small and medium enterprises, the exchange said in a release. Govt imposes 10% ad valorem duty on phthalic anhydride imports The Director General (Safeguards) has imposed an interim safeguard duty of 10% on import of phthalic anhydride from South Korea, Israel, and Taiwan to protect domestic manufactures. Datamatics to set up 700-seat delivery centre in Puducherry Oct Datamatics Global Services Ltd plans to set up a 700-seat delivery centre in Puducherry in October, the company said in a release. The new centre will be the company's fifth in the country, and third in the south after Chennai and Bengaluru. Eon Electric to buy back 6.45% equity via open market purchases Eon Electric will buy back up to 6.45% of the company's paid-up capital or a minimum of 450,000 equity shares at a price not over 130 rupees per share via open market purchase, the company said in a notice. Fin min source says huge scope to make corp bond mkt more vibrant The government is working on a proposal to broad-base and make the corporate bond market more vibrant, a senior financial ministry official said. Bharti Retail enters west India, opens 'easyday' store in Mumbai Bharti Retail Ltd, an arm of Bharti Enterprises Ltd, has entered the west India market by opening its first 'easyday' store in Mumbai, the company said in a release. IFCI ups stake in Tourism Finance to 41.54% from 39.43% IFCI Ltd increased its stake in Tourism Finance Corp of India Ltd to 41.54% from 39.43% between Aug 5 and Sep 26, the former said in a notice to the National Stock Exchange. RELIANCE CAPITAL: Plans to enter the banking sector and is keeping track of regulatory developments needed to procure a licence. The company will mull a bonus share issue shortly. HOTEL LEELA VENTURES: Serious differences have cropped up with the Airport Authority of India over the terms of renewal of the lease agreement of the land where Hotel Leela in Mumbai is situated. MAHINDRA & MAHINDRA FINANCIAL SERVICES: Insurance Regulatory and Development Authority has allowed its arm Mahindra Insurance Brokers to start reinsurance broking. EMAMI: Company-backed AMRI Hospitals exits race to acquire Ahmedabad-based Sterling Hospitals, which is majorly-owned by Actis. ESAB INDIA: Melrose Plc not to proceed with offer to acquire ESAB's parent Charter International. ITC: Has bought 26% stake in Logix's five-star property at Noida; to invest 1 bln rupees in the project. MAXWELL INDUSTRIES: Has approved the buyback of 5% redeemable preference shares of 100 rupees each up to 10% of the total paid-up capital and free reserves of the company. MINDA INDUSTRIES: Has signed a pact with two Japanese companies to form a joint venture for manufacturing plastic products. STERLING HOLIDAY RESORTS INDIA: Rakesh Jhunjhunwala and Radhakrishna Damani have invested 800 mln rupees for a 14.2% stake in the company. RELIANCE BROADCAST NETWORK: Expects its radio business to quadruple revenue over the next four years. VADILAL INDUSTRIES: Plans to launch 15-20 new products in the frozen foods segment in the next two years. MOTILAL OSWAL FINANCIAL SERVICES: Has said it has no plans to sell stake in any arm as of now. MMTC: Imported 19.48 tn gold in Aug, up 24% from 15.65 tn imported a year ago. EON ELECTRIC: To buyback shares via open market for up to Rs.130 Per share. FAME INDIA: Files draft offer letter with SEBI for rights issue. CINEMAX INDIA: To mull demerger of theatre exhibition business on Sep 30. DIL: To acquire 30% in Evotec India for 112.93 mln rupees.
Weekly Newsletter 60 Info-Spectrum Bridging the Information Gap in Corporate Landscape
IPO Watch IPO Alert: Indo Thai Securities price band Rs.70-84 /share Indo Thai Securities Ltd has fixed the price band for its initial public offering of 40 mn shares at Rs.70-84 for a share of face value Rs.10. The issue will open on Sep 30, and close Oct 5. The price to earnings ratio at the upper end of the price band is 47.4 times the earnings per share based on the company's 2010-11 (Apr- Mar) earnings, and 39.5 times at the lower end of the price band. Shares of the Indore-based financial services company will be listed on the National Stock Exchange and the Bombay Stock Exchange. The draft red herring prospectus was filed with the Securities and exchange Board of India on Apr 27. Corporate Strategic Allianz Ltd is the book running lead manager to the issue. IPO Alert: M and B Switchgears to use 75% proceeds for power unit Transformer maker M and B Switchgears Ltd plans to use around 75% of the proceeds from its 5-mn-share initial public offering to fund its 4-MW solar photovoltaic plant at Rajgarh in Madhya Pradesh, Director Vikalp Mundra said. The Indore-based company plans to raise Rs.900 mn at the lower end of the IPO price band of Rs.180-186 per share, and Rs.930 mn at the upper end. The issue opens Sep 29 and closes on Oct 5. The company plans to use the remaining proceeds in meeting its issue expenses and general corporate expenses. The company is already constructing a 2-MW solar photovoltaic plant at Rajgarh, which will become operational from Nov. The new 4 MW project is scheduled to be operational by Mar. The issue constitutes 25% of the post-issue paid-up equity capital of the company, according to the red herring prospectus filed by the company. The promoters stake in the company will be diluted to 75% after the issue. Qualified institutional buyers will be allowed to subscribe up to 50% of the issue, the company said. ICRA has graded the company's offering at 'IPO Grade 2/5', which indicates below average fundamentals, the notice said. D & A Financial Services Pvt Ltd is the book running lead manager and Bigshare Services Pvt Ltd is the registrar to the share issue. IPO Alert: Taksheel Solutions sets price band of Rs.130-150/shr Taksheel Solutions Ltd will raise up to Rs.825 mn via an initial public offer of 5.5 mn shares. At a press meet to announce the IPO, the company said it has set a price band of Rs.130-150 a share for the issue. At the top end of the price band, the issue is priced at a price-to-earnings multiple of around 9 times 2010-11 (Apr-Mar) earnings per share, and at the lower end, around 7 times. The Hyderabad-based information technology and telecom software company plans to use the IPO proceeds to set up software development centres in special economic zones in Andhra Pradesh. The company plans to use Rs.200-250 mn of the proceeds for an acquisition in North America. Some of the funds would be used for working capital requirements. PNB Investment Services Ltd is the book-running lead manager for the issue. IPO Alert: Swajas Air pushes closing date to Oct 5, cuts price band Volatility in the stock market has started taking a toll on India Inc's plans to raise funds via equity, particularly initial public offerings. As investors' appetite for riskier assets shrinks, Swajas Air Charters Ltd's IPO has suffered. The company has been forced not only to extend its IPO by five trading days but also to cut the price band. Onelife Capital Advisors Ltd, whose 3.35-mn-share issue opened Sep 28, has also felt the heat. The company received bids for just 600 shares. The issue, the price band for which has been set at Rs.100-110 a share, closes on Oct 4. Then there's M and B Switchgears Ltd and its 5-mn-share maiden issue. The issue opened today but attracted bids for less than 5,000 shares. The issue is priced at Rs.180- 186 and will close on Oct 5. The initial offer of Swajas Air, a non-scheduled airline operator, was to close Sep 28 but was extended to Oct 5 after the 375-mn-rupee IPO received bids for only 1% of the issue size. Swajas Air cut the price band for the IPO to Rs.84-90 a share from Rs.90-100 earlier to make it attractive to investors. At the lower end of the original price band, the shares were valued at 23.20 times the company's 2010-11 (Apr-Mar) earnings per share of Rs.3.88, and at the upper end, 25.77 times. According to data on the National Stock Exchange's website, bids in the non-institutional investor category were for 5,400 shares. The company has reserved 625,000 shares for this category. Retail individual investors have bid for 60,180 shares of the 1.46 mn shares reserved. The qualified institutional investors category did not receive a single bid. The company has set aside 2.08 mn shares for this category. As Swajas Air's IPO hangs in balance, it remains to be seen what strategies are adopted by other companies closing their IPOs next week. The initial offer of Taksheel Solutions Ltd will open Sep 29 and close on Oct 4. Thai Securities Ltd will launch its IPO on Friday and Flexituff International Ltd on Sep 29.
