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Auto ind buoyant on back of good festive demand: ExpertsAutomobile sectorone of the worst hit industries due to economic recession combined with a dip in the demandis now brimming with hope. Industry experts, on the sidelines of the SIAM Annual Convention on Friday sounded extremely optimistic on account of spurt in auto demand.Source: Moneycontrol Top Headlines | 29 Aug 2009 | 11:05 am Whirpool to close US plant, cut 1,100 jobs!US home appliance maker Whirlpool Corp said on Friday it would close a plant in Evansville, Indiana, eliminating some 1,100 jobs by mid-2010.Source: Zee News : Business | 29 Aug 2009 | 5:57 am Mexico to receive USD 4 bn from IMF to bolster reserves!Mexico will receive some USD 4 billion in special drawing rights, or SDRs, from the International Monetary Fund to bolster its reserves and liquidity, the country`s central bank said.Source: Zee News : Business | 29 Aug 2009 | 5:57 am US bank failure tally rises to 84 in 2009 !Three more US banks failed on Friday, bringing the total to 84 so far this year, as the industry continues to grapple with deteriorating loans on their books.Source: Zee News : Business | 29 Aug 2009 | 5:57 am Sun Microsystems posts loss as Oracle deal nears!Sun Microsystems Inc said on Friday it swung to a fourth quarter loss, as the computer server maker`s planned acquisition by Oracle Corp nears expected completion.Source: Zee News : Business | 29 Aug 2009 | 5:57 am Mexico forecasts 4% drop in oil output in 2010!Mexican authorities said they expect average daily crude output to fall in 2010 to 2.5 million barrels per day, which would represent a four percent drop compared with the first half of this year.Source: Zee News : Business | 29 Aug 2009 | 5:57 am PM launches Cairn India's oil fields in BarmerCairn India on Saturday started pumping crude from its Rajasthan block, the first major oil discovery in the energy-hungry nation in more than two decades. Source: Hindustan Times News Feeds 'Business' | 29 Aug 2009 | 5:15 am China warns banks on OTC hedge defaults - reportBEIJING (Reuters) - Chinese state-owned enterprises (SOEs) may unilaterally terminate derivative contracts with six foreign banks that provide over-the-counter commodity hedging services, a leading financial magazine said.Source: Reuters: Money News | 29 Aug 2009 | 4:25 am Barmer oil output will bring prosperi... - Sify
Source: Business - Google News | 29 Aug 2009 | 4:04 am Govt agrees to infuse Rs 5000 cr into... - Economic Times
Source: Business - Google News | 29 Aug 2009 | 3:36 am Hyundai to launch redone Santro, phas... - Economic Times
Source: Business - Google News | 29 Aug 2009 | 3:19 am Cairn India starts oil output from Rajasthan blockBARMER, Rajasthan (Reuters) - Cairn India, a unit of U.K.-based Cairn Energy Plc, on Saturday began pumping crude from its Mangala oil field in the Rajasthan block, the first major crude oil discovery in the energy-hungry nation in two decades.Source: Reuters: Money News | 29 Aug 2009 | 3:03 am Delivery of Cairn crude to MRPL slated for OctCairn India and its partner ONGC will be ready to deliver from October the first consignment of crude from their prolific Rajasthan fields (block RJON90/1) to Mangalore Refinery Petrochemicals Ltd (MRPL).Source: Moneycontrol Top Headlines | 29 Aug 2009 | 2:17 am Barmer oil output will bring prosperity: PMPrime Minister Manmohan Singh said Saturday that the inauguration of Cairn India's Mangala oil fields here is bound to bring enormous prosperity to Rajasthan.Source: IndiaeNews.com: Business News | 29 Aug 2009 | 2:00 am MTN wants to finalise merger talks wi... - Business Standard
Source: Business - Google News | 29 Aug 2009 | 1:56 am Nishith Desai on the Direct Tax Code - Moneycontrol.com
Source: Business - Google News | 29 Aug 2009 | 1:37 am Consolidation seen ahead for Indian equitiesA key Indian equities index closed with some handsome gains during the week ended Friday, with analysts anticipating consolidation in the ensuing sessions in the absence of any meaningful positive cues in the domestic front.Source: IndiaeNews.com: Business News | 29 Aug 2009 | 1:30 am PM launches Cairn India's oil fields in BarmerPrime Minister Manmohan Singh Saturday formally inaugurated Cairn India's Mangala oil fields in Rajasthan, site of the country's largest oil discovery in two decades.Source: IndiaeNews.com: Business News | 29 Aug 2009 | 1:30 am BSE, Nifty on a roll on hopes of econ... - Press Trust of India
Source: Business - Google News | 29 Aug 2009 | 1:03 am PetroChina says to buy $3.2 bln assets from parentHONG KONG (Reuters) - PetroChina, the world's most valuable oil and gas producer, said it would buy a combined $3.2 billion worth of assets from state-owned parent China National Petroleum Corporation (CNPC) in a bid to boost production.Source: Reuters: Money News | 29 Aug 2009 | 12:51 am Govt cautions mobile firms on equipme... - Reuters India
Source: Business - Google News | 29 Aug 2009 | 12:32 am Govt cautions mobile firms on equipment sourcingMUMBAI (Reuters) - Indian Telecommunications Secretary Siddharth Behura has asked the chiefs of the country's top mobile operators to adopt a policy of self-regulation in sourcing telecoms equipment, newspapers reported on Saturday.Source: Reuters: Money News | 29 Aug 2009 | 12:21 am Active rain belt migrating to west-central IndiaThiruvananthapuram, Aug 28 The monsoon has been active over Madhya Pradesh, Gujarat, Vidarbha and Chhattisgarh during the 24 hours ending Friday morning.Source: Business Line - Home Page | 29 Aug 2009 | 12:00 am Trade policy notifications will be out soon: Anand SharmaNew Delhi, Aug. 28 Foreign direct investment (FDI) figures this year are expected to match that of last year, according to the Minister for Commerce and Industry, Mr Anand Sharma.Source: Business Line - Home Page | 29 Aug 2009 | 12:00 am Delivery of Cairn crude to MRPL slated for OctNew Delhi, Aug. 28 Cairn India and its partner ONGC will be ready to deliver from October the first consignment of crude from their prolific Rajasthan fields (block RJ-ON-90/1) to Mangalore Refinery & Petrochemicals Ltd (MRPL).Source: Business Line - Home Page | 29 Aug 2009 | 12:00 am Short-term income funds outperform equity fundsDifficult to believe, but did you know short-term income funds have outperformed equity diversified funds over the past one year?Source: Business Line - Home Page | 29 Aug 2009 | 12:00 am Govt may divest 10% in SAIL thru follow-on issueNew Delhi, Aug. 28 A divestment of about 10 per cent of Government stake in Steel Authority of India is on the cards.Source: Business Line - Home Page | 29 Aug 2009 | 12:00 am Tata Power net risesMumbai, Aug. 28 Tata Power has reported a 160 per cent growth in its consolidated net profit for the first quarter ended June 2009, at Rs 572.65 crore (Rs 219.85Source: Business Line - Home Page | 29 Aug 2009 | 12:00 am Telecom cos oppose ban on Chinese vendorsNew Delhi, Aug. 28 Private cellular operators on Friday opposed a potential move by the Government to ban Indian telecom companies from buying equipment from Chinese manufacturers Huawei and ZTE.Source: Business Line - Home Page | 29 Aug 2009 | 12:00 am An eventful journey from deep sea to desertRajasthan boasts of a long list of historic forts and monuments. A new one will join that list today when the Prime Minister, Dr Manmohan Singh, inaugurates commercial production from Cairn India’s Mangala oilfield. The Rajasthan field assetsSource: Business Line - Home Page | 29 Aug 2009 | 12:00 am RIL-RNRL row hearing set for Oct 20New Delhi, Aug. 28 The final hearing in the row between Mukesh Ambani-owned Reliance Industries Ltd (RIL) and Anil Ambani-led Reliance Natural Resources Ltd (RNRL) regarding supply of gas from the KG basin will start in the Supreme Court fromSource: Business Line - Home Page | 29 Aug 2009 | 12:00 am Now, Novartis moves SC on Glivec patentMumbai, Aug. 28 Swiss drug-maker Novartis has filed a Special Leave Petition in the Supreme Court challenging the denial of a patent to its cancer drug Glivec (imatinib mesylate) in its beta crystal form. The case is likely to come up on AugustSource: Business Line - Home Page | 29 Aug 2009 | 12:00 am TCS sees $30-100 mn BP deal revenue - Times of India
Source: Business - Google News | 28 Aug 2009 | 11:24 pm Recession blues: Govt to expand expor... - Economic Times
