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Inorganic expansion to end in June: Vishal Info TechExplaining the rationale for listing in Luxembourg, Dilip Parekh, Managing Director of Vishal Information Technologies, said if the company is EU based, it can take part in a government tender thus, increasing its sales there. He said the process of inorganic expansion will end in June.Source: Moneycontrol Top Headlines | 9 Apr 2009 | 3:36 pm See about 1315% growth in two years: NasscomPramod Bhasin, Chairman, Nasscom, said the growth rate for IT industry would be about 16% for 200809. \"For the next two years, it might be around 1315%. We will come out with our annual numbers for 200910, for which we will do our estimates in May. It will be lower that what I believe but it will still be a growth number,\" he added.Source: Moneycontrol Top Headlines | 9 Apr 2009 | 3:26 pm Omnitech signs Rs 25 crore contractsOmnitech InfoSolutions Ltd, Indias leading business availability and business continuity provider has signed a multiyear contract with companies from Europe and US to offer Remote Infrastructure management services and Virtual CIO offerings respectively. The consolidated and accumulative deal size would be at Rs. 25 crore.Source: Moneycontrol Top Headlines | 9 Apr 2009 | 2:04 pm Lupin in alliance with NatcoLupin Ltd. and Natco announced an alliance to jointly commercialize generic equivalents of Shire plc\'s FOSRENOL® (lanthanum carbonate) tablets.Source: Moneycontrol Top Headlines | 9 Apr 2009 | 1:57 pm Capex will be back in one year: Venu SrinivasanVenu Srinivasan, Chairman, Confederation of Indian Industry, said, \"Exporters are seeing a huge contraction both in demand and inventories that went on till February. That is now bottoming out and is slowly becoming zero growth or slightly positive. But to see capex (capital expenditure) come back, it will be one year down the line.\"Source: Moneycontrol Top Headlines | 9 Apr 2009 | 1:30 pm Put buying may keep Nifty below 3400 - Economic Times
Source: Google News India - Business | 9 Apr 2009 | 12:46 pm Nifty retreats to end flat; Tier II stocks outperform - Economic Times
Source: Google News India - Business | 9 Apr 2009 | 12:46 pm Power generation growth plummets to 2.71% in FY'09The country's power generation growth rate dipped to 2.71% in 2008-09 from 6.33% in the previous fiscal due to fall in hydro electricity production.Source: India Business News | Business News - Times of India | 9 Apr 2009 | 12:44 pm IMF\'s forecast: Toxic asset situation is a lot worseThe International Monetary Fund (IMF) is pegging the total value of toxic assets held by banks at USD 4 trillion. This may mean that the Obama Public Private Investment Plan (PPIP) will fall woefully short. Experts clear the air.Source: Moneycontrol Top Headlines | 9 Apr 2009 | 12:31 pm Tytler pulls out of Lok Sabha raceNew Delhi: In the face of mounting controversy over his alleged involvement in the 1984 anti-Sikh riots, Congress leader Jagdish Tytler announced his decision to pull out of the Lok Sabha elections saying he does not want to cause embarrassment. “My heart says a lot of embarrassment has been caused to the party. I don’t think I should fight,” he told a press conference here amidst speculation that the party would keep him out of the fray. He said he has left the decision to Congress president Sonia Gandhi to decide whether he should contest in view of the “vicious campaign” launched by BJP and Akali Dal and the “atmosphere” created by the media. 65-year-old Tytler, who had won thrice from the capital, was announced as party’s candidate from the newly-created North-East Delhi seat. His candidature became a subject of renewed controversy in the wake of a Sikh journalist lobbing a shoe at home minister P Chidambaram on Tuesday protesting against the clean chit to him given by the CBI. The shoe-lobbing incident triggered protests by Sikhs causing concerns in Congress with some sections of the party in the capital and Punjab seeking withdrawal of Tytler’s candidature. Tytler was earlier forced to resign as the Minister of State for Overseas Affairs in August 2005 after the Justice Nanavati Commission indicted him in the riots case. “Such embarrassment has been caused to the party and my family. I have left it to Congress president to decide (on my candidature). If she says, I will welcome this and I will not even think of fighting elections if the party does not want,” he said. “I take moral responsibility. I don’t want to put the party into any embarrassment...I am not going pursue my ticket,” he said. “Whatever the Congress president says, I will do... Her word is law for me,” he added. Asked whether there was pressure on him to withdraw from the race, the Congress leader claimed that nobody from the party had approached him asking him to withdraw from the race. Tytler insisted that he had no involvement in the riots and there was no case against me. He maintained that the affidavits filed against him were “false” and the persons who claimed to be witnesses had lied. “There is only investigation on the basis of certain affidavits. If there is something solid in the affidavits, a case would have been made out. There is no truth in the affidavits,” he said. Tytler said he has nothing to do with the case. He also claimed that CBI had given clean chit to him when the NDA was in power. “In 1999, A B Vajpayee was the Prime Minister and at that time CBI had given clean chit to me then also,” he said. “Twelve Commissions have been set up to enquire the 1984 riots, including five during the NDA rule. Over 13,500 affidavits were filed but there is no case against me,” he said. He also attacked media also saying, “you have destroyed me, my family and my children. Whatever may be the reasons for vengeance...I have got justice but I have not got justice from you (media). For you (media) and Akalis, I have been embarrassed.” Source: LatestNews-Home - Livemint.com | 9 Apr 2009 | 12:29 pm Rupee strengthens to 50/dlr as share riseMUMBAI (Reuters) - The rupee rose to its strongest close in more than a month as the share market extended a winning streak into a sixth session on Thursday, raising expectations of sustained capital inflows that would support the currency.Source: Reuters: Money News | 9 Apr 2009 | 12:28 pm Wockhardt seeks to divest non-core business-chairman - Reuters India
Source: Google News India - Business | 9 Apr 2009 | 12:27 pm Nano bookings to begin from today!The much-awaited bookings for Tata Motors`s Rs one-lakh car Nano opens today across the country for a limited period of 17 days.Source: Zee News : Business | 9 Apr 2009 | 12:24 pm Rupee up 21 paise against USD in early trade!The Indian rupee on Thursday slipped below the 50-level and appreciated by 21 paise to 49.97 against the US currency in early trade owing to fresh capital inflows by foreign funds.Source: Zee News : Business | 9 Apr 2009 | 12:24 pm DoT to issue norms to check evasion of fees by operators!The Department of Telecom is in the process of working out new guidelines for revenue calculations of operators having multiple licences, including for Internet services, to check licence fee evasion.Source: Zee News : Business | 9 Apr 2009 | 12:24 pm JLR to get Rs 2450 cr loan for green cars!India`s Tata group-owned Jaguar Land Rover will receive 366 million euros (about Rs 2,450 crore) from the European Investment Bank for making fuel efficient cars with low carbon emissions.Source: Zee News : Business | 9 Apr 2009 | 12:24 pm Sensex rises 190 pts; at six-month high of 10,932!Sensex on Thursday rose by another 190 points in early trade on increased capital inflows by funds, driven by overnight rally on the US markets and firming trend on other Asian bourses.Source: Zee News : Business | 9 Apr 2009 | 12:24 pm Microsoft ordered to pay $388m in patent case!A federal jury has ordered US software giant Microsoft to pay 388 million dollars to Uniloc for infringing on an anti-piracy software patent held by the Singapore — and US-based company.Source: Zee News : Business | 9 Apr 2009 | 12:24 pm US asks India to clarify FDI cap for internet services!The United States has asked India to address its concerns about the process for modifying foreign direct investment (FDI) requirements for internet service, access to submarine cable systems and restrictions on encryption.Source: Zee News : Business | 9 Apr 2009 | 12:24 pm Japan govt approves $154bn stimulus spending!Japan`s ruling party said on Thursday that it had approved record stimulus spending of about 154 billion dollars to resuscitate the recession-hit economy.Source: Zee News : Business | 9 Apr 2009 | 12:24 pm German president signs bank nationalisation law!German President Horst Koehler has approved a law that allows the government to expropriate shareholders in order to take control of banks hit by the financial crisis, a spokesman at his office said on Tuesday.Source: Zee News : Business | 9 Apr 2009 | 12:24 pm Govt allocates 40% of initial output of KG-D6 to power sector - Economic Times
Source: Google News India - Business | 9 Apr 2009 | 12:19 pm Bail petitions of PW executives rejectedA local court in Hyderabad on Thursday rejected the bail petitions of former Price Waterhouse executives S Gopalakrishnan and Talluri Srinivas in connection with the multi-crore rupee Satyam Computer fraud.Source: India Business News | Business News - Times of India | 9 Apr 2009 | 12:15 pm Sahara accuses Jet of breach of contract, seeks Rs 2,000 croreSahara Commercial Corporation filed an application in the Bombay High Court alleging that Jet Airways had committed breach of contract in the takeover deal and was liable to pay it (Sahara) Rs 2,000 crore instead of the renegotiated Rs 1,450 crore agreed on by them.Source: India Business News | Business News - Times of India | 9 Apr 2009 | 12:11 pm End-game nears for Satyam, but buyers waryBangalore: Fraud-hit Satyam Computer Services’ search for a white knight could end on Monday, but bidders face an uphill task to put a price tag on the Indian company due to uncertainty about its finances and liabilities. The government-appointed board meets on Monday to receive bids from suitors. On the same day, it could announce a buyer of a 51% stake in the outsourcing company that had to scramble to raise funding to meet short-term needs this year. Three months ago, Satyam’s founder and chairman shocked investors by saying profits had been overstated for years, and putting in doubt the survival of the company once ranked as India’s fourth largest outsourcing firm. The government quickly stepped in and sacked the board as it sought to limit damage from India’s biggest corporate scandal. Also Read The Satyam Fiasco (Full Coverage) Satyam’s board met in Mumbai on Thursday, in a move analysts said could be to finalise the procedures for Monday. Chairman Kiran Karnik told Reuters the due diligence by suitors of Satyam was still going on. Indian engineering conglomerate Larsen & Toubro, which has a small software services unit, mid-sized outsourcer Tech Mahindra and US private equity firm WL Ross & Co are among the suitors. Larsen & Toubro, which has built up a stake of about 12% in Satyam, is seen by many analysts as a front-runner. “For now, our advice could be skewed to a price lower than the current market price, but at the end of the day we want to win. So there can be some room left to go higher,” said an investment banker, who did not want to be named as he was not authorised to speak to the media. Indian media have reported IT services provider Cognizant Technology Solutions has joined the race. A spokesman for the US company declined to comment to Reuters on market speculation. New York-listed Satyam’s market value has plunged to around $600 million from $7 billion in May. The stock ended at Rs47.15 (90 US cents) on Thursday, down more than 90% from its last year’s high of Rs544. Analysts said Satyam looks attractive due to its long list of marquee clients and due to the plunge in market value. However, they are unsure how to value the company due to uncertainty about its accounts and legal liabilities arising from the lawsuits filed in the United States by its shareholders. Indian media has reported more than 40 clients of Satyam have left the company since the revelation of the $1 billion-plus fraud, but Satyam has declined comment. No intensive bidding Tarun Sisodia, head of research at Anand Rathi Financial Services in Mumbai, did not expect bids to top Rs60 a share. “I don’t think the bidding will be intensive. If anything, the market would be disappointed by the outcome of the bidding,” he said. “Bidders will be extremely cautious in going overboard given the lack of information.” In October, Satyam had said it had around 53,000 employees and more than 600 clients including General Electric, Cisco Systems, and Qantas Airways. Investment banking sources with knowledge of the proceedings said bids would be finalised only after due diligence was completed. The inspection by bidders is being done through access to data containing “certain non-public information”, and Satyam’s management will provide an overview of operations and strategy. Forrester said in a report last week while the sale would allay fears about Satyam’s survival, clients would still face uncertainty about the acquired outsourcer’s direction, service offerings and client relationship. “Another uncertainty is the risk that the deal falls apart and Satyam goes back to square one,” Sudin Apte, country head of the market research firm, wrote in the report. On Tuesday, Central Bureau of Investigation (CBI) filed charges against nine people including Satyam’s founder, former chief financial offer, former managing director and two former external auditers. All of them are being held in jail. Satyam has not reported earnings since reporting July-September in October as its accounts are being restated. Source: Home - Livemint.com | 9 Apr 2009 | 12:09 pm India’s Rupee Rises to Six-Week High as Equities Extend Rally - Bloomberg