Weekly Newsletter 61 Info-Spectrum Bridging the Information Gap in Corporate Landscape
IPO Alert: PC Jeweller files papers for 45.13-mn-share issue PC Jeweller Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering of 45.13 mn shares of face value Rs.10 each. The shares will be listed on the National Stock Exchange and the Bombay Stock Exchange. Of the total issue, PC Jeweller has reserved 358,500 shares for its employees. The company manufactures and sells gold, diamond, and silver jewellery through its 20 showrooms across 18 cities in north and central India. PC Jeweller hopes to use Rs.5.69 bn of the IPO proceeds for expanding its retail stores across India. The company plans to open 10 showrooms in 2011-12 (Apr-Mar) and 20 more by 2013-14. It plans to expand presence in south and west India. The company also sells gold and diamond jewellery on wholesale basis to local and international jewellery distributors. PC Jeweller has appointed SBI Capital Markets Ltd and Kotak Mahindra Capital Co Ltd as book- running lead managers for the issue, and IDBI Capital Market Services Ltd as the co-book-running lead manager. IPO Alert: SSIPL Retail seeks SEBI nod for 3.47-mn-share issue SSIPL Retail Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India for its 3.47-mn-share issue. The issue constitutes 27.24% of the post issue paid-up capital of the company, which is the largest retailer in India for apparels and footwear major, Nike. Besides its own brand Sierra, the company manufactures and designs athletic and casual footwear for major brands like Reebok, Puma, Lotto, Skechers. It also markets products of Levi's and United Colours of Benetton. SSIPL has a pan-India network of 238 exclusive branded outlets and 12 multi-brand outlets. The company plans to use the IPO proceeds for expansion of outlets for the Nike brand and for equity investment in subsidiary, SSIPL Lifestyle Pvt Ltd. The funds will be also used for redemption of 9.3 mn redeemable preference shares of the company held by HBP Holdings. The Rs.10 face value shares will be listed on the Bombay Stock Exchange and National Stock Exchange. BOB Capital Markets Ltd and SPA Merchant Bankers Ltd are book running lead mangers for the issue. IPO Alert: Times Academy seeks SEBI nod for 4.5-mn-share issue Times Academy Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offer of 4.5 mn shares of face value of Rs.10 each. The issue will constitute 36.88% of the fully diluted post issue paid-up capital of the company, according to the draft prospectus. Times Academy provides professional education services. Its programmes are offered through its affiliations to various universities. The company plans to utilise the proceeds of the issue to set up new study centres at Bangalore, Mumbai, Delhi NCR and Kolkata; to meet its working capital requirements, and for brand building, it said. The company had reported a loss of Rs.22.2 mn for the year ended Mar on a total income of Rs.38.8 mn. Shares of the company will be listed on the National Stock Exchange and the Bombay Stock Exchange. Unicon Capital Services Pvt Ltd is the book running lead manager to the issue. IPO Alert: PC Jeweller seeks SEBI nod for 45-mn-share issue PC Jeweller Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India for its 45-mn-share initial public offering of shares of face value Rs.10 each. The issue will constitute 25.2% of the company's post issue paid up capital and the net issue shall constitute 25%. The Delhi-based jewellery retailer's issue comprises net issue of 44.7 mn equity shares to the public, and 358,500 equity shares for eligible employees. SBI Capital Markets Ltd and Kotak Mahindra Capital Co Ltd are the book running lead managers to the issue.
Weekly Newsletter 62 Info-Spectrum Bridging the Information Gap in Corporate Landscape
ISSUES ANNOUNCED Size Face Issue Issuer Shares:Rupees Value Issue Period Lead Manager Price (mn:bn) (rupees) Indo Thai Securities 4.0:N.A 10 70-84 30/09-05/10 Allianz
ISSUES OPEN Size Face Value Issuer Shares:Rupees Issue Price Issue Period Lead Manager (rupees) (mn:bn) Taksheel Solutions 5.5:0.80 10 130-150 29/09-04/10 PNB Investment Flexistuff International 6.75:N.A 10 145-155 29/09-05/10 Collins Onelife Capital Advisors 3.35:N.A 10 100-110 28/09-04/10 Artherstone M and B Switchgears 5.0:N.A 10 180-186 28/09-05/10 D and A
Weekly Newsletter 63 Info-Spectrum Bridging the Information Gap in Corporate Landscape
MERGERS & ACCQUISITIONS == INDIA-ABROAD ==
GMR INFRASTRUCTURE - PETRONAS INTERNATIONAL Announced: Sep 26
GMR Infrastructure to sell 30% stake in subsidiary GMR Energy (Singapore) Pte Ltd to Malaysia's Petronas.
Status: Ongoing
== INDIA-INDIA ==
OBEROI REALTY - ICICI VENTURES Announced: Sep 29
Oberoi Realty has bought 50% stake in ICICI Ventures.
Status: Complete
DIL - EVOTEC INDIA Announced: Sep 28
Dil Ltd will acquire 30% stake in Evotec India for Rs.112.93 mn.
Status: Ongoing
RANE HOLDINGS - SasMos HET Announced: Sep 28
Rane Holdings buys 26% stake in SasMos HET Technologies.
Status: Complete
==GLOBAL M&A==
DONOVAN DATA SYSTEMS - MEDIABANK LLC
Rival advertising agency systems Donovan Data Systems and MediaBank LLC to merge their businesses; value of the combined entity is seen at $1.5 bn.
UNITED TECHNOLOGIES CORP - GOODRICH
United Technologies Corp to acquire aircraft component maker Goodrich for $16.5 bn.
