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SpiceJet forms new Management CommitteeSpiceJet forms new management committee after fund infusion from Wilbur Ross. Kishore Gupta, Partha Sarthi Basu and Samyukth Shridharan are part of the new management committee at SpiceJet. This committee is empowered to take organizational and management decisions in the absence of the CEO.Source: Moneycontrol Top Headlines | 26 Aug 2008 | 7:30 pm FIPB clears RanbaxyDaiichi deal for Cabinet nodThe FIPB (Foreign Investment Promotion Board) has cleared the RanbaxyDaiichi deal for Cabinet nod. Government say the Cabinet approval for the RanbaxyDaiichi deal is likely to come in onemonth say reports CNBCTV18 quoting NewsWire18.Source: Moneycontrol Top Headlines | 26 Aug 2008 | 6:08 pm My Home Grp buys 10.2% in Pennar Ind at Rs 32.3/shS Srinivas, General Manager, Finance of My Home confirmed that the group has bought 10.2% stake in Pennar Industries. Srinivas added that at present they have no plans to up their stake in Pennnar Industries. Further, he added that he has no plan for any synergy with the company.Source: Moneycontrol Top Headlines | 26 Aug 2008 | 4:49 pm Axon supports Infy for now, but may review new bids tooSteve Cardell of Axon said if an alternative bid comes in, it would be the fiduciary duty of the company to review the new bid but as of now Axon supports the Infosys deal. He informed CNBCTV18 that Axon would be meeting with key shareholders in next few days to know their intent.Source: Moneycontrol Top Headlines | 26 Aug 2008 | 4:43 pm RIL submits proposal to transfer 80% stake in KGD6 basinReliance Industries has submitted proposal to concerned regulator to transfer 80% stake in KGD6 basin. RIL, Niko will continue holding 10% stake each directly post transfer. There will be no loss to shareholders due to transfer of stake. KGD6 stake transfer will help RIL to build financial flexibility.Source: Moneycontrol Top Headlines | 26 Aug 2008 | 4:31 pm Bosch Bd to meet on Sep 2 to consider buybackBosch Board will meet on September 2 to consider buyback. This will be the fourth attempt by the parent company to hike its stake in an Indian entity. The buyback offer is likely to be for 32 lakh shares (10% equity).Source: Moneycontrol Top Headlines | 26 Aug 2008 | 4:24 pm SREI Infra aims to sustain 34% NIMsHemant Kanoria, MD of SREI Infra Finance said that in the month of July, from the July 1 they have increased SREI Benchmark Rate by 150 bps, which used to be 13 to 14.5. He said they should be in a position to maintain anywhere between 34% on the Net Interest Margins, NIM side.Source: Moneycontrol Top Headlines | 26 Aug 2008 | 3:42 pm Quant Broking to raise $100 m from strategic investorsQuant Broking is in its final stages to raise USD 100 m from strategic investors. It is likely to raise USD 50 m in the first stage, and will dilute close to 40% of its equity. This deal values Quant Broking at close to USD 120 m.Source: Moneycontrol Top Headlines | 26 Aug 2008 | 3:17 pm Varun Shipping not hit by decline in Baltic IndexVikram Suryavanshi Of Karvy Stock Broking said there has been a significant decline in Baltic Dry Bulk Index, which is associated with the dry bulks. However he said that Varun Shipping would be un affected by this decline as the company has exited the dry bulk space.Source: Moneycontrol Top Headlines | 26 Aug 2008 | 3:00 pm IOC to raise funds via bonds - sourcesMUMBAI (Reuters) - State-run Indian Oil Corporation Ltd will issue bonds to raise at least 3 billion rupees ($70 million) to fund capital expenditure requirements, a senior company officials said on Tuesday.Source: Reuters: Money News | 26 Aug 2008 | 2:01 pm India industry body sees future investment flaggingNEW DELHI (Reuters) - Future investment plans of Indian firms could be delayed as high interest rates, flagging consumer demand and rising raw material costs weigh on profitability, the chief of industry body CII said on Tuesday.Source: Reuters: Money News | 26 Aug 2008 | 1:56 pm Intervention suspected as rupee trims losses - Reuters India
Source: Google News India - Business | 26 Aug 2008 | 1:37 pm Gitanjali Group launches new line of jewellery - Business Standard
Source: Google News India - Business | 26 Aug 2008 | 1:30 pm 'India could have 270 mn 3G subscribers by 2013' - Press Trust of India
Source: Google News India - Business | 26 Aug 2008 | 1:30 pm Vendors to back Tata in case of Nano pull-out - Reuters India
Source: Google News India - Business | 26 Aug 2008 | 1:23 pm Intervention suspected as rupee trims lossesMUMBAI (Reuters) - The rupee weakened past 44 per dollar for the first time in nearly 1-1/2 years on Tuesday, before a late surge on what traders said was Reserve Bank of India (RBI) intervention through state-run banks saw it end nearly flat.Source: Reuters: Money News | 26 Aug 2008 | 1:21 pm Cannot afford to rollback Nano Project: WB CMThe Chief Minister of West Bengal, Buddhadeb Bhattacharya has said that it cannot afford to rollback the Nano project of the Tatas. The Nano Project is in the interest of the state, he said. He said, Singur is not the general state of affairs but an exception.Source: Moneycontrol Top Headlines | 26 Aug 2008 | 1:16 pm Flight Centre in pact with Singapore AirlinesAustralia-based Flight Centre has tied up with Singapore Airlines to sell pocket-friendly tour packages to the city-state to customers in India.Source: Daily News & Analysis: Money News | 26 Aug 2008 | 1:16 pm HP launches desktops for childrenHewlitt Packard launched customised desktops featuring Enid Blytons's famous cartoon character Noddy priced between Rs 16,000 and Rs 38,000.Source: Daily News & Analysis: Money News | 26 Aug 2008 | 1:15 pm Rupee hits more than 17-month lowPTI Mumbai: The Indian rupee hit more than 17-month low of 44.10 against the greenback during morning trade on increased dollar demand from oil refiners and stronger dollar overseas amid sluggish stocks. At the Interbank Foreign Exchange (Forex), the domestic currency resumed sharply lower at 43.98/99 a dollar from its last close of 43.78/79 a dollar. It later breached the crucial 44 level and hit 44.10 level for the first time after 16 March, 2007. The rupee, however, recovered to 44.03/04 a dollar in late morning deals. Forex dealers said exporters may be selling dollars at the higher levels after the rupee touched 44.10 mark in early trade this morning. They said oil refiners were continued buyers in dollar for their monthly import payments. Asian stocks markets were trading in the red this morning after a sharp fall on Wall Street yesterday. Indian benchmark Sensex was down 91 points in early trade. Source: Home - Livemint.com | 26 Aug 2008 | 1:13 pm Mixed views on Infosys-Axon deal - Economic Times
Source: Google News India - Business | 26 Aug 2008 | 1:12 pm Vendors to back Tata in case of Nano pull-outMUMBAI (Reuters) - Vendors for Tata Motors' Nano car would back Tata in the eventuality of a pull-out from Singur in West Bengal, but said they were not aware of a deadline for a relocation of the plant.Source: Reuters: Money News | 26 Aug 2008 | 1:07 pm HDIL India Couture Week in MumbaiThe Fashion Design Council of India formally announced the staging of what it termed "the newest and most glamorous event" on its calendar, the HDIL India Couture Week from Sep 16-21.Source: Daily News & Analysis: Money News | 26 Aug 2008 | 1:00 pm Imperial recommends OVL offer to shareholdersNew Delhi: ONGC Videsh Ltd beat arch rival China to launch a takeover bid for UK-listed Imperial Energy at £1.4 billion that equals $2.58 billion. OVL, drubbed by Chinese companies on many occasions in the past, won the approval of Imperial’s Board of Directors for taking over the Russia- focused company for 1,250 pence per share. “Imperial Energy’s Directors intend unanimously to recommend shareholders accept the proposed offer,” Imperial Energy Executive Chairman Peter Levine said in a regulatory filing to the London Stock Exchange. OVL managing director R S Butola said: “We believe OVL’s financial strength and technical expertise will further enhance the attractive growth potential of the business in the Tomsk region through the acquisition.” Imperial, a relatively small British oil and gas company based in Leeds in UK, has oil producing blocks in Tomsk region of western Siberia in Russia and Kastanai in north-central Kazakhstan. It produced about 10,000 barrels of oil per day in December 2007 and is targeting to raise this to 80,000 barrels per day which makes it to 4 million tons a year by the end of 2011. The Russian Ministry of Natural Resources said Imperial’s Russian Registered Reserves amount to about 450 million barrels of hydrocarbons. Independent assessment of the reserves by DeGolyer and McNaughton in December 2007 suggested in-place reserves of 920 million barrels of oil equivalent. Source: Home - Livemint.com | 26 Aug 2008 | 1:00 pm The Body shop launches Wellbeing rangeThe Body Shop (TBS), a global retailer of toiletries and cosmetics, has launched a new Wellbeing range it says will address modern day lifestyle concerns like stress and anxiety.Source: Daily News & Analysis: Money News | 26 Aug 2008 | 12:57 pm India copper pressured down by stocks, German GDP - Reuters India
Source: Google News India - Business | 26 Aug 2008 | 12:54 pm POLL - India's GDP growth seen slowing to 8.1 pct in June qtr - Reuters India