Source: Google News India - Business | 9 Apr 2009 | 12:06 pm Mastek feels jitters of global slowdown - Economic Times
Source: Google News India - Business | 9 Apr 2009 | 12:04 pm Bankruptcy or not, GM must restructure - executiveNEW YORK (Reuters) - General Motors Corp is working hard to meet a June 1 deadline to present an accelerated restructuring plan that is vital for the company whether it goes bankrupt or not, a senior executive said on Wednesday.Source: Reuters: Money News | 9 Apr 2009 | 12:03 pm Brisk start as Tata Motors opens Nano bookingsMumbai: Bookings for Tata Motors’ Nano got off to a brisk start in Mumbai on Thursday, with a steady stream of prospective customers queuing up to be one of the first to own what is billed as the world’s cheapest car. The profile of customers was varied from first-time buyers to those already owning more than two cars. Their reasons for buying also varied: curiousity value, love of cars, affordability and ease of manoeuvrability on India’s crowded roads. In some cases children were looking to buy the car for their elderly parents, some of whom had never owned a car before. But they couldn’t actually drive away on Thursday. Rather, they were putting in an application to be among the first 100,000 owners, an order block that is expected to take more than a year to fill. Sixty-three year-old Vijay Jadav, a retired government employee, wants to buy a Nano to add to the Tata Indigo sedan he already owns. “It’s cheap, it’s small and it’s good for short journeys for a small family like ours,” said the head of the family of four from Alibaug, about 150 kilometres south of Mumbai. Elavia H.M., 67, has never owned a car before and wants to buy the Nano for her son, who commutes to work in a taxi now. “It is so cheap and ...it looks comfortable,” she said. The Nano, at 3.09 metres in length, is smaller than the Maruti 800 but is 21% more spacious. It gets 23.6 kilometres to a litre of fuel, and its small turning radius of just 4 metres makes it easy to handle, especially in small parking lots and on narrow roads. “I have experienced other foreign small cars, they are expensive to maintain and consume a lot of fuel. But look at Nano’s mileage and we know Tata cars are cheaper on maintenance,” said Denis Quadros, 42, who owns a Maruti Wagon R. This year and next will see a host of small cars being launched in India, starting with Honda’s Jazz later this year and General Motors small compact car, scheduled to be launched towards the middle of the year. Volkswagen, Ford and Skoda are also planning to launch small cars for the Indian market starting in 2010. Shares in Tata Motors were trading up 1.6%, having earlier hit their highest in almost six months. Source: Home - Livemint.com | 9 Apr 2009 | 12:02 pm Court defers hearing in Tytler caseNew Delhi: A Delhi court on Thursday deferred till 28 April the hearing in the Jagdish Tytler case relating to the 1984 anti-Sikh riots. Click here to watch video Additional Chief Metropolitan Magistrate Rakesh Pandit said the matter will be heard on 28-29 April after the Central Bureau of Investigation, or CBI, submitted that his court has no jurisdiction because the offence made out in the case was that of murder which was in the exclusive jurisdiction of a sessions court. During the arguments, CBI counsel Sanjay Kumar contended the case should be heard by a court of sessions as it was related to the offence of murder. “We have already filed a chargesheet against other accused Suresh Kumar Paniwala in this case and the court should take cognisance of it and refer the matter to a sessions court,” Kumar contended. When the court wanted to know about Tytler, the CBI counsel said the Congress leader was not present at the time of incident. “Tytler was not present at Gurudwara Pulbanghash as he was at Teen Murti Bhawan, besides the body of Indira Gandhi,” he said. “We have already filed a closure report (regarding Tytler) after recording evidence of two witnesses. There is no sufficient evidence against him,” the counsel said. During the argument, CBI also referred to a CD provided by Tytler to prove that he was not present at the site of the incident on 3 November, 1984. CBI’s plea was opposed by senior advocate H.S. Phoolka, appearing for Delhi Sikh Gurudwara Management Committee, who said it was too late for the agency to come up with such arguments. “This court had earlier ordered re-investigation into this matter after rejecting the closure report filed by CBI. So this court has the jurisdiction to decide the issue,” Phoolka said. The case against Tytler was registered by the CBI on the directions of the Nanavati Commission, which had probed the sequence of events leading to the anti-Sikh riots after the assassination of Prime Minister Indira Gandhi. Jasbir Singh, a witness to the incident and now settled in California, in his deposition before the Commission had alleged that he had overheard the Congress leader making a comment with regard to killing of Sikhs in his erstwhile constituency (Delhi Sadar) on the night of 3 November, 1984. After the court proceedings, supporters of Tytler tried to disrupt Phoolka’s press briefing outside the court complex. Tytler, 65, was earlier also given a clean chit by the CBI on 28 September 2007 had after it had failed to trace Jasbir Singh. However, the court had refused to accept the closure report and directed the agency to reinvestigate the case compelling it to send its officials to the US to record the statement of Jasbir Singh. Tytler, who has been declared Congress candidate from Delhi’s northeast seat for the Lok Sabha polls, had to resign as Union minister from the United Progressive Alliance government in the wake of the Justice G.T. Nanavati Commission report indicting him for his alleged role in the riots. Source: Home - Livemint.com | 9 Apr 2009 | 12:00 pm 47 Indian companies among Forbes 'Global 2000 List'As many as 47 Indian companies, led by RIL and the country's biggest lender, SBI, have made it to the list of world's biggest 2,000 companies by US magazine Forbes.Source: India Business News | Business News - Times of India | 9 Apr 2009 | 11:54 am Markets manage positive closing after volatile sessionNew Delhi: Market managed to retain positive strength after highly volatile session closed the Bombay Stock Exchange benchmark Sensex closed in green. Positive opening of the European markets contributed to the recovery. Markets were instable during noon on weak IIP data that shrank by 1.2% for February 2009. Inflation for week ended 28 March also showed only a marginal decrease to 0.26% against the previous 0.31%. The IIP for the month of February has dipped to a historic low of negative 1.2% from a revised growth of 0.4% in January. The low inflation figure for week ended 28 March also raised expectations of rate cuts by the Reserve Bank of India. Sensex opened positive backed by firm global Asian and US markets. Wall street surged as news that of Treasury planning to extend bailout funds to insurers came in. Despite recovery, markets once again slipped into negative before ending flat. The 30-share BSE index closed higher by 61.52 points at 10,803.86 whereas the 50 share NSE Nifty ended flat at 3,342.05. Among the sectoral indices most buying was witnessed in realty, metal, bank, consumer durables and capital goods sectors. However, FMCG, auto, pharma and PSU stocks remained under selling pressure. Leading the BSE rally was Tata Steel by 7.71% to Rs261.20, followed by Jaiprakash Associates by 7.40% to Rs113.90, Reliance Infra by 5.66% to Rs653.15, ICICI Bank by 5.62% to Rs397.70, DFL Ltd by 4.83% to Rs222.25, Sterlite Industries by 3.15% to Rs395.85 and Larsen and Toubro by 2.76% toRs 828.85. Among the losers Hindustan Unilever Ltd fell by 3.26% to Rs232.95, Mahindra and Mahindra by 3.15% to Rs435.15, Wipro Ltd by 2.80% to Rs274.20, ONGC Ltd by 2.42% toRs 884.95 and NTPC Ltd by 1.30% to Rs194.20. In the global fron, Asian markets ended in green tracking Wall Street gains. Sentiments in Japan were boosted as government announced larger than expected stimulus package if $154 billion. Japan’s Nikkei ended 3.7% higher and Hong Kong’s Hang Seng gained 2.9%. Today was the last day of trade for the week as markets will remain close on Friday, 10th April on account of Good Friday. Source: Home - Livemint.com | 9 Apr 2009 | 11:53 am ANALYSIS - Collapse of IBM deal could weaken Sun even moreBOSTON (Reuters) - Sales at Sun Microsystems Corp, already under pressure, could take a further hit from the collapse of IBM's multibillion dollar bid.Source: Reuters: Money News | 9 Apr 2009 | 11:52 am BSE Sensex up for sixth day, but momentum easesNEW DELHI (Reuters) - The BSE Sensex rose 0.57 percent on Thursday, a sixth straight rise that took it to a six-month closing high, although caution ahead of corporate earnings season and national elections tempered market momentum.Source: Reuters: Money News | 9 Apr 2009 | 11:50 am Mastek Jan-Mar net down 5 pct on slow demand, forex lossesMUMBAI (Reuters) - Software services firm Mastek Ltd on Thursday posted a 5 percent fall in net profit for the Jan-March quarter due to a slowdown in customer demand and foreign exchange losses.Source: Reuters: Money News | 9 Apr 2009 | 11:45 am Gold declines as funds shift to equity - Hindu Business Line
Source: Google News India - Business | 9 Apr 2009 | 11:45 am Tata Motors Finance joins 'Nano' booking-loan bandwagon - Hindu Business Line