Weekly Newsletter 64 Info-Spectrum Bridging the Information Gap in Corporate Landscape
RATINGS CRISIL affirms A1+ on Aegis Logistics' enhanced CP Programme
CRISIL ups rating on Calibre Chemicals' enhanced cash credit
CRISIL ups rtg on Karle International's term loan to B/Stable
CRISIL ups rtg on LT Karle and Co's bank guarantee to A4
CRISIL cuts rating on Balar Exports' packing credit to D
CRISIL ups rtg on Barani Hydraulics India's long-term loan
CRISIL ups rtg on Grace Infra's term loan to BBB+/Stable
CRISIL cuts rtg on Igloo Dairy's term loan to BBB/Stable
CRISIL cuts rtg outlook on International Conveyors cash credit
CRISIL cuts rtg on Priyadarshini Sahakari Soot Girni term loan
ICRA affirms A+(SO) on Karnataka State Financial's bond plan
ICRA affirms A1+mfs on L&T ultra short-term fund
RCC Developers' cash credit gets ICRA BB+
SC Shah Enterprises' long-term fund based limits get ICRA B+
Tirumala Milk Products' fund based facilities get ICRA A+
Dutta Builders & Developers' cash credit gets ICRA BB-(Stable)
ICRA affirms BBB(Stable) on Gulf Oil Corp's term loans
ICRA B+ on Institute of Radiology and Imaging's term loan
Jogma Laminates Industry's cash credit gets ICRA B+
Renaissance Holdings & Developers' term loans get ICRA BB
ICRA affirms BB+(stable) on ABW Infrastructure's term loans
Accord Software and Systems' term loan gets ICRA BBB-(Stable)
ICRA affirms BBB- on Amira Foods' enhanced fund based limits
Fitch B(ind) national long-term rating to ARG Developers
Fitch B(ind) national long-term rating to ARG Housing
Fitch affirms national long-term rating on Ginni Filaments
Fitch affirms national long-term rtg on Rain CII Carbon Vizag
CRISIL A-/Stable on Threads (India)'s enhanced long-term loan
Triton Cold Chain & Logistics' bank loan gets CRISIL B/Stable
Uluberia Metaliks' term loan gets CRISIL D
Shriram Automall India's cash credit gets CRISIL AA/Stable
Soni Auto & Allied Ind's cash credit gets CRISIL BBB-/Stable
CRISIL A2 on Star Rays' enhanced packing credit
Octant Industries' cash credit gets CRISIL BB-/Stable
Sai Srinivasa Bottle Traders' cash credit gets CRISIL B/Stable
Weekly Newsletter 65 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Scan Energy & Power's long-term loan gets CRISIL B/Stable
Shlogam Agro's packing credit gets CRISIL A4
CRISIL affirms A-/Stable on Injectoplast's long-term loan
Mahavir Coal Resources' cash credit gets CRISIL BB+/Stable
Mantra Industries' cash credit gets CRISIL BB-/Stable
Meru Industries' term loan gets CRISIL BB+/Stable
CRISIL affirms rtg on Citifinancial Consumer Fin's term loan
Cosmic Ferro Alloys' cash credit gets CRISIL BBB-/Stable
EID Parry (India)' NCD programme gets CRISIL AA/Stable
Godwin Agro Products' term loan gets CRISIL B+/Stable
CRISIL puts Fortis Hospitals' loans on developing rtg watch
CRISIL affirms A1+ on Tamilnad Mercantile Bank's CD programme
CRISIL puts UTV Software's cash credit on positive rtg watch
Big Sam Snacks & Foods' cash credit gets CRISIL B/Stable
CRISIL affirms rtg on Bina Commercial Corp's cash credit
Pennar Industries' long-term bank facilities get CARE A(SO)
Ramdev Chemical Ind's long-term bank facilities get CARE BB+
CARE affirms AA on Raymond's long-term bank facilities
Thermal Powertech Corp India's bank facilities get CARE BBB-
CARE affirms AA- on Kesoram Ind's enhanced bank facilities
Khadkeshwar Hatcheries' long-term bk facilities get CARE BB+
Mohan Charitable Educational Trust's bk facilities get CARE B
Octaga Green Power & Sugar's bank facilities get CARE B+
CARE puts Applabs Tech bk facilities on developing rtg watch
CARE affirms A+ on DSPC Ltd's NCDs
J Kishore Exports' short-term bank facilities get CARE A4+
CARE affirms BBB- on Jindal Rail Infra's bank facilities
CRISIL cuts rating on ST-CMS Electric Co's cash credit
CARE ups rtg on BS Transcomm's long-term bk facilities to BBB-
CARE ups rtg on B&A Ltd's long-term bank facilities to BB+
CARE cuts rtg on ABG-LDA Bulk Handling's bank facilities
CARE cuts rtg on NCS Sugars' long-term bank facilities to D
CRISIL cuts rtg on Asmitha Microfin long-term bk loan facility
CRISIL cuts rtg on Children Education Society's cash credit
ICRA ups rating on Indu Projects' term loans to BBB-
ICRA cuts rating on Kinfotech' term loans to D
ICRA cuts rtg on Ranka-N-Ranka Infrastructure's term loans
Weekly Newsletter 66 Info-Spectrum Bridging the Information Gap in Corporate Landscape
ICRA cuts rating on TDI Infrastructure's term loans to D
ICRA cuts rating on Selvakumar Spinners' term loan to BB-
Spark Green Energy (Ahmednagar)'s term loans get ICRA BB
ICRA affirms BBB+ on Unimark Remedies' fund-based limits
ICRA affirms BBB+(Stable) on ABT's term loans
K Chandrakant and Co Intl's fund based limits get ICRA BB+
Kaveri Cotex's cash credit gets ICRA B
ICRA affirms BB-(Stable) on MN Poly Tex's cash credit
Sheel Chand Agroils' term loans get ICRA BB
Maruti Suzuki India's cash credit gets CRISIL AAA/Stable
Precision Auto Industries' long-term loan gets CRISIL D
CRISIL affirms rtg on Tata Ficosa Automotive Systems term loan
CRISIL BBB+/Stable on Thangamayil Jewellery's cash credit
CRISIL BBB+/Stable on The Josco Fashion Jewellers' cash credit
Zuha Leather's cash credit gets CRISIL BB-/Stable
Goldstar Metal Solutions' packing credit gets CRISIL A4
CRISIL BBB+/Stable on Josco Fashion Jewellers' cash credit
CRISIL BBB+/Stable on Josco Jewellers' enhanced cash credit
KBR Infratech's cash credit gets CRISIL BB+/Stable
CRISIL affirms BB-/Stable on Maruti Packagers' cash credit
CRISIL affirms AA+/Stable on Atlas Copco India's cash credit
CRISIL affirms A3 on Brass Copper and Alloy's packing credit
CRISIL BB-/Stable on Cosmo Ferrites' enhanced cash credit
ARG Infra Developers' term loan gets CRISIL B+/Stable
Exicom Tele-Systems' cash credit gets CRISIL B/Stable
Asian Wires and Cables' long-term bk facilities get CARE BB+
CARE affirms BBB on Dolphin Hotels' long-term bk facilities
Gold Star Jewellers' long-term bank facilities get CARE BB-
Overseas Infrastructure Alliance's bk facilities get CARE BBB
CARE affirms BB on Scan Steels' long-term bank facilities
CARE affirms BBB on Ushakiron Movies' long-term bk facilities
ICRA cuts rtg on Precot Meridian's term loan to BBB(Stable)
ICRA cuts rtg on Fertichem Cotspin's fund-based limit to B+
CRISIL cuts rtg on Thermal Systems' cash credit to BBB+/Stable
CRISIL cuts rtg on Bhartiya Samruddhi Fin's subordinated bonds
CRISIL cuts rtg on Drillcon Infra's cash credit to BB-/Stable
CRISIL ups rtg on Hester Biosciences' term loan to BBB-/Stable
Weekly Newsletter 67 Info-Spectrum Bridging the Information Gap in Corporate Landscape
ICRA affirms BB(Stable) on Chhabi Electricals' term loan
East India Pharmaceutical's fund based limits get BBB(Stable)
ICRA affirms AAA(Stable) on IRFC's long-term borrowing plan