Source: Google News India - Business | 26 Aug 2008 | 12:48 pm Singur stalemate can hurt investments in WB: Kamath - Economic Times
Source: Google News India - Business | 26 Aug 2008 | 12:44 pm TCS procures 5-year Singapore Airlines Cargo contract - Myiris.com
Source: Google News India - Business | 26 Aug 2008 | 12:33 pm POLL - India's GDP growth seen slowing to 8.1 pct in June qtrNEW DELHI (Reuters) - India's economy is likely to have grown an annual 8.1 percent in the April-June quarter, its slowest pace in nearly three years, as tight monetary policy to calm rising inflation dented demand.Source: Reuters: Money News | 26 Aug 2008 | 12:27 pm NPCI likely to get licence by early September: IBA official!The National Payments Corporation of India (NPCI) is likely to obtain the licence to commence operations soon, a senior banking industry official said.Source: Zee News : Business | 26 Aug 2008 | 12:22 pm BHP shuts Australia iron ore mine after fatality !BHP Billiton Ltd (BHP.AX) (BLT.L) has shut its giant Yandi iron ore mine in Australia until further notice while it investigates a fatality, the company said on Tuesday.Source: Zee News : Business | 26 Aug 2008 | 12:22 pm Forex reserves above optimal level: IMF!India`s foreign exchange reserves at around USD 286 billion are much above the optimal level, said a recent IMF study, pointing out that forex accumulation has reduced external vulnerabilities and decreased the risk of financial contagion.Source: Zee News : Business | 26 Aug 2008 | 12:22 pm Chandigarh, Coimbatore fast emerging as India`s new IT hubs!Chandigarh and Coimbatore are fast emerging as India`s new IT hub leaving behind traditional centres of Bangalore and Hyderabad, as information technology services grow at 20 per cent annually.Source: Zee News : Business | 26 Aug 2008 | 12:22 pm Oil in Asia tops USD 115 on tropical storm concern !Oil prices in Asia rose slightly on Tuesday to above USD 115 a barrel on concerns that Tropical Storm Gustav may strengthen and disrupt oil operations in the Gulf of Mexico.Source: Zee News : Business | 26 Aug 2008 | 12:22 pm Sensex down 164 points in early trade!The Bombay Stock Exchange benchmark Sensex lost 164 points in early trade today on heavy selling by funds following weak global trend and depreciating rupee.Source: Zee News : Business | 26 Aug 2008 | 12:22 pm Guardian Lifecare raises Rs100 cr, off-loads 30% stakeNew Delhi: Pharmaceutical retailer Guardian Lifecare Pvt Ltd has raised Rs100 crore by off-loading about 30% stake to an unnamed private equity fund and the amount will be used for store expansions. Guardian has been in talks with some private equity players for raising fund and the deal has been completed weeks ago, Ashutosh Garg, the company’s chairman and managing director said. Garg, however, declined to name the private equity player. Currently, Guardian operates more than 100 pharmacies in several cities and plans to add 150 outlets by March. This is the second funding that two of the branded pharma retailers have received in the last month or so. Santa Clara-based NEA-IndoUS Ventures and an unnamed Middle East-based venture capital fund also invested a similar amount in Hyderabad-based MedPlus Health Services Pvt. Ltd to purchase an undisclosed stake, according to a person close to the situation. Since India does not allow foreign investment in retail ventures selling multi-branded products to consumers, the two overseas funds have invested in MedPlus’ wholesale or cash-and-carry arm. The so-called cash-and-carry is the only retail venture where India permits upto 100% overseas ownership. Source: LatestNews-Home - Livemint.com | 26 Aug 2008 | 12:21 pm Axon shares jump after Infosys offerShares in the British consultancy group Axon jumped by 20.1 percent fuelling speculation about a counterbid to Infosys Technologies' 407 million pound offer to buy the company.Source: Daily News & Analysis: Money News | 26 Aug 2008 | 12:21 pm Britannia biscuits could cost more - Sify
Source: Google News India - Business | 26 Aug 2008 | 12:12 pm Taurus Mutual Fund plans major come backTaurus Mutual Fund, one of the oldest mutual funds in the country which had fallen by the wayside all these years, is planning a major come back.Source: Daily News & Analysis: Money News | 26 Aug 2008 | 12:10 pm India to reclaim Mughal-age economic auraIndia and China are set to become the world's leading economic and political powers in about 50 years reclaiming the glory of the year 1700.Source: Daily News & Analysis: Money News | 26 Aug 2008 | 12:10 pm Allow MFs to offer insurance covers: AMFIMutual fund industry has proposed that the market regulator SEBI allow mutual funds to offer insurance cover to investors along with their regular schemes.Source: Daily News & Analysis: Money News | 26 Aug 2008 | 12:09 pm Railways to launch Royal Rajasthan on WheelsPTI New Delhi: After the huge success of Palace on Wheels, the Railways Ministry in close cooperation with the Rajasthan Tourism will be launching a second super luxury train in December. The new tourist train will be named Royal Rajasthan on Wheels and will be operated jointly by railways and Rajasthan Tourism Development Corporation (RTDC). “We expect the Royal Rajasthan on Wheels to be as successful as Palace on Wheels as we have added more onboard facilities,” Rajasthan’s Tourism Minister of State, Usha Punia said. “The itinerary of the train will be similar to the Palace on Wheels except that it will go to Bikaner instead of Sawai Madhopur. It would in fact, be more luxurious than Palace on Wheels,” she added The Rajasthan government will have to pay haulage charges to the ministry as per the new policy formulated by railways for tourist trains. “Though it has not been finalized yet, it is expected to be Rs25 lakh per trip,” said a senior RTDC official. The Palace on Wheels is run on a revenue sharing basis with the railways. While railways get 56% of the revenue, Rajasthan’s share is 44%. Catering to the growing demand of tourists, the Royal Rajasthan on Wheels will go to Jaipur, Jaisalmer, Jodhpur, Chittaurgar, Udaipur, Bharatpur and Agra. Source: LatestNews-Home - Livemint.com | 26 Aug 2008 | 11:46 am Infosys shares fall on counterbid fears for AxonBANGALORE (Reuters) - Shares in Infosys Technologies gave up gains of more than 2 percent and ended lower on Tuesday after a London-based securities house said it could face a counter bid to acquire Britain's Axon Group Plc.Source: Reuters: Money News | 26 Aug 2008 | 11:43 am ONGC makes $2.6 bln bid for Imperial EnergyLONDON (Reuters) - India's largest oil producer ONGC has agreed a 1.4 billion pounds ($2.6 billion) takeover of Russia-focused oil explorer Imperial Energy Corp Plc as it works to secure energy to fuel India's booming economy.Source: Reuters: Money News | 26 Aug 2008 | 11:31 am Beijing prepares for Olympic venues’ futureBy AP Beijing: Where Olympians ran, swam and slept, Chinese organizers see pop concerts, a public pool, football games and luxury apartments. Authorities are scrambling to make sure the 91,000-seat Bird’s Nest stadium and other venues are put to good use after the Olympics and September’s Paralympics. They want to avoid the fate of other Olympic hosts that were left with empty, debt-burdened facilities. The NBA and private developers have been signed up to run stadia and arenas. The Water Cube swimming centre, due to become a public pool, raised money by licensing its name for a bottled water brand. The Bird’s Nest is taking bids from companies for naming rights. “We believe that post games and for a long period of time, these venues will be used pretty well,” Du Wei, vice president of the Beijing Olympic Economy Research Association, a group linked to the Beijing organizers, told reporters. “The management companies will immediately open them up for public use.” Still, Du and others say it could take decades for the Bird’s Nest and other venues to pay for themselves. Beijing built 12 permanent and eight temporary new venues and refurbished 11 others at a cost of $1.9 billion (euro1.29 billion), according to the city government. Bird’s Nest, a high profile case study The Bird’s Nest will be the highest-profile test case for the city’s ability to make them financially viable. It has the advantage that it is the first big, modern stadium in a city where the main venue for rock concerts and sports has been the drab Workers Stadium, a 58,000-seat hulk built in 1959. But the new facility’s huge size and potentially high user fees could put it beyond the reach of many events. The stadium’s deputy general manager, Zhang Hengli, declined to give financial details or information on planned events. But he told the newspaper China Business News it could take 30 years for the Bird’s Nest to repay its $220 million cost. Zhang said it needs at least $19 million in annual revenue to cover maintenance and debt payments. Raising sponsorships, recovering costs of key venues Beijing is relying in part on a timeworn strategy of forcing state companies to share the cost of public facilities. CITIC Group, a government-owned investment company, put up 48 percent of the money to build the Bird’s Nest and the CITIC-owned Beijing Guoan football club will make the stadium its home field. Zhang, the stadium official, declined to discuss naming rights. But China Business