Source: Business - Google News | 28 Aug 2009 | 11:15 pm U.S. bank failure tally rises to 84 for 2009WASHINGTON (Reuters) - Three more U.S. banks failed on Friday, bringing the total to 84 so far this year, as the industry continues to grapple with deteriorating loans on their books.Source: Reuters: Money News | 28 Aug 2009 | 7:55 pm Wall St Week Ahead: For stocks, no beach reading in jobs dataNEW YORK (Reuters) - The last week of summer could prove to be anything but relaxing for stock investors worried about the economy, with the crucial August jobs report on the agenda.Source: Reuters: Money News | 28 Aug 2009 | 6:39 pm Sun Microsystems posts loss as Oracle deal nearsSAN FRANCISCO (Reuters) - Sun Microsystems Inc said on Friday it swung to a fourth quarter loss, as the computer server maker's planned acquisition by Oracle Corp nears expected completion.Source: Reuters: Money News | 28 Aug 2009 | 5:09 pm Hyundai to phase out Getz, launch redone SantroHyundai India Motor said it will phase out its premium hatchback Getz by 2011 but launch a revised version of Santro next month.Source: Hindustan Times News Feeds 'Business' | 28 Aug 2009 | 4:52 pm Hyundai, Honda, Toyota are also in ramp-up modeThe company, which had seen sales drop from 60,000 units in 2007-08 to 55,000 units in 2008-09, can produce 5,000 units a month working on a single shift.Source: Daily News & Analysis: Money News | 28 Aug 2009 | 4:06 pm Of custodians of modern day philosophyThe human race has always had teachers to fall back on when questions about life, the universe and individual purpose beckoned.Source: Daily News & Analysis: Money News | 28 Aug 2009 | 3:51 pm Want to find out what your bank thinks of you?A momentous moment in India's retail lending history has just been ushered in very quietly.Source: Daily News & Analysis: Money News | 28 Aug 2009 | 3:43 pm Chhabria slams Indian car designDilip Chhabria may have made a mark as a noted car designer but the style quotient is low in the country's automobile sector, a top Indian official said on Friday.Source: Hindustan Times News Feeds 'Business' | 28 Aug 2009 | 3:29 pm Dalmia Cement to go extra mile to save costsDalmia Cement (Bharat) Ltd (DCBL), the second largest cement player in the southern region, is looking at saving on production costs.Source: Daily News & Analysis: Money News | 28 Aug 2009 | 3:29 pm Hyundai's Hyderabad R&D centre next monthHyundai Motor Company, the Korean carmaker, will start its Hyderabad research & development facility in September to cater to its future models.Source: Daily News & Analysis: Money News | 28 Aug 2009 | 3:27 pm Encourage scrappage scheme: siamTaking a cue from developed nations, the domestic automotive industry on Friday sought a scrappage scheme for phasing out over ten year old cars and commercial vehicles similar to the cash for clunkers schemes on offer in Europe and US.Source: Hindustan Times News Feeds 'Business' | 28 Aug 2009 | 3:19 pm 'Affordable housing needs a holistic look'As far as affordable housing in general is concerned, it seems that a public-private partnership is the best available option.Source: Daily News & Analysis: Money News | 28 Aug 2009 | 3:11 pm TCS deal pipeline getting fullerThe company is looking at large deals, in the range of $100-$500 million (Rs 500-2,500 crore), for 3-5 years, from international customers.Source: Daily News & Analysis: Money News | 28 Aug 2009 | 3:08 pm GM’s small car to cost more than SparkUS-based auto major General Motors (GM) said on Friday its upcoming small car for India will be priced in the region of Rs 4 lakh, helped by a 100 per cent localisation of components that the company is targeting.Source: Hindustan Times News Feeds 'Business' | 28 Aug 2009 | 3:07 pm Maruti to add 1 lakh cars capacityThe country's largest car maker is targeting sales of about 9.5 lakh vehicles this fiscal, close to the current capacity of a million (10 lakh) units.Source: Daily News & Analysis: Money News | 28 Aug 2009 | 3:05 pm Credit flow to small units to double in 5 years: PMThe government will double the credit flow to micro, small and medium enterprises (MSMEs) and plans are afoot to provide a one-stop access for capacity building, credit and technology support to small entrepreneurs.Source: Hindustan Times News Feeds 'Business' | 28 Aug 2009 | 3:02 pm Bhaskar-DNA awards for public sectorThe Bhaskar Group, in association with DNA, will set up the India Pride Awards to honour public sector companies that have done the country proud.Source: Daily News & Analysis: Money News | 28 Aug 2009 | 3:02 pm Kingfisher fires 90 cabin crew in two monthsLate last year, a public furore created by Jet Airway's decision to lay off 1,900 employees in one go forced the airline to reinstate them in less than a week.Source: Daily News & Analysis: Money News | 28 Aug 2009 | 2:59 pm In drought year, it’s raining carsShrugging off any inertia from the global slowdown, the domestic automotive industry is gearing up for big sales in the second half of this fiscal with most automakers claiming the worst is well and truly over.Source: Hindustan Times News Feeds 'Business' | 28 Aug 2009 | 2:58 pm Bernanke’s personal bank account struck by ID theftNo one is safe from identity theft, not even the chairman of the Federal Reserve. Ben Bernanke’s personal checking account became entangled in an elaborate identity-theft scheme after his wife Anna’s purse was stolen last August.Source: Hindustan Times News Feeds 'Business' | 28 Aug 2009 | 2:55 pm Govt steps up efforts on Swiss moneyThe government has finalised the dates for renegotiation to broaden the scope of existing treaties with Switzerland and Belgium as authorities stepped up efforts to bring back money allegedly stashed illegally in foreign banks.Source: Hindustan Times News Feeds 'Business' | 28 Aug 2009 | 2:50 pm Novartis files SLP in SC against IPAB decision on GlivecNovartis has filed a SLP at the Supreme Court against the IPABs decision on Glivec. The case would be heard at the Supreme Court on Monday. The IPAB has denied patent for Novartis\' Glivec, stating lack of enhanced efficacy of Glivec. IPAB said that if drug was unaffordable, it may cause public disorder.Source: Moneycontrol Top Headlines | 28 Aug 2009 | 2:42 pm Govt gains more in gas deal, says RILMukesh Ambani-led Reliance Industries Ltd (RIL) has said the government will earn revenues close to $16.5 billion (Rs 80,635 crore) from the gas discoveries already notified by it in its KG-D6 block, and its own share will be much less.Source: Hindustan Times News Feeds 'Business' | 28 Aug 2009 | 2:40 pm LT looks to raise $600 m via QIPLT has received shareholders\' nod to raise USD 600 million, says its CMD, AM Naik. \"Today we took an enabling resolution for a qualified institutional placement (QIP). It\'s not as if we are going to do it tomorrow. We had taken the same approval last year, but we didn\'t raise then.\"Source: Moneycontrol Top Headlines | 28 Aug 2009 | 2:15 pm The Mint report for 28 AugustThe RSS distanced itself from the BJP on Friday. In the midst of an ongoing crisis in the BJP, the chief of the RSS Mohan Bhagwat told the media the BJP had to decide its own future and that his organization could only give it advice. But Bhagwat also said the infighting within the BJP was unhealthy and hinted that the party needed younger leaders. The Supreme Court has agreed to skip preliminary hearings in the gas supply dispute between the Ambani brothers and set a date for final arguments in the case. Both sides will now have to file all their written submissions by the 20 October. Anil Ambani wants his brother Mukesh’s company Reliance Industries to comply with a 2005 agreement they signed when the family business was split. The agreement requires Reliance Industries to supply Anil Ambani’s RNRL gas from one of its fields at $2.34 a unit. But Reliance Industries says it can’t sell gas at less than the government price of $4.20 for every unit. The regulator for insurance companies in India, IRDA wants private life insurance companies to move away from unit-linked insurance products or Ulips back to more traditional products. IRDA officials say they’re concerned about the absence of long term capital from the insurance industry. Ulips are both investment and insurance products that let policyholders invest their entire premiums or part of their premiums in equity. Defence officials say India’s Light Combat Aircraft or LCA will gradually start replacing ageing MiG fighters. Five LCA’s have already been made and another eight will be ready next year. The Indian Air Force is currently holding trials for 126 multi-role attack aircraft in a deal worth over $10 billion. Maruti Suzuki, which makes half the cars sold in India, says it plans to increase investment this year to meet after signs of a revival. Analysts are now forecasting car sales will grow by at least 10% in the year ending next March. Other carmakers including Honda and Toyota are also increasing their bets on India. The Archean group plans to complete building it Rs1,200 crore plant by 2012. The factory will make sulfate of potash, which is used to make fertilizers. The company also plans to make its newer shipping business Goodearth Maritime public. Archean is based in Chennai and has interests in minerals, chemicals, and shipping. The cost cutting measures that big IT companies took have finally paid off. The profit of India’s three largest IT companies has improved between 5% and 21% in the four quarters between July last year and June this year. Most of the cost reduction came from cutting hiring and traveling, moving work offshore and increasing productivity. Markets made gains on Friday. The Sensex rose 141 points to close at 15,922 and the Nifty went up 44 points to end trade at 4,732. Source: LatestNews-Home - Livemint.com | 28 Aug 2009 | 1:51 pm The week in review for 