07 August 2008

Tata Steel in Fortune Global 500 list for first time, Mkts end off highs

Tata Steel makes it to Fortune Global 500 list for first time

Steel major Tata Steel has for the first time made it to the prestigious Fortune Global 500 list of the world's largest corporations, a company statement said on Wednesday. The company ranks 231 in terms of revenue, the statement said. Interestingly, Fortune magazine in its July 21, 2008 issue, had for the first time included Tata Steel in its Global 500 list but the company was ranked 315th in terms of revenue. This ranking was, however, based on the company's total revenues in the first three quarters of the current fiscal and the last quarter of the previous fiscal. Following the announcement of the company's annual results, Fortune has re-ranked Tata Steel. In a clarification on its website, Fortune has said: "Tata Steel's revenue for fiscal year end March 31, 2008 -- released by the company after the Global 500 publication deadline -- was $32.8 billion. Had the information been available, the company would have placed 231 on the list. The company ranked 315th in the listing, based on revenue for the four quarters ended Dec. 31, 2007, of $25.7 billion."

The Tata Steel registered the biggest year-on-year increase in revenues - a 353.2 percent change - among all the companies on the list. Tata Steel, flagship of the Tata Group's 98 operating companies in seven business sectors, was set up in 1907 as Asia's first and India's largest integrated private sector steel producer. It is now the world's 5th largest steelmaker in terms of revenues. With the recent acquisition of Corus, the combined enterprise has a total crude steel production capacity of around 30 million tonnes with over 82,000 employees working in 27 countries on four continents. Fortune Global 500 is an annual list compiled and published by Fortune magazine owned by the world's largest media group the United States-based AOL Time Warner. The list ranks the world's largest companies in terms of gross revenues. Global retail giant Wal-Mart Stores heads the 2008 list maintaining its number one rank that it had earned last year as well. Seven Indian companies, including Tata Steel, presently figure on the list. They are: public sector oil major Indian Oil ranked 116th, private sector conglomerate Reliance India Ltd ranked 207th, public sector oil major Bharat Petroleum ranked 287th, public sector oil major Hindustan Petroleum ranked 290th, public sector oil and gas major ONGC ranked 335th and public sector bank State Bank of India ranked 380th. Interestingly, except for public sector Oil India which has the highest rank among Indian companies, both the private sector companies finding a place in the list - Reliance Industries and Tata Steel - are ranked above the other four Indian companies in the list who are all public sector entities. This reflects the kind of change that has been taking place in the Indian corporate sector over the last 17 years ever since economic reforms were introduced. Before 1991, no Indian private sector company had ever been included in the prestigious Fortune Global 500 list.

Other stories:
Rally fizzles as investors take to profit booking
It was a case of an intra-day reversal on Wednesday as stocks erased almost all gains after a spectacular rally gave way to profit booking. Overnight, the US Federal Reserve kept key interest rates unchanged and signaled at no further rate hikes in the near term, which sparked a rally across global markets, and India was no exception. Indices got off to a firm start and clocked handsome gains across the board. Expectations that retreating crude prices would ease inflationary concerns and take the pressure off rising interest rates saw investors flocking to interest rate sensitive stocks. Oil prices slid to a three-month low of around $118 a barrel from a record high above $147 in mid-July. However, the rally took a U-turn as sellers stepped in and did damage as they chose to book profits across the board, especially in the recent gainers - banking, auto and realty pack. But market analysts feel profit booking was anticipated given the sharp run-up over the last few days. "Indices have risen nearly 22 per cent from the lows and profit booking was expected at these levels since it had neared key resistance levels of 15500 and 4650. This is likely to continue for a couple of days," said Hitesh Sheth, head of research at Prabhudas Lilladher.

Bombay Stock Exchange's Sensex settled 112.47 points or 0.75 per cent higher at 15,073.54. The index slid from a high of 15,422.82 to low of 15,263.65 intra day. National Stock Exchange's Nifty was up 0.33 per cent or 14.70 points to 4517.55 after touching a high of 4615.90. The low was 4506.25.