Source: Google News India - Business | 9 Apr 2009 | 11:45 am ONGC talking to RIL, two others for Venezuelan bidNew Delhi: Oil and Natural Gas Corp (ONGC), Reliance Industries (RIL) and Indian Oil Corp (IOC), the nation’s biggest companies, are stitching together an alliance to bid for developing a vast oilfield in Venezuela at a cost of $16-18 billion. ONGC Videsh Ltd, the overseas arm of the state explorer, is talking to Reliance, IOC and Oil India to jointly bid for 40% stake in fields in the vast Orinoco heavy crude oil belt. “We are evaluating the three massive fields that are on offer and will decide on bidding shortly,” a top OVL official said. Venezuela is offering 40% stake in massive projects in the Carabobo region of the Orinoco belt that would produce tar-like oil that would need to be upgraded into higher-quality synthetic crude. Its state oil firm Petroleos de Venezuela SA (PdVSA) will retain the remaining 60%. “The investment required is massive. The crude upgrade facility alone will cost $6-8 billion and so we are looking at partnership with other companies,” he said. IOC may take 2.5 to 5% stake while OIL has been assigned 2.5% stake. The remaining 32.5-35% will be split almost equally among OVL and Reliance. Each of the three fields on offer can produce 200,000 to 400,000 barrels per day of oil (10-20 million tons a year). Source: LatestNews-Home - Livemint.com | 9 Apr 2009 | 11:42 am RIL starts maiden gas delivery to Nagarjuna FertilisersNew Delhi: Reliance Industries on Thursday started supplying gas from India’s most prolific field to its first customer, Nagarjuna Fertiliser Ltd, which has benefitted out of its proximity with the processing facility. “RIL has started supplying gas. To begin with, it will supply 0.5 million metric standard cubic meter per day (mmscmd), which will be gradually increased. The agreement is for 1.549 mmscmd, which RIL has agreed to provide,” a senior Nagarjuna official said. The two plants of Nagarjuna, with a capacity to produce six lakh tonnes of urea each year, are just 60 km away from RIL’s gas processing facility at Gagimoga near Kakinada. Before RIL started the gas supply, one plant was being run on gas supplied by GAIL while the other is run on Naphtha. RIL’s eastern offshore KG-D6 field started producing gas on 1 April and the initial volumes were used for pressuring the pipeline and maintaining the minimum buffer in the line. The Nagarjuna official said his company would cut down on the use of naphtha as and when RIL increases the gas supply. If the company gets more gas, an additional 2 lakh tonnes of urea can be produced in the two plants, he added. RIL is currently producing five million cubic metres per day of gas from Dhirubhai-1 and 3, the first two of the 18 gas fields in KG-D6 block. Output is expected to be ramped up to 40 mmscmd by July and to peak 80 mmscmd by next year. The company had last month signed gas sales and transportation contracts with 12 fertiliser companies. “Fertiliser firms will pay RIL the rupee equivalent of $4.20 per million British thermal unit plus taxes and transportation,” a petroleum ministry official said. “The exchange rate will be the average of rupee-dollar rate of the previous month. So, all the sales that will happen in April will be billed at the average of reference rate for March,” he said. RIL is to supply a total of 15.35 mmscmd gas to 15 urea making plants of 12 fertiliser firms. The delivery price, including taxes and transportation charges, of RIL gas in Andhra Pradesh would be $5.34 per mmbtu while in Maharashtra it would cost $5.87. In Gujarat, it would be $5.87 and along the HVJ pipeline $6.21. KG-D6 gas will land at Kakinada in Andhra Pradesh, from where it will be transported to Bharuch in Gujarat through a 1,386-km pipeline laid by RGTL. In Gujarat, Reliance will use the pipeline network of Gujarat State Petronet Ltd to take the gas to end-consumers as well as connect to HVJ pipeline. Source: Home - Livemint.com | 9 Apr 2009 | 11:39 am Industrial outlook to stay bleak till exports improve: Moody'sIndia's industrial outlook will remain bleak until the export sector gains momentum, the research arm of global credit rating agency Moody's said Thursday.Source: IndiaeNews.com: Business News | 9 Apr 2009 | 11:31 am Air India gets e-mail threatening to blow up Mumbai airportFlag carrier Air India Thursday said it has received an e-mail threatening to blow up Mumbai's Chhatrapati Shivaji International Airport (CSIA).Source: IndiaeNews.com: Business News | 9 Apr 2009 | 11:31 am Himani Fast Relief commercial wins 3 advertising awardsNew Delhi: FMCG company Emami India on Thursday said it has won three awards at the ‘Goafest 2009’ advertising festival for its television commercial (TVC) of its flagship pain reliever brand ‘Himani Fast Relief’ (HFR). The company said the HFR ad-film has bagged three medals, including two silvers and a bronze in various categories at the advertising festival, which is organised by the Advertising Agencies Association of India (AAAI) along with The Advertising Club of Mumbai. “While the TVC of Himani Fast Relief brand was conferred silver medals in the Film Singles and Film Craft categories, it bagged the bronze medal in Original Music Score segment,” Emami India said in a statement. The company also said that on the back of the TVC, the Himani Fast Relief has registered a sales growth of 25%. “The TVC has gone a long way in boosting our sales. Winning the awards is like a celebration of creativity. Riding on the TVC, HFR recorded a 25% sales growth,” Emami Group of Companies director Aditya V Agarwal said. The ad-film was directed by Ram Madhvani of Equinox Films and conceptualised by Ashish Khazanchi of national creative director of Publicis Ambience, the company said. Source: LatestNews-Home - Livemint.com | 9 Apr 2009 | 11:24 am Canon India eyes 25% growth in current yearMumbai: Leading digital imaging company Canon India is eyeing 25% annual growth in the current year, a top company official said here. “Despite the slowdown, we are aiming to grow by 25% in the current year. We expect revenues to touch Rs840 crore in 2009 as compared to Rs665 crore last year,” Canon India’s Senior Vice President, Alok Bharadwaj told PTI here. Canon India Pvt Ltd, a 100% subsidiary of Canon Singapore Ptd Ltd has registered a growth of 31% in the year 2008. “We are now focusing on consumer products which includes cameras and printers. Despite the slowdown in economy, we have seen buoyancy in consumer products,” Bharadwaj said. The company is confident of achieving 25% growth rate this year due to strong sales growth in Q1 2009. Bharadwaj pointed out that although the B2B business is shrinking, Canon was able to maintain growth. Our camera business grew by 26% and printers by 40% in Q1 2009, he said. Source: LatestNews-Home - Livemint.com | 9 Apr 2009 | 11:18 am 47 Indian companies among Forbes ‘Global 2000 List’New York: As many as 47 Indian companies, led by corporate behemoth Reliance Industries and the country’s biggest lender, State Bank of India, have made it to the list of world’s biggest 2,000 companies by US magazine Forbes. However, five Indian companies — scam-hit IT firm Satyam Computer, realty firm Unitech, Suzlon Energy and two Anil Ambani group firms Reliance Power and Reliance Capital — have been dropped out of the Forbes ‘Global 2000 List’ this year. Four Indian companies, Hero Honda Motors, Sun Pharma, Indian Bank and Jindal Steel and Power Ltd are the new entrants to the list. Mukesh Ambani-promoted RIL, State Bank of India, and Oil and Natural Gas Corporation are among the top 200 companies ranked 121st, 150th and 152nd, respectively, on the list. All the three top Indian firms have improved their ranks considerably from their last year’s positions, wherein RIL had been 193rd, SBI at 219th spot, while ONGC was ranked 198th. Overall, the list is topped by industrial conglomerate General Electric, followed by Dutch oil and gas major Royal Dutch Shell, Japan’s Toyota Motor, ExxonMobil and UK’s BP in that order. The rankings have been compiled on the basis of a composite score of sales, profit, assets and market capitalisation. However, British banking giant HSBC Holdings has dropped to the sixth place this year from its numero uno position in the last year’s list. The other top Indian firms on the list include Indian Oil (207th), NTPC (317th), ICICI Bank (329th), Tata Steel (463rd) and Bharti Airtel (508th). The Indian presence is almost evenly divided among the private and state-run companies. While none of the Indian companies has managed to find a place among the top 100 firms this year as well, the elite club includes a firm run by person of Indian origin. Lakshmi Mittal-headed steel behemoth ArcelorMittal is at 41st position. However, Vikram Pandit-run banking giant Citigroup has dropped to 472nd rank this year. Further, Indra Nooyi-run beverage major PepsiCo has been ranked 115th, India-origin Francisco D’Souza-headed Cognizant Technology Solutions at 1389th place. Motorola, headed by Sanjay Jha, is at 658th place. According to Forbes, the Global 2,000 companies have combined revenue of $32 trillion, $1.6 trillion in profit, $125 trillion in assets and $20 trillion in market capitalisation. Other Indian companies on the list include SAIL (582), Reliance Communication (689), Larsen & Toubro (773), BPCL(795), Bhel(796), HDFC (808), TCS(834), Hindalco Industries (848), HDFC Bank (864), DLF (883), Infosys( 891), Punjab National bank (946), ITC (987), Wipro (989), Bank of India (997), HPCL (1,002), GAIL (1,037) and NMDC (1,057). The list also has Canara Bank (1,059), PGCIL(1,085), Tata Motors (1,157), Bank of Baroda (1,184), Power Finance (1,324), Axis Bank (1,332), Union Bank of India (1,350), Grasim Industries (1,380), Indian Overseas Bank (1,462), Sun Pharma (1,522), M&M (1,529), Allahabad Bank (1,629), Indian Bank (1,659), Syndicate Bank (1,663), IDBI Bank (1698), Central Bank of India (1,724), JSPL (1,793), NALCO (1,794), OBC (1,869), UCO Bank (1,872) and Hero Honda (1,939). Source: LatestNews-Home - Livemint.com | 9 Apr 2009 | 11:17 am Experts see sugar production at 15 mt next yearSugar is one sector which a lot of investors are getting more enthused about after a long time. Vivek Saraogi, Managing Director, Balrampur Chini, expects sugar prices to remain firm in the near term. M Manickam, Managing Director, Sakthi Sugars, said output for next year is seen at 1516 million tonne.Source: Moneycontrol Top Headlines | 9 Apr 2009 | 11:14 am Sun Direct launches HDTV services, eyes 20 percent of DTH pie - TelecomTiger
Source: Google News India - Business | 9 Apr 2009 | 11:09 am Recession won't impact auction under NELP-VIII: Oil Secy - Economic Times
Source: Google News India - Business | 9 Apr 2009 | 11:08 am Natco, Lupin in alliance to market tablets for kidney ailmentsMumbai: Drug maker Natco Pharma on Thursday said it has entered into an agreement with domestic pharma company Lupin to jointly market a variety of tablets used in treating kidney problems. “Natco Pharma has joined hands with Lupin to jointly commercialise generic equivalents of Lanthanum Carbonate tablets,” Natco said in a filing to the Bombay Stock Exchange. Lanthanum Carbonate tablets, invented by Shrine Plc, are sold under the brand name of Fosrenol. Natco had filed an abbreviated new drug application (ANDA) before the US drug regulator (Food and Drug Administration) to market the generic versions of Fosrenol in three different strengths. In response to the application, Shrine had filed two law suits against Natco alleging patent infringement for the drug, which Natco is defending. As of December 2008, global sales of Fosrenol amounted to $108 million. The two Indian drug makers (Natco and Lupin) believe that they are among the first to file for this product, which may lead to 180 days’ exclusivity for its marketing in the US. “This alliance brings together a strong philosophy of working together to maximise opportunities in an increasingly competitive generic business,” Natco Pharma director and chief operating officer Rajeev Nannapaneni said. Natco closed at Rs59.35, up 14.80%, while Lupin settled the day at Rs646.75, down 1.03% on BSE. Source: LatestNews-Home - Livemint.com | 9 Apr 2009 | 11:08 am Brisk start as Tata Motors opens Nano bookingsMUMBAI (Reuters) - Bookings for Tata Motors' Nano got off to a brisk start in Mumbai on Thursday, with a steady stream of prospective customers queuing up to be one of the first to own what is billed as the world's cheapest car.Source: Reuters: Money News | 9 Apr 2009 | 11:05 am No plans to hive off EP arm currently: Bajaj ElectricalsThe Bajaj Electricals stock is up 50% in the past seven days and 60% in the last onemonth. The stock was up after the company\'s management said it will hive off its engineering projects (EP) division. R Ramakrishnan, ED, Bajaj Electricals, said the company has no plans to hive off its engineering projects division currently.Source: Moneycontrol Top Headlines | 9 Apr 2009 | 11:01 am Small car draws long queues as bookings start for Tata NanoTata Motors showrooms across the country witnessed heavy footfalls Thursday as thousands of people queued for application