News said as many as seven companies are bidding. It said they include non-Chinese bidders, though attaching a foreign brand name to a national symbol that appears on China’s 10-yuan note might be judged politically unacceptable. The stadium has raised $14.5 million by selling sponsorships to companies including American congolmerate 3M Corp. and German drug company Bayer AG. Their names appear on seats and other facilities. Water Cube, Athelete housing The Water Cube was paid for by donations from ethnic Chinese abroad, making it cheaper to convert to public use. But in a city where the average income per person is $4,100 (euro2,775) a year, managers say ticket prices will be kept low, which leaves less for upkeep of its pool and its futuristic bubble-wrap exterior. “If we rely only on swimming pool tickets, we certainly will lose money,” Kang Wei, a deputy manager of the government company that owns the pool, said in comments on the Beijing organizers’ Web site. “So we will have other products to guarantee the operation in the long run.” The Water Cube raised money by licensing its name for use on swimsuits and on bottled water made from Canadian icebergs. Beijing began charting the venues’ future almost as soon as it was awarded the games in 2001. Athlete housing was designed from the start as luxury apartments, with swimming pools, tennis courts, coffee shops and shopping. Chinese media say units sold out ahead of the games for prices of $2,900-$4,400 (euro1,965-euro2,980) per square metre, high even for Beijing’s booming real estate market. Add-on to universities Some venues were built as additions to universities. The wrestling venue is to become a 6,000-seat gymnasium for China Agricultural University, while Beijing University of Technology gets the 6,900-seat venue for badminton and rhythmic gymnastics. The coastal city of Qingdao plans to convert its yachting venue into a public marina and government school for China’s future Olympic sailors. At the Olympic green, the Main Press Center where thousands of reporters worked over the past two weeks is to become a convention center. The International Broadcasting Centre will be one of its exhibition halls. The state company that owns the Olympic basketball venue announced a partnership in January with the National Basketball Assocciation (NBA) and Anschutz Entertainment Group (AEG), a U.S. sports company that owns David Beckham’s Los Angeles Galaxy and other sports teams, to develop the 18,700-seat arena for concerts and sporting events. The arena “will become a premiere destination for fans after the Olympic Games,” the company chairman, Zhao Yan, told reporters. Source: LatestNews-Home - Livemint.com | 26 Aug 2008 | 11:29 am West Bengal refuses to back down on Nano projectKOLKATA (Reuters) - The government of West Bengal rejected on Tuesday a demand by agitating farmers to return disputed land acquired for building what is billed as the world's cheapest car.Source: Reuters: Money News | 26 Aug 2008 | 11:26 am Indian shares rebound as oil eases, short coveringMUMBAI (Reuters) - Indian shares rebounded from an early slide on Tuesday and rose 0.2 percent after a drop in oil prices and short-covering ahead of monthly derivatives expiry on Thursday.Source: Reuters: Money News | 26 Aug 2008 | 11:13 am NASSCOM set to train 15,000 IT teachersNew Delhi: In its blueprint on National Faculty Development Programme, the National Association of Software and Service Companies (NASSCOM) has said that IT and Computer Science teachers, all from tier-II and tier III institutes need special training to update their knowledge in emerging areas. The association has prepared a three-pronged strategy which emphasises on first-time education, off-line material and mentoring and refreshers’ programme. “15,000 teachers in Information Technology and Computer Sciences are not up to date with their knowledge. As teachers are poor in their own field, quality of teaching is affected in majority of the technical institutes of the country,” NASSCOM has said. “In the tier-II and tier-III institutes, the faculty members are not in touch with industry. They are not updated on the emerging areas. These teachers need special training,” NASSCOM vice president Rajdeep Sahrawat said. As per the AICTE data, there were 1,668 engineering institutes in the country in 2006. About 15% to 20% of these institutes come under tier-I category which have all advanced facilities and good teachers. “NASSCOM will submit the blueprint on National Faculty Development Programme to the government soon,” he said. Source: Tech News - Livemint.com | 26 Aug 2008 | 11:11 am NASSCOM set to train 15,000 IT teachersNew Delhi: In its blueprint on National Faculty Development Programme, the National Association of Software and Service Companies (NASSCOM) has said that IT and Computer Science teachers, all from tier-II and tier III institutes need special training to update their knowledge in emerging areas. The association has prepared a three-pronged strategy which emphasises on first-time education, off-line material and mentoring and refreshers’ programme. “15,000 teachers in Information Technology and Computer Sciences are not up to date with their knowledge. As teachers are poor in their own field, quality of teaching is affected in majority of the technical institutes of the country,” NASSCOM has said. “In the tier-II and tier-III institutes, the faculty members are not in touch with industry. They are not updated on the emerging areas. These teachers need special training,” NASSCOM vice president Rajdeep Sahrawat said. As per the AICTE data, there were 1,668 engineering institutes in the country in 2006. About 15% to 20% of these institutes come under tier-I category which have all advanced facilities and good teachers. “NASSCOM will submit the blueprint on National Faculty Development Programme to the government soon,” he said. Source: LatestNews-Home - Livemint.com | 26 Aug 2008 | 11:11 am Indian stocks seen off radar of many foreign fundsBANGALORE 0(Reuters) - Indian stocks are not going to get a second-half fillip from foreigners like they did in 2007, as analysts say scarce funds and a view Asia's third-largest economy will underperform has investors looking elsewhere.Source: Reuters: Money News | 26 Aug 2008 | 10:48 am Gitanjali Gems to widen product rangeMumbai: “Jewellery retailer and manufacturer Gitanjali Gems Ltd will extend its product range beyond gold and diamonds in order to cater to a wider category of consumers and boost sales,” an official said. According to company’s jewellery and retail head R.K Menon: “The company is all set to launch a new range of jewellery and fashion accessories made from silver, alternate metals such as steel, combination of leather, metals and other precious stones.” Earlier the company launched its ‘Rivaaz’ brand of gold jewellery which is studded with cubic zirconia (CZ) stones, often used as a cheaper simulant for diamond. “The Indian market for CZ jewellery was estimated at 700-800 million rupees per year, and currently has four players,” he said. The company would source the artificial stones from Signity, a subsidiary of gemstones seller Swarovski. “We would be importing from their unit in south-east Asia but are also talking to them to set up a unit in one of Gitanjali’s special economic zones and that can be used for our captive purpose,” he said. Gitanjali was looking at sales of 150-200 million rupees from its ‘Rivaaz’ brand by March through 1,500 outlets in 650 cities and towns across India. The company shares ended 1.7% higher at Rs239.80 in the Mumbai market. Source: LatestNews-Home - Livemint.com | 26 Aug 2008 | 10:48 am Markets end flat after choppy sessionLivemint.com Mumbai: The markets ended flat after a choppy session with the BSE benchmark index closing at 14,482 levels, up 0.2% or 32 points. The Sensex moved in a broad range of 14,286 – 14,495 levels in intra-day deals. Similarly, the wider-based Nifty settled at 4,338 levels. In other Asian markets, Japan’s Nikkei stock index managed to cut some losses to end down 0.8%, while Singapore’s Straits Times index shed 1% by close. Back home, oil and gas counters were the worst hit with index heavyweight Reliance Industries slipping 2.3% or Rs51 by close. Aban Offshore, Cairn India and Essar Oil were the other key losers. However, banking scrips witnessed fresh investor interest with IndusInd Bank firming up 5.2%. Bank of Baroda, HDFC Bank, Punjab National Bank, State Bank of India, Union Bank, ICICI Bank and Kotak Mahindra Bank were some of the other key gainers in this pack. Source: Home - Livemint.com | 26 Aug 2008 | 10:39 am India’s TCS gets Singapore Airlines Cargo contractReuters Mumbai: Tata Consultancy Services Ltd has received a multi-million dollar contract from Singapore Airlines Cargo for a five-year period. The contract is for servicing the cargo revenue accounting back office processes. The company has been serving Singapore Airlines Cargo since 2004. Shares in TCS were up 1.9% at Rs833.70 in a weak Mumbai market. Source: Tech News - Livemint.com | 26 Aug 2008 | 10:14 am India’s TCS gets Singapore Airlines Cargo contractReuters Mumbai: Tata Consultancy Services Ltd has received a multi-million dollar contract from Singapore Airlines Cargo for a five-year period. The contract is for servicing the cargo revenue accounting