"A gap-up opening on the Nifty left an unfilled bearish gap between 4524 and 4557, which was filled on its way down. On Thursday, if 4465 on the Nifty sustains, then it can be concluded that the fall witnessed today was just to fill that bearish gap. In that case, the market will continue its upmove," said Bharat Dalal, fund manager at Dawnay Day AV Financial Services. Investors dumped shares in the midcap and smallcap space with BSE Midcap Index ending just 0.02 per cent higher while the BSE Smallcap Index sagged 0.68 per cent. Biggest Sensex gainers were Maruti Suzuki (6.25%), Tata Motors (4.31%), Bharati Airtel (3.59%), ACC (3.48%), Tata Consulting Services (3.32%) and BHEL (3.21%). Tata Steel (-4.48%), Tata Power (-3.65%), State Bank of India (-3.49%), Reliance Infrastructure (-3.11%) and HDFC (-2.82%) were the losers in the 30-share index. Steel counters declined for a second straight session on fears the steel ministry would not allow them to raise prices after an agreed 3-month freeze lapse on August 8. As the day progressed, market breadth weakened and finally turned negative with 1,444 declines and 1,266 advances on BSE.

RIL to complete family MoU argument on Thursday
Bharti Airtel to launch iPhone on Aug 22
3G movies still some time away
Equities end off highs; BSE Auto Index up 2.51%
Oil off the boil, falls below $118
Annual inflation seen at 12.02 pc on July 26
HCC consortium bags Rs 1,398 cr project
Direct tax collections jump 47% in April-July
Reliance Power to raise $2.5 bn loan: Sources
Overseas venture capitalists invest Rs 17,000 crore in Indian assets in Q1

Source: ET

06 August 2008

They quit good jobs to mint millions..

They quit good jobs to mint millions!

A few good people who decided to quit good jobs for better ideas.

Anand Prakash
He uses handmade paper for a paperless world.
Eight years ago, Anand Prakash, an economics graduate from Delhi University, created a sample card for Rs 100. "It was immediately rejected," laughs the businessman whose turnover this year is slated to be Rs 75 lakh. "I look at a hundred per cent turnover," he grins, "and we've always managed it."
His office in Delhi's busy Shahpurjat area is a riot of colours and handmade paper products. "My next idea is to create spice paper like, say, crushed cinnamon mixed with paper," says the designer-entrepreneur who was recently shortlisted for the young Indian British Council award.
Greeting cards may be an anomaly in today's times but "my forte" insists Prakash "is anything and everything related to paper". It started with greeting cards, but soon Prakash realised that he needed to diversify. So there are paper bags, journals, recipe books, scrapbooks and photo albums created in various materials including a combination of handmade paper and brass.
Though greeting cards are just one among 75 different products, with a thousand-odd designs they remain his favourites. "I treat greeting cards as the canvas on which I unleash my creativity," he laughs. Boutique stores like Full Circle, Handpaper World, Temple Tree and Either Or stock Prakash'z Creations, now also being exported to the United States, Europe, the United Kingdom, Singapore and Spain. "I've always got 100 per cent advance for my work," he claims.
As a business model, Prakash's greeting cards business has blossomed into a unique initiative involving the local population in his native Jharkhand. "Daltongunj is one of the poorest districts of the country. But it has a rich source of natural materials that I can use in my work and, hopefully by the end of this year, we would have trained at least 30 people .

For more on this, visit: http://specials.rediff.com/money/2008/aug/04sld1.htm

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Other Rediff articles:

Amar Singh alleges insider trading by RIL
Pay Commission awards may be deferred
New payment system for IPOs by Aug 10
Meet India's youngest MTech from IIT Madras
Sanjay Jha is Motorola Co-CEO
'India can surpass Chinese growth'

Information You Can Use
TAPMI's PG prog in mgmtIRMA's PGP in Rural Mgmt
IIM-A's PGP in Agri-businessIIFT's consultancy symposium
Degree in homoeopathyWant a career in banking?
Interested in pharmacology?BSc Ed for OBC students
XLRI's distance edu coursesSP Jain's global MBAWant to learn stem cell tech?