forms to book their much-sought Nano, the jellybean-shaped small car.Source: IndiaeNews.com: Business News | 9 Apr 2009 | 11:00 am Alzheimer\'s Phase IIA clinical trial to cost $20m: SuvenVenkat Jasti, Managing Director, Suven Life Sciences, said the company\'s Alzheimer\'s drug has entered Phase IIA of clinical trials. It also stated that Alzheimer\'s Phase IIA clinical trial will cost USD 20 million.Source: Moneycontrol Top Headlines | 9 Apr 2009 | 11:00 am McCartney website dances to hacking tuneLondon: Former Beatles star Paul McCartney has become the latest celebrity victim to cyber criminals as the star’s website has been hacked. McCartney’s online page was infected by the LuckySploit Toolkit, a programme which allows digital thieves to access the personal details of anyone using the site by tracking their keystrokes. Experts at SafeScan, the company which first spotted the problem with McCartney’s website, claimed the hack began minutes after the musician appeared on stage at a benefit concert in New York with his former band-mate, Ringo Starr, the Independent reported. “They obviously chose that time because they knew the site would be busy. We’ve seen this before with Paris Hilton and it can cause all sorts of problems. One of our clients was actually using (McCartney’s) site and reported it. Hackers like these do around one site a week and obviously the more high-profile it is, the better,” a spokesman for the firm said. A representative for McCartney confirmed that all the problems with the website have now been resolved and fans are safe to get back online. “Once we discovered what was going on, we sorted it out immediately.” Source: Tech News - Livemint.com | 9 Apr 2009 | 10:59 am McCartney website dances to hacking tuneLondon: Former Beatles star Paul McCartney has become the latest celebrity victim to cyber criminals as the star’s website has been hacked. McCartney’s online page was infected by the LuckySploit Toolkit, a programme which allows digital thieves to access the personal details of anyone using the site by tracking their keystrokes. Experts at SafeScan, the company which first spotted the problem with McCartney’s website, claimed the hack began minutes after the musician appeared on stage at a benefit concert in New York with his former band-mate, Ringo Starr, the Independent reported. “They obviously chose that time because they knew the site would be busy. We’ve seen this before with Paris Hilton and it can cause all sorts of problems. One of our clients was actually using (McCartney’s) site and reported it. Hackers like these do around one site a week and obviously the more high-profile it is, the better,” a spokesman for the firm said. A representative for McCartney confirmed that all the problems with the website have now been resolved and fans are safe to get back online. “Once we discovered what was going on, we sorted it out immediately.” Source: LatestNews-Home - Livemint.com | 9 Apr 2009 | 10:59 am India launches its biggest oil, gas block auctionNew Delhi: India launched its biggest-ever auction of oil and gas assets on Thursday, offering 70 exploration blocks, as it seeks to attract investors at a time of slumping global oil demand during the economic downturn. India offered 24 deepwater blocks, 28 shallow water blocks and 18 on-land blocks, with the blocks being distributed throughout the country. “There were options either to go ahead or sit tight. The most effective antidote (to the slowdown) is the generation of economic activity,” said Oil Secretary R S Pandey. “One should not halt something which is an ongoing economic activity,” Pandey told reporters when asked if the economic slowdown will affect the auction round. But he said India might not allocate any blocks if it got a poor response to the latest auction. India is wooing private capital for exploration, and encouraging local firms to buy stakes in foreign oil and gas projects to meet the surging energy needs of Asia’s third-largest economy. As the country imports 70% of its crude needs, it is keen to tap any remaining domestic reservoirs to reduce its oil reliance. Pandey expects investors would take a long-term view as the exploration phase requires less investment. “If response is poor, we have the option not to allocate and if it is good, we will offer 30-40 blocks in the next phase,” Pandey added. In the latest auction, India for the first time offered exploration blocks in western Andaman, an area which is close to hydrocarbon-rich parts of Indonesia and Myanmar. So far, five blocks have been awarded in the eastern Andaman and in the current auction, 18 blocks will go under the hammer. The bids for the new round would close on 10 August and the contract is expected to be signed within four months. “This is the best time to get exploration assets. It will be available more easily. So, I think medium to aggressive bidding is (will be) there” said V K Sibal India’s upstream regulator. Previous explorations rounds have been dominated by local firms, mainly Oil & Natural Gas Corp, which had submitted aggressive bids to grab the acreages. In the current offering, deepwater blocks offered are in Mumbai and Kerala-Konkan basin on the west coast, and in the Andaman offshore region. Only one block has been offered in the Krishna Godavari basin, off India’s east coast where private firm Reliance Industries has discovered huge gas reserves. Reliance last week began gas production from its east coast block. The on-land blocks are in the north-eastern states of Assam and Manipur, the eastern state of West Bengal, the central state of Madhya Pradesh, the western state of Gujarat and only one block in the northern state of Haryana. India has also offered 10 coal-bed methane blocks for exploration in the fourth round of offering such blocks, Pandey said. India has so far awarded 212 oil and gas blocks under its new licensing policy introduced in 1999. Source: LatestNews-Home - Livemint.com | 9 Apr 2009 | 10:57 am End-game nears for Satyam, but buyers waryBANGALORE (Reuters) - Fraud-hit Satyam Computer Services' search for a white knight could end on Monday, but bidders face an uphill task to put a price tag on the Indian company due to uncertainty about its finances and liabilities.Source: Reuters: Money News | 9 Apr 2009 | 10:46 am Handling ‘bossnappings’ poses dilemma for SarkozyParis: A spate of “bossnappings” by French workers has put president Nicolas Sarkozy in a tight spot, caught between the need to enforce the law and the risk of exacerbating unrest during the economic downturn. Managers have been held hostage at factories for up to 24 hours by staff angry about layoff plans in four separate incidents since 12 March. In a variant, a billionaire boss was blocked in his taxi by employees for an hour on 31 March. “What’s this about holding people captive? We have the rule of law in this country. I will not let such things happen,” Sarkozy told a group of entrepreneurs on Tuesday. The same day, workers at a British-owned plant detained four managers, including three Britons, and held them overnight. As in the three previous bossnappings, police did not intervene. Staff let the managers go on Wednesday after promises of talks. Apart from the humiliation of seeing his warning ignored, Sarkozy now faces a dilemma in how to handle similar incidents. Employers’ groups and politicians from his own centre-right camp say such acts are unacceptable. “However difficult the situations faced by employees, it is not acceptable to break the law,” three bosses’ groups said in a joint statement this week. But labour unions and the left-wing opposition say workers facing layoffs in a context of recession and booming unemployment are desperate, so these acts are understandable. “I’m against violence but if these things keep happening it’s because there is an underlying despair,” said Socialist legislator Jean-Marc Ayrault on Canal+ television on Thursday. PUBLIC OPINION SPLIT Public opinion is split. A poll released on Tuesday found that 50% of people surveyed objected to bossnappings while 45% said they were acceptable. Sarkozy’s own ratings have tumbled during the downturn and he is particularly unpopular among blue-collar workers. His Tuesday comments against bossnappings angered workers at a plant run by US company Caterpillar who detained their managers on 31 March. Sarkozy had promised to “save” them and invited them to meet him, but they rejected the invitation. “I don’t see why we should go and see him just so he can politely insult us, since he seems to think we are delinquents for having detained management for a few hours,” said Alain Debain, one of the Caterpillar workers, on i-Tele on Thursday. The risk of sending in the riot police when the next hostage-taking occurs is that, far from discouraging such acts, it could cause them to proliferate. Turning a blind eye carries risks as well. All four plants where bossnappings have occurred are foreign-owned, and the head of the CGPME employers’ group, which represents small and medium businesses, said foreign investors could be put off France. “Maybe companies that have their headquarters abroad will decide to stop investing in our country and that would not be to the advantage of France or of our workers,” CGPME head Jean-Francois Roubaud told i-Tele. Around 22,000 foreign companies employ more than 2 million people in France, according to the Invest in France agency. Source: LatestNews-Home - Livemint.com | 9 Apr 2009 | 10:41 am Nifty ends flat;Tata Steel,Unitech top gainersBenchmarks ended flat choppy session flat on Thursday as traders stayed on sidelines ahead of long weekend.Source: India Business News | Business News - Times of India | 9 Apr 2009 | 10:40 am India's defence offsets policy to fetch $10 bn by 2011: StudyIndia's defence offsets policy that mandates the reinvestment in the country of a percentage of all big ticket deals is expected to bring in $10 billion by 2011, says a new study.Source: IndiaeNews.com: Business News | 9 Apr 2009 | 10:32 am PCB eyeing to earn $4 million from Oz seriesKarachi: The cash-strapped Pakistan Cricket Board (PCB) is eyeing to earn around $4 million from the upcoming one-day series against Australia in Abu Dhabi and Dubai starting 22 April. Despite facing problems in getting sponsors for the five ODIs and one-off Twenty20 match, sources in the PCB confirmed that finally the board had signed sponsorship deals for the series. “The board has sold title sponsorship rights to a builder in Dubai for $440,000 while co-sponsorship rights have been sold for $225,000 to a bank and $160,000 to a cellular company,” a PCB source said. “The board should earn $5 million from the television and sponsorship rights of the series out of which one million would be spent on all expenses incurred on hosting the series at these neutral venues,” the source explained. He said the PCB expects to put $4 million in its kitty from the series, which is around 32 crore in Pakistani rupees. Source: LatestNews-Home - Livemint.com | 9 Apr 2009 | 10:30 am Industrial output in Feb fell by 1.2% YoYNew Delhi: India’s factory output fell for the third time in five months in February as the global slowdown hit hard, but analysts said they could see some signs of revival after a dismal March quarter. There was still room for the Reserve Bank to cut rates to give any upturn a boost, perhaps at an 21 April policy review, analysts said, with inflation not a concern given it was likely to turn negative soon and stay near zero for months. Industrial production fell 1.2% in February from a year earlier, but January’s initially reported fall was revised to a rise of 0.4%. “We expect the industrial output to turn positive some time in April. So we think the February data confirms our view that the economy is bottoming out but we think March data will also be negative,” said Atsi Seth, chief economist at Reliance Equities. “Industrial activity will start accelerating although not at a very fast pace. Data from auto, cement and also the fact that the government has been spending gives us the sense that there will be a recovery.” India’s factory output is primarily geared to meet domestic demand, unlike many Asian economies which depend