Karur Vysya Bank's certificate of deposits get ICRA A1+
NHPC's non-convertible redeemable bonds gets ICRA AAA
Shri Ram Rice Mills' cash credit gets ICRA B
Sundaram BNP Paribas Home Finance's CP programme gets ICRA A1+
CRISIL affirms BBB+/Stable on Amrit Bottlers' term loan
CRISIL affirms A+/Stable on Muthoot Capital Services' bk loan
CRISIL affirms BB-/Stable on Press Mach's long-term loan
CRISIL affirms BB+/Stable on Ritesh Export's packing credit
CRISIL affirms D on Sainsons Pulp & Papers' term loan
Fitch puts ORIX Auto's long-term rtg on evolving rtg watch
Raychem RPG's commercial paper programme gets Fitch A1+(ind)
Emmtex Synthetics' long-term bank facilities get CARE BBB-
HDB Financial Services' 10-bln-rupee NCDs get CARE AAA
CARE affirms BB+ on Manish Agro-Tech's long-term bk facilities
SM Teledirect's long-term bank facilities get CARE BB
Sukh Sagar Synthetics' long-term bank facilities get CARE B+
CARE affirms A on Indian Smelting and Refining's bk facilities
Premier Cotspin's term loan gets CRISIL B+/Stable
RMBAY's long-term bank loan facility gets CRISIL B+/Stable
PCH Telecom (India)'s cash credit gets CRISIL BB/Stable
AB Cotspin India's term loan gets CRISIL B+/Stable
AB Chem (India)'s cash credit gets CRISIL BB/Stable
GH Crop Science's cash credit gets CRISIL BB/Stable
Premier Enterprise's cash credit gets CRISIL BB-/Stable
Air India's NCD programme gets CRISIL AAA(SO)/Stable
CRISIL affirms BBB+/Stable on MAS Financial Services NCD issue
CRISIL affirms B on Ram Asra Goyal Edu. & Research's term loan
CRISIL affirms BBB/Stable on Ravin Cables' term loan
CRISIL affirms D on Soma Textiles and Industries' NCDs
CRISIL affirms BBB/Stable on Standard Conduits' cash credit
ICRA cuts International Electron Devices' term loan rtg to D
ICRA cuts Uppal Ferrocast's fund based limits rating to D
CARE affirms A+ on Ajanta Pharma's long-term bank facilities
CARE affirms BBB- on Prakash Oils' long-term bank facilities
Weekly Newsletter 68 Info-Spectrum Bridging the Information Gap in Corporate Landscape
CRISIL cuts rtg on Shivali Udhyog's term loan to BB/Negative
ICRA ups rating on Petro Carbon & Chemicals' term loans
CRISIL ups Geo Financial's cash credit rtg to BBB-
CRISIL cuts rating on Swasti Power's enhanced term loan to D
Aditya Infotech's letter of credit gets CRISIL BBB/Stable
Amiya Commerce & Construction's cash credit gets BB+/Stable
IPCA Laboratories' NCDs programmes get CRISIL AA/Stable
Vansh Nimay Infraprojects' term loan gets CRISIL BB-/Stable
Reliance Home Finance's NCDs gets Brickwork AA+
Good Leather Co's cash credit gets CRISIL BBB-/Stable
Krishnna Deep Overseas' cash credit gets CRISIL BB-/Stable
Modern Infra Projects' cash credit gets CRISIL BB+/Stable
Pontiac Merchants' cash credit gets CRISIL BB-/Stable
Super Hi-Tech Engineers' cash credit gets CRISIL B+/Stable
CRISIL ups rtg on Trimex Sands' long-term loan to BB+/Stable
ASL Marketing's cash credit gets CRISIL BB-/Stable
ICRA affirms BBB- on Natural Sugar and Allied's cash credit
ICRA affirms BB+ on Shivam Steels and Tubes' cash credit
ICRA C+ on Sree Variety Marketing Solutions' fund based limits
Apollo Creation's term loans get ICRA B
ICRA affirms BB(Stable) on Asia Woven Sacks' term loans
ICRA affirms IrBBB- issuer rating to Corp of Cochin
Globe Textile India's cash credit gets ICRA BB-(Stable)
ICRA A1+ on National Housing Bank's enhanced CP programme
Fitch B+(ind) national long-term rtg on Ogene Systems India
Fitch affirms national long-term rating to Sharmanji Yarns
Fitch affirms long-term rtg on Shriram Pistons and Rings
Mangalore Cashew Ind's fund based facilities get ICRA BB
CRISIL affirms rtg on Veekayem Textile Mills' cash credit
CRISIL affirms AA-/Stable on Whirlpool of India's cash credit
Fitch A-(ind) national long-term rtg to BG Shirke Construction
Fitch BBB+(ind) national long-term rtg to GVR Infra Projects
Fitch affirms rtg on Maharashtra Jeevan Pradhikaran's bonds
Fitch affirms rtg on Maharashtra Patbandhare Vittiya debt plan
Sri Venkateswara Rice Ind's term loan gets CRISIL BB-/Stable
Srivalli Shipping & Transport's cash credit gets CRISIL D
Stylish Precast's term loan gets CRISIL B-/Stable
Weekly Newsletter 69 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Surya Healthcare's term loan gets CRISIL B+/Stable
Aarti Infra-Projects' cash credit gets CRISIL B/Stable
CRISIL affirms BB/Stable on Ankur Chemfood's rupee term loan
Jasch Industries' cash credit gets CRISIL BBB/Stable
CRISIL affirms BB+/Stable on Kalpana Forgings' cash credit
Narmada Agro Foods' term loan gets CRISIL B+/Stable
CRISIL BBB on Sri Adichunchanagiri Shikshana Trust's term loan
PNB Housing Finance's bonds get CARE AA+
Yamunaji Corp's long-term bank facilities get CARE BB+
PBL Transport Corp's cash credit gets CRISIL BB+/Stable
Accord Communications' long-term bk facilities get CARE BB+
CARE affirms BBB+ on Agro Solvent Products' bank facilities
Birla Power Solutions' long-term bank facilities get CARE BB
Essar Bulk Terminal's long term bank facilities get CARE BBB-
CARE puts Fortis Healthcare's bk facilities under credit watch
CARE affirms AA- on Gobal Offshore Services' bank facilities
Methodex Systems' long-term bank facilities get CARE A-
CARE ups rtg on HP Cotton Textile's long-term bk facilities
ICRA cuts rating on BRG Energy's long-term loans to D
ICRA cuts rtg on Ind Barath Energies Maharashtra's term loan
RBI Governor Subbarao's speech at New York University
CARE cuts rtg on Thirumalai Chemicals' enhanced bk facilities
CRISIL ups rtg outlook on Kerala Milk Marketing's cash credit
ICRA cuts rtg on Empee Sugars and Chemicals' fund based limits
ICRA ups rtg on AVR Swarnamahal Jewelry' fund-based facilities
Krishna Godavari Power's long-term loan gets CRISIL BB-/Stable
Multichem Specialities' letter of credit gets CRISIL B+/Stable
OSAW Agro Industries' term loan gets CRISIL BBB-/Stable
Sunfame Ceramic's term loan gets CRISIL B/Stable
Amizara Agencies' fund based limits get ICRA BB-(stable)
ETHL Communications Holdings' NCD gets ICRA A1+(SO)
Fortis Healthcare (India)'s commercial paper gets ICRA A1+
ICRA affirms A4 on H Sherul & Co's enhanced fund based limits
ICRA affirms A1+mfs on HDFC cash management fund
ICRA affirms A1+ on National Cooperative Development bk lines
ICRA affirms AA- on Oriental Hotels' enhanced fund based limit
Quench Soft Solutions' cash credit gets ICRA BB+(Stable)
Weekly Newsletter 70 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Fitch BB(ind) national long-term rating to Arena Lifestyle
FITCH affirms BB(ind) on Hansa Metallics' term loans
Fitch BB(ind) national long-term rating on Sai Construction
CRISIL affirms BB-/Stable on VS Export & Import's cash credit
CRISIL affirms BB-/Stable on VUS Timbers' cash credit
CRISIL affirms A4+ on Virtus Exports and Imports' bk guarantee
Worldstel Stainless Steels' cash credit gets CRISIL D