Source: Rediff.com

Dow up 332 pts, Nasdaq up 64 pts on Fed rate signals, oil retreat

US STOCKS-Wall St rallies on Fed rate signals, oil retreat

* Fed signals in no hurry to raise interest rates
* Oil below $120 helps airlines, retailers
* AIG leads financial stocks higher
* Dow up 2.9 pct, S&P 500 up 2.9 pct, Nasdaq up 2.8 pct (Updates to close)
*************
U.S. stocks soared on Tuesday after the Federal Reserve signaled that it is in no rush to raise interest rates and oil prices tumbled further, spurring the Dow and the S&P to their best day in four months.
The Dow rose more than 300 points.
The Fed, as expected, left benchmark lending rates unchanged at 2 percent, and its accompanying statement soothed investors who had worried that inflation headwinds would force the central bank to drive up borrowing costs in coming months.
Oil prices fell more than 2 percent, closing below the $120 a barrel mark for the first time in three months. That provided further relief on the inflation front and offered hope for consumer spending, which has been pressured by record gasoline prices.

Big winners on the day included retailers, banks and airlines, while commodity-related shares extended their retreat along with the drop in price of crude oil and gold.
"The market seems to be reacting somewhat favorably to the idea the Fed will not raise interest rates any time soon. It appears that the Fed has actually taken a little more of a dovish stance, speaking more about the downside risks to growth," said Richard Sparks, senior equities analyst, Schaeffer's Investment Research.

The Dow Jones industrial average .DJI surged 331.21 points, or 2.94 percent, to 11,615.36, while the Standard & Poor's 500 Index .SPX jumped 35.59 points, or 2.85 percent, at 1,284.60.The Nasdaq Composite Index .IXIC rose 64.27 points, or 2.81 percent, to 2,349.83.

Financial shares soared, led by a 12 percent gain in shares of insurer American International Group (AIG.N: Quote, Profile, Research, Stock Buzz) to $29.89. The S&P financials sub-index rose more than 5 percent.

Analysts at UBS upgraded AIG to "buy" from "neutral" on valuation and said the world's largest insurer was well-positioned to absorb further losses and didn't need to raise capital.
Shares of Procter & Gamble Co (PG.N: Quote, Profile, Research, Stock Buzz), the world's largest consumer products maker whose products range from Pampers diapers to Olay skin-care products, rose after the company posted a stronger-than-expected quarterly profit. Shares rose 3.3 percent to $67.97.

Planemaker Boeing (BA.N: Quote, Profile, Research, Stock Buzz) rose 6.3 percent to $65.20 and lifted the Dow industrials, while an index of retail shares .RLX rose 5.4 percent.
U.S. crude futures ended lower for a second day in a row, with oil operations in the Gulf of Mexico starting to return to normal as Tropical Storm Edouard moved inland after striking the Texas coast.

Early in the session, data from the Institute for Supply Management showing that the U.S. service sector shrank less than expected in July helped set the positive tone in the stock market. The ISM report included a decline in the prices paid index. For details, see [ID:nN05315223].
Trading was moderate on the New York Stock Exchange, with about 1.4 billion shares changing hands, below last year's estimated daily average of roughly 1.9 billion, while on Nasdaq, about 2.33 billion shares traded, above last year's daily average of 2.17 billion.