heavily on exports. But a slowdown in the economy, a squeeze on funding and recessions in western economies have hurt confidence at home and sharply cut oversees sales of Indian goods. ”Sectors showing poor performance are those having export linkages like textiles and leather,” economic affairs secretary Ashok Chawla said. “The internal demand continues to be robust,” he said. Industrial output growth has slowed sharply from annual rates above 10% in 2006 and the first half of 2007. In October 2008, factory output contracted for the first time in 13 years. Prime Minister Manmohan Singh has said the economy could have grown less than 7% in the year ended 31 March, after growing at or above 9% in the previous three fiscal years. Stimulus and demand Economists said stimulus packages announced by the government since late last year, along with aggressive policy easings by the central bank, look to be having an impact given improved car sales and uptrend in cement and steel demand. They also said robust performance of the consumer goods and capital goods, a key barometer of activity, in the February output report showed demand was visible in the economy. Car sales rose in annual terms for the second successive month in March, and an industry body said sales were expected to rise by up to 5% in 2009-10. Separate data showed annual wholesale price inflation eased to 0.26% at end March, just pipping a mid-March reading of 0.27% to be the lowest rate since records began more than 30 years ago. ”Inflation index has not changed week-on-week, however, firmness in manufacturing prices is a good sign and vindicates the claim that economic recovery is around the corner,” said Rupa Rege Nitsure, chief economist at Bank of Baroda in Mumbai. Reserve Bank of India governor Duvvuri Subbarao has said India’s economic slowdown had been steeper than estimated, but cautioned that further fiscal stimulus would carry a cost. He also expressed concern about consumer price inflation, which was running at an annual 9.6% in February. Since October, the central bank has cut its key lending rate by 400 basis points, while the government has slashed factory gate duties and service tax to protect growth and jobs. But increased spending has led to heavy market borrowing, pushing up bond yields and undermining the impact of the central bank’s rate cuts. Some analysts have also been concerned about the heavy government borrowing crowding out private firms and feeding inflation in the months ahead. There had been speculation of the government directly selling debt to the central bank to ease the pressure on the market but Subbarao has said such a move is not a benign solution. Source: Home - Livemint.com | 9 Apr 2009 | 10:26 am India's factory output falls, but recovery signs seenNEW DELHI (Reuters) - India's factory output fell for the third time in five months in February as the global slowdown hit hard, but analysts said they could see some signs of revival after a dismal March quarter.Source: Reuters: Money News | 9 Apr 2009 | 10:20 am Maytas Infra gets govt-appointed chairmanMumbai: Maytas Infra, the company promoted by the kin of disgraced founder of Satyam, B Ramalinga Raju, today said it has appointed K Ramalingam and Anil K Agarwal as directors on the board of the company. In a filing to the Bombay Stock Exchange, Maytas said Ramalingam would also be the Chairman on its board. “Maytas Infra have received the copy of order issued by the Ministry of Corporate Affairs, confirming the appointment of Ramalingam and Agarwal as Directors on the board,” it said. Ramalingam, a former chairman of Airport Authority of India (AAI), is a Chennai-IIT engineering graduate and has also served on boards of Indian Airlines and Air India. Agarwal, president of Cosmos Group, headed the industry chamber Assocham in 2006. The government had last month appointed noted tax lawyer O P Vaish and past president of Institute of Chartered Accountants of India Ved Jain on the board of Maytas Infra following an order by the Company Law Board (CLB). The CLB had directed the government to appoint four directors on the board of Maytas Infra after the government sought authorisation of the CLB to supersede the boards of Maytas Infra and Maytas Properties to prevent mis-management and enable transparency in their functioning. Shares of Maytas Infra were trading at Rs40.65, up 4.90% in the late afternoon trade on the BSE. Source: Home - Livemint.com | 9 Apr 2009 | 10:05 am India's inflation falls again, to 0.26 percentIndia's annual rate of inflation fell marginally to 0.26 percent for the week ended March 28, from 0.31 percent the week before, official data showed Thursday.Source: IndiaeNews.com: Business News | 9 Apr 2009 | 10:02 am ING to sell off more operationsAmsterdam: ING NV, the Dutch bank and insurer, said Thursday it plans to sell operations it says could raise up to €8 billion ($10.6 billion). The move, unveiled alongside a reshuffling of business units to simplify the company structure, is an increase from a previous target announced in January to raise €3 billion. So far, ING has sold its Canadian operations for €1.4 billion. “Next to a number of leading positions in key markets, a group of smaller businesses with no clear outlook for market leadership consumes a disproportionate amount of capital,” the company said in a statement. Shares rose 9.9% to €5.775. They have had a wild ride, falling from above €25 a year ago and trading as low as €2.30 in March. The company’s statement Thursday didn’t specify which business it would definitely sell or set any time frame for achieving the target. It also didn’t say whether there was any interest from buyers. ING said it now plans to focus mostly on European banking, with extra focus on Belgium and the Netherlands. However, it intends to continue offering both banking and insurance in Europe, Asia and the United States. It said it doesn’t plan to sell its online banking service, ING Direct, and that its life insurance businesses in China and Japan were “under review.” Incoming Chief Executive Jan Hommen was to address investors at a meeting later Thursday. His predecessor, Michel Tilmant, resigned in January after saying ING expected to post a large loss in the fourth quarter, which turned out to be a loss of €3.1 billion. ING has received significant aid from the Dutch government since the financial crisis began. Last year it received a €10 billion investment lifeline to shore up its equity base. And in January the state assumed most of the risk for €27.7 billion in troubled U.S. mortgage-backed securities ING owns. ING said Thursday it has cut 3,500 jobs so far since announcing plans to cut 7,000 in January, around 5% of its work force. As of Thursday, ING said it employs 25,000. Hommen, a former chief financial officer of both Philips Electronics and Alcoa, said that ING’s tier 1 capital ratio _ the most widely used measure of a bank’s solvency _ was 9.3% at year end. Source: World Business - Livemint.com | 9 Apr 2009 | 9:57 am Bookings for Nano startBookings for Tata Motors' much-waited small car 'Nano' started across the country today and will continue till April 25.Source: India Business News | Business News - Times of India | 9 Apr 2009 | 9:44 am Sahara accuses Jet of breach of contract, seeks Rs 2,000 crSahara Commercial Corporation filed an application in the Bombay High Court alleging that Jet Airways had committed breach of contract in the takeover deal.Source: Daily News & Analysis: Money News | 9 Apr 2009 | 9:35 am Gold eases, but demand elusiveMumbai: India gold prices eased due to a strong rupee on Thursday but consumers stayed away, expecting more falls ahead, dealers said. The most traded June contract was 0.46% lower at Rs14,232 at 1:58pm, after hitting a low of Rs14,171. A strong rupee makes the dollar denominated asset cheaper. The Indian rupee faltered in a push past 50 per dollar as local shares turned negative, but found support from gains in Asian currencies as traders waited for industrial output data. “Despite this price fall, demand is not picking up, they want gold to decline to $850 (an ounce),” said a dealer with a state-run bank in Mumbai. Demand had picked up last week when prices fell to $865 an ounce as traders replenished stocks for the upcoming wedding and festival season demand. “There wont be much activity as prices are still high,” said a dealer with a private bank. Weddings will start from mid-April and Akshaya Tritiya, which falls on 27 April, is the second biggest gold-buying festival after Dhanteras in October. Source: Home - Livemint.com | 9 Apr 2009 | 9:34 am Markets volatile, Sensex up 1 percentIndian equities markets, which were fluctuating between negative and positive terrains during earlier sessions, climbed back into the green Thursday afternoon, with a key index ruling almost 1 percent higher than its last closing figure.Source: IndiaeNews.com: Business News | 9 Apr 2009 | 9:31 am Rupee choppy; seesawing shares weighMumbai: The Indian rupee was choppy in afternoon trade on Thursday as seesawing shares provided little cues on the direction of fund flows but gains in other Asian units versus the dollar supported the local unit. At 2:15pm, the partially convertible rupee was at Rs50.03/04 per dollar, off a high of Rs49.85, but still stronger than its previous close of Rs50.19/20. Asian currencies rebounded ahead of the Easter break as stock market gains across Asia boosted investor sentiment, with the South Korean won leading gains after the country’s central bank kept rates steady, as expected. Indian shares could not hold onto a strong opening rise after a five-session rally that had taken the market to six-month highs, with investors locking in gains ahead of earnings season and national elections. In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were both quoting at Rs50.10 each, with the total traded volume on both exchanges at about $612 million. Source: Home - Livemint.com | 9 Apr 2009 | 9:24 am Vedanta posts higher Q4 output, shares riseLondon: Indian-focused mining group Vedanta posted higher fourth-quarter output on Thursday of its two most profitable products, zinc and iron ore, but shut down some aluminium and copper operations to cut costs. Analysts were mostly upbeat, saying the output figures were largely in line with expectations, and the shares in the London-listed group rose. Vedanta shares, which have gained 31% so far this year, climbed 4.8% to 810.0 pence by 0833 GMT, the biggest gainer among the FTSE 100. They outperformed a 2.4% increase in the UK mining index, which was lifted by copper hitting a five-month peak. “This is very impressive that Vedanta is able to maintain volume ramp up targets in most divisions, while most peers are suffering from volume fallout,” said analyst Tim Huff at Royal Bank of Scotland. “We would find ourselves upgrading EPS for FY09 by 7% as a result of these data, but this has to be considered provisional in the absence of any cost data,” Cazenove said in a note. Vedanta reports annual results on 7 May. Weak metals prices have forced many mining groups to close down unprofitable operations and Vedanta said it had taken action recently. “As part of our focus on improving profitability and cash flow, we completely ramped down the MALCO smelter in mid December 2008 and shut down a part of the BALCO Plant I smelter in Q4 2009 due to higher operational costs,” a statement said. “Consequently, we are selling surplus power to maximise returns.” Record aluminium output Despite the shutdowns, London-listed Vedanta said fourth quarter aluminium production increased 31.4% to a record 134,000 tonnes, mainly due to the ramp-up of its new Jharsuguda smelter in India. Vedanta said expansions such as Jharsuguda were on schedule and budget. The first phase of Jharsuguda, which has lower operational costs, is due to hit its 250,000 tonne annual run rate during the current quarter, the first in the 2010 fiscal year. The second phase, which will add another 250,000 tonnes of annual capacity, is due to be fully operational by the end of the current fiscal year, Vedanta said. Refined zinc output for the three months to end March rose 11.9% to a record 151,000 tonnes, while iron ore