CRISIL affirms BB+/Stable on ZYG Pharma's long-term loan
Fitch affirms national long-term rating on Adhunik Cement
Sicagen India's cash credit gets CRISIL BBB+/Stable
CRISIL affirms BB/Stable on Sri Devi Oil enhanced cash credit
CRISIL affirms A4+ on Sundaram Exports' post shipment credit
CRISIL affirms B+/Stable on Ultimate Fashion Maker's term loan
Unique Tooling Solutions' cash credit gets CRISIL BB/Stable
NN Ispat' long-term loan gets CRISIL BB-/Stable
CRISIL affirms BB-/Stable on Palriwal Ind's cash credit limit
Radhe Krishna Cotton Ind's cash credit gets CRISIL B+/Stable
CRISIL affirms rtg on Raunaq Ice & Cold Storage's term loan
CRISIL affirms rtg on Shree Raj-Rajeshwari Pap-Chem' term loan
CRISIL affirms BBB/Stable on Jinabakul Forge's long-term loan
CRISIL affirms BB-/Stable on Jupax Vanijya's cash credit
Kems Auto Components' cash credit gets CRISIL B+/Stable
Kems Forgings' cash credit gets CRISIL B+/Stable
Cosa Ceramics' term loan gets CRISIL B/Stable
CRISIL affirms AA-/Stable on Fabindia Overseas' cash credit
CRISIL affirms A1+ on Goldman Sachs (India) Securities CP plan
Goodwill Textile Mills' long-term loan gets CRISIL BBB-/Stable
CRISIL affirms BB-/Stable on Hind Polyfabs' rupee term loan
CRISIL affirms BBB/Stable on ITL Industries' cash credit
CARE puts Arani Agro Oil's bk facilities rtg on credit watch
AU Financiers (India)'s term loan gets CRISIL BBB+/Positive
Bansal Educational Trust's term loan gets CRISIL B+/Stable
Belleza Granito's term loan gets CRISIL B+/Stable
Deepak Builders' long-term bank facilities gets CARE BB
John Energy's optionally convertible pref shrs gets CARE BBB
Kartikeya Paper Distributor's bank facilities get CARE BB
L&T Finance's non convertible debentures get CARE AA+
Weekly Newsletter 71 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Mittatex Exports' working-capital facilities gets CARE B+
CARE affirms AAA on State Bank of Travancore's bonds
ICRA puts International Hospital's term loans on rating watch
ICRA puts Fortis Hospotel's term loan on developing rtg watch
CARE ups rtg on Asahi Songwon Colors' long-term bk facilities
CRISIL ups rtg on ST Electricals' cash credit to B+/Stable
CARE cuts rtg on Everonn Education's commercial paper to A3
ICRA affirms rtg on Grama Vidiyal Microfinance's term loans
ICRA affirms rtg on Resil Chemicals' fund based facilities
Suguna Poultry Farm's term loans get ICRA A-
Meenakshi Ammal Trust's fund based facilities get ICRA B
Micropack's fund based limits get ICRA BBB-
ICRA affirms BBB/Stable on Pyramid Finance's bank lines
Raja Enterprises' cash credit gets ICRA B+
Meenakshi Ammal Trust's fund based facilities get ICRA B
Micropack's fund based limits get ICRA BBB-
ICRA affirms BBB/Stable on Pyramid Finance's bank lines
Raja Enterprises' cash credit gets ICRA B+
ICRA affirms A+ on Shree Renuka Sugars' enhanced term loans
Avinash Ispat's cash credit gets ICRA BB-
ICRA affirms AA on Deepak Fertilisers & Petrochemicals' NCD
Export-Import Bank of India's bonds gets ICRA AAA
First Blue Home Finance's subordinate NCDs plan gets ICRA AA
Sagun Construction's term loan gets CRISIL B+/Stable
Salasar Cotspin's term loan gets CRISIL B+/Stable
Sree Guru Raghavendra Cotton Ginning term loan gets CRISIL B+
Vibhor Vaibhav Infrahome's cash credit gets CRISIL B+/Stable
MP Jewellers (GB) & Co's cash credit gets CRISIL BB+/Stable
Mahindra & Mahindra Financial's NCDs get CRISIL AA+/Stable
CRISIL affirms BB-/Stable on Maxop Engineering Co's term loan
Narsey Cotton's cash credit gets CRISIL B+/Stable
CRISIL affirms BBB/Stable on Pee Vee Textiles' term loan
Radiant Manufacturers' term loan gets CRISIL BB+/Stable
CRISIL affirms B- on Indian Sugar Manufacturing Co's term loan
Indus Petrochem's long-term bank loan gets CRISIL B/Stable
JSM Proteins' cash credit gets CRISIL B+/Stable
JSM Vegoils' cash credit gets CRISIL BB-/Stable
Weekly Newsletter 72 Info-Spectrum Bridging the Information Gap in Corporate Landscape
KKP Fine Linen's long-term loan gets CRISIL B/Stable
Balaji Paper & Newsprint's term loan gets CRISIL D
CRISIL affirms rtg on Bayer CropScience's fund-based bk limits
CRISIL affirms rtg on Cholamandalam Investment and Fin's NCD
CRISIL affirms A4+ on Forstar Frozen Foods' packing credit
CRISIL A4+ on Gold Star Centoquattro Jewellery packing credit
CRISIL affirms rtg on Bayer BioScience's fund-based bk limits
Aakriti Constructions' cash credit gets CRISIL BB/Stable
Altab Charitable Trust Nadia's term loan gets CRISIL B-/Stable
Arvind Cotsyn India's term loan gets CRISIL BBB/Stable
CARE affirms AA+ on Indian Overseas Bk's Lower Tier II bonds
Adi Ispat's long-term bank facilities get CARE D
Madhya Pradesh Cupro Metals' bank facilities get CARE BB+
South Asia LPG Co's long-term bank facilities gets CARE AA+
Sun Sign & Technologies' long-term bank facilities get CARE BB
Umiya Flexifoam's long-term bank facilities get CARE BB
ICRA cuts rating on Terra Energy's fund based limits to BBB-
ICRA cuts rating on Thiru Arooran Sugars' term loan to BBB-
ICRA ups rtg on Fancy Fittings' non-fund based limits to A2
ICRA cuts rating on RPS Infrastructure's term loans to D
ICRA cuts rtg on Shree Ambika Sugars' term loans to BBB-
CRISIL cuts rating on Dayal Steels' term loan to BBB-/Stable
CRISIL ups rating on Amar Infra's cash credit to B+/Stable
CRISIL cuts rating on Jai Dada Movers' cash credit to D
CRISIL cuts rating on Jai Dada Infra's cash credit to D
CRISIL cuts rating on Jaidada Paribahan' term loan to D
CRISIL cuts rating on Akshay Cargo Movers' cash credit to D
Fitch cuts Neptune Developers' national long-term rating
Weekly Newsletter 73 Info-Spectrum Bridging the Information Gap in Corporate Landscape
GLOBAL ECONOMY GLOBAL ECONOMY: Pak recalls foreign minister Rabbani as crisis with US deepens. King Abdullah gives Saudi Arabia women voting rights for first time. US must put Pakistan on notice after Kabul attack: Senate official Graham. Pakistan sees 'confusion' in US Afghan policy. Rio says Oyu Tolgoi accord changes may alarm Mongolia investors. EU my speed permanent fund to stem crisis. Pakistan army top brass meets amid US tensions. Suicide blast in Indonesia church. Ambush in Philippines kills 15. Republican win will cripple US, Obama says. Dalai Lama's succession plan illegal, China says. Pakistan army chief cancels UK trip as Pakistan rallies against US. Syria unrest: West 'seeks to break up' country. Saudi king signals greater role for women in politics. World mourns passing of true 'African heroine' Maathai. Russia's Medvedev tells Finance Minister Kudrin to quit. Wikileaks' founder Assange in a gilded cage in UK. Thai PM Shinawatra faces flak over exiled brother. As ties sour with US, Pakistan cosies up with Pakistan, China. Portugal HC scraps Abu Salem's extradition, CBI to appeal. Powerful Typhoon