Advancing stocks outnumbered declining ones by 3 to 1 on the NYSE and by about 2 to 1 on the Nasdaq. (Additional reporting by Walter Brandimarte; Editing by Leslie Adler)

Oil falls below $120 as Edouard spares Gulf

Fed leaves rate unchanged at 2 per cent
The Federal Reserve held US interest rates steady on Tuesday, expressing concerns on both economic growth and inflation and offering few clues as to when it might push borrowing costs higher. The 10-1 decision by the US central bank leaves the benchmark federal funds rate target at a low 2 percent, where it has been since April. The Fed had reduced rates by a cumulative 3.25 percentage points since mid-September in response to a sharp housing retrenchment and turmoil in credit markets. "Although downside risks to growth remain, the upside risks to inflation are also of significant concern," the Fed said in a statement.

The announcement closely mirrored a statement issued after the Fed's last meeting in late June. However, the central bank omitted a phrase contained in the June statement that had said risks to growth appeared "to have diminished somewhat." US stocks added to earlier gains, while prices for US government debt securities and the dollar slipped. US short-term interest rate futures pared the implied prospects of rate hikes later this year. Dallas Federal Reserve Bank President Richard Fisher dissented from the decision, preferring higher rates. It was Fisher's fifth straight dissent.

"If there is a subtle shift in the risk assessment it is that while acknowledging the downside risks to growth, it notes the upside risks to inflation 'are also (of) significant concern,'" Marc Chandler, global head of strategy at Brown Brothers Harriman in New York, said in a note to clients. "This may have been a sufficient bone to the hawks to prevent others from joining Fisher in dissenting," he said. STILL SHAKY The Fed's decision comes as evidence points to lingering economic weakness from the housing slump, shaky consumer sentiment and tight credit. At the same time, a marked pullback in oil prices, which have slid to around $120 a barrel since cresting above $147 a barrel in July, has eased some of the central bank's worries about inflation. The drop in oil prices had led investors to anticipate the Fed would not need to raise rates soon to combat inflation at the expense of choking off already weak growth, and was a factor pushing equities prices up ahead of the central bank's decision.

The economy grew at respectable if somewhat subdued 1.9 percent annual rate in the April-June quarter, but that growth followed a 0.2 percent contraction in the fourth quarter of last year and a tepid 0.9 percent gain at the start of 2008. Many economists expect the economy to weaken anew in the second half of the year as the boost to consumer spending from government stimulus checks recedes. With the jobless rate at a four-year high and employers cutting jobs for a seventh straight month in July, many observers suggest it is a technicality to insist the economy is not in recession simply because a popular definition, two consecutive quarters of contraction, has not been met. At the heart of US economic malaise is a housing market that has not shown convincing signs of stabilizing. The pace of existing home sales fell to the lowest level since 1998 in June and mortgage applications are at their lowest level since 2000 as buyers remain on the sidelines. A mild silver lining is the recent drop in oil prices. Fed officials have worried that big increases in energy and food prices could set in train an inflationary psychology in which workers and businesses push harder to cover their costs, leading to a broader pickup in prices.

A report on Monday showed inflation jumped 0.8 percent in June, the steepest rise since 1981. The gain over the past year climbed to 4.1 percent, the most since 1991. While so-called core inflation, which excludes volatile food and energy prices and is viewed by the Fed as a good barometer of the future course of prices, has been better behaved, it also moved up in June. Core prices have risen 2.3 percent over the past year, a bit above the 1.5 percent to 2 percent range that many Fed officials believe is ideal.

Source: ET, Reuters

05 August 2008

Sensex up 383 points and Nifty above 4500

Indices soar to day's high in late trade; Sensex up 383 points
Sensex ends 383 pts up on all-round buying

Indices ended at the day's high cheering crude oil's slide to a three-month low of $118 a barrel, easing inflation expectations. Interest rate sensitive sectors like banking, realty and auto stocks spearheaded the rally on speculation that US Federal Reserve will increase interest rates in its policy meet later today. Midcaps and smallcaps were also in demand.