production gained 4.1% to 4.9 million tonnes. Zinc and iron ore are Vedanta’s most important minerals, accounting for 39% and 32% of core profit for the first nine months of the fiscal year. Copper cathode output in India fell 2.2% to 88,000 tonnes while copper cathode production in Zambia rose 2.9% to 35,000 tonnes. Vedanta announced on 19 February that its Zambian unit Konkola Copper Mines had shut down its Nkana copper smelter to cut costs. On Thursday, Vedanta said a furnace leak at its new Nchanga smelter in Zambia had caused a disruption earlier this month. “Based on our initial assessment, production is expected to be resumed in a three-four week timeframe,” it said. The global downturn has hammered metals prices, sending copper down 50% and aluminium 55% from their peaks last year. On 28 January, Vedanta Resources posted a 98.5% fall in third-quarter core profit due to weak metals prices, inventory writedowns and currency losses. Source: World Business - Livemint.com | 9 Apr 2009 | 9:23 am ACC plans to invest Rs 1,600 cr this yearCement major ACC Ltd will invest Rs 1,600 crore in 2009 and another Rs 1,300 crore next year despite uncertainty over demand and fears of surplus capacity depressing prices.Source: Moneycontrol Top Headlines | 9 Apr 2009 | 8:41 am Japan plans $154 bln stimulus, big bond saleTOKYO (Reuters) - Japan's ruling party unveiled a record $154 billion stimulus plan, around 3 percent of GDP, boosting shares to a three-month closing high but the bond market weakened at the prospect of a big rise in government debt to pay for it.Source: Reuters: Money News | 9 Apr 2009 | 8:41 am CBI takes specimen signatures of Satyam accusedThe CBI obtained specimen signatures of B Ramalinga Raju and four others accused in connection with the multi-crore rupee fraud in the IT company.Source: Daily News & Analysis: Money News | 9 Apr 2009 | 8:38 am CBI takes specimen signatures of Satyam accusedThe CBI obtained 60 signatures each of B Ramalinga Raju and four others in the presence of their counsels in the court of the XIV additional chief metropolitan magistrate.Source: India Business News | Business News - Times of India | 9 Apr 2009 | 8:24 am Godrej Appliances earmarks Rs100 cr in FY 10 to up capacityMumbai: Home appliances-maker, Godrej Appliances, has earmarked a Rs100-crore investment in the current fiscal (FY 10) to expand the capacity of its five manufacturing plants in the country. The Adi Godrej group company is also eyeing a turnover of Rs1,700-crore in FY 10. “We will be investing around Rs100-crore in our plants at Punjab, Maharashtra and Uttaranchal. The funding will be through internal accruals,” Godrej & Boyce Manufacturing Co, Appliance Division, Chief Operating Officer, George Menezes, told PTI here. “We closed FY 09 with a turnover of about Rs1,400- crore. This year (FY 10), our target is Rs1,700-crore, five per cent of which will be invested in research and development,” he said. The company manufactures refrigerators, washing machines, air-conditioners and microwaves, among other home appliances. Citing ORG-GSK February estimates, Menezes said that against the industry growth of 10%, Godrej Appliances grew by a thumping 33%. “Growth could have been better, had the meltdown not happened. Our target was to clock a 40% growth rate for 2008-09,” the company’s Vice President, Sales and Marketing, Appliance Division, Kamal Nandi, said. Source: Home - Livemint.com | 9 Apr 2009 | 8:13 am Nintendo to launch Wii Sports Resort in JuneTokyo: Japan’s Nintendo Co, which competes with Microsoft Corp and Sony Corp in the global video game market, said on Thursday it would launch its “Wii Sports Resort” software in June in Japan. Wii Sports Resort follows its popular “Wii Sports” game, which helped drive sales of its Wii game console as users can play baseball, tennis and other sports using its motion-sensing controller. Wii Sports Resort, which lets users throw a frisbee to a virtual dog or duel one another with swords, will hit overseas markets in July, Nintendo said. Nintendo’s Wii game console far outsells Microsoft’s Xbox 360 and Sony’s PlayStation 3, and its DS, which competes with Sony’s PlayStation Portable, dominates the handheld video game market. Nintendo shares were down 2.8% at 27,¥940 yen, little moved by the news. The benchmark Nikkei average gained 2.9%. Source: Tech News - Livemint.com | 9 Apr 2009 | 8:11 am Bookings for Nano startBookings for Tata Motors' much-waited small car 'Nano' started across the country on Thursday and will continue till April 25.Source: Daily News & Analysis: Money News | 9 Apr 2009 | 8:04 am India launches its biggest oil, gas block auctionNEW DELHI (Reuters) - India launched its biggest-ever auction of oil and gas assets on Thursday, offering 70 exploration blocks, as it seeks to attract investors at a time of slumping global oil demand during the economic downturn.Source: Reuters: Money News | 9 Apr 2009 | 8:02 am India unveils largest auction of hydrocarbon assetsIndia Thursday announced the auctions for 80 more hydrocarbon assets in the country, including 10 for coal-bed methane, in the largest such exercise under its new policy on oil and gas exploration.Source: IndiaeNews.com: Business News | 9 Apr 2009 | 8:00 am DGCA demands full security for politicians flying around Madhya PradeshThe Director General of Civil Aviation (DGCA) has asked the Madhya Pradesh government and private operators to take measures to ensure the security of top political leaders flying around the state for the election campaign, officials said Thursday.Source: IndiaeNews.com: Business News | 9 Apr 2009 | 8:00 am Industrial production falls by 1.2% in FebIndia's industrial output fell 1.2 percent in February from a year earlier, but January's initially reported fall was revised to a rise of 0.4 percent, data showed on Thursday.Source: India Business News | Business News - Times of India | 9 Apr 2009 | 7:47 am Midcap IT firms’ Jan-March profit seen lowerMumbai: Indian mid-cap IT companies are likely to post mostly lower profit in the quarter ending March as they continue to battle pricing pressure and declining volumes amid a slowing world economy. Rolta India Ltd may report a profit drop of 30% at Rs463 million and Hexaware Technologies Ltd may post a 44% fall in profit to Rs97.5 million from a year ago, according to analysts estimates. “Anecdotal evidence and management commentary suggests that in some contracts, vendors have had to eat humble pie and take substantial pricing cuts of 10-15%,” Harit Shah of Angel Broking said in a note. A world-wide credit crunch, which has led to recession in US, some European nations and Japan, has forced companies to cut technology spend or demand lower rates, hurting profits of the Indian software firms, which as a sector derive about 80% of their revenue from exports. Angel Broking’s Shah estimates that IT companies would have offered 1-3% lower pricing in the March quarter, compared with the three months ended December. Software firms are currently coping with the stress by cutting pay as well as jobs, but Shah says the pricing pressure will intensify in the future, squeezing margins further. However, “the pricing pressure and volume decline is likely to more than offset any benefits due to layoffs and the currency buffer,” said a note from IIFL, the institutional research division of India Infoline. In January-March, the Indian rupee fell 4.1% against the dollar, which is seen boosting revenue for the export-driven Indian software industry. However, the dollar’s 2.1% rise against the pound sterling, another key currency for the Indian firms, will hurt the sector’s dollar earnings, analysts cautioned. Mastek Ltd will kick off the earnings season for the sector by reporting results on Thursday, followed a week later by bellwether Infosys Technologies Ltd., which reports on 15 April. IT BUDGETS ON RADAR Management commentary on their clients budgets will be eyed keenly during earnings announcements to gauge the overall demand scenario, analysts said. “Though the budgets could provide some indication on overall demand for IT spend, a cash conservation attitude and CFO-led decision making would call for a relook at budgets going forward,” brokerage Motilal Oswal said in a note. Clients were looking at budget cuts of 10-15% for calendar year 2009, the brokerage added. Turmoil in the financial sector, a major customer for Indian IT firms, has seen local firms struggling to retain business, pushing them to take several cost-cutting measures. Last month, Hexaware Technologies Ltd said it will bench 350 employees, paying them half their basic salary, and will also effect a 2-10% pay cut for employees above certain levels. In February, Mastek benched about 425 people, giving them the option of either leaving immediately with compensation or staying for not more than one year on a monthly allowance. However, Tech Mahindra which reported a loss last year is seen posting a Rs2.06 billion profit, while MindTree Ltd. may report a 3.7% increase in profit to Rs369 million, analyst estimates show. Source: Tech News - Livemint.com | 9 Apr 2009 | 7:38 am Midcap IT firms’ Jan-March profit seen lowerMumbai: Indian mid-cap IT companies are likely to post mostly lower profit in the quarter ending March as they continue to battle pricing pressure and declining volumes amid a slowing world economy. Rolta India Ltd may report a profit drop of 30% at Rs463 million and Hexaware Technologies Ltd may post a 44% fall in profit to Rs97.5 million from a year ago, according to analysts estimates. “Anecdotal evidence and management commentary suggests that in some contracts, vendors have had to eat humble pie and take substantial pricing cuts of 10-15%,” Harit Shah of Angel Broking said in a note. A world-wide credit crunch, which has led to recession in US, some European nations and Japan, has forced companies to cut technology spend or demand lower rates, hurting profits of the Indian software firms, which as a sector derive about 80% of their revenue from exports. Angel Broking’s Shah estimates that IT companies would have offered 1-3% lower pricing in the March quarter, compared with the three months ended December. Software firms are currently coping with the stress by cutting pay as well as jobs, but Shah says the pricing pressure will intensify in the future, squeezing margins further. However, “the pricing pressure and volume decline is likely to more than offset any benefits due to layoffs and the currency buffer,” said a note from IIFL, the institutional research division of India Infoline. In January-March, the Indian rupee fell 4.1% against the dollar, which is seen boosting revenue for the export-driven Indian software industry. However, the dollar’s 2.1% rise against the pound sterling, another key currency for the Indian firms, will hurt the sector’s dollar earnings, analysts cautioned. Mastek Ltd will kick off the earnings season for the sector by reporting results on Thursday, followed a week later by bellwether Infosys Technologies Ltd., which reports on 15 April. IT BUDGETS ON RADAR Management commentary on their clients budgets will be eyed keenly during earnings announcements to gauge the overall demand scenario, analysts said. “Though the budgets could provide some indication on overall demand for IT spend, a cash conservation attitude and CFO-led decision making would call for a relook at budgets going forward,” brokerage Motilal Oswal said in a note. Clients were looking at budget cuts of 10-15% for calendar year 2009, the brokerage added. Turmoil in the financial sector, a major customer for Indian IT firms, has seen local firms struggling to retain business, pushing them to take several cost-cutting measures. Last month, Hexaware Technologies Ltd said it will bench 350 employees, paying them half their basic salary, and will also effect a 2-10% pay cut for employees above certain levels. In February, Mastek benched about 425 people, giving them the option of either leaving immediately with compensation or staying for not more than one year on a monthly allowance. However, Tech Mahindra which reported a loss last year is seen posting a Rs2.06 billion profit, while MindTree Ltd. may report a 3.7% increase in profit to Rs369 million, analyst estimates show. Source: Tech News - Livemint.com | 9 Apr 2009 | 7:38 am India's inflation falls again, to 0.26 percentIndia's annual rate of inflation fell marginally to 0.26 percent for the week ended March 28, from 0.31 percent the week before, official data showed Thursday.Source: IndiaeNews.com: Business News | 9 Apr 2009 | 7:31 am India's industrial output falls 1.2 percent in FebruaryIndia's industrial output fell 1.2 percent in February against a growth of 9.5 percent in the like month of last fiscal, even as the provisional drop reported for January has been revised now to a marginal growth of 0.39 percent.Source: IndiaeNews.com: Business News | 9 Apr 2009 | 7:30 am Rupee sheds gains, still up by 16 paise against dollarThe Indian rupee pared its early gains and fell to 50.02/03 a dollar, still up by 16 paise over its previous close, in late morning deals due to volatile stock markets.Source: India Business News | Business News - Times of India | 9 Apr 2009 | 6:40 am Inflation falls to 0.26% for the week ended March 28Inflation falls to 0.26% for the week ended March 28 from 0.31 percent in the previous weekSource: India Business News | Business News - Times of India | 9 Apr 2009 | 6:27 am The Iron man of Gaming comes to IndiaThis week on Playcast we talk to president and creative director for Los Angeles based PCB Productions, Keith Arem, the man behind games for movies like Iron Man, Spiderman and Lord of the Ring series.  