back office processes. The company has been serving Singapore Airlines Cargo since 2004. Shares in TCS were up 1.9% at Rs833.70 in a weak Mumbai market. Source: LatestNews-Home - Livemint.com | 26 Aug 2008 | 10:14 am Will not return land at Singur, says BuddhaKolkata: West Bengal government has rejected Trinamool Congress’ demand for return of 400 acres of Tata Motors’ Nano factory site to farmers. The government said that it entailed dropping plans to make the world’s cheapest car in the state. Trinamool Congress cadres led by firebrand leader Mamata Banerjee have blockaded Tata Motors’ plant since 24 August demanding that ancillary units be set up in a new location and 400 acres earmarked for them returned to farmers who were allegedly forced to give up their property. Addressing an interactive session with the industry chamber Assocham, West Bengal Chief Minister Buddhadeb Bhattarcharjee said: “I cannot afford to return the 400 acres. If that land has to be returned, Tata Motors project has to be dropped which I cannot allow to happen.” He further added that it was not ‘legally possible’ to return the land. Describing recent protests at Singur as “unfortunate,” Bhattacharjee said that he was in constant touch with opposition leaders to ease the situation. The government has already held a round of talks with the opposition leaders, but could not reach an agreement on ending protests, which prompted Tata Group chief Ratan Tata to threaten to take the Nano project elsewhere although the company has already invested Rs1,500 crore in the facility. “I am not an egoist. We are ready to formulate a package for those affected by the project,” Bhatacharjee said. He also said that he was still optimistic about the project. “I still believe that Nano will roll out from the Singur plant in October,” he added. Source: Home - Livemint.com | 26 Aug 2008 | 10:06 am BHEL bags $32 million UAE contractMumbai: Indian state-run power equipment maker Bharat Heavy Electricals Ltd (BHEL) has won a contract for two gas turbines generating units worth Rs1.4 billion ($32 million) from the United Arab Emirates (UAE). “The order, from International Energy Resources, is for two units of 42 MW each,” BHEL said in a statement. “Middle East is one of BHEL’s key export regions, besides being one of the fastest growing markets for power generating equipment globally,” it said. “The company has set up 14 power projects so far in the Middle East region, apart from supplying equipment for the Power and Oil and Gas sectors in the region,” it said. Shares in BHEL were up 0.8% at Rs1,702 in a weaker Mumbai market. Source: LatestNews-Home - Livemint.com | 26 Aug 2008 | 9:15 am RBI likely to further tighten monetary policy: Moody’sPTI New Delhi: Global credit rating agency Moody’s expects the Reserve Bank of India (RBI) to further tighten monetary policy to contain rising prices, even while projecting moderation in economic growth rate to 7.6%. “If the inflation fails to ease in coming weeks, the Reserve Bank of India will have no choice but to further tighten monetary policy,” Moody’s said in its ‘Macro Roundup; India’s inflation pain persists´. The report said that the economic growth of the country would moderate to 7.6% in the current fiscal as against 9% achieved in 2007-08. Pointing out that inflationary pressures remain ‘stubbornly´ strong in India despite aggressive monetary tightening by the central bank in recent months, the rating agency said: “the rise in global commodity and food prices is still a major driver of inflation.” The RBI, since the beginning of the current financial year, has increased the short term (repo) lending rate by 1.25% and mandatory cash reserve ratio by 1.5%. Both these rates currently stand at 9%. Oil prices The recent decline in global oil prices, it said, will not help in cooling inflation in India because prices of petroleum products in the domestic markets are below the international levels. “The retreat of oil will only help ease the pressure on the government to further raise domestic energy prices,” the rating agency noted. Secondly, it added, as general elections are due, the government will avoid any policy changes that could provoke social dissatisfaction. The annual rate of inflation has already touched above 13-year high mark of 12.6% despite fiscal and monetary measures taken by the government and the RBI. The rating agency expects the inflation rate to peak in the second quarter (July-September), however adding that there is still “a reasonable chance that a single-digit inflation rate will be seen later this year”. Referring to GDP growth, the agency said due to measures taken to rein in inflation, the country will see slower economic expansion, with the economy set to decelerate in the second half of 2008 amid cooling domestic demand. Source: Home - Livemint.com | 26 Aug 2008 | 9:09 am Development and discontentThe events at Singur are no longer about property rights of farmers and other marginal groups. They are more about political blackmail and hold-up of projects for reasons other than compensation and justice.  Illustration: Jayachandran / Mint If anything, this clearly exhibits the cruel conundrum of development in India. It has largely benefited the more well-off citizens and has bypassed large swathes of the country. As a result, the poor hold on to assets, mostly small patches of land, with their lives. This, even if these assets are able to generate little or no income and basically force their owners to live a subsistence existence. Attempts to break this pattern are anything but easy. In such a situation, if any attempts are made to put this land to productive use, for example by industrialization, it meets resistance. Even in this miserable situation, politicians sense an opportunity and move in to kill any attempts at economic makeover. Leftists and other anti-developmental activists (mostly fashionable writers such as Arundhati Roy) then join the bandwagon. Singur is a very good example. In the process farmers have gained higher compensation: But beyond that their long-term interests, in the form of employment, business opportunities, etc., are being marred. The danger here is that Indian democracy allows such hold-ups to be replicated at little or no cost. On the one hand, the gestation period for the benefits to accrue to those who have to part with land is long; on the other hand, it takes little time to make a political killing. If the poor acquiesce and participate in the process, it is because they have little to lose if development does not take place: They can continue to eke out a living. This is an illusion. There are real losses. For example, in 1980-81 West Bengal had a per capita state domestic product of Rs1,773. States such as Andhra Pradesh, Gujarat, Himachal Pradesh and Karnataka hovered around the same figure. By 2004-05, they had nudged past West Bengal. Three decades of such politics cost the state dear. Now, when past mistakes are being rectified, the political pattern does not permit an easy change. Is politics retarding development in India? Write to us at views@livemint.com Source: LatestNews-Home - Livemint.com | 26 Aug 2008 | 8:49 am Kochi metro rail project hanging fireKochi: The recent high-level official talks between the Kerala government and Delhi Metro Rail Corporation (DMRC) have once again infused hope for starting the proposed elevated Metro Rail Project for Kochi, which has been hanging fire for the past two years for various reasons. The enthusiasm of the government and DMRC notwithstanding, numerous bottlenecks plague the project, which was expected to be an answer to the severe traffic congestion in the city, the commercial hub of the state. The recent review of preliminary work on the project by the secretary in the Union Urban Development Ministry, M. Ramachandran and assertion of Ernakulam District Collector, Dr M. Beena that land acquisition process will continue despite protests from some businessmen on the project alignment, has again shown that there is light at the end of the tunnel. The project, which would have changed the face of Kochi, ran into trouble right from the beginning as some businessmen protested against the scheduled route of the metro line through the arterial Mahatma Gandhi road. Ramachandran had then pointed out that a change of alignment was not feasible since it would steeply escalate the cost and further delay the project. If work on the project had started in 2006, it would have been ready by 2009 at a cost of Rs2,239 crore. The DMRC had submitted a detailed project report in July 2005, envisaging a 25.25km railway line connecting nearby Aluva and Pettah in the first stage and extending it to Tripunithura in the second phase. Source: LatestNews-Home - Livemint.com | 26 Aug 2008 | 8:21 am Cairn to produce 16% more oil from Rajasthan fieldsPTI New Delhi: Cairn India’s Rajasthan fields will pump over 16% more oil at 175,000 barrels per day and will contribute over one-fifth of the country’s current domestic oil output, when it commences production in second half of 2009. “Cairn has submitted a revised development plan for Mangala oil field, largest in the Rajasthan block and has got investment approval for the second biggest field called Bhagyam,” company’s Chief Executive Rahul Dhir said today. “This will allow us to reach an