Bombay Stock Exchange's Sensex ended 2.63 per cent or 383 points higher at 14,961.07. The index touched a high of 14,986.63 and low of 14,529.21. National Stock Exchange's Nifty rose 2.45 per cent or 107 points to 4502.85 after swinging in a range of 4515.15 and low of 4376.00.

BSE Midcap and Smallcap indices were up 1.76 per cent or 1.26 per cent respectively. Biggest Sensex gainers were Maruti Suzuki (7.84%), ICICI Bank (7.78%), Grasim Industries (7.58%), DLF (7.48%), Jaiprakash Associates (7.08%) and HDFC Bank (6.46%). Sterlite Industries (-6.72%), Tata Steel (2.59%) and Ranbaxy Laboratories (2.09%) were the losers. Market breadth on BSE showed 1761 advances and 931 declines, while on NSE, there were 863 gainers and 402 losers.
------------------------------------------
Oil falls below $119
NTPC eyes Indonesian mine
NTPC forays into renewable power
BHEL bags first order to supply 800 MW boilers
Reliance Communications to float $500-million tender for 3G rollout
RBI wants VC investment restricted to select sectors

Source: ET, SIfy

10 emerging careers

10 emerging careers

While the world cries slowdown and news of companies downsizing makes headlines, crystal ball gazing on emerging careers might not be the order of the day.

But such is the Indian growth story that apart from expansion in the sunrise sectors, entirely new opportunities that never existed will also open up for jobseekers.

"According to the International Business Report, 2008, by consultancy firm Grant Thornton International, India alone will make up 30 per cent of the worldwide net increase in employment with 142 million new jobs by 2020," says Sampath Shetty, vice president, permanent staffing, TeamLease Services, a staffing solutions company.

OLM spoke to a host of experts to find out what specific functional area in each of the emerging sectors would be most in demand and why.

Retail
Growth stimulus: "The vast middle class, strong income growth, favourable demographic patterns and organised retailing growth estimated at 40 per cent compounded annual growth rate (CAGR) over the next few years are some of the factors that will drive the retail boom," says Rajeev Gaur, COO, TimesJobs.com, an online jobs database.

Requirements: "The need would be around 15,000-20,000 people in each of these retail chains. So, in all, the requirements would touch 80,000-85,000 every year in the next three to four years, of which frontline sales staff will be 80-85 per cent," says Vishal Chhiber, head, HR of Kelly Services India, an HR solutions firm.

The remaining jobs, says Nihar Ranjan Ghosh, senior VP HR, Spencer's Retail, "will be in retail-specific areas like visual merchandising, plannogramming (the science of maximising space efficiency in the store) and supply chain management. Retail management graduates and general MBAs will be wanted.

Real Estate/ Infrastructure
Growth stimulus: Growth in infrastructure and real estate developments with gradual opening up of FDI in certain sub-sectors will be the main reasons for the boom. "The percentage of middle class people in metros and Tier-2 cities who are buying their own property has increased from about 35 per cent in 2003 to 60 per cent today," says Prodito Sen, VP marketing and corporate affairs, Alpha G: Corp Development, a real estate developer.

Requirements: "This will recreate a need for civil engineers, a tribe we forgot during the IT boom," says Shabbir Merchant, chief value creator, Valulead Consulting, a leadership development firm. "The requirement is for 1.5 lakh engineers if the land bank we have is to be translated into construction," says Chhiber. Infrastructure projects would need more such engineers.

"Other functions like residential and commercial real estate brokers, real estate appraisers, property mangers and real estate consultants would also be in demand," says Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj, a property advisor and transaction firm.

Healthcare/Pharma
Growth stimulus: Hospital chains are expanding all over India, even in smaller towns.

Requirement: "An acute shortage of doctors is expected over the next few years, especially anaesthetists, radiologists, gynaecologists and surgeons, particularly neurosurgeons. The need would be for 45,000-50,000 doctors for the 50-odd healthcare companies expected to start operations in India," says Chhiber.

