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BMW drives into Chandigarh
Sahnewal airport to boost development
Spice plans to woo common man
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ITC signs franchise pact
Institutions eye 41 pc stake of BSE
L&T to ramp up capacity
Economists fear flight of foreign money
Industrial output up by 11 per cent
North-East key to higher growth trajectory: Nath
Betting against Nifty
Deep Kapuria is chairman CII (N)
WTO Doha Round Industrial output up by 11 per cent
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Jet shareholders’ spirits fail to take off
Mumbai, April 12 However, it is unlikely that shareholders of the private carrier would share the NRI businessman’s feelings, as the discount represents barely one-fifth of the market value the company has lost since it began this courtship. After the two firms today agreed on a revised deal today, Goyal said the revised price of Rs 1,450 crore to buy out Air Sahara represents a 40 per cent discount to the original price of Rs 2,300 crore. Though Jet Airways’ shares today bounced back by over 3 per cent on the bourses, following days of downward journey mostly driven by concerns over the Sahara deal, the company has lost close to Rs 4,500 crore in its market value since January 18, 2006, when it first announced a deal to acquire Air Sahara. Jet’s market capitalisation today stood at about Rs 5,400 crore, as against Rs 9,930 crore on January 19. While Jet has managed a bargain of about Rs 900 crore, this represents just about 20 per cent of the market cap loss of about Rs 4,500 crore in the past 15 months. Besides, the market cap loss, analysts said that investors were also worried about the limited prospects for gains that Jet could reap from Air Sahara, which has lost nearly half of its market share since the two companies began talks for a possible merger.
— PTI |
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BMW drives into Chandigarh
Chandigarh, April 12 Considering the fact that the company sold just 257 cars across the country last year, the destination may appear out of sight. "But then, this year is different. The company was not manufacturing cars in India until last year. Now, it has a production unit in Chennai and is in the process of developing dealerships," says BMW India president Peter Kronschnabl. In Chandigarh for the inauguration of a dealer facility at Krishna Automobiles, he says: BMW believes in fulfilling its commitment of providing the customers with top quality products and innovative technology, instead of setting targets. But still, the organisation is hoping to target 1,200 customers countrywide this year". Member of the company's board of management Michael Ganal says the company has sold negligible number of vehicles so far in Punjab as the company does not believe in offering its products at places where it cannot provide service backup. But now they are looking at the Punjab market from a positive angle as the state is one of the wealthiest in the country. Chandigarh, in fact, has the highest per capita income. In future, the company can go in for a second outlet at Ludhiana, but in Chandigarh no more dealers will be appointed. Quoting countrywide figures, he says: With 1.2 million vehicles, the Indian automobile market has a huge potential. The market is expected to double itself by 2015. Out of the total cars sold in India last year, 5,000 were in the premium segment. The company, however, has no plans for introducing bikes in the country as the market here “is different”. "BMW bikers ride for the pleasure of it. For them, it may be an expensive activity, but then they like it. In India, the concerns and priorities are different," says Ganal. |
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Sahnewal airport to boost development
Ludhiana, April 12 “Connectivity has been an issue. Better infrastructure would help us deal better with our clients to whom travelling for long hours acts as a deterrent. It would save on time and costs if the facility comes up,” said Rajinder Gupta, chairman, Trident Group of Industries. “A leading industrial town sans airport is a big drawback which makes industrial units reluctant to invest here. Even industrialists, many times, avoid visiting other places on account of long travelling hours. I am quite hopeful that the facility would be available soon and contribute significantally to the economical development of the state," said S P Oswal, chairman, Vardhman group of companies. Besides saving time, benefits like saving in freight and reduction in hassles would also accrue. “Currently if there is a problem in getting clearance at the Mumbai airport, one has to travel all the way to that place to ensure that his goods reach their destination. The development of airport at Sahnewal would erase all such bottlenecks,” felt S C Ralhan, regional chairman, Engineers Export Promotion Council. He said that the very fact that the new government had taken up the issue so soon is an indication of its seriousness to pursue it. “Direct flights at economical rates by companies are a must if people are to benefit in the real sense. Apart from industrialists, students and professionals who travel frequently would also stand to benefit,” said Rupjit Saggar, executive director of Saggar Travels.