28 AugustAfter five long years, India unveiled its second foreign trade policy this week. The announcement comes at a time when the country’s exports have been contracting for ten straight months. Commerce minister Anand Sharma said his focus would on generating employment and reviving exports. The foreign trade policy includes tax breaks and other incentives for exporters until 2011 and projects a doubling of India’s exports by 2014. The riches beneath the sea floor could become a bone of contention between India and its neighbours. Myanmar has written to the UN complaining that India has broken agreement between the two countries by unilaterally extended its maritime boundary. Countries in the region are trying to set expand their exclusive economic zones in the seas hoping to get access to the gas hydrates and other mineral wealth beneath the sea floor. The government has decided to allow some chemists to sell the drug Tamiflu and its generic variants. Tamiflu can fight the H1N1 virus, which causes swine flu. Authorities have banned retail sales of Tamiflu up till now because they fear people will people will use the drug without prescriptions causing the swine flu virus to develop resistance to the drug. Fortis Healthcare is set to acquire hospitals in Mumbai, Kolkatta and Bangalore. It will buy ten of them from Wockhardt Hospitals. The deal is valued at about Rs909 crore. Analysts say the acquisition will help Fortis expand beyond north India and help the founders on Wockardt Hospitals reduce their debt. Bharti Airtel may be coming closer to a merger agreement with South Africa’s MTN. It’s offering shareholders of MTN a little over $13 billion in cash and shares for a 49% stake. For the deal to go through at least 75% of MTN shareholders must back it. But Bharti also has less room for maneuver because the South African currency the Rand has appreciated against the dollar since merger talks restarted in May. NACIL, the company that runs Air India has written to the government asking it not to allow Kingfisher to operate on the Delhi to London route because it will add to the losses of Air India. Also this week, more than 20,000 Air India employees went on a short hunger strike to protest the airline’s proposal to cut productivity-linked incetives. The private operators of the Delhi and Mumbai airports are asking the government for clearance to hike their service fees by 10%. The service fee consists of various charges for which the operators bill airlines and passengers. After at least two years of delays and protests by local farmers, South Korean steel-maker Posco says it will begin construction of its plant in Orissa in 2010. Posco says it expects to complete its land acquisition by the end of the year. Tata Steel reported a consolidated loss of about Rs2,209 crore for the quarter ending 30 June. The company blames the economic downturn and a slump in its European operations. Appliance makers say they expect people to buy more of their products between Ganesh Chathurthi in August and Diwali in October. One firm LG Electronics says it expects sales in the period to increase by as much as 30% over last year. Some companies are using nostalgia to get customer attention. Bajaj Electricals is bringing back a commercial that has been off the air for more than ten years, Maggi is trying to evoke the past to sell its hot and sweet ketchup, and Garden Sarees is using its iconic advertisement with actress Lisa Ray. Source: LatestNews-Home - Livemint.com | 28 Aug 2009 | 1:51 pm It's a sixer! ET poll pegs Q1 growth ... - Economic Times
Source: Business - Google News | 28 Aug 2009 | 1:44 pm Auto industry sitting on huge idle capacity: Tata MotorsThe auto industry is currently sitting on high idle capacity, and, thus, will be able to supply products as soon as the demand picks up, says Ravi Kant, Outgoing President of SIAM and Managing Director of Tata Motors.Source: Moneycontrol Top Headlines | 28 Aug 2009 | 1:00 pm Sharma to take up drug seizures issue with EU commissionerNew Delhi: India will take up the issue of some European Union (EU) countries seizing consignments of generic drugs in transit with EU trade commissioner Catherine Ashton, commerce minister Anand Sharma said on Friday. Ashton will be visiting the country to attend a World Trade Organization mini-ministerial meeting on 3-4 September. “We will have bilateral discussion with the EU trade commissioner, and this (seizure of Indian drugs) will be on the top of our agenda,” Sharma said during a post-foreign trade policy interaction at the industry lobby group Federation of Indian Chambers of Commerce and Industry. There have been a number of incidents in the recent past when medicine consignments by Indian firms have been seized in transit at European ports on grounds of alleged patent infringement. In 2008, there were 17 cases of medicine seizure in the Netherlands alone, according to a response from Dutch authorities to Health Action International, a non-profit organization, under a freedom of information request. Of these, 16 were shipped from India and one from China. According to European Commission laws, if a consignment of drugs is not patented either in the country of origin or its final destination, it could be seized. India has objected to this, saying that an agreement on trade-related aspects of intellectual property rights (TRIPS) allows such exports as the EU was not the destination of these exports. During the interaction, some pharma companies raised the issue of such non-tariff barriers with Sharma, saying that it has become virtually impossible for them to reach Latin American markets. “That is a very heartening statement. This is a very positive response from him, and these incentives (under the foreign trade policy) will be meaningful if only the non-tariff barriers are removed,” said D.G. Shah, secretary general of the Indian Pharmaceutical Alliance, an industry lobby. Sharma said that India has taken a strong position on the issue. “Strong protest has been registered. Even if legal action is required, the government is fully prepared to that situation,” he said. The minister also indicated that India would not negotiate on the issue in a free trade agreement (FTA) it is discussing with the EU beyond what is already agreed under TRIPS. The EU is seeking a stricter regime of intellectual property rights in the FTA, which would directly affect the large generic drugs industry in India. Sharma said that the government will not accept a situation where the domestic pharma industry is being targeted. “The Indian pharma industry has made commendable contribution to humankind by providing cheaper lifesaving drugs to poor people across continents,” he said. “They have broken the stranglehold of the multinational cartels, which had kept such medicines beyond the reach of the poor people and, therefore, we can understand why our companies are being targeted.” asit.m@livemint.com Source: LatestNews-Home - Livemint.com | 28 Aug 2009 | 12:56 pm UPA: 100 days onThe Congress-led United Progressive Alliance, or UPA, which came to power in May after a decisive mandate, completes 100 days in office on Saturday. Also See Promises (click here) At the start of its second stint, the UPA announced an ambitious agenda, including a slew of development plans that would be concluded by 29 August. These were also spelt out by President Pratibha Patil in her speech to the first joint session of the 15th Lok Sabha on 4 June. A quick review by Mint shows that the government has achieved only partial success in executing the agenda. Illustrations by Jayachandran / Mint Graphics by Sandeep Bhatnagar / Mint Source: LatestNews-Home - Livemint.com | 28 Aug 2009 | 12:55 pm CSB gets shareholders' nod for Federal Bank mergerReplaces three directors who were not in favour of the deal.Source: Business Standard | Front Page Headlines | 28 Aug 2009 | 12:47 pm Novartis moves SC against Glivec orderSwiss drug major Novartis has approached the Supreme Court against a decision of the countrys apex patent complaint redressal forum, the Intellectual Property Appellate Board (IPAB), to deny patent protection for its cancer medicine, Glivec.Source: Business Standard | Front Page Headlines | 28 Aug 2009 | 12:45 pm Roche's SLP against Cipla order quashedThe Supreme Court today dismissed a special leave petition (SLP) filed by multinational drug major Hoffman-La Roche challenging a Delhi High court order of April that allowed domestic drug major Cipla to sell a generic version of lung cancer drug Tarceva (erlotinib) in India.Source: Business Standard | Front Page Headlines | 28 Aug 2009 | 12:44 pm DoT for keeping Chinese out of telecom ordersSuggests ban in 20 states; operators fear price surge, European monopoly.Source: Business Standard | Front Page Headlines | 28 Aug 2009 | 12:40 pm CESC acquires over 50 percent stake in DIPLCity based power utility CESC Ltd has acquired over 50 percent stake in Dhariwal Infrastructure Private Limited (DIPL) which is setting up a 600 MW thermal power station at Chandrapur in Maharashtra.Source: IndiaeNews.com: Business News | 28 Aug 2009 | 12:31 pm Power play: CESC plans to go nationalKolkata: Sanjiv Goenka-led CESC Ltd—which generates and distributes electricity in Kolkata and its suburbs—on Friday announced its intention to expand nationally with a Rs200 crore acquisition of a power project in Maharashtra from a group of investors led by Pune-based Manikchand Group, a leading manufacturer of paan masala and chewing tobacco.  