estimated sustainable plateau production rate of 175,000 bpd from the three proven fields of Mangala, Bhagyam and Aishwariya (MBA) up from the previous forecast of 150,000 bpd,” he told PTI from London. The revised field development plan from Mangala envisages a 25% increase in peak production at 125,000 bpd. Dhir said the company has contracted two drilling rigs and development drilling would begin in the last quarter of 2008 calender year. “The focus for us now has shifted to execution of the ground,” he said, adding the company was on course to deliver first oil from Rajasthan in second half of 2009. Together with enhanced oil recovery (EOR) scheme, the Rajasthan block can sustain peak output of 175,000 bpd for 10 years. A pipeline is being laid from Barmer district of Rajasthan to Gujarat coast for transporting the crude to refineries. Dhir stated that the company was also said to drill its first well in the Bihar block later this year. Source: Home - Livemint.com | 26 Aug 2008 | 7:55 am HDFC to spread its network to capture rural marketPTI Chennai: With the aim of enabling farmers and Self Help Groups (SHGs) to have access to banking and financial products, HDFC has chalked out new measures to expand its network to rural areas of the country. New branches in rural areas would be equivalent with core banking facilities that HDFC provides to customers in metropolitan cities, according to a top official of the bank. “During the next fiscal, we plan to open more than 200 branches across the country. Of this, we will open more than 100 branches in rural areas,” HDFC senior vice president G S Gopinath told PTI. Currently, 125 of the total 325 branches in South India are in rural and semi-urban areas, 113 in urban areas and 87 branches in metro cities. “The main idea is to make farmers and SHG have a bank account and access to the bank,’ he said. For this purpose, HDFC planned to depute more field staff and provide office with internet and other facilities at rural branches. “We believe that HDFC has great potential for further development due to its broad geographical service coverage,its connection with rural residents and the increasing demand for loans in rural areas,’ he said. Source: Home - Livemint.com | 26 Aug 2008 | 7:21 am Imperial in talks for possible sale to OVLPTI New Delhi: Imperial Energy has chosen ONGC Videsh Ltd over Chinese competitor Sinopec to discuss a possible sale to the Indian company. In an e-mail statement, Imperial Energy said: “OVL, through its wholly owned subsidiary Jarpeno Ltd, has made a £12.50 per share takeover offer. Imperial Energy confirms that is in the course of finalising the terms of a possible recommended pre-conditional cash offer with OVL of 1,250 pence per Imperial share.” OVL’s offer values the company at £1.4 billion. “A further announcement is expected later,” Imperial said. OVL, the overseas investment arm of state-run Oil and Natural Gas Corp (ONGC), had made a takeover offer last month and earlier this month China Petroleum and Chemical Corp (Sinopec) made a counter offer. Imperial, a relatively small British oil and gas company based in Leeds in UK, has oil producing blocks in Tomsk region of western Siberia in Russia and Kastanai in north-central Kazakhstan. It produced about 10,000 barrels of oil per day in December 2007 and is targeting to raise this amount to 80,000 barrels per day (4 million tons a year) by year-end 2011. According to the Russian Ministry of Natural Resources, Imperial’s Russian Registered Reserves amount to about 450 million barrels of hydrocarbons. Independent assessment of the reserves by DeGolyer and McNaughton in December 2007 suggested in-place reserves of 920 million barrels of oil equivalent. Source: LatestNews-Home - Livemint.com | 26 Aug 2008 | 7:18 am Equity markets stay in the red early afternoonIndian equity markets stayed in the red early Tuesday afternoon, with selling pressure on realty, oil and gas and metal stocks.Source: IndiaeNews.com: Business News | 26 Aug 2008 | 7:00 am Steel firms push for hike in iron ore export taxReuters New Delhi: Indian steel firms have asked the government to increase an export duty on iron ore to 35% from 15% to slow exports and ensure supplies in the domestic market, an industry official said on Tuesday. Steel makers say their profit margins have been squeezed by rising prices of raw materials such as iron ore and coke, as well as government pressure to hold prices to help fight inflation. But local miners argue demand for Indian iron ore from the main buyer China has dropped sharply in the past six weeks as even the existing the duty, introduced in June, had made rival suppliers more attractive. “We have proposed an increase in the export duty on iron ore,” said D.S. Rawat, secretary general of the Associated Chambers of Commerce and Industry of India, an industry body which has been lobbying for the steel sector. “We have given a written communication to the finance minister and commerce minister for urgently increasing the duty rate on iron ore exports from 15% to 35%,” he noted. Currently the government levies a uniform export duty on iron ore, which replaced a fixed levy of Rs50 ($1.13) per tonne on lower grades of iron ore and Rs300 on higher grades. Rawat said the proposal to hike the tax was handed over to government officials last week. Chinese market Domestic mining companies say rival supplier Australia has made deeper inroads into the Chinese market as it is able to sell iron ore at $25 per tonne cheaper than Indian supplies costing about $115 per tonne for 63% iron content grades. India exported about 93 million tonnes of iron ore in the fiscal year ending March 2007, out of which about 75% went to China. The mining industry says exports to China could halve in the financial year ending March 2009 in part due to the impact of the export tax. Last week, iron ore suppliers met with secondary steelmakers and mining and steel industry officials to examine the situation and discuss possible measures to contain prices. They are due to meet again in the eastern city of Kolkata. Rawat said the steel firms’ proposal should not be seen as a retaliatory measure against China, which this month increased the export duty on metallurgical coke, imported by Indian producers of pig iron and some steel firms. The duty was raised to 40% from 25%, sharply raising the costs of Indian pig iron producers. “For the last four months, we have been holding the price band despite the fact that prices of metallurgical coke and iron ore have been going up,” said an official at steel firm Ispat Industries Ltd, who could not be named. Rawat said a higher iron ore export duty would help preserve the country’s natural resources for the benefit of India’s economy. “If you conserve this, a lot of investors will be coming to states such as West Bengal, Karnataka, Orissa and Jharkhand,” he added. Global giants like POSCO of South Korea and world leader ArcelorMittal are among the investors hoping to finalise steel projects in India. India’s iron reserves are estimated at about 24 billion tonnes. Source: Home - Livemint.com | 26 Aug 2008 | 6:49 am Automakers tweak existing models to boost mileageBy AP Detroit: In a normal year, the 2009 Chevrolet Cobalt wouldn’t be any different than the 2008 model, save for a few minor cosmetic changes. But this is far from a normal year. With gasoline still hovering around $4 per gallon, many manufacturers are making far more than the usual tweaks to cars and trucks between model years to squeeze out one or two more miles per gallon and catch customers who increasingly rank fuel economy as a top factor when buying a vehicle. Automakers say you can expect more of the same as they roll out new technology without waiting for full vehicle updates. General Motors “Fuel economy is very important,” said Greg Peterson, General Motors Corp.’s vehicle performance manager for compact cars, including the Cobalt. “That is one of the drivers in the changes that we made.” In the high-mileage version of the Cobalt and its Pontiac sister, the G5, engineers varied the intake and exhaust valve timing to make the 2.2-litre four-cylinder engine burn fuel more efficiently. They arranged with Goodyear Tire & Rubber Co. for tires with lower rolling resistance, and they changed the gear ratios of the five-speed manual transmission so the engine revs more slowly at highway speeds. The result: an extra mile per gallon on the highway, boosting the Cobalt and G5 XFE models to an Environmental Protection Agency estimated 37 mpg. GM’s competitors also were busy tweaking existing vehicles between model years. Ford Motor Co. Ford Motor Co. engineers added a six-speed automatic transmission, electric power steering and variable valve timing to the Escape and Mercury Mariner small sport utility vehicles to get another two miles per gallon on the highway. The four-cylinder, two-wheel-drive version will get 28 mpg (8.4 litres per 100 kilometers), said spokesman Said Deep, yet the 2009 four-cylinder accelerates as quickly as the 2008 Escape V-6. Changes were made in other models to get similar improvements. Fuel-efficient changes Six-speed transmissions, which are used by most automakers, make vehicles more efficient as they start and stop in the city. On the highway, they also require fewer revolutions per minute, increasing efficiency. Electric