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Spice plans to woo common man
Mohali, April 12 It is also setting up call centres at Mohali and other places, besides adding approximately a 100 mobile towers a month. The company is also in the process of coming up with “hot spots” or retail stores. To begin with, the company will launch 150 retail hubs with full range of mobile sets. The number will gradually be increased to 500. In the company's Mohali office, Dr B.K Modi, Chairman of Spice's parent company MCorp Global says they have already tied up with the Indian Railways for providing them with value added services for the next 10 years. They are now considering the feasibility of making mobiles readily available to the people through outlets at the railway stations. "The phones will be sold just like tea and snacks," he says. "For, mobile phones are no more luxurious items that have to be hunted in the stores. They are now for basis necessities”. Dr Modi says for the purpose of taking the phones to the common man, the company has developed models that will be available for approximately Rs 1,000. For solving the problem of replacing batteries faced by the rural subscribers in the long run, the company is looking at the feasibility of launching phones with pencil-size rechargeable cells. |
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ITC signs franchise pact
New Delhi, April 12 According to the agreement, seven of ITC’s star hotels in New Delhi, Mumbai, Kolkata, Hyderabad, Agra, Chennai and Bangalore will be rebranded under the umbrella of Starwood’s, The Luxury Collection. These properties, however, will retain the Sheraton connection, which was initiated on January 1, 1979, officials said. “India is the fastest growing Asia-Pacific market for the international visitor. With this pact, we hope to serve the growing number of visitors even better,” said Miguel Ko, president of Starwood Hotels and Resorts for Asia-Pacific. “The visitor spending in India has grown at a phenomenal rate in the last few years and this is expected to accelerate significantly over the next few years,” he told a press conference here. “A new window to the world is now open to us and, together with our aggressive growth plans in India, ITC is well poised to meet the emerging needs of the discerning global traveller,” ITC chairman Y.C. Deveshwar said. The Luxury Collection is the third biggest chain of hotels with 60 hotels across the globe. Speaking about the tariffs, he said the rates would be in accordance to the room size, the amenities provided and the season. “Of course, it will be value for money.” Not willing to talk about investments involved, officials of the two sides said there would be exchange of systems, processes and people around the world to give the visitor in India a true global feel.
— IANS |
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Nestle brews $5.5-b deal
Zurich, April 12 Nestle said on Thursday, the cash transaction would give its growing nutrition division—which includes infant formula, baby food, medical nutrition and weight management—annual sales of about Swiss francs 10 billion ($8.21 billion). Gerber, a household name in the US, growing at an annual rate of 8 per cent, will generate an estimated $1.95 billion in sales in 2007 and improve Nestle’s operating profit margin immediately, the Swiss-based company said. Nestle, said it aimed to expand Gerber operations in the US market and around the world and will examine ways to combine some Gerber activities with its existing operations. “We do believe that there is a considerable potential for Gerber to expand in the USA (and) broaden the presence of Gerber products around the world,” Nestle spokesperson Francois-Xavier Perroud said. Nestle recently bought Swiss-based Novartis’s medical nutrition business for $2.5 billion as it moves its earnings focus away from mass items like bottled milk to high-margin products like made-to-order diet plans and hospital food. Novartis, the world’s fourth-biggest pharmaceuticals company, said it planned to complete the Gerber sale in the second half of 2007, marking the end of its transition to a group focused 100 per cent on healthcare.
— Reuters |
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Institutions eye 41 pc stake of BSE
Mumbai, April 12 Emerging from a board-level meeting here, BSE managing director and CEO Rajnikant Patel said, ''The response to BSE investment opportunity has been truly overwhelming and we are delighted to have as our investors, pedigreed overseas exchanges as well as domestic and foreign institutions. The new ownership pattern of the exchange will significantly strengthen its institutional character. It is truly transformational and marks a watershed event in the evolution of the BSE. In the new framework, the exchange is indeed well poised to energetically pursue business growth.'' BSE has received interest from over 20 leading domestic financial institutions, foreign funds, domestic corporate houses and reputed high networth individuals for achieving the demutualisation of BSE. Upon reviewing the interest received, BSE proposes to finalise the sale of 41 per cent of its shares to select investors at a price of Rs 5,200 per share, the same price as for strategic partners, in order to widen the profile of its shareholders, an official statement here today said.
— UNI |
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L&T to ramp up capacity
Coimbatore, April 12 “The electrical business is growing rapidly and 25 per cent of the projected $1 billion revenues from it would come from the overseas market,” L&T president (operations) and director Mukhija told reporters here. The company today inaugurated its fourth switchboard manufacturing facility here. The facility is for a 50:50 joint venture company, Audco India Ltd (AIL). The venture is between US-based Flowserve and L&T. Globally, after commissioning its $11 million switch gear manufacturing facility in China, L&T is all set to start operations at its other two plants in the neighbouring country by the end of this quarter. “The company has already commissioned its switchgear manufacturing facility in Wuxi province of China while its plans to start operations at its valve and tyre manufacturing equipment facilities sometime during the present quarter,” Mukhija told reporters.
— PTI |
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Economists fear flight of foreign money
New Delhi, April 12 The non-FDI inflows today account for about 75 per cent of the total reserves, which is making the country vulnerable to a possible large-scale flight of foreign investors from the country, economists believe. Forex reserves are made up of foreign investments, short-term credits and banking capital, besides invisibles receipts and worker remittances. A potential capital exodus could trigger a sharp fall in the asset prices across the board, including stocks, and the rapidly growing real estate markets. The country’s foreign exchange reserves have increased by about $48 billion over the past one year on the back of strong capital flow, which, in turn, has been primarily driven by overseas corporate borrowings and the so-called “hot money” coming in form of portfolio equity flows. While India has emerged as one of the favourite destinations for the portfolio equity flows from FIIs over the past few years, the sharp rise followed by a recent correction in the domestic bourses are raising concerns about large-scale profit booking by the FIIs in the near future. India Inc growing appetite for merger and acquisitions as well as other expansion plans have also fuelled a sharp jump in the overseas borrowings by the domestic companies. While RBI has been under pressure from the corporates to allow greater overseas borrowing, economists fear that the apex bank could end up further tightening the noose if short-term borrowings continue to surge ahead. If short-term borrowings surge further, RBI could even cut down the maximum limit on overseas corporate borrowings during a year, investment banking giant Morgan Stanley’s India-based economist Chetan Ahya said. Without prior approval, Indian companies are currently permitted external commercial borrowing of $500 million per year and the RBI is unlikely to take forward any move to lift this ceiling in the near future. Total external commercial borrowings are currently subject to an annual cap of $22 billion. The sharp rise in interest rates over the past few months is also helping in a significant surge in corporate borrowings.
— PTI |
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Industrial output up by 11 per cent
New Delhi, April 12 Although the IIP during February went up to 11 per cent from 8.8 per cent in the corresponding month last year, the electricity generation decelerated to 3.3 per cent from 9.1 per cent, according to the Central Statistical Organisation. The manufacturing sector during the month grew 12.3 per cent as against 9.2 per cent last year. During the April-February period of 2006-07, the IIP recorded a growth of 11.1 per cent as against 8.1 per cent previous fiscal.
— PTI |
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North-East key to higher growth trajectory: Nath
New Delhi, April 12 “Given the fact that the region is the gateway to the south-east Asian countries, the North-East can be instrumental in playing a dynamic role in taking India to a higher growth trajectory in a changing global economic scenario,” Nath said speaking at the valedictory session of the third North- East Business Summit here last evening. Asserting that inclusive growth is the only pattern of growth that is sustainable in the long run, the commerce minister said the new North-East Industrial and Investment Promotion Policy 2007 has all attractive incentives in place, and can thus accelerate the pace of industrial development in the region. Thailand trade minister Krirk-krai Jirapaet said Asia is rising, and a stronger economic co-operation between India and Thailand would ensure that south and south-east Asia emerge as a prominent region of high growth in the near future. Earlier, minister of the Department for Development of North-Eastern Region Mani Shankar Aiyar said though the 'Look-East Policy' has led to a significant rise in trade between India and south-east Asia, the share of north-east region in this rise is negligible, despite the geographical proximity between the north-east and the south-east and east Asian economies like Thailand. He called for a stronger economic co-operation with Thailand, and mentioned that the North-East is the region which can actually play the major role in fostering a closer tie. The proposed trilateral highway project that will connect India, Thailand and Myanmar, has the potential of transforming the North-East, the minister added.
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Betting against Nifty
Jerusalem, April 12 Nifty, which lists the 50 weightiest companies on the National Stock Exchange, has risen by almost 240 per cent since 2003, but the Israeli firm, a unit of Excellence-Nessuah, is betting on its retreat, Ha’aretz reported. Reverse certificates are financial instruments that behave like an ETF tracking a given index, but in the opposite direction. The issuing agency wins when the base index loses ground.
— PTI |
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Deep Kapuria is chairman CII (N)
Chandigarh, April 12 Deep Kapuria, chairman-cum-managing director, Hi-Tech Gears Ltd, and chairman, globalisation and India brand-building sub-committee of the Auto Components Manufacturers’ Association (ACMA), has played an important role in many CII initiatives, such as WTO talks in Hong Kong and various discussions in Geneva and has led several international missions for the CII and ACMA. Salil Singhal, chairman, Secure Meters Ltd and CMD of P I Industries Ltd, was the member of the Rajasthan state council of CII and a member of the northern region council for the past 10 years. He was the chairman of the sub-committee on agriculture and food of CII (North). He has also represented various prestigious industrial missions and central delegations in domestic and international fora.
— UNI
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WTO Doha Round New Delhi, April 12 “We believe that by intensifying our work, we can reach convergence and thus contribute to concluding the Round by the end of 2007,” a ministerial communique of G-6 trade ministers, released after a day-long meeting, said. It said, the G-6 members, who represent both developed and developing countries, will work with the director-general, the chairs of the negotiating groups, the chair of the general council and the entire WTO membership in the best interests of completing the Round in the time envisaged. The communique was issued after meeting of G-4 trade ministers, which was later extended to G-6 by including Japan and Australia. Addressing a press conference, along with the representatives of the US, Brazil, EC, Japan and Australia, commerce minister Kamal Nath said “the objective of the meeting was not to attempt dramatic breakthroughs but to assess the issues in a sober, realistic and constructive manner.” As far as India’s concern, Nath said while speed in concluding the negotiations is important, the crucial element is the content of the outcome. “The livelihoods of the millions of subsistence farmers and other poor in India is the core issue which guides India’s negotiating positions.” “This is entirely consistent with the mandate of the Doha Round and we expect developed countries to understand this core concern while we work towards a successful outcome,” he added. Earlier, the US trade representative Susan Schwab asked India, which is hosting the trade ministers, to assume a leadership role and accept obligations to achieve breakthrough in the talks. She said the year-end deadline was achievable provided all countries worked for it.. “It was not the US alone, which could give impetus…No one country can provide a breakthrough,” she said, adding that there was a sense of urgency among all the members to complete the long-drawn trade liberalisation negotiations.
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Industrial output up by 11 per cent New Delhi, April 12 Although the IIP during February went up to 11 per cent from 8.8 per cent in the corresponding month last year, the electricity generation decelerated to 3.3 per cent from 9.1 per cent, according to the Central Statistical Organisation. The manufacturing sector during the month grew 12.3 per cent as against 9.2 per cent last year. During the April-February period of 2006-07, the IIP recorded a growth of 11.1 per cent as against 8.1 per cent previous fiscal. — PTI
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