On his recent visit to India, Keith reveals that he is here to look for creative partners and development teams as his company, PCB Productions, works on developing original content for games. And has Indian talent interested Keith yet? Keith is of the opinion that Indian mythology, if adapted with a western approach, could gain a very large audience abroad, just like Japanese mythology gaming has. Keep listening to know which games to look out for in the coming year, according to Keith. Source: Tech News - Livemint.com | 9 Apr 2009 | 5:52 am Nintendo machines high on wish-list, no price cuts neededTokyo: Nintendo has weathered the global recession because of the popularity of its game machines and won’t be resorting to price cuts to boost sales, the company’s president said on Thursday. Nintendo Co. president Satoru Iwata said consumers don’t hold back on spending on products that are high on their “wish list” like his company’s Wii home console or the new Nintendo DSi, the upgrade of the hit handheld machine. “If products are similar, then people are going to look at which is cheaper,” he said. “We do not think our video game machines are that kind of product.” He acknowledged he wasn’t ruling out a price cut in the longer run, but said none were in the works in the immediate future. “It is more effective to work on how to become No. 1 on the wish list,” Iwata said. The Japanese maker of Pokemon and Super Mario games has sold more than 50 million Wii consoles worldwide since late 2006, and more than 100 million Nintendo DS portable handheld game machines worldwide. Iwata said the revamped DSi, which went on sale in late last year in Japan, and earlier this month in the US and Europe has also been a big hit. In the US, 300,000 DSi machines were sold in just two days, and another 300,000 were sold in Europe in two days, he said. Compared to Sony Corp., which has long appealed to hard-core gamers with its PlayStation series, Nintendo has scored hits with easier-to-play games that attract newcomers to gaming, including the elderly. Nintendo’s DS comes with a touch panel, making it possible to play some games without dealing with complex button-pushing. The Wii game console has quickly become a smash hit, in large part due to its unique wireless controller. The wand-like controller is equipped with motion sensors that allow users to control game action by jabbing and swinging it through the air. Wii games, including “Wii Fit,” “Wii Play,” and “Mario Kart Wii,” have all become global best sellers. Source: Tech News - Livemint.com | 9 Apr 2009 | 5:20 am Sensex up by another 62 points in bumpy tradeContinuing its gaining streak for the sixth session in a row, the BSE benchmark Sensex on Thursday rose by another 190 points in early trade.Source: Daily News & Analysis: Money News | 9 Apr 2009 | 5:10 am Mangoes shrink, prices soarAll varieties of the fruit will cost much more this season even if they are of poor quality, because the yield of this year's mango crop will be low.Source: Daily News & Analysis: Money News | 9 Apr 2009 | 3:55 am Sensex rebound of 570 pts shows rally still has legsThe Sensex started with a gap-down opening of 250 points, but soon turned around to close the day up 207 pointsSource: Daily News & Analysis: Money News | 9 Apr 2009 | 12:12 am One in 5 stocks delivered 50% returnsThe Sensex has shot up by 30 per cent from its March low, but had you been lucky in your stock selection, you may even have doubled yourSource: Business Line - Home Page | 9 Apr 2009 | 12:00 am Auto sector weathers slowdown blues in 2008-09Mumbai, April 8 The Indian automotive market managed to stand up to the vagaries of the economic meltdown to show slightly positive growth during fiscal 2008-09. Overall vehicle sales at 97.23 lakh grew 0.71 per cent from 96.54 lakh units inSource: Business Line - Home Page | 9 Apr 2009 | 12:00 am ‘Wockhardt Hospitals to have minority partner next month’Mumbai, April 8 Wockhardt Hospitals is a project close to the Chairman, Mr Habil Khorakiwala’s heart. And though he looks set to retain control, the healthcare project gets on board a minority partner next month.Source: Business Line - Home Page | 9 Apr 2009 | 12:00 am Bank chiefs see tough year ahead; bad debts may go upMumbai, April 8 The year ahead is going to be tougher than expected for the banking sector as banks grapple with slowing credit growth, rising delinquencies and declining margins.Source: Business Line - Home Page | 9 Apr 2009 | 12:00 am Bank schemes for NanoJust as the Tata Nano promises value for money with its low pricing, so do the various schemes of banks which are the preferred lenders for the car. As the schemes are almost uniform in their charges and interest rates, quick and efficient serviceSource: Business Line - Home Page | 9 Apr 2009 | 12:00 am Sensex gains 600 points intra-dayMumbai, April 8 The Sensex, which had been trading in the red on Wednesday, charted a surprising 600-point intra-day gain, most of it in the last hour of trade.Source: Business Line - Home Page | 9 Apr 2009 | 12:00 am Day Trading GuideNote: In a buy recommendation, the resistances would be the targets and the nearest support would be the stop loss; In a sell recommendation, the supports would be the targets and the nearest resistance would be theSource: Business Line - Home Page | 9 Apr 2009 | 12:00 am Exports growth at 3.6% in ’08-09, but to improve post-Sept’New Delhi, April 8 Unfazed by the poor export performance of 3.6 per cent growth in dollar terms for the fiscal 2008-09, the Commerce Ministry contends that the worst is now behind and things will appear better post-SeptemberSource: Business Line - Home Page | 9 Apr 2009 | 12:00 am Dish TV India (Rs 30.10): BuyWe recommend a buy in Dish TV India stock from a short-term trading horizon. It is evident from the charts of Dish TV that it has been on an intermediate-term uptrend from October 2008 low of Rs 11.75 (a 52-week low). Since then, the stock hasSource: Business Line - Home Page | 9 Apr 2009 | 12:00 am Crisil cuts rating on 10 diamond jewellery cosMumbai, April 8 The global economic recession seems to have taken a toll on Indian diamond jewellery manufacturers. Rating agency Crisil has downgraded bank loan rating (BLR) of 10 diamond and jewellery manufacturing companies and reaffirmed itsSource: Business Line - Home Page | 9 Apr 2009 | 12:00 am ACC ready-mix concrete bizACC, the largest cement manufacturer in India, has put the expansion of ACC Concrete Ltd subsidiary, on hold for 2009.Source: Daily News & Analysis: Money News | 8 Apr 2009 | 11:09 pm NTPC to up coal imports to 15 mtIndia's largest utility, NTPC Ltd, plans to ramp up coal imports to 15 million tonnes.Source: Daily News & Analysis: Money News | 8 Apr 2009 | 10:58 pm New segments, small towns seen driving auto growthIn the new fiscal, some new vehicle segments are expected to generate growth.Source: Daily News & Analysis: Money News | 8 Apr 2009 | 10:52 pm Digital radio gets some bandwidthDigital audio broadcasting (DAB) in the country appears set to move beyond satellite radio WorldSpaceSource: Daily News & Analysis: Money News | 8 Apr 2009 | 10:22 pm Living on the edge, Indians soldier on for Afghanistan's reconstructionIn January, External Affairs Minister Pranab Mukherjee visited Afghanistan to inaugurate the 218-km Zaranj-Delaram road project that India was building at a cost of $150 million (Rs 750 crore).Source: Business Standard | Front Page Headlines | 8 Apr 2009 | 7:00 pm SC dismisses I-T petition on firms' forex lossesThe Supreme Court today dismissed the Income-Tax (I-T) departments plea that companies cannot claim deductions against tax liabilities on account of losses due to foreign exchange rate fluctuations.Source: Business Standard | Front Page Headlines | 8 Apr 2009 | 6:59 pm Wockhardt to hive off biotech divisionTo rope in MNC partner.Source: Business Standard | Front Page Headlines | 8 Apr 2009 | 6:57 pm Nandigram set to flare up again over chemical hubAfter nearly two years of relative calm, fresh tension appears to be brewing over the West Bengal government's plans to set up a Petroleum, Chemical and Petrochemical Investment Region (PCPIR) spanning Nayachar Island and the adjoining mainland comprising Haldia and Nandigram.Source: Business Standard | Front Page Headlines | 8 Apr 2009 | 6:52 pm People pay for cable, music and luggage. How about news?Just a year ago, most media companies believed the formula for Internet success was to offer free content, build an audience and rake in advertising dollars. Now, with the recession battering advertising online, in print and on television, media executives are contemplating a tougher trick: making the consumer pay.  Change in strategy: Rupert Murdoch, who once vowed to make The Wall Street Journal’s website free, now believes readers must be charged. “People reading news for free on the Web, that’s got to change,” Murdoch said last week at a cable industry conference in Washington. AP said on Monday that it intended to police the use of news articles linked on countless websites, where many consumers read them free, to make sure the sites shared advertising revenue with those who created the material. But from networks selling downloads of TV shows to music companies trying to curb file-sharing, to struggling newspapers and magazines, the make-or-break question is this: How do you get consumers to pay for something they have grown used to getting free? Some industries have pulled it off. Coca-Cola took tap water, filtered it and called it Dasani, and makes millions of dollars a year. People who used to ask why anyone would pay for television now subscribe to cable and TiVo. Airlines charge for luggage, meals, even pillows. And some music fans who have downloaded pirated songs are also patrons of iTunes. All these success stories offered the consumer something extra, even if it was just convenience. “With bottled water, it’s a kind of snobbery and the perception of healthiness that they have marketed,” said Priya Raghubir, professor of marketing at the Stern School of Business at New York University. “With downloads, the benefit is that the paying services allow you to sample many songs free, and you know it’s legal, and the TV shows have no commercials. “With newspapers and magazines, there have to be features you can’t get anywhere else, and maybe part of what you would pay for is the privilege of helping the business survive, but that is more of a difficult sell.” Major publishers say they have not yet decided how to proceed, but that some changes are coming soon. “We’re looking, of course, at ways to extract payments from the consumers of our news—micro-payments, subscriptions, memberships, licensing, even voluntary donations,” Bill Keller, executive editor of The New York Times, said last week in a speech at Stanford University. “In the coming months, I fully expect that the NYT will begin laying down some bets based on our best forecasts of how the relationship between journalists and their audience will evolve.” Only a few publishers have tried such a transition, with mixed results. The Los Angeles Times and The New York Times each tried charging for access to some content online, then dropped the requirement because it cost them audience and advertising revenue. Most publications have moved in the other direction, trying to draw the biggest audience for advertisers by offering content free. The Associated Press’ new approach straddles the usual reliance on ads, and the new move to charge someone—though not the consumer—for the content. By adding free features such as email alerts, blogs, discussion forums and video, news organizations are trying to persuade readers that they provide something more valuable than the aggregators and blogs attracting news readers online. In 2006, The Washington Post became the first newspaper to win an Emmy for its video. Eric J. Johnson, a professor at Columbia Business School, said he had been amazed by media companies repeatedly adding free online services, like on-demand video. “Before you add something to your site, you should say that if consumers really want it, that should be part of a package that you could charge for,” he said. That is an alien concept to many media veterans. Before the recession, media executives saw their future in online advertising, which was growing 25-35% annually. But last year, overall Internet ad spending rose 10.6%, and only 3.5% for television networks, according to a report by the Interactive Advertising Bureau and PricewaterhouseCoopers. ©2009/THE NEW YORK TIMES feedback@livemint.com Source: World Business - Livemint.com | 8 Apr 2009 | 6:16 pm Independent directors can’t solve governance problemsNew Delhi: Dean of Saïd Business School at Oxford University, Colin Mayer is considered an authority on corporate governance, finance, regulation and taxation. He has consulted for numerous corporations, governments, regulators and international agencies across the world. Mayer also heads Oxera Holdings Ltd, one of the largest independent economics consultancies in the UK.  Listing failures: Mayer says systemic risks weren’t monitored adequately. In an interview during a recent visit to India, Mayer spoke about the global corporate governance crisis, its possible solutions and the role an active investor could play in solving governance problems. Edited excepts: In some of your recent works you have mentioned that countries with different corporate governance standards are all in the midst of a crisis. If you were to identify a common thread running through the crises, what would it be? There has been a serious failure of information on the part of investors. What investors thought was happening was not happening. There has been a serious disclosure problem. Is there some way to eliminate the large-scale fraud that afflicts the entire system? One of the main failures that occurred (in the US) last year has been the failure by regulatory authorities to take into account risks that exist across countries. There has been inadequate monitoring of those systemic risks—and inappropriate response to them when they emerged. At the corporate governance level, what do you think would be the most obvious solution today? A lot of success in addressing corporate governance issues is (achieved) by having more active institutional investors...when a company puts out a new issue prospectus, there is a huge volume of information sent to investors. But no one has got any time or ability to absorb the information...where institutions are encouraged to take an active role in governance, then one does observe significant improvements. It need not necessarily be institutions, it can be large shareholders. In some countries, it is families who play that role. So, for example, in the case of the Indian economy, families are much more significant as dominant shareholders. In the US, where professional managements dominate, was there a conflict of interest with shareholders? Well, there clearly were significant failures on the part of some financial institutions in the US. Were they primarily in groups we normally associate with governance, namely, pension funds and life insurance companies? The answer is no. The failure has been occurring in commercial banks. At the end of the day, the ultimate owners are in large part the financial institutions. Active governance on their part would actually have done quite a lot to address some of the issues that have arisen. Most people point their finger towards the board of directors. Actually if you look at the board of directors of some of the most prominent failures, they had what looked to be a pretty professional set of board members. Some of your works give the impression that you don’t think independent directors are a solution. The evidence is that the relationship between governance and independent directors is unclear. Independent directors are in a board where they are there to advise the chief executive and periodically they are supposed to be performing a sort of monitoring and punishment function. The notion that independent directors are going to solve governance problems, I think, is misleading. Let’s take the case of a country such as India where families play a dominant role... Yeah. And in that respect family ownership has a lot of merits. They want to hand it over to their sons and daughters... There is quite a lot of evidence now that in at least some areas, family firms outperform non-family firms. On the other hand, families, for the very same reason, may pursue interests that are not necessarily desirable from the point of view of the commercial success of the company. So, there can be advantages, but there can also be problems. What I advocate is diversity. Source: World Business - Livemint.com | 8 Apr 2009 | 5:40 pm Ad-editorial lines blur as magazines battle recessionIf the separation between magazines’ editorial and advertising sides was once a gulf, it is now diminished to the size of a sidewalk crack. Recent issues of Entertainment Weekly, Esquire, Time, People, ESPN the Magazine, Scholastic Parent & Child and other magazines have woven in advertisers in new ways, some going as far as putting ads on their covers. The editorial and advertising sides of magazines had stayed distinct so far, largely because of the American Society of Magazine Editors (Asme). The society hands out the annual National Magazine Awards, and its guidelines govern how editorial content and advertising should be kept separate. Cover ads are prohibited. “Everyone has to be able to tell the difference between advertising and editorial, and if you can’t tell there’s a difference, there’s a problem,” said Sid Holt, Asme chief executive. But in this recession, when magazines are losing advertisers, the lines between advertising and editorial content are blurring—with few repercussions from the society. “Asme’s only real sway over editors was always the ability to essentially say you would not be eligible for the National Magazine Awards,” said Susan Lyne, the chief executive of the luxury firm Gilt Groupe, who until last year was the chief executive of Martha Stewart Living Omnimedia. “And in a climate like this, I think people are really weighing what’s more important to them: being eligible for the National Magazine Awards or making their budgets.” The recent group of advertiser-sponsored projects vary in how far they push the society’s guidelines. At one end is a “black-and-white violation of the Asme guidelines,” as Holt put it, in which Scholastic Parent & Child placed an ad on its April cover. Executives of Scholastic Inc. defended their choice. Risa Crandall, vice-president of Scholastic Parents Media, said she had sold advertising for every remaining 2009 cover, and expected a 10% increase in ad revenue this year because of the cover ads. Elimination from the magazine society’s awards was “not a big consideration for us”, said Nick Friedman, editor-in-chief of the magazine. The society has not yet commented on several other potential missteps, like a cover design of ESPN the Magazine. The 6 April issue has a fold-out flap over half of the cover with the words, “You wouldn’t settle for an incomplete cover.” Pulled back, the flap reveals an ad for Powerade, a sports drink. ©2009/THE NEW YORK TIMES Source: World Business - Livemint.com | 8 Apr 2009 | 5:40 pm Burnt badly by banks, Temasek digs for dealsHong Kong: Singapore’s Temasek Holdings Pte Ltd, like other Asian and West Asian sovereign wealth funds, is digging for deals in mining and oil, as it licks its wounds from financial sector investments that have soured in a global crisis. The state investor is eyeing “aggressively sized” resource assets and could do a deal in the $5 billion range, a source familiar with the situation said, declining to be identified due to the sensitive nature of such deals. Temasek is eyeing ‘aggressively sized’ resource assets and could do a deal in the $5 billion range Energy and resources make up just 5% of Temasek’s portfolio, worth $84 billion at end-November. The portfolio, bulging with banks such as Standard Chartered Plc. and Bank of America Corp., slid 31% between March and November. Investments in Merrill Lynch and Co. Inc. and other financials—which account for 40% of its assets—are rapidly losing value. Temasek’s shift towards resources will be helped by the experience of Chip Goodyear, former chief of miner BHP Billiton Ltd, who succeeds Ho Ching, wife of Singapore’s prime minister, as chief executive in October. His appointment is a clear move that Temasek is angling for more resources deals, analysts and investment bankers say. “The shift by Asian sovereign wealth funds to commodity related investments makes perfect sense from a diversification, as well as strategic geopolitical standpoint,” said Kirby Daley, senior strategist, Newedge Group in Hong Kong. “I wouldn’t be surprised if we see much more of this activity going forward.” China’s $200 billion wealth fund China Investment Corp. is also looking to invest in energy and commodities. Temasek may be looking at Canadian miner Teck Cominco Ltd, which is scrambling to sell assets in a bid to raise cash to pay off a $5.8 billion bridge loan, the source familiar with the situation said. Temasek is more likely to buy minority stakes in assets than acquire whole firms, another investment banker said. At a recent mining conference in Singapore, Temasek’s managing director for investments, Nagi Hamiyeh, chaired a session with Rio Tinto Ltd’s chief financial officer Guy Elliott, and effectively interviewed him on the firm’s business plans. “The story of the cycle in resources is still intact, we are further believers of the China story and the urbanisation of China, India and other countries,” Hamiyeh told the conference. Temasek is looking at resources in an opportunistic way, Hamiyeh later said. But a person familiar with Temasek’s thinking said the Singapore investor will tread carefully as many countries regard their natural resources as strategic assets. feedback@livemint.com Source: World Business - Livemint.com | 8 Apr 2009 | 5:31 pm ArcelorMittal workers told ouput cuts to stayLondon: The world’s biggest steelmaker, ArcelorMittal, told worker representatives in Europe it will maintain production cuts because of weak demand. ArcelorMittal met on Wednesday with its European Works Council to provide an update on the temporary suspension of production at sites in Europe, the Luxembourg-based company said in an e-mailed statement. It is necessary to continue to suspend and optimize production. The steelmaker told staff it will cut European output by more than half by the end of April, AFP on Wednesday cited CGT union official Jacques Laplanche as saying. London-based ArcelorMittal spokesman Giles Read denied the figure, saying the firm has cut global output by 45%. Source: World Business - Livemint.com | 8 Apr 2009 | 5:26 pm
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