power steering reduces drag on the engine by removing the belt that powered the old hydraulic system. Chrysler At Chrysler LLC, engineers took similar measures on several models but also recalibrated gas pedals, changed to more efficient air conditioning compressors and tweaked transmission shift intervals to make them more efficient. For instance, Chrysler was able to push the highway mileage of the Sebring and Avenger midsize sedans to 31 mpg (7.6 litres per 100 kms), up from 30 (down from 7.8 litres per 100 kms). Hondo Motor Co, Toyota Motor Corp Honda Motor Co. and Toyota Motor Corp., which have led the Detroit automakers in fuel economy in recent years, each said they weren’t making similar changes to existing models, partly because they’re already using some of the new technology. The company does make changes to existing vehicles between model years when technologies are developed, Miller said. The Odyssey minivan V-6 engine, for example, was given the ability to work on three, four or six cylinders between the 2007 and 2008 model years, Miller said. With the U.S. auto market continuing its shift from trucks and SUVs to more efficient cars and car-based crossovers, automakers say they’ll keep adding technology from year to year to keep making their cars more efficient. GM worked within an existing older design on the Cobalt and G5 to drive its mileage to what the company says is a leader among comparably equipped cars in the subcompact class. The 2009 Toyota Corolla with a 1.8-litre four-cylinder engine is rated at 35 mpg (6.7 liters per 100 kms) on the highway. EPA mileage estimates for Honda’s 2009 cars aren’t yet available. More dramatic improvements in new models When new models come out, look for more dramatic improvements. GM, for instance, says the Cruze, the Cobalt’s replacement coming in the second half of 2010, will get around 45 mpg (5.2 litres per 100 kms) on the highway. Although the gains may seem small between model years, they will add up over time, the automakers say. Source: Tech News - Livemint.com | 26 Aug 2008 | 5:45 am Indian bond yields rise ahead of suppliesReuters Mumbai: Indian federal bond yields rose on Tuesday as cash conditions were tight ahead of treasury bill auctions, while a weakening rupee was also seen as putting pressure on liquidity. The central bank usually intervenes in the currency market through state-run banks and a 3.3% drop in the rupee this month could prompt them to sell dollars for rupees, which could reduce availability of cash in the banking system. At 10:45 a.m, the yield on the 10-year bond was at 8.98%, up from 8.97% at close on Monday when it hit a two-week low of 8.94% during trade. “As long as crude remains in a narrow range, I expect the 10-year yield to hover between 9 - 9.10%,” the head of fixed income in a mutual fund said. US crude for October delivery stayed above $115 a barrel, supported by worries that tropical storm Gustav in the Caribbean would turn into a hurricane and disrupt oil output in the Gulf of Mexico. The central bank will auction Rs40 billion ($909 million) of treasury bills on Wednesday, and traders are expected to keep aside cash for the sale. A trader with a foreign bank said the central bank was unlikely to intervene heavily in the currency market as that could further tighten liquidity. The central bank has kept a tight leash on liquidity in recent weeks to cool demand in the economy and reduce inflationary pressures. Inflation was at 12.63% on 9 August, its highest in more than 13 years, and the central bank has aggressively tightened its policy since June. Overnight cash rates was at 9.10/9.20%, higher than the central bank’s main lending rate, the repo rate, which is at 9%. Source: Home - Livemint.com | 26 Aug 2008 | 5:44 am India’s forex reserves above optimal level, says IMFPTI New Delhi: India’s foreign exchange reserves at around $286 billion are much above the optimal level according to a recent IMF study, pointing out that forex accumulation has reduced external vulnerabilities and decreased the risk of financial contagion. India ranks among the other major emerging Asian nations like China, Hong Kong, Korea, Taiwan and Thailand which have accumulated excessive foreign exchange reserves, said an IMF working paper on “Are emerging Asia’s reserves really too high?”. “Among the important Asian countries which have near optimal foreign exchange reserves include Singapore, Philippines and Indonesia,” it said. According to the IMF study, as against the optimal reserves of about $175 billion towards the close of 2007, India’s forex reserves totalled around $250 billion and continued to swell. According to the study, “The reserve buildup has reduced external vulnerabilities in all emerging market economies in Asia and helped in maintaining financial stability in the region as a whole.” “Not only are individual economies better prepared to weather a sudden stop of capital flows, but the risk of financial contagion in the region may have decreased as a result of the reserve accumulation”, the IMF report said. The study on foreign exchange reserves, which is based on different parameters and ratios like reserves to months of imports, reserves to broad money supply, reserves to GDP, reserves to short-term debt and reserves to total foreign exchange liabilities, showed that India is holding more than optimal reserves on all counts. Source: Home - Livemint.com | 26 Aug 2008 | 5:16 am Suzlon Energy (Rs 216.45): SellWe recommend a sell in Suzlon Energy from a short-term perspective. From the charts of Suzlon Energy we note that it has been on a long-term downtrend since its January peak of Rs 460. The stock has been declining forming lower peaks and ...Source: Business Line - Home Page | 26 Aug 2008 | 12:00 am How safe are Indian automobiles?The vehicle safety experience of the US appears all the more relevant for India today. Though we have the Automobile Research Association of India (ARAI), Pune, an organisation designed to check the safety of every vehicle model manufactured in ...Source: Business Line - Home Page | 26 Aug 2008 | 12:00 am Biological Evans, Panacea get Govt nod for injectible polio vaccinesApproval for marketing the product in retail market. Mumbai, Aug. 25 Injectible polio vaccines may not yet be on the national immunisation programme, but local drug-makers Biological Evans (BE) and Panacea Biotec seem to have got off the ...Source: Business Line - Home Page | 26 Aug 2008 | 12:00 am Coverage of all oilseeds barring soya downAcreage increases to 168.91 lakh ha; Rajasthan sets new trend. Delay in monsoon coverage in various parts of the country has resulted in lower coverage of oilseeds barring soyabean during the current kharif season. A new trend in the sowing is ...Source: Business Line - Home Page | 26 Aug 2008 | 12:00 am Industrial users must pay more for diesel: Oil marketing cosNew Delhi, Aug. 25 Industrial users of diesel may end up paying a little over Rs 22 for the product compared to retail customers if the proposal of the public sector oil marketing companies (OMCs) finds its way. ...Source: Business Line - Home Page | 26 Aug 2008 | 12:00 am Indians create ‘apps’ for iPhoneMost are free downloads from ‘App Store’ site. Bangalore Aug. 25 It was inevitable that the huge opportunity presented by the global launch of Apple’s 3G iPhone - and the hunger of owners for compelling applications that ...Source: Business Line - Home Page | 26 Aug 2008 | 12:00 am Mobile growth hits new peak; 9.22 m wireless users in JulyNew Delhi, Aug 25 Mobile subscriber base in the country is growing at such a fast pace that operators are breaking the record for net additions almost every second month. ...Source: Business Line - Home Page | 26 Aug 2008 | 12:00 am Infosys buys UK-based Axon group for £407 mCost of acquisition is roughly twice Axon’s 2007 revenues. Bangalore, Aug. 25 Infosys Technologies Ltd today said that it is buying UK-based SAP consulting company Axon Group Plc for £407.1 million or Rs 3,310 crore, in an all-cash ...Source: Business Line - Home Page | 26 Aug 2008 | 12:00 am Day Trading GuideThe stock has formed a gravestone doji candlestick pattern, indicating bearish in the last trading session. We recommend a sell in this counter. ...Source: Business Line - Home Page | 26 Aug 2008 | 12:00 am Buddhadeb ready for talks over Tatas’ Singur unitMamata rejects talks offer; warns of agitation spreading. Kolkata, Aug. 25 The West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, on Monday wrote a letter to the Trinamool Congress Chief, Ms Mamata Banerjee, inviting her for direct talks ...Source: Business Line - Home Page | 26 Aug 2008 | 12:00 am Mallya may move Deccan hub to MumbaiVijay Mallya-owned Kingfisher Airlines, which renamed Air Deccan to Simplifly Deccan, is now moving the entire operations of the budget carrier from Bangalore to Mumbai.Source: Daily News & Analysis: Money News | 25 Aug 2008 | 11:10 pm Understanding technical analysisA technical analyst looks at past stock prices to make predictions about the future of the stock market.Source: Daily News & Analysis: Money News | 25 Aug 2008 | 11:08 pm Change at the top emphasizes SAP’s new focus: its bottom lineWALLDORF, Germany: The long-time chief executive of SAP AG, Henning Kagermann, wants you to know that he is more than just a software geek. Kagermann, CEO of the giant maker of complex computer applications for business, is in the middle of a slow transition in which he will yield the top job entirely to Leo Apotheker, the co-chief executive, in March.  