Nesat hits Philippines, at least 16 dead. Saudi woman to be lashed for defying driving ban. Fierce fighting in Gaddafi stronghold Sirte, Libya. Govt tanks storm restive town of Rastan, Syria. Four Syrian soldiers reported killed in escape attempt. Yemen defence minister survives assassination attempt. Blast in bus kills 11 children in Herat, Afghanistan. Study says sharp rise in US health insurance cost. Rift in Obama govt as ties with Pakistan turn sour. US dubs 2 LeT co-founders as terrorists. Khar asks world to back Pakistan for UN Security Council seat. Typhoon death toll hits 23 in Philippines. European powers threaten future sanctions against Syria. Shanghai subway collision renews doubt about China's infra frenzy. Libya's new rulers believe Gaddafi hiding near Algerian border. Fresh blow for Pakistan: US curbs on Haqqani men. Japan to relax evacuation order for site near Fukushima nuclear plant. Palestinians say no talks with Israel without settlement freeze. China orders safety drive after environment protests. al-Qaeda rejects Iran's 9/11 conspiracy theories. Saudi king stops caning of woman who defied ban on driving. U.S. durable-goods orders dip in August Decline centers on motor vehicles, large defense products
Weekly Newsletter 74 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Orders for U.S. durable goods fell slightly in Aug as demand shrank for motor vehicles and certain large defense goods. Yet other industries, particularly technology, fared much better and a closely watched gauge of business spending on equipment also rose. Economists say that‘s evidence the broader U.S. manufacturing sector did not weaken last month quite as much as feared. Bookings for U.S.-made products designed to last at least three years dipped 0.1% in Aug after a 4.1% gain in Jul. Most of the decline was centered on autos and large defense products excluding aircraft, but those orders often swing sharply from one month to the next, and they are not viewed as good indicators of future trends. Bookings for motor vehicles fell the most, down 8.5%, to mark the largest drop since Feb 2010. And orders for ―defense capital goods‖ such as large weapons decreased by 5.7%. Excluding transportation, orders fell 0.1% in Aug. Orders minus defense also dropped 0.1%. Slower demand for durable goods would be a worrisome sign for an economy whose growth over the past year has been spearheaded by manufacturing and exports. If companies cut back on capital investments because of fresh worries about the economy, growth could slow even further. Yet some sectors of manufacturing saw marked improvement last month. Orders for computers, for example, jumped 5.5% after sinking 7.3% in Jul. And bookings for communications gear shot up 7.8% in Aug after a 21.1% plunge two months ago. What‘s more, orders for core capital goods climbed a solid 1.1%. That closely watched category gives a better read on trends in the private sector because it excludes transportation and government spending on defense. In addition, shipments of core capital- equipment goods, which the government uses to help calculate gross domestic product, rose 2.8%. Finnish parliament backs stronger EFSF Finland's parliament on Wednesday approved changes to the euro-zone bailout fund, the European Financial Stability Facility, agreed by euro-zone leaders in July. The changes will give the EFSF power to intervene in sovereign bond markets and to provide credit lines to struggling governments. The measure passed Finland's parliament in a 103-66 vote. The changes require approval of all 17 euro-zone member parliaments. A vote by Germany's Bundestag on Thursday will be closely watched to see if Chancellor Angela Merkel can win passage without having to rely on votes from outside her ruling coalition. Bank of Russia: ready to help Europe via IMF only Russian Central Bank Chairman Sergei Ignatyev said Tuesday that Russia is ready to help the European Union only through the International Monetary Fund. Separately, Ignatyev said Greece was close to default, and called the euro-zone debt situation "critical." "Portugal and Ireland have got problems, and the financial markets participants have started to doubt the ability of Spain and Italy to service their sovereign debt," Ignatyev added. Japan auto sales seen at 34-year low after quake Auto sales in Japan are expected to fall to a 34-year low in the current fiscal year that ends in March due to a sharp drop in production after the March 11 earthquake and tsunami, an industry body said Tuesday. But the Japan Automobile Manufacturers Association also expects sales to pick up over the second half of the year as companies iron out production bottlenecks caused by the disasters and ramp up output to make up for lost time. Marking the first time it has released a sales outlook for the current fiscal year, JAMA said it expects domestic auto sales to fall 3.3% from a year earlier to 4.450 million vehicles. That would be the lowest since the fiscal year ended in March 1978. The industry body usually releases its yearly projections in March, but said it delayed the release as it was difficult to gauge the impact of the massive earthquake and tsunami on the country's auto production and sales. The picture looks somewhat rosier for the second half of the year. JAMA forecasts a 17.4% on year rise in sales for the seven months to March as companies return their production networks to normal, compared with a 28.6% drop in sales in the five months through August. Still, the association's chairman warned that the expected rebound for the rest of the fiscal year doesn't necessarily mean a fully fledged recovery in the domestic auto market. "Even though demand will rebound more than 10% as we project...overall levels of demand will still be sluggish," Toshiyuki Shiga said at a press conference. Shiga, who is also the chief operating officer of Nissan Motor Co. (7201.TO), said the expected rise is due in part to a low basis of comparison in the year-earlier period, which saw poor sales due to the expiry of government subsidies for fuel-efficient cars. Japanese auto makers are already counting on a domestic recovery in demand over the next six months, as they look to boost output even as the strong yen squeezes their export businesses. Toyota Motor Corp. (7203.TO) started increasing production in September, one month earlier than initially planned, to catch up on the previous six months. Honda Motor Co. (7267.TO) plans to lift output volume by 25% in the fiscal second half, while Nissan expects its output to be back to pre-quake conditions in October. Although the outlook for the U.S. and European economies looks increasingly murky, Shiga said he hasn't seen any signs of faltering auto demand in the two key markets.
Weekly Newsletter 75 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Bernanke calls unemployment a ‘national crisis’ Also calls from ―strong‖ housing policies The nation‘s weak labor market was ―a national crisis‖ that required attention from the White House and Congress, Federal Reserve Chairman Ben Bernanke said Wednesday. ―We‘ve had close to 10% unemployment now for a number of years, and of the people who are unemployed, about 45% have been unemployed for six months or more. This is unheard of,‖ Bernanke said in a question-and-answer session following a speech in Cleveland. He called for policies ―that could help them find work, train for work and retain their skills.‖ Bernanke said that Fed‘s interest rate moves were not a panacea for the economy. Bernanke urged policy makers to consider ―strong housing policies to help the housing market recover.‖ Better housing policies would ―clearly be very useful,‖ and would allow the low mortgage rates stemming from easy Fed policy to have more effect and help the economy recover. Except for two months early this year, the unemployment rate has been stuck above 9% almost every month since May 2009. It peaked at 10.1% in October 2009. Bernanke‘s dire view of the unemployment situation may be what motivated him to take the another innovative step last week to try to boost the economy. Despite three dissents on its interest-rate setting board, the Fed decided to start a program to twist the yield curve by swapping shorter- maturity government securities for longer-dated ones. Read Fed decides on $400 billion bond swap. Bernanke did not spell out what he wants done about unemployment and housing. The topic of his prepared remarks was about gleaning policy lessons from the recent strong growth seen in emerging markets. But recently, top Fed officials have endorsed the outlines of a plan that would allow homeowners who owe more than their homes are worth to refinance their mortgages. Boston Federal Reserve Bank President Eric Rosengren on Wednesday said such a plan would give a boost to consumer demand. ―Clearly getting more money into the hands of homeowners who would spend it could help to fuel GDP growth,‖ he said. Plans to expand existing refinancing program being considered by the White House but have been slowed down by regulatory hurdles. Rosengren also backed another proposal that would reduce the number of vacant homes by allowing investors to convert foreclosed homes into rental properties. Bernanke‘s call for action on the labor market might end up helping President Barack Obama‘s jobs plan, a mix of tax cuts for workers and businesses and more spending on schools and roads. Republicans have indicated that they might pick and pass some elements of Obama‘s proposal. Read Congress may take only tax cuts from Obama plan. It may be harder for Congressional Republicans to justify trimming the package given Bernanke‘s strong words. German parliament approves changes to EFSF Germany's parliament on Thursday approved a package of measures enhancing the lending power and flexibility of the euro-zone bailout fund, the European Financial Stability Facility. News reports said the final tally was overwhelming, with 523 members of the Bundestag, the lower house of parliament, voting in favor, and 85 against. The euro extended gains after the vote and changed hands versus the dollar in recent action at $1.3642, up 0.7% on the day. China September PMI points to flat activity A key China manufacturing survey released showed economic conditions contracted for the third straight month in Sep, though there was little change in the overall rate of contraction from Aug, while other data bolstered the view activity was beginning to stabilize. HSBC‘s China Manufacturing Purchasing Managers‘ Index (PMI) reading for the month was 49.9, unchanged from levels in Aug, and below the 50 level dividing expansion from contraction. The result was stronger than last week‘s preliminary or ―flash‖ PMI that had indicated conditions at a two-month low for the month of 49.4. HSBC economists said the data showed China‘s manufacturing sector continued to stagnate in Sep amid weak domestic and overseas demand. However, they noted improvement in new orders against a backdrop of deplete inventories bodes well for factory activity in coming months. ―This slow-down is starting to stabilize,‖ wrote HSBC analysts in a note accompanying the PMI. The PMIs reading for finished goods fell to 46.8 from 47.2 in Aug, marking the 14- straight month of declines. Meanwhile, new orders remained in contraction, though on an improving trend, rising to 49.8 from 49.2 Aug. Fitch cuts New Zealand for high external debt Fitch Ratings lowered its ratings on New Zealand, saying the island nation's net external debt is an outlier among peers. The credit rater lowered New Zealand's long-term foreign-currency issuer default rating by one notch to double-A, placing it two levels under triple-A. The ratings outlook is stable. The ratings firms said its net external debt of 83% of gross domestic product on a U.S. currency-basis by the end of last year was well above the 10% median for AA-range peers. "New Zealand's high level of net external debt is an outlier among rated peers--a key vulnerability that is likely to persist as the current account deficit is projected to widen again, reflecting a structural savings/investment imbalance," said Andrew Colquhoun,
Weekly Newsletter 76 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Fitch's head of Asia-Pacific sovereigns. Fitch said the economy's high net external debt reflected a persistent current account deficit, peaking at 8.9% of GDP in 2008. The deficit was corrected sharply during the recession in 2009 and 2010, but Fitch estimates it will widen again to 4.9% of GDP in 2012 and 5.5% in 2013 as domestic demand recovers. Fitch said it views New Zealand's high net external indebtedness as "a key vulnerability," particularly in a global environment that has remained volatile since the ratings were assigned with a negative outlook in 2009. Euro-zone Sept. annual inflation accelerates to 3% Consumer price inflation in the euro zone unexpectedly accelerated to a 3% annual pace in Sep from 2.5% in Aug, the European Union statistics agency Eurostat reported in a preliminary estimate. Economists had expected the inflation rate to remain at 2.5%. The European Central Bank's inflation target is near but just below 2%. Separately, Eurostat said the seasonally-adjusted unemployment rate in the euro zone stood at 10% in Aug, unchanged from Jul. Japanese Aug industrial production rises 0.8% Japanese Aug industrial production rose 0.8% month-on-month on a seasonally-adjusted basis, government data showed. Economists had been expecting production to rise 1.5%, according to data compiled by Dow Jones Newswires. The rise in Aug represented the fifth straight month of production gains and the government statistics body noted that industrial production has almost recovered from the Great East Japan earthquake that devastated the country in Mar. Australia's fiscal 2011 deficit reaches $50.4 bn Australia's government recorded a 2010-11 fiscal balance deficit of 51.5 bn Australian dollars ($50.4 bn), it said. The deficit was A$5.8 bn higher than estimated earlier in the year. The government said that the gap between the estimated amount and actual amount could be explained by changes in accounting treatment for disaster recovery payments. "The government remains determined to return the budget to surplus in 2012-13, despite softer than expected revenues and increased global instability that will inevitably make that task more difficult," Treasurer Wayne Swan said after the budget figures were released. Japan's core consumer price index rises 0.2% Japan's core consumer price index rose 0.2% in Aug compared to the same period a year ago and rose 0.1% compared to the previous month, government data showed. Economists had been expecting an annual rise of 0.1%, according to data compiled by Dow Jones Newswires. The country's unemployment rate declined 0.4% to 4.3% on a seasonally-adjusted basis, a better reading that the 4.7% rate the market had been expecting, data showed. Average household spending in the month declined by 4.1% in real terms to 282,008 yen ($3,675). Greece meeting with troika "positive": reports The Greek government's meeting with officials from the European Union, the International Monetary Fund and the European Central Bank on Sep 29 was held in a "positive and constructive" atmosphere, according to media reports. The meeting is part of a review by the so-called troika to determine whether Greece has met its reform targets to receive the next installment of bailout funds. The review team will continue to meet with Greek officials in the coming days, the reports said. Separately, Greek Finance Minister Evangelos Venizelos welcomed the German parliament's support for the euro-zone rescue fund and stressed that Greece is committed to meeting its obligations. "Those are not obligations towards the troika, Greece's institutional partners and creditors, but towards the country itself and most of all towards its young generation," the Finance Ministry said in a statement. U.S. jobless claims sink 37,000 to 391,000 Labor official suggests big drop stems from ‘technical’ issues The number of Americans who filed applications for unemployment benefits sank last week to the lowest level since early spring, but the surprising drop may have stemmed from ―technical‖ issues not captured by normal seasonal adjustments. Jobless claims fell by 37,000 to 391,000 in the week ended Sept. 24, putting them at the lowest level since April 2, the Labor Department reported. Initial claims from two weeks ago were revised up to 428,000 from an original reading of 423,000. Pending home sales index drops 1.2% in August The pending sales index of existing U.S. homes fell 1.2% to 88.6 in Aug, the National Association of Realtors said. The pending sales index totaled 89.7 in Jul. The index's current level is 7.7% above the Aug 2010 level, but it's well below the pace of pending sales in a healthy economy. The biggest decline took place in the Northeast, while the Midwest and West also fell. The South was the only region to post an increase.
Weekly Newsletter 77 Info-Spectrum Bridging the Information Gap in Corporate Landscape
GLOBAL BUSINESS GLOBAL MARKET: Global leaders fiddle as Greece heads for burnout. Ford Motor may build electric cars in China with partner, CEO Mulally says. Apple opens first Hong Kong store as retail spending surges. Indonesia's growth is solid as lending exceeds target, central bank says. Vladimir Putin's return in power stokes fear of stagnation in Russia. China central bk governor: Must battle inflation, maintains growth. Greece vows to stay in the euro, never go bankrupt. China to invest 2 trln yuan in low-carbon economy. France has no plans to recapitalise banks, budget minister says. China's XCMG may drop plans to raise $1.1 bln in stock offer. Boeing hands over first 787 Dreamliner to ANA. AB Invev seen in $80 bln deal with SABmiller. Boeing to deliver first 787 Dreamliner to All Nippon after 3 yr delay. US new home sales fall 2.3% in Aug, a six-month low. UBS chief quit after clash over strategy. Fresenius to test appetite for high-yield debt. S&P may face SEC charges over CDO rating. German business sentiment falls for third month in a row. No plan on table to halve Greece debt, say Eurozone officials. Germany at war over Eurozone bailout. Indian Overseas Bk, others shelve MTNs as debt cost soars. Greece prime minister makes plea for German support for debt crisis. Japan may consider being part of Greece bailout plan. BAE Systems to cut 3,000 jobs at sites across Britain. Russian PM Putin names Anton Siluanov Russia's acting finance minister. Report says IPad 'gains 80% of tablet market' in US, Canada. US Senate deal prevents government shutdown. US Federal Reserve lender of last resort, once again. Experts: Obama's jobs plan may prevent 2012 recession. Global investor poll says, China growth seen slowing to 5% by 2016. Greece to face inspectors, German Chancellor Merkel hints at bailout. BP may sell some global assets to RIL. German govt faces tricky bailout vote. European Commission Barraso's Tobin tax proposal resisted by UK. Man Group assets shrink by $6 bln. UK 'will resist' European Union financial tax. Amazon unveils iPad challenger Kindle Fire tablet. US orders for big manufactured goods fall in August. US to probe HTC's complaint against Apple. Japan plans to raise extra $120 bln in taxes for quake reconstruction. Reebok to pay in settlement over health claims. Expanded Europe bailout fund clears more hurdles.
Weekly Newsletter 78 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Greece govt divided over job cuts. German parliament backs expanded euro rescue fund. Nokia and Siemens invest 1 bln euros in joint venture. Kindle Fire may force Android tablet makers to cut prices. S&P raises GM credit rating by two notches. H&R Block to get rid of EXPRESSTAX brand. Nationwide Mutual to buy Harleysville for $760 mln. Nokia to cut 3,500 jobs worldwide. Rising wages erode low-cost image of China. AstraZeneca settles Seroquel patent litigation. AstraZeneca PLC s said that it has entered a settlement agreement in its U.S. Seroquel XR patent infringement litigation against Handa Pharmaceuticals LLC, regarding Handa's proposed generic version of Seroquel XR extended-release tablets. Under the settlement, AstraZeneca has granted Handa a license to enter the U.S. market with generic Seroquel XR in Nov, 2016, or earlier under certain circumstances. The drug is protected by patents and other exclusivity rights that range from Mar, 2012, to Nov, 2017. Rusal may sign $4.75 bn loan from banks Aluminum giant United Co. Rusal (0486.HK) may sign an agreement on a $4.75 bn syndicated loan with a five-year maturity, Interfax reports, citing a banking source. Rusal said on Aug. 1 it mandated banks to arrange a syndicated pre-export finance facility of up to $4.75 billion. Rusal said it will use the facility to partially refinance its debt, which stood at $11.4 billion as of March 31. The refinancing of the full volume of the debt will enable Rusal to remove restrictions on its operational and investment activities and the dividend payment. Rusal said it expected to re-finance its debt in full by the end of September. The banking group mandated to arrange the facility included OAO Sberbank , UniCredit Bank AG, BNP Paribas SA (BNP.FR) and Societe Generale SA (GLE.FR). The deal was expected to close by the end of September, Rusal said. SAIC agrees to $20 mln settlement on Navy billing Science Applications International Inc. agreed to pay the government $20.4 million to settle charges it colluded with two government employees to gain a lucrative support contract. Isuzu to build new pickup truck plant in Thailand Isuzu Motors Ltd. (7202.TO, ISUZY) said it will build a new plant in eastern Thailand to produce pickup trucks, with an eye to make the Southeast Asian country its base for export operations, Kyodo News reported. The new facility, to be built at a cost of Y18 billion, will be constructed on the premises of Isuzu's existing plant in Chachoengsao Province and is scheduled to begin operating in October 2012. Together with the existing plant, Isuzu's production capacity for pickup trucks will be boosted to 400,000 per year, it said. PdVSA forms joint venture with Brazil's Odebrecht The Venezuelan government approved the creation of a joint venture between state oil company Petroleos de Venezuela and a division of Brazilian conglomerate Odebrecht, the Official Gazette said. The joint venture intends to search for and produce oil in Venezuela's northwestern state of Zulia. The JV will be 60% owned by PdVSA, as the state monopoly is known, while the rest will go to Odebrecht E&P Espana. The agreement is for a duration of 25 years and the Brazilian company will pay $50 million to PdVSA for its partnership, the government newsletter said. The approval from the National Assembly gives a green light for the companies to explore and produce crude oil and natural gas in the hydrocarbon-rich state of Zulia. Venezuela has been on the hunt for foreign partners to develop its vast crude reserves, as it looks to boost oil output to 4 million barrels a day by 2014 from around 3 million presently. S&P takes Fortune Brands off downgrade watch Standard & Poor's Ratings Services removed the prospect of downgrading Fortune Brands Inc.'s ratings into junk territory anytime soon, based on its assessment of how the company will fare as a spirits-focused operation after an expected spinoff. S&P removed the company's triple-B-minus ratings--the lowest credit- quality rating in investment grade--from watch for possible downgrade and gave the company's ratings a stable outlook. S&P ups GM; puts Ford on watch for upgrade
Weekly Newsletter 79 Info-Spectrum Bridging the Information Gap in Corporate Landscape
Standard & Poor's Ratings Services lifted General Motors Co.'s rating by two notches, placing the auto maker on the verge of investment grade, citing the benefits of a new, four-year labor contract with the United Auto Workers. Separately, S&P also placed its rating on peer Ford Motor Co. (F) on watch for upgrade, saying it could raise Ford's rating to GM's new level if the company's U.S. labor negotiations are resolved and ratified in a way that doesn't place Ford at a significant disadvantage relative to GM's recently concluded labor contract. GM's corporate credit rating was raised by two notches to double-B plus. The outlook was revised to stable from positive. Shell says fire at Singapore refinery extinguished Royal Dutch Shell PLC has succeeded in extinguishing a fire that has been raging at its 500,000-barrel-a-day Pulau Bukom refinery. Shell said the fire at the refinery, the largest the oil major owns globally, had been extinguished, but some traces of fuel vapour remained.
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