"People with a Masters in Hospital Administration (MHA) will be in demand as they are key elements to a hospital's efficiency," says Vishal Bali, CEO, Wockhardt Hospitals Group. A study by consulting firm Technopak says, "Many big hospital projects have either been delayed or stopped because of this manpower shortage."

"With the rule of thumb being four MHA people per hospital, around 2,000 hospital chains will need 8,000 such people over the next five years," adds Bali.

In pharma, demand will be created in research and development (R&D). The requirement would be for 15,000-20,000 scientists every year. "Another area which would see a demand is pharma regulation and documentation officers," says V Suresh, senior vice-president and national head (sales), Naukri.com, an online jobs portal.

Financial services
Growth stimulus: There will be a lot of new entrants and existing players diversifying with new product lines.

Requirements: "A lot of portfolio managers -- not necessarily fund managers, but those who manage portfolios beyond a certain amount -- will be required. They will be working with banks and financial institutions. The requirement will be for 25,000-30,000 every year," says Chhiber.

Suresh adds, "The salaries in private banking would be 200-300 per cent more than in retail or corporate banking."

Judhajit Das, HR chief of ICICI [Get Quote] Prudential Life Insurance, foresees maximum jobs growth in retail financial services, with 80 per cent of them being in sales and distribution. The biggest employers will be the insurance and banking sector," he says.

Gaur has some numbers: "Over 50,000 new jobs are expected to be created in the banking, financial services, and insurance sector in the current year. Banks are expected to hire 15,000-20,000 people in the next one year."

Hospitality/facilities management
Growth stimulus: With hotel rooms being added across the country at a rapid rate to keep up with growing tourist inflow, hi-tech townships being developed and malls and multiplexes coming up at every corner, people will be needed to service and maintain them.

Requirements: "Over 2.5 lakh rooms will be needed in the next five years to meet the demand from both the domestic and international guests. Over the next two or three years, we will need over 1 lakh more rooms. An average of 1.5 service personnel per room will mean an overall shortage of at least 1.5 lakh people across a whole range of hotel-related jobs in India, especially food production, food and beverage services, housekeeping and front office operations," says Satish Jayaram, principal, Institute of Hotel Management, Aurangabad.

According to Chhiber, the manpower growth prediction for facilities management is 20-25 per cent. Ashwin Puri, CEO, Property Zone, a firm that develops and manages shopping centres says, "Technical maintenance people need to understand aspects such as provision of adequate power supply, safety issues, water supply, sanitation, signages, and so on. For soft services, hospitality management experience is preferred." A mall will need five to six such managers.

Consulting services
Growth stimulus: With existing businesses growing more complex and numerous startups on the cards, there will be demand for consultants specializing in human resources (HR) and startups.

"Apart from recruitment specialists, another area of demand in the HR space will be 'employer brand specialists' as organisations move away from a me-too approach and actively seeking differentiation," says Merchant.

Requirements: Considering that with every 50-75 people recruited, one HR job gets created, TimesJobs.com estimates that 28,000 more HR jobs will be created in 2008.

Gautam Ghosh, senior manager, HR consultancy Tvarita Consulting, foresees an explosion in demand for start-up consultants and business strategists as more and more consumer-oriented portals mushroom across the country.

Entertainment
Growth stimulus: There would be about two new TV channels every month and 20-25 new FM channels every year.

Requirements: "About 4,000-5,000 people will be directly employed by TV channels every year," says Chibber.

"In radio, the demand would be for production people, anchors, technical and distribution sales professionals: jobs for 2,500 people in the next two years," he adds.

Information Technology
Growth stimulus: "Despite stagnation in the industry, a lot of project-based or contractual hiring and increasing domestic IT requirements would lead to organic growth," says Chhiber.

Requirements: Veerendra Mathur, CEO, Focus Infotech, a strategic IT HR and managed solutions firm, says, "Professionals who have a holistic knowledge and can do multitasking like coding, testing, designing and communicating with clients will be in demand."