Graphics: Sandeep Bhatnagar / Mint The company said it had paid Rs200 crore for a 50.1% stake in Dhariwal Infrastructure Pvt. Ltd (DIPL), which has obtained “all necessary licences” and acquired 450 acres of land at Chandrapur, 150km from Nagpur, to generate 600MW of power. CESC will be acquiring the rest of the shares in the company by March next year at an “insignificant cost”. DIPL has not started building the plant, which is estimated to cost Rs2,800 crore, according to CESC vice-chairman Goenka. DIPL has, however, secured the right to buy around five million tonnes of coal annually from South Eastern Coalfields Ltd, a subsidiary of Coal India Ltd. “Maharashtra is the most lucrative state for power companies,” Goenka said. “At Mumbai suburban tariffs, we (CESC) would have made Rs1,600 crore in extra profits (every year).” Having secured “a toehold in the west”, CESC is now looking to expand in the north and the south, and is eyeing unfinished power projects across India. “We definitely want more power plants,” Goenka said, adding CESC has a war chest of around Rs1,000 crore for acquisitions. CESC’s shares rose 6.7% to close at Rs380.25 each on the Bombay Stock Exchange on Friday, while the bourse’s benchmark Sensex index gained 1% to end at 15,922.34. Funding for the plant would be tied up by the end of the year, and if all goes well, DIPL would start generating power “within 33 months of financial closure”, according to Goenka. Up to 70% of the funds needed to build the plant would be borrowed. Under an agreement with the state, DIPL would have to sell at least 50% of the 600MW it generates to the Maharashtra State Electricity Distribution Co. Ltd, or MSEDCL (a part of the erstwhile Maharashtra state electricity board). Though regulated by the state government, MSEDCL’s average tariff is Rs5.80 a unit (or 1kW per hour), which is significantly higher than CESC’s average tariff of Rs3.90 a unit. To be sure, DIPL will be selling the remaining 50% that it generates at a much higher price than the MSEDCL rate. CESC expects an internal rate of return (IRR) of around 20% on its investment in Maharashtra. “The problem with the RPG group is its projects often trail schedule,” said an analyst with a Mumbai-based broking firm, who did not want to be identified. “However, the step will certainly boost investors’ confidence because it shows CESC wants to expand nationally.” Asked if CESC’s expectation of 20% IRR from the Maharashtra project is realistic, he said: “It is achievable if it manages to maintain high plant load factor. CESC’s current IRR is around 22%.” Plant load factor is a measure of how well a power firm uses its generation capacity. The firm, which currently generates 975MW at four plants in Kolkata and its neighbourhood, is almost ready to start building a new plant at Haldia in West Bengal’s East Midnapore district. It is also looking to set up power plants in neighbouring states such as Jharkhand, Bihar and Orissa. A new unit at CESC’s Budge Budge plant in Kolkata will be commissioned next month. It will raise its generation capacity to 1,225MW. CESC posted a turnover of Rs3,199 crore and a net profit of Rs409 crore in fiscal 2009. Meanwhile, CESC could sell up to 20% stake in retailer Spencer’s Retail Ltd—a wholly owned subsidiary—to private equity funds. “We will only sell if we get the right kind of investor and the right valuation. People are interested (in acquiring stake in Spencer’s), but we aren’t going to sell to a hedge fund,” Goenka said. Spencer’s, which sells a wide variety of goods ranging from apparels to vegetables, has some 256 stores in 50 cities across the country. Its turnover in fiscal 2009 was Rs1,021 crore. Spencer’s had a total accumulated loss of around Rs200 crore till March. Source: Home - Livemint.com | 28 Aug 2009 | 12:26 pm Regulator wants insurers to change product mixMumbai: In a bid to ensure that more insurance funds flow into infrastructure projects rather than into the equity market, the Insurance Regulatory and Development Authority (Irda) may ask life insurance firms to shift focus from unit-linked insurance plans (Ulips) to traditional products such as endowment plans, money-back policies, pension plans and term policies. According to provisional data by the Life Insurance Council, a representative body of life insurers in India, for the quarter ended June 2009, the total premium generated by private life insurers was Rs13,243 crore, and 85.5% of this came from Ulips.  New guidelines: The LIC headquarters in New Delhi. There are 22 life insurance firms in India, including LIC, the largest and oldest insurer. Ramesh Pathania / Mint “We are examining various ways to get long-term capital for the country’s infrastructure growth from the insurance industry. Companies should generate a minimum amount of capital selling traditional insurance products, instead of focusing mainly on unit-linked products,” said R. Kannan, member-actuary, Irda. However, he declined to comment on what Irda would do to ensure this. “We are examining it but have not yet decided on whether there should be any stipulation on the minimum percentage of total premium that an insurance firm would need to generate from traditional products,” Kannan said. Another senior Irda official said that as a major part of Ulip premiums flows into equity markets, the regulator is concerned that enough long-term money is not being generated for supporting the country’s infrastructure growth. “We are closely watching how the firms are selling insurance products and whether they are raising long-term money,” he said. He declined to be identified as he is not directly involved in this exercise. “Private life insurers should have a fair mix of traditional and unit-linked products in their portfolio. In traditional policies, the companies should increase their share in participatory life insurance plans to provide better support to the infrastructure growth of the country,” Kannan said. A participatory plan provides life cover for a fixed number of years and if no claim is made, gives the insured a cut of the firm’s profits, in addition to the sum assured. In insurance parlance, the profits are termed bonuses. In sharp contrast to Ulips, the investment norms for traditional insurance products are stipulated by Irda. Under its norms, a life insurer is required to invest at least 50% of premiums in government securities, 15% in infrastructure-related projects and companies, and the remaining 35% in equities, mutual funds, non-convertible debentures, and other money-market instruments. Bonuses given on such life insurance plans represent the returns on investing in those products. As the government envisages $500 billion (Rs24.45 trillion) investment in India’s infrastructure developments by 2012, the insurance regulator is concerned that private life insurance players contribute only a minuscule portion to this growth, as the bulk of their premium comes from Ulips and gets invested in stock markets. There are 22 life insurance companies in India, including the state-run Life Insurance Corp. of India, the largest and oldest player. Private insurers hard sold Ulips in past few years, riding high on a bull market. The Sensex, the country’s bellwether equity index, rose seven times, from around 3,000 in March 2003 to 21,200 in February 2008. After the Sensex lost 52% in 2008 after a 45% annual rise for three years in a row, investors’ appetite for Ulips was dented. This also pulled down the premium income of insurance players in 2008 and at least some of them recorded a decline in such income for the first time since India allowed private players to set up shop earlier this decade. According to the Life Insurance Council, total assets held by private sector life insurers in equity stood at Rs81,294 crore as on 30 June against Rs45,641 crore a year earlier. In contrast, their investment in the infrastructure sector stood at Rs16,255 in June, up from Rs10,077 crore in June 2008. “It is desirable to bring a minimum amount of premium through traditional policies. We have been making efforts to achieve this,,” said S.B. Mathur, secretary-general of the council. “We agree with Irda on bringing more capital of long-term nature from traditional policies. We are planning to grow the premium in our traditional products by 30-40% this financial year,” said Sam Ghosh, chief executive officer, Reliance Capital Ltd, which owns Reliance Life Insurance Co. Ltd. At present, Ulips constitute 95% of its new business premium. Some 90% of the June quarter premium income of the country’s largest private sector life insurer, ICICI Prudential Life Co. Ltd, was generated from Ulips. For the year ended March, the company collected a total premium of Rs15,350 crore, of which about Rs13,800 crore came from Ulips. According to Sashi Krishnan, chief investment officer of Bajaj Allianz Life Insurance Co. Ltd, the nature of investments depends on investors’ appetite. “It is true that long-term money in traditional products could be put into long gestation infrastructure projects, but it is the investor who decides which product to buy,” Krishnan said. About 85% of Bajaj Allianz’s premium income comes from Ulips. “We will focus on increasing the mix of traditional policies, but investors’ choice is most important. Bringing a minimum regulatory requirement as premium from traditional products could impact the freedom of insurers,” Krishnan added. Jayant Khosla, chief executive officer, Future Generali India Life Insurance Co. Ltd, seconds Krishnan. “We cannot dictate the customers to buy traditional products. The customer will buy a policy, based on his risk-return profile,” he said. Source: Home - Livemint.com | 28 Aug 2009 | 12:25 pm Catholic Syrian Bank gets 3 new board members, moves closer to merger with Federal Bank Kochi: Three new members were elected to the board of Kerala-base Catholic Syrian Bank (CSB) on Friday at the bank’s annual general body meeting. The new additions gain significance in light of almost year-long attempts to merge CSB with Kerala-based Federal Bank. K.A. Menon, George Sebastian and George Chemmanur, whose terms ended Friday, have been replaced by Iype Peter, Samir Bhasin and T.S. Anantharaman. Iype Peter, a former Federal Bank employee who was elected to the CSB board last year had quit in January, paving the way for S. Santhanakrishnan, who quit the Federal Bank board, to join the CSB board and hasten the merger process. Federal Bank currently holds a 4.99% stake in CSB. A CSB board member said on condition of anonymity that the new board was unanimously in favour of a merger with Federal Bank. However, the proposal would have to officially come from the Federal Bank. “With the new board at CSB now all in favour of a merger, Federal may now consider hastening things,” he added. CSB has also formed a three-member board committee to conduct due diligence and that the process was ongoing, he added. M. Venugopalan, managing director of Federal Bank, had earlier said that his bank was open to having a say in the affairs of CSB keeping in mind the possible `cultural synergy’ of two Kerala-based banks. He was not available for comment for Friday’s development/ Source: LatestNews-Home - Livemint.com | 28 Aug 2009 | 12:25 pm Quick edit | Atomic vistas, up closeWerner Heisenberg, Erwin Schrodinger and other pioneers of atomic physics could not have dreamt it. Imagine viewing a molecule up close, its chemical bonds and the silhouette of its atoms almost as if they could be felt. Until the other day this would be called a dream. But now a team of scientists from IBM in Zurich have clicked a picture of a molecule called Pentacene, which has five hexagonal carbon rings fused together. They used some neat physics and a device called an atomic force microscope for the job. Such discoveries are often treated as scientific curios and no more. But this promises to be different. Consider the process of drug discovery, say, that of anti-cancer drugs. So far, scientists have a bag of molecules they can tinker with to create more powerful drugs, plus there are the hit-and-trial discoveries. The new process may make it possible to tinker with DNA from viruses and cancer cells just as one fixes things with tweezers. Today that sounds like fiction, tomorrow that is likely to be for real. Source: Home - Livemint.com | 28 Aug 2009 | 12:24 pm G.S. Vedi appointed CMD of Punjab and Sind Bank Mumbai: State-owned Punjab and Sind Bank on Friday named G.S.Vedi, executive director of the bank, as its chairman and managing director, effective 26 August. Vedi takes over from R.P. Singh, an Indian Administrative Service officer, a release from the bank said. Source: LatestNews-Home - Livemint.com | 28 Aug 2009 | 12:14 pm RBI bans chit funds from taking public depositsMumbai: The Reserve Bank of India (RBI) has banned chit funds from accepting public deposits with immediate effect, the central bank said in a Friday notification. Any deposits accepted by miscellaneous non-banking companies, “other than from its shareholders as on date shall be repaid on maturity and shall not be eligible for renewal,” RBI said. Source: LatestNews-Home - Livemint.com | 28 Aug 2009 | 12:10 pm Current mkt scenario apt to raise funds: Ashok LeylandTractor trailor and haulage segment is seeing an upward traction, said R Seshasayee, MD, Ashok Leyland. He further added that tripper will go up with pick up in infrastructure.Source: Moneycontrol Top Headlines | 28 Aug 2009 | 12:09 pm Banks to cap third party ATM cash withdrawals from mid-October Mumbai: The Indian Banks’ Association (IBA), an industry lobby, has asked its members to impose a Rs10,000 cap per third party cash withdrawal from automated teller machines, or ATMs, beginning 15 October. Such withdrawals will also be capped at five a month. The IBA has sent a circular to its 150 members directing them to implement the decisions from mid-October, a person familiar with the development said. Earlier this month, the Reserve Bank of India (RBI) had imposed a Rs10,000 cap per withdrawal from ATMs not owned by the bank in which the customer has an account, besides limiting such transactions to five in a month. The apex bank had sent a communication in this regard to Indian Banks’ Association (IBA). IBA had submitted its recommendations to the central bank last month citing the financial burden faced by banks on account of huge number of third party usage and small-ticket withdrawals. Beginning 1 April, RBI had declared third party ATM usage, including cash withdrawals and account enquiries, free for all customers and had said that banks can charge Rs18-Rs20 per month from other banks in case of third party ATM transaction. Source: LatestNews-Home - Livemint.com | 28 Aug 2009 | 12:05 pm RBI forex reserves rise to $271.96 billionMumbai: The foreign exchange reserve of the Reserve Bank of India (RBI) increased by $932 million to $271.96 billion for the week ended 21 August, according to the latest weekly statistical supplement of the central bank. Credit growth has dropped to 14.9% for the week ended 14 August from 15.8% a fortnight before, the supplement said. Source: LatestNews-Home - Livemint.com | 28 Aug 2009 | 11:58 am HC dismisses Subhiksha compromise pleaNew Delhi: The Madras high court on Friday dismissed a petition filed by a shareholder of Subhiksha Trading Service Ltd that sought a compromise between the beleaguered retailer and its creditors. “The court thought the compromise will not be a worthwhile one and, therefore, dismissed (the petition),” said Prakash Goklaney, a lawyer representing Subhiksha. “It said the compromise appeal is conditional to a merger and the debts will be discharged by a (proposed) merged entity.” Goklaney was referring to Subhiksha’s plans to merge with Blue Green Constructions and Investment Ltd, a company that the Chennai-based retailer acquired last year. Earlier this month, Subhiksha’s shareholder Cash and Carry Wholesale Traders Pvt. Ltd had filed an application under Section 391 of the Companies Act, 1956, to seek a compromise between Subhiksha and its creditors to whom the retailer owes at least Rs750 crore. R. Subramanian, managing director of Subhiksha, said that Cash and Carry Wholesale plans to appeal against the dismissal once it receives the court’s order. Cash and Carry Wholesale Traders is indirectly owned by companies promoted by Subramanian. While dismissing the Cash and Carry Wholesale’s petition, the court also admitted two winding up petitions filed against Subhiksha by Kotak Mahindra Bank Ltd and HCL Infosystems Ltd. Kotak Mahindra is not a part of the bank consortium that is working on a corporate debt restructuring (CDR) scheme to revive the retailer. Subhiksha owes Rs40 crore to Kotak Mahindra. The bank’s lawyer Karthik Seshadri confirmed the dismissal of Cash and Carry Wholesale’s compromise petition. Thirteen banks, including ICICI Bank Ltd, HDFC Bank Ltd and Bank of Baroda, have asked for an extension of CDR after they failed to complete the process by its 31 July deadline. “The company is confident that the order admitting the winding up petitions for hearing by the (Honorable) Court has no bearing whatsoever on its revival plans,” Subramanian said in an emailed press statement. Once the country’s largest operator of discount supermarkets, Subhiksha earlier this year shuttered its operations of about 1,600 stores after it ran out of money as it failed to raise cash either from the stock market or from banks. Meanwhile, Subramanian said Subhiksha will continue with its efforts to revive. Source: Home - Livemint.com | 28 Aug 2009 | 11:56 am Markets | Govt begins discussions on SAIL stake saleMumbai: The government held initial talks on the sale of a stake in Steel Authority of India Ltd, (SAIL) the nation’s second biggest producer, steel secretary Pramod Rastogi said. The government has yet to decide on the size of the stake, Rastogi said on Friday in a telephone interview. The New Delhi-based steel maker is considering selling shares to partly fund expansion, chairman S.K. Roongta said earlier this month. SAIL plans to increase capacity more than two-thirds to 23.46 million tonnes by March 2012. Source: LatestNews-Home - Livemint.com | 28 Aug 2009 | 11:54 am Auto industry is sitting today on high idle capacity: Ravi KantTata Motors Ltd managing director Ravi Kant, who is also the outgoing president of industry lobby group Society of Indian Automobile Manufacturers (Siam), said the auto industry is currently sitting on high idle capacity. He also said in an interview that most serious external factors for the sector are the economy and infrastructure spend, but there has been a greater understanding between the government and the industry. On his company’s small car TataNano, Kant said that the demand for the small car was huge but the production was limited. However, he added that Tata Motors would by mid-2010 produce Nano at its full capacity of 20,000 units a month and he was not worried about order cancellations. Edited excerpts:  Clear goal: By mid-2010, says Ravi Kant, Tata Motors will reach capacity production of 20,000 units a month in the case of the Nano. Ramesh Pathania / Mint You’ve probably been spearheading Siam at the time when the situation for the auto sector has perhaps been the worst that the country has seen in a long time. As you leave this chair, are you cautiously optimistic? Are you feeling more confident about the situation as it stands? Yes, I think so. Last year was quite bad and especially Q3, (the third quarter) which is the October-December quarter, the industry went through some very wrenching times. But hopefully now things are working out somewhat better. There are still some segments like commercial vehicles that are under stress. But two things have come out quite clearly. One is I think the government has come out very strongly and has worked with industry, has listened to the woes of the industry. It is not that we have just been asking for anything. We have been giving a lot of logic and there has been a very open and frank discussion and a lot of items in the stimulus packages one and two were announced, which were beneficial to the industry. So I think there has been a greater amount of understanding between industry and government during this period, which I think is a very positive development, if I may say so, out of this crisis. The other is I think like in any crisis, the industry then begins to look at things it would normally not do. Internally, at cost and new products and things like that, and I think a lot of work has been done there as well, which will now show up as the market begins to expand. In the long run, I think the auto industry has a very strong future as far as India is concerned, no question about that. The automotive mission plan, which was unveiled by the Prime Minister two years ago, has really all the strong points and I personally have no doubt about it that we will see a very bright future. Would you envisage single-digit growth till the end of this year and perhaps double-digit growth only as far as 2010 is concerned? Would that be your prognosis given the situation on the ground? Normally, I personally don’t hazard a guess and we don’t give that kind of futuristic thing especially the more recent things, because if I give a complete thing for the auto industry it will not be representative. If you’d like to break it down into different segments—two-wheelers, passenger vehicles, commercial vehicles—how would you like to break it down? I would say the ones that are more consumer oriented, they are going to be doing well. Which means passenger vehicles, cars and two-wheelers? Two-wheelers and things like that, and which will begin to catch up. And the ones which depend a lot on infrastructure spending, a lot on GDP, IIP (index of industrial production) and export and import, I think that is going to take some time. You yourself at Tata Motors have begun to see a tame turnaround as far as commercial vehicle (CV) sales are concerned. What is the situation on the ground as far as CV sales are concerned? Do you think it is sustainable? Is it likely to improve further from these levels? I think the sales have been improving that way, if I say from a more negative—it was -70% and now it is -30%, -20%, especially in medium and heavy trucks segment. As far as the light commercial vehicle is concerned, I think it is beginning to show growth. But you have to understand one thing, in light commercial vehicles the whole growth is actually driven by Ace, manufactured by Tata Motors, and because of that the whole light commercial segment is showing an increase. We do hope that it will continue because if you see how the urban and the rural areas are coming together and how the economic activity is going around the country. There is still some time to go before it comes back to real growth, I would say. One of the challenges the sector grappled was with high input costs and that completely changed over last year. If you were to look at external factors, what do you think the auto sector has to grapple with in terms of the most serious external factors? The most serious factor I would say is the economy itself because at the end of the day, if the economy is doing well then everything gets a boost and each segment reacts differently to it. The other is spending on infrastructure because as (road transport and highways minister) Kamal Nath has said, “You guys produce vehicles but it’s my job to make roads”. I think he should have first said he does the roads and then we produce vehicles. But, in fact, it has to go hand in hand. So if the government is taking a leap forward saying that they will make 20km of roads per day, I am sure the auto industry would not be wanting to make investments. Out of nearly Rs80,000 crore investment that was envisaged, Rs50,000 crore has been already invested. So actually the auto industry is sitting today on high capacity, and therefore, as soon as the demand picks up, they will be able to supply it in no time at all. Thus the idle capacity is certainly causing major drag on the industry and profitability and that can only be salvaged if the demand picks up. You are meeting perhaps all of the industry at Siam meet. What is the sense you are getting? Have the liquidity concerns eased, have their funding concerns eased, working capital concerns eased? What is the sense you are getting now that you been speaking with CEOs from everywhere in the sector? I would say about a year ago we were in great difficulty, no question on that. It was as if the entire liquidity system had frozen and people were finding it very difficult to get funding, especially small and medium enterprises. Banks had withdrawn financing of vehicles to consumers and some very big ones had withdrawn so suddenly and that created a huge gap and that took quite some time for the gap to be filled in. But now fortunately it has been filled in with many more players and surprisingly players from public sector banks have come in a very aggressive manner led by SBI (State Bank of India) itself and I think they have done a remarkable job in filling the gap and taking over all the slag and actually moving the whole thing forward. One of the other things which we saw last year in the industry was that a lot of global alliances got struck such as Renault SA and Nissan Motor Co. Ltd with Mahindra and Mahindra Ltd, Bajaj Auto Ltd and Nissan with Ashok Leyland Ltd. Do you see a lot more of that happening in India? Also, in terms of acquisitions, do you see Indian auto firms stepping back into the market and looking at acquisition? Not immediately, but I think give it one more year, when people begin to feel quite confident, now at least for the next five-six years, it is going to be the upside in the growth cycle. Those things will come back because ultimately those are required for growth because you just can’t grow by organic, means, you need to have inorganic growth, partnership to grow because you suddenly cannot create technology, you need to acquire it. So all these things will begin to happen as the growth story begins to unfold again. People will find ways and means of doing it and it’s the same things like M&A, tech partnerships and other things and steps to make this happen. cnbctv18@livemint.com Source: Home - Livemint.com | 28 Aug 2009 | 11:38 am Wilbur Ross invests in Satyam after losing bid for controlMumbai: Billionaire investor Wilbur Ross has acquired the second largest stake in the US securities of Satyam Computer Services Ltd, after missing out in an April auction for control of the software developer.  Billionaire investor: WL Ross Co. chairman and CEO Wilbur Ross. Matthew Staver / Bloomberg Invesco Private Capital Inc., controlled by Ross, bought 1.8 million American depositary receipts, according to filings to the Securities and Exchange Commission. The securities, equivalent to two of Satyam’s Indian shares, were worth $3.11 (Rs152.79) apiece at the end of June, according to the filing. Ross in April offered the equivalent of 80 cents per depository receipt for a controlling stake. Satyam, at the centre of India’s biggest corporate fraud, has more than doubled since Pune-based Tech Mahindra Ltd, a software provider, won the auction on 13 April. The government took over the management of Satyam after founder B. Ramalinga Raju’s January admission that he overstated assets by $1 billion. Tech Mahindra chairman Anand Mahindra, who outbid Ross and Larsen and Toubro Ltd (L&T) with a $579 million offer in April, has said he’s taking a calculated risk in buying Satyam before the company restates accounts and without clarity on liabilities from lawsuits in the US. Ross, who made his fortune taking over bankrupt steel, coal and textile companies, offered Rs20 and L&T bid Rs45.9 a share, Satyam chairman Kiran Karnik said on 13 April. Ross didn’t immediately respond to emailed questions about his investment in Satyam. The investment makes Invesco the second largest shareholder in Satyam’s depository receipts, behind Security Investors Llc, according to data compiled by Bloomberg. Ross invested in SpiceJet Ltd, India’s second largest budget airline, in July last year after record fuel costs deepened the Indian carrier’s losses. In February 2007, Ross acquired OCM India Ltd, a worsted suiting maker, for about $37 million, in his first investment in India. Source: Home - Livemint.com | 28 Aug 2009 | 11:32 am CESC buys over 50% in DIPL; looks to up stake to 100%India Electricity supplier, CESC has acquired just over 50% stake in Dhariwal Infrastructure Private Ltd (DIPL) for Rs 200 crore. The company plans to increase its stake in DIPL to 100% gradually.Source: Moneycontrol Top Headlines | 28 Aug 2009 | 11:30 am Volkswagen expects 2 mn car sales in India by 2014German automobile manufacturer Volkswagen expects to sell two million cars in India by 2014.Source: IndiaeNews.com: Business News | 28 Aug 2009 | 11:30 am Samsung optimistic about cell phones businessElectronics major Samsung India Friday said it expected its mobile phone business to contribute 25-30 percent of its $2.5 billion turnover this year.Source: IndiaeNews.com: Business News | 28 Aug 2009 | 11:30 am Villagers make official eat bitter meal to protest lack of workWhen an official of the National Rural Employment Guarantee Scheme (NREGS) came to a village in Uttar Pradesh's Chandauli district Friday to check on the progress of projects, villagers made him eat the same meal they do - made of bitter plants avoided even by grazing animals - to protest the lack of any work.Source: IndiaeNews.com: Business News | 28 Aug 2009 | 11:30 am Maruti Suzuki plans to expand India businessMumbai: India’s car sales will accelerate this fiscal year as economic growth helps the country withstand a global slump in automobile demand, an industry group said, spurring Maruti Suzuki India Ltd to increase investment. “Car sales are forecast to grow at least 10% in the year to March, double an April estimate for a 5% expansion,” Dilip Chenoy, director general of the Society of Indian Automobile Manufacturers, said in an interview in New Delhi on Friday.  Higher gear: A Maruti Suzuki showroom in New Delhi. Indian car makers sold 1.22 million cars last fiscal. Ramesh Pathania / Mint Motors Co. and Toyota Motor Corp. are among car makers increasing bets on India, China and other emerging markets as sales in the US, Japan and Europe fall. “Sentiments have improved and pent-up demand is coming back,” Chenoy said. “Interest rates now are better than before and the stimulus package by the government has also helped.” Indian economic growth may accelerate to as much as 7.8% this year as the US economy shows signs of “bottoming out” and harvests benefit from monsoon rains, the finance ministry had said on 2 July. China, Japan, and the US are among countries offering a mix of credits, tax breaks and subsidies to boost auto sales by getting consumers to trade-in old cars for newer, more fuel efficient models. The Reserve Bank of India injected about Rs5.6 trillion into the economy, which together with the government fiscal stimulus amounted to nearly 12% of the gross domestic product. The central bank kept borrowing costs unchanged in its last monetary policy statement on 28 July. Car sales in India gained 1.3% in the fiscal year ended in March, the slowest pace in at least seven years. Sales may reach three million units a year by 2015, helped by new models such as the Tata Nano, the world’s cheapest car, and higher incomes for the nation’s 50 million middle-class population, according to a 2006 government forecast. Osamu Suzuki, chairman of Suzuki Motor Corp., will be in New Delhi in September to discuss a plan to expand facilities, Maruti Suzuki chairman R.C. Bhargava said. Honda, Japan’s second largest auto maker, will increase production in India by 50% starting next month to 7,500 units, Jnaneswar Sen, vicepresident in charge of marketing at Honda’s India unit, said. “The economic growth is still very good, the stock market is better and job recruitments are happening,” Sen said. Source: Home - Livemint.com | 28 Aug 2009 | 11:24 am RIL refutes ADAG\'s allegation of windfall profitsReliance Industries has refuted ADAGs allegation about windfall profits. It said that the governments profit share would be USD 16.5 biilion over the life of D1 and D3 gas field and that Reliance would get only USD 10.7 billion of the net profit over life of the field.Source: Moneycontrol Top Headlines | 28 Aug 2009 | 11:16 am Sensex lifeline: high beeps and pratfallsBharti Airtel (4.4% up) Shares of Bharti Airtel Ltd gained 4.49% on the National Stock Exchange on Friday. The Securities Appellate Tribunal (SAT) on Friday dismissed a shareholder’s petition on the Bharti-MTN open offer, stating that the appeal was “premature” and “infructuous”. KEC International (8.87% up) Shares of KEC International Ltd were up 8.87% after the firm won an order worth Rs780 crore. The firm told CNBC-TV18 that its order book may cross Rs5,500 crore on winning this order. The orders can be executed over 18 months and the firm expects to maintain margins at 10%. Unitech (5.59% up) Shares of Unitech Ltd ended at Rs99.10, up 5.59%, on Friday ahead of the scrip getting included in MSCI Inc. on 31 August. Unitech is one of the three largest additions to the MSCI Emerging Markets Index. MSCI had announced the additions on 12 August, but the changes will be effective from Monday. Amtek India (8.18% up) Shares of Amtek India Ltd were up 8.18% on reports that the auto ancillary market will grow by 8.5% in 2009-10 due to 7% growth in original equipment manufacturers segment so far in 2009 and an 8.5% rise in exports. The company’s shares closed at Rs49.60, each, on Friday. Voltas (6.42% up) Shares of Voltas Ltd gained 6.42% on Friday. CNBC-TV18 reported that the firm is likely to win orders worth Rs2,000-2,500 crore in the next one year, which is nearly 50% of the current order book. The company is also looking at acquiring small niche firms in the oil and gas sector, water treatment space. CESC (6.78% up) The CESC Ltd stock gained 6.78% after the company acquired a stake in Dhariwal Infrastructure Pvt. Ltd (DIPL), which is engaged in setting up a 600MW thermal power generating station at Chandrapur in Maharashtra. Post this acquisition, DIPL has become CESC’s subsidiary. BGR Energy (6.12% up) BGR Energy Systems Ltd were up 6.12% after winning a second order in one week. The latest order is nearly 10% of the current order book. It secured an order worth Rs1,633 crore for 2x 500MW Marwa thermal power project in Chhattisgarh, funded by Power Finance Corp. Ltd. Astra Microwave (5.50% up) Astra Microwave Products Ltd gained 5.50% after the firm won an order worth Rs81.3 crore from the Defence Research and Development Organisation which will be completed within the next 30 months. The company says that the order book will go up to Rs290 crore post this order. Source: Home - Livemint.com | 28 Aug 2009 | 11:15 am KEC International wins orders worth Rs 780 croreKEC International a global leader in the power transmission EPC business and an RPG group company, has won orders in the domestic and international space to the tune of Rs. 780 crore.Source: Moneycontrol Top Headlines | 28 Aug 2009 | 11:14 am Mahindra seeks US facility for car assemblyNew Delhi: Utility vehicle maker Mahindra and Mahindra Ltd is looking at options to buy a US facility for assembling its pickup trucks that would save it an import penalty, a senior official said on Friday. Mahindra, which sells tractors to US farmers and has three local assembly plants, plans to launch pickup trucks in the US in phases from 2010 and the Scorpio vehicle within a year after that, said Pravin Shah, executive vice-president of international operations. “We are exploring various options,” Shah said, adding that the acquisition of a facility would be the most economically feasible option. Asked about the demand outlook for the firm’s vehicles in the US, Shah said: “We have found sweet spots for ourselves.” He said the pickup trucks will be “competitively priced”, and that the US would become the company’s largest export market in “some time”. Mahindra has planned a total outlay of around $100 million (Rs489 crore) for the US launches, of which about $80 million has been spent, Shah said. Mahindra exports its Scorpio and Bolero cars to 22 countries in Africa, Latin America and Europe. Its export volumes fell to 9,000 units in the year to March from 13,000 in the previous year. “We expect it to be slightly better this year,” Shah said. Source: Home - Livemint.com | 28 Aug 2009 | 11:01 am Bond auction fails to enthuse buyers despite high yieldsMumbai: There were not too many takers for government bonds at an auction on Friday despite a steep rise in yield. The cut-off yield on a seven-year paper was 7.4409%, higher than the Reuters estimate of 7.3260%. Similarly, the cut-off yield on a 12-year paper was 7.9906% and that of a 23-year paper, 8.2018%. The Reuters estimate for the yield of 12-year paper was 7.8978% and 23-year paper, 8.2008%. The Reserve Bank of India (RBI) planned to sell Rs6,000 crore of the seven-year bond and Rs4,000 crore of the 12-year bond. Despite offering higher yields, the Indian central bank failed to sell Rs431 crore of the seven-year bond and Rs271.77 crore of 12-year bond, signifying bond dealers’ lack of interest in buying securities even as the market is flooded with government bonds with continuous supply. The primary dealers, the underwriters of these bonds, had to buy the unsold part. However, the 23-year bond was sold out. The government plans to raise Rs4.51 trillion from the market in 2009-10 to bridge an estimated 6.8% fiscal deficit. Out of this amount, RBI, the government’s investment banker, plans to raise Rs2.99 trillion by September. So far, it has raised Rs2.49 trillion. “Devolvement at these yields shows the level of disinterest market has for government bonds,” said Srinivasa Raghavan, head of treasury at IDBI Gilts Ltd, a primary dealer that buys and sells government bonds. Terming the cut-off yields as “extremely high”, a dealer with a foreign bank blamed the lack of interest rate signals from RBI. The dealer, who did not want to be named because he is not authorized to speak to the media, said RBI’s open market operation (OMO) has failed to enthuse the market. RBI buys bonds from the secondary market to take the pressure off from banks and other bond buyers and creates demand for bonds sold through auctions. “When RBI buys bonds, it demands higher yields but when it sells at auctions it expects lower yields,” the dealer said. Bond prices and yield move in opposite directions. RBI had cancelled a Rs12,000 crore auction early this month when traders demanded higher yields. On Thursday, RBI bought only Rs2,657 crore of bonds against its plan to buy back Rs6,0000 crore from the market. Under OMO, RBI plans to buy up to Rs80,000 crore worth of government bonds in the first half of the current fiscal. According to dealers, future auctions will continue to see higher cut-off yields and RBI may not have any choice but to oblige the buyers. Dealers said immediately after an auction, the bond price drops in the secondary market, forcing buyers in the primary auctions to book losses. The yield on the 10-year benchmark bond, which dropped to 4.86% in January, has gone up to 7.30% now. It may rise even further on oversupply and lack of demand. The high government borrowing programme may also crowd out private investments and put pressure on loan rates. Source: Home - Livemint.com | 28 Aug 2009 | 10:50 am Print medium ad prices likely to hike up: ENILPrashant Panday, CEO of Entertainment India Network Limited (ENIL) told CNBCTV18 that the prices are likely to hike up and that there is a lot of anticipation regarding the same.Source: Moneycontrol Top Headlines | 28 Aug 2009 | 10:41 am Intel raises Q3 revenue outlookNEW YORK (Reuters) - Intel Corp raised its outlook for third-quarter revenue on stronger-than-expected demand for its microprocessors and chipsets, offering the latest signal that spending on computers is on the upswing.Source: Reuters: Money News | 28 Aug 2009 | 10:17 am Monsoon worst in 40 yrs, crops, power at riskNEW DELHI (Reuters) - India's monsoon rains may improve next month but are still set to be the worst in four decades, and the associated slow filling of reservoirs is putting winter crops and power supplies at risk.Source: Reuters: Money News | 28 Aug 2009 | 9:14 am Ashok Leyland-Nissan truck to hit the road mid-2010The joint venture between commercial vehicle maker Ashok Leyland and Japan's Nissan Motors will roll out its first product by middle of next year.Source: IndiaeNews.com: Business News | 28 Aug 2009 | 9:02 am Fiat expects surge in sales in the festive seasonFiat India Automobiles, a 50:50 joint venture between India's Tata Motors and Italy's Fiat, Friday said it expects to sell about 3,500-4,000 vehicles in the upcoming festive season.Source: IndiaeNews.com: Business News | 28 Aug 2009 | 9:02 am Ford India to launch small car in IndiaFord India Friday said it will launch a small car in 2011 in order to tap the growing market for compact cars in the country.Source: IndiaeNews.com: Business News | 28 Aug 2009 | 9:02 am FMCG cos lean on farm sops, pricing to beat rain woesMUMBAI (Reuters) - A poor monsoon may bite off a huge chunk of demand for consumables, especially in rural areas which thrive on agricultural income, but friendly government schemes and lower price points may lessen the impact, say officials.Source: Reuters: Money News | 28 Aug 2009 | 5:39 am China asks banks to curb month-end lendingShanghai: China’s banking regulator has given Chinese banks verbal instructions not rush into end-of-the-month lending, among several other loan-cooling steps, a move analysts said may further hit China’s weakening stock market and even investment in the economy. The China Securities Regulatory Commission used traditional government “window guidance”, in which the authorities told Chinese institutions how to act in line with official policies, to guide banks to avoid lending excessively as August drew to a close, several Chinese bankers said on Friday. The fresh controls came after a series of other steps, including tighter supervision on bank working capital, and contrasts with repeated official statements that China would keep ample liquidity in the system and maintain an easy monetary policy to support nascent economic recovery. Banking sources told Reuters that Chinese banks had lent about 200 billion yuan ($29 billion) so far this month, with the four biggest state-owned banks lending around 100 billion yuan. If lending in August continues at such levels, it will lag far behind the 360 billion yuan recorded in July and a monthly average of more than 1 trillion yuan for the first six months of this year. “Most banks have been very cautious in lending so far this month, and had hoped to lend more late in the month to compensate,” said a banker at a state bank. “But the regulator’s window guidance dashes hopes for an end-of-month rush.” Review lending patterns The regulator has also required China’s relatively small city commercial banks to review their lending patterns or even cut lending for the rest of the year and abide by a regulatory requirement that outstanding loans must not exceed 75% of total deposits. “The regulator particularly stresses that banks must not rush into end-of-the-period lending, proposing banks to monitor average daily lending as a way of supervision,” said another source, adding the regulator had made it clear it would punish rule violators severely. Chinese banks typically lend in extraordinary amounts at the end of each month, quarter and year in order to book better results. Analysts said August bank lending now appeared set to be lower than total new loans of 271.5 billion reported in August last year, and to be the first month this year that new loans record a year-on-year fall. If this happens, liquidity worries will become a huge negative psychological burden for the market, analysts said. “The market had expected lending to fall in August but not so sharply,” said senior economist He Zhicheng at Agricultural Bank of China in Beijing. “Such a drop will surely weigh on the stock market, with the index possibly testing a low (for this year) for a second time,” he said, adding that the drop would also hit the recovery of the real economy, with some new projects expected to be short of funds right after the start of their construction. On the weight of the lending news, The Shanghai Composite Index closed 2.91% lower at 2,860.688 points on Friday, posting a 3.38% loss for the week. On 19 August, it touched a low for the year of 2,761 points after a two-week market slump driven partly by worries over liquidity. Some analysts expect the index may test its 125-day moving average, now at 2,750 points, due to mounting worries over bank lending and consequently liquidity in the stock market. Source: World Business - Livemint.com | 28 Aug 2009 | 3:18 am
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