Passing the baton: SAP chief executive and a former physics professor Henning Kagermann is slowly turning power over to his co-chief, Leo Apotheker, who is seen as more profit-driven. Photograph: Rolf Oeser / IHT The handover has fed an irresistible narrative in financial markets: the software egghead who shovelled cash into new projects is yielding to the uncompromising moneymaker. It is also a story that Kagermann dismisses with an unprintable word and a terse reminder that he can do more than write code. “People forget that I was head of sales for a few years,” Kagermann said in an interview. “I was not always the tech guy.” There is some truth to the tale, to be sure, but the reasons run deeper than a mere change of chief executives. The company is indeed shifting towards more of a focus on the bottom line, and less on the multibillion-dollar investments in technology that helped make it the market leader in the lucrative field of business software. The goal, it seems clear, is for SAP to show that it can not just produce sophisticated software that companies depend on to run their businesses but also do as well as its American arch-rival, Oracle Corp., in satisfying the demands of investors. Oracle achieved a pre-tax profit margin of about 35% last year, well ahead of the 26.7% operating margin that SAP managed in 2007. That is one reason SAP’s stock price has languished in spite of years of sales growth. “The only reason SAP is focused on that number is because Oracle is focused on that number,” said Joshua Greenbaum, analyst at Enterprise Applications Consulting in Berkeley, California. “They are efficient and get great margins. There is flat-out envy on SAP’s part.” SAP can take heart that it controls a larger market share than Oracle, according to Albert Pang, an analyst with IDC, a Boston-based technology consulting firm. In 2007, SAP had about 10% of the $88 billion (Rs3.8 trillion) market in revenue for business software, while Oracle lagged with 6.6%. In subsets of the market—such as enterprise resource planning, which tries to oversee many basic operations—SAP laid claim to 22%, almost twice of Oracle’s 12%. But, analysts said, investors have seized on the question of margins, and SAP has fed the story unabashedly. Speaking at a technology conference in Las Vegas in February, Kagermann seemed to suggest SAP would achieve a 35% operating margin quickly, an utterance that sent its stock up, surprising SAP officials. So in May, executives seized on the subject at Sapphire, SAP’s annual analyst conference, and people who attended recall Apotheker giving a full-throated endorsement to the goal of higher margins. Knut Woller, a software analyst at UniCredit in Munich, said having a numbers-oriented executive at the top has electrified SAP watchers eager for a trimmer company. “Apotheker will make it more about sales, simply by virtue of the reason that SAP has to compete,” he said. Kagermann has also left his successor a good amount of wiggle room, analysts said. By promising to reach a margin of 35% “in the medium term”, he is saying it could take as few as three years, or as many as six, while still dangling a juicy target in front of analysts. “There is no fundamental reason not to achieve it,” Kagermann said. Kagermann joined SAP in 1982 as a software developer, working out of what is now Building 6 on an enormous company campus that looms over the village of Walldorf. The work force has exploded from about 100 then to more than 51,000 now. At the time, the mystique of software grabbed hold of Kagermann enough that he worked at SAP between semesters, mastering a shift from academics to business programming languages, before giving up his teaching position to work there full time. “Software was hot,” he said. “Physics was not that hot.” Kagermann got into software in time to watch a revolution unfold in the business world. Large companies first bought SAP products to manage inventories, track sales leads and handle vacation requests. Later, SAP clients ramped up their use of software for more analytical tasks, like divining sales patterns or ferreting out kinks in global supply chains. By and large, SAP developed the products itself, eschewing the big acquisitions that were a signature of Oracle. SAP invested slightly more than the industry average of 10% of its revenue in research and development (R&D). In the last three years, R&D spending ballooned to 14% as SAP raced to bring new products to the market. In particular, it invested heavily in Business ByDesign, an online software suite aimed at expanding the market by appealing to very small businesses that cannot afford a pricey IT department. Last year, SAP also departed from the organic growth strategy to buy Business Objects, a French maker of business intelligence software, for €4.8 billion (Rs30,816 crore at present). “We had a phase of transition between 2003 and now,” Kagermann said. “It was part of the strategy for a limited number of years to over-invest.” Now, SAP is betting that it can raise its profit margins without conjuring up, as is often the case in Germany, the specter of mass layoffs to contain costs. Kagermann said SAP would keep hiring, while curbing its costly use of outside developers. “We can continue to hire people because we continue to grow at double digits,” he said. “You just have to invest less than in the past.” ©2008/INTERNATIONAL HERALD TRIBUNE Source: Tech News - Livemint.com | 25 Aug 2008 | 7:29 pm ONGC blocks Statoil move to treble stake in gas fieldNorways StatoilHydro is keen to treble its stake to 30 per cent in a significant gas block operated by state-owned Oil and Natural Gas Corporation (ONGC) in the Krishna-Godavari basin.Source: Business Standard | Front Page Headlines | 25 Aug 2008 | 7:09 pm Centre raps Huawei for visa misuseLabour ministry threatens action; Chinese firm denies breaking any law.Source: Business Standard | Front Page Headlines | 25 Aug 2008 | 7:08 pm Mamata spurns Buddhadeb's offer for talksTrinamul Congress leader Mamata Banerjee today rejected a fresh invitation from West Bengal Chief Minister Buddhadeb Bhattacharjee for talks to break the deadlock at the upcoming Tata MotorsSource: Business Standard | Front Page Headlines | 25 Aug 2008 | 7:07 pm Govt may make IT application a must for power project loansNew Delhi: The power ministry plans to make application of information technology (IT) mandatory for projects for them to be eligible for funding from state-owned lenders such as Rural Electrification Corp. Ltd (REC) and Power Finance Corp. Ltd (PFC). “We plan to make IT (application) mandatory to access loans. An initial meeting has been held in this regard,” said a power ministry official, requesting anonymity. REC and PFC together account for 60% of the money lent to power companies. In the fiscal year to March, they loaned Rs61,000 crore to the sector. ALSO READ A PFC executive, who didn’t wish to be named, confirmed the development. “The general discussion in the meeting was to put more emphasis on IT. For example, the real transmission and distribution loss assessment can only be done if IT systems are put in place across the country.” State-owned power utilities don’t even maintain up-to-date financial accounts due to lack of proper IT infrastructure. Since the work is done manually, it takes longer to collate data and audit it, said a government official, asking not to be named. “We already give concessional loans to encourage IT applications. IT is required for all sectors, be it generation, transmission, or distribution,” the PFC executive added. A senior REC official, who didn’t wish to be identified, said, “Implementation of IT, new automatic metering and separate feeder for different consumer groups are all steps towards bringing efficiency in the system.” “There is no template for power distribution utilities to implement IT applications. It is a good step on the part of the government if they can implement it. Even vendors (software companies) have not been able to develop these specialized IT applications because the opportunities have been few and far between,” Shubhranshu Patnaik, executive director at audit and consulting firm PricewaterhouseCoopers, told Mint. The Union government is worried about its flagship power sector reform programme falling short of targets due to poor IT infrastructure and other reasons. Its accelerated power development and reforms project (APDRP) has not been able to lower power losses to 15% by the end of 2007, as originally targeted in 2000-01. Mint had reported on 18 April about state-owned power utilities’ plans to place, before March 2009, orders for Rs10,000 crore worth of software that can help them manage their distribution networks better as part of the government’s APDRP. The power ministry has been seeking help from the domestic IT industry. Mint had reported on 25 August that Tata Consultancy Services Ltd plans to assist the government in speeding up power sector reforms. “The power sector is opening up and IT can play a major role in bringing about standardization, transparency, revenue realization, and transmission and distribution losses in the sector. Technology innovation can only benefit the sector,” Ranjan Tayal, head (India region) at Satyam Computer Services Ltd had earlier said. Power shortages due to limited generation capacity and growing electricity theft have been identified as key infrastructure bottlenecks threatening the country’s ability to sustain an economic growth rate of more than 8%. Around 34% of power generated in India continues to be lost due to theft and pilferage. The country has an installed capacity of 143,000MW and plans to add another 78,577MW by 2012. Source: Tech News - Livemint.com | 25 Aug 2008 | 6:51 pm Trouble for BPOs as American states mull no-outsourcing lawsHyderabad: Technology companies, already buffeted by strong headwinds from a worsening economic outlook in key markets, could be in for more trouble as a new anti-outsourcing backlash gathers momentum in the US.  Market concerns: A file photo of the Global Business Park call centre in Gurgaon. The proposed move in some US states to restrict companies from offshoring their services could mean less business for Indian IT firms. Photograph: S Burmaula / HT Industry and policy analysts are concerned that rising focus on economic recession and unemployment could boost the anti-outsourcing campaign by legislators following this year’s US presidential election. That would be a repeat of what happened after the presidential election in 2004. “Detractors of off-shoring, whose tribe has been shrinking, could fuel opinions by putting forth apparent notions of job losses in the forefront to deal with socio-political problems,” says Srinivas Vadlamani, chief financial officer at Satyam Computer Services Ltd, the country’s fourth largest software services firm. During 2003-04, as many as 200 Bills were introduced to prevent American jobs from being off-shored. Following that, states such as New Jersey, Indiana, North Carolina, Tennessee, Alabama, California, Colorado, Illinois, Maine and Maryland have put in place laws that restrict outsourcing. According to a report, Anti-Outsourcing Efforts Down but not Out, released in April 2007, by a Virgina-based policy research and analysis institute, National Foundation for American Policy (NFAP), 191 anti-outsourcing Bills were introduced in 2005-06 in various states and 41 such Bills were moved in 2007. NFAP executive director Stuart Anderson, in an email response to a Mint questionnaire, confirmed that these Bills are pending at various stages. “These types of Bills may force Indian companies to adjust their business practices and could raise the cost of doing business,” says Anderson. Some states such as Arizona, Colorado, Connecticut, New York, Pennsylvania, Vermont and Virginia have pending Bills to restrict government agencies from purchasing goods or services from outside the US. Others such as Georgia, Massachusetts, Minnesota, Nevada, North Carolina and Oklahoma have pending Bills that would restrict offshore call centre operations. Relatively low labour costs and a vast pool of engineers have enabled IT firms to win work from clients in the US and other countries, gaining India a reputation as the world’s back office over the past decade. Typically, after they win an outsourcing contract, Indian firms tend to send the bulk of the work to low-cost destinations such as their own home base. Efforts by Indian IT firms to combat the anti-outsourcing backlash by near-shoring (having delivery centres in or near the customers’ operational base) were constrained by high costs and lack of availabilty of skilled professionals. Policy analysts at NFAP pick out two Bills they say have a good chance of becoming law—House Bill 1127 in Indiana, which would restrict sending certain medical-related information outside the US, and House Bill 4100 in Michigan, which requires reporting of goods or services purchased by the state from outside the US. The New York state senate in June passed a Bill that would require all utility firms supplying electricity, gas and municipal services to locate their customer call centres within the state. It will become law after the state governor’s signature. India’s business process outsourcing (BPO) industry, which last year earned $10.9 billion in revenue, will be hurt by such legislation. Most of the pending anti-outsourcing legislation relates to preferential treatment—through tax breaks and incentives—to the US firms that create jobs in their respective states or across the US. Some Bills also seek to ensure that only US citizens are authorized to work on data pertaining to the identity of US citizens. Indian companies are likely to miss out on huge public sector contracts and risk losing business even with private entities that have business relations with governments. Several Indian IT firms act as sub-contractors to large US firms. In their 2008 annual reports submitted to the US Securities and Exchange Commission, Bangalore-based Infosys Technologies Ltd and Hyderabad-based Satyam Computer Services acknowledged that with increasing political and media attention on the growth of outsourcing and unemployment in the US, there is a risk of change in existing laws or enactment of new legislation that restricts outsourcing. Infosys chief financial officer V. Balakrishnan is hoping that the impact on the company will be minimal because of its low exposure to US government contracts. “Most of the large US companies are lobbying for greater access to the global pool of talent as there is a tremendous short supply of high quality people required for this industry,” he added. Because of the election, some sections are focusing on the “perceived negatives of off-shoring”, said Satyam’s Vadlamani, adding that such efforts are not likely to succeed. Outsourcing is no longer just a way for US firms to save on costs by sending work to low-cost destinations such as India, but also a way of overcoming a shortage of sufficient talent at home, says Som Mittal, president of the National Assocaition of Software and Service Companies. “If the US does not have sufficient skilled human resources, then they have to get their work done in countries where there is sufficient resources,” he said. “Further, studies have shown that outsourcing has only increased economic activity in the US.” The Indian IT industry has weathered such efforts in the past, especially during 2003-04, and the pending legislation isn’t likely to have “any significant impact”, Mittal said. Viral Thakker, director of sourcing advisory services at audit and consultancy firm KPMG India, links the posturing against outsourcing to the upcoming presidential election. “However, assuming everybody understands the business reality, it is unlikely that new legislation with significant impact on global sourcing will be enacted.” Thakker said. “But such laws could pose hurdles for Indian companies to requiring them to restructure their businesses to work around market restrictions.” Source: Tech News - Livemint.com | 25 Aug 2008 | 6:29 pm Bihar most congested telecom circle, says TRAIBihar has emerged as the most congested telecom circle, the industry watchdog said here Monday.Source: IndiaeNews.com: Business News | 25 Aug 2008 | 3:00 pm BSNL workers to strike work against disinvestmentEmployees of the state-owned telecom major Bharat Sanchar Nigam Ltd (BSNL) will strike work Wednesday in protest against proposed disinvestment in the company, a labour leader said Monday.Source: IndiaeNews.com: Business News | 25 Aug 2008 | 2:30 pm Markets close 48 points upThe Indian equity markets closed in green on Monday.Source: IndiaeNews.com: Business News | 25 Aug 2008 | 2:01 pm RCom plans major expansion in rural Tamil NaduMobile telephony major Reliance Communications (RCom) plans to expand in rural areas in Tamil Nadu in a major way, a top official said here Monday.Source: IndiaeNews.com: Business News | 25 Aug 2008 | 2:01 pm Royal Enfield to cost more from next monthEicher Motor Ltd has increased the prices of three Royal Enfield Bullet models owing to an increase in input costs.Source: IndiaeNews.com: Business News | 25 Aug 2008 | 2:00 pm Apple fest to attract tourists to Himachal PradeshThe Himachal Pradesh government will organise an apple festival at popular tourist destination Manali Aug 26-28 to attract more tourists to the state, a senior official said Monday.Source: IndiaeNews.com: Business News | 25 Aug 2008 | 2:00 pm Markets end with a marginal gain despite a firm startIndian equity markets ended with a marginal gain despite a strong opening Monday morning. Rate sensitive sectors such as banking, realty and auto stocks were in demand while metal stocks dragged the market down.Source: IndiaeNews.com: Business News | 25 Aug 2008 | 1:33 pm Over nine million phone connections added in JulyMore than nine million phone connections were added last month, taking the number of phone users in the country to some 333.84 million, the telecom watchdog said Monday.Source: IndiaeNews.com: Business News | 25 Aug 2008 | 1:33 pm Public telephone services reach 550,000 villagesOf India's 594,000 villages, 550,000 now have telephone connections whether through satellite technology or conventional lines, and 30,500 villages even have broadband cover, the government said Monday.Source: IndiaeNews.com: Business News | 25 Aug 2008 | 1:32 pm
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