"India will need 4.9 lakh professionals in the IT exports market, 11.1 lakh in the domestic IT industry and 20.5 lakh in the ITES-BPO sector by 2012," says Chhiber.

Customer services
Growth stimulus: Companies will put more and more stress on customer service to stay ahead of the competition.

Requirements: According to Chhiber, frontline technicians who have skills required to service and manage customers will be in demand. "About 1.5 lakh trained people every year would be needed," he adds.

Telecom
Growth stimulus: The telecom industry is growing faster in small towns and will also see a lot of organic growth. Jobs will also emerge in telecom when people employed here opt to shift to other emerging sectors.

Requirements: "The employment growth rate in telecom industry is expected to increase by seven per cent to ten per cent every year," says Gaur. "Jobs in demand would be telecom, mechanical, software and telecom test engineers, project managers, network security specialists and operation managers." According to data from FICCI, telecom will see 0.5 million new jobs by 2010 and 1.5 million by 2015.

Ghosh stresses the increasing demand for people who have a blend of two functional skills, like a financial services person with business and marketing skills. "In a dynamic job space in a growing economy," he sums up, "people with the right skill sets will always be sought after."

source: rediff

Stock Analysis from deadpresident

Stock Report and Annual Reports

Reliance Industries - 2007-2008 Annual Report
Eveninger - Aug 4 2008
HCL Tech, DLF, Shriram Transport, Lanco Infratech, India Banking, India Automobiles, Larsen and Tourbo, Jindal SAW
Reliance Petroleum 2007-2008 Annual Report

India Model Portfolio - Aug 2008
Sun TV / India Insurance Sector
Weekly Trace and Track - Aug 4 2008

Weekly Technicals - Aug 4 2008
Hotel Leelaventures, Nagarjuna Constructions, IVRCL, Madhucon Projects, AIA Engineering, Suzlon Energy, Voltamp Transformers, PVR, HT Media
Tata Motors - 2007-2008 Annual Report

IDFC - 2007-2008 Annual Report
For more Annual REPORTS - CLICK HERE
Container Corporation
Television Eighteen
Exide Industries

Bharti Airtel
Most Popular Pages - Aug 2 2008
Top Picks - Aug 2008
IPCA Labs / DLF Ltd /Merck
DIC India / Bata India

Source: Deadpresident blog

Oil slip below $120, India in top 15 automakers

Oil slips below $120

Oil prices tumbled on Monday as signs of increased Opec output and the threat to demand from an economic slowdown trumped concern about Tropical Storm Edouard and Iran’s nuclear dispute with the West. “Crude futures are down despite a brewing storm and that shows you how momentum has shifted in this market,” said Phil Flynn, analyst at Alaron Trading in Chicago. US crude for September delivery was down $4.13, or 3.3%, at $120.97 a barrel on the Comex division of New York Mercantile Exchange at 22:30 pm IST, trading from $119.50 to $126.35. Prices fell below $120 for the first time since May 6, when the intraday low was $119.33. Nymex crude took out the 10-day moving average at $124.91 and support charted at $120 on Monday. US crude hit its record $147.27 on July 11. In London, September Brent crude was down $3.62, or 2.9% at $120.56 a barrel, trading from $118.80 to $125.30. Opec supply rose for a third straight month in July, according to a news agency survey. US consumer incomes rose at the lowest rate in over a year during June, the government reported on Monday, and inflation showed signs of accelerating. Tropical Storm Edouard moved across the northern Gulf of Mexico on Monday and has a 20% chance of hitting the Texas-Louisiana coast as a hurricane, the US National Hurricane Center said. Edouard shut down the Louisiana Offshore Oil Port, partially closed the Houston Ship Channel, and shut a small amount of output. Marathon shut its Texas City, Texas, refinery ahead of the storm. Iran faces more punitive measures, including sanctions, if it does not respond positively to an offer by major powers to rein in its nuclear program in exchange for incentives, the US State Department said on Monday. Iran and the representative of six world powers talked by telephone on Monday without resolving the dispute over Tehran’s nuclear program. “Despite all these bullish inferences a lower market must mean that participants have an infinitely greater concern about a deteriorating global economy,” Mike Fitzpatrick, vice-president at MF Global said in a note.


India in top 15 automakers

With a burgeoning auto industry to boast of, India has made it to the top 15 automakers of the world and occupies the fourth position in the leading developing countries' category of motor vehicle manufacturers, a UNIDO report has said. According to the UNIDO International Yearbook of Industrial Statistics 2008, India ranks 12th in the list of world's top 15 automakers, which is led by Japan followed by the US and Germany. Other countries making it to list are Mexico, France, Korea, UK, Canada, Spain, Iran, Sweden, Brazil, Italy and Indonesia. In the leading developing countries category, India ranks fourth. The list is topped by Mexico, followed by Korea, Iran. Brazil holds the fifth position followed by Indonesia, Turkey, Argentina, Thailand, Singapore, China, China (Taiwan Province), Malaysia, UAE and Columbia. India also figures among the world's top 15 producers of chemicals and chemical products, electrical machinery and apparatus, basic metals (iron and steel, non-ferrous metals), coke, refined petroleum products, nuclear fuel, non-metallic mineral products (glass and glass products, cement, lime and plaster, ceramic products), machinery and equipment, leather, leather products and footwear and textiles, the report said.

The country ranks fifth among the top 15 textile producers in the world. China has captured the top slot followed by the US, Italy, Japan, Mexico, Thailand, Indonesia, Pakistan, Germany, Korea, UK, Brazil, Turkey and Bangladesh. The Yearbook is the 14th issue of UNIDO's annual publication and is based on 2006 data. It follows the International Standard for Industrial Classification that categorises the automobile sector as manufacture of motor vehicles, bodies (coachwork) for motor vehicles, trailers and semi-trailers and manufacture of parts and accessories of motor vehicles and their engines. The main purpose of the Yearbook is to provide statistical indicators to facilitate international comparisons relating to the manufacturing sector. Countries are listed in two categories of industrialised and developing countries in the publication.
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Other Top stories:
Govt to set up three more ultra mega power projects
Thermax bags Rs 415 cr order for power plant construction
Torrent Power plans to generate over 8600 MW

Suzlon to raise Rs 5,000 cr for expansion
ADAG ropes in NPCIL's Chaturvedi for N-power project
Adhunik Group to set up 1,000 MW power plant in Jharkhand
Anil Ambani looks to buy-out Newcastle United: Report

How Indian animation industry can be a star
Murdoch to invest $100 mn, launch 6 channels
The world's 10 most expensive streets

China's Sinopec aims to derail ONGC's bid for UK's Imperial Energy
Reliance Communications to float $500-million tender for 3G rollout

Analysts' Picks: HDFC Bank
Analysts' Picks: United Spirits
Analysts' Picks: Adunik Metaliks
Current upmove just a bear market rally, book profits at every rise

Go long in Siemens, Maruti: Religare Securities
Buy Hind Motors: Religare Securities
Buy HDFC Bank for target Rs 1,331: Religare
Analysts' PIcks: ITC
Analysts' Picks: Hindustan Construction
Analysts' Picks

Aviva launches Pension and Money back plan
What will 3G mean for you

Source: ET

04 August 2008

PE, VC news

VCcircle.com

Baer Capital Launches India Long/Short Hedge Fund
IFC Supports Delhi’s Rockland Hospital With $14 Million
Tuscan Ventures Picks Up 12.5% In Mumbai-Based Logistics Firm
AMP Capital Invests $50 Million In Gayatri Infra Ventures
Gaja Capital Raises Funds From Electra, Goldman Sachs

ADAG Forms Entity To Raise $1 Billion Private Equity Fund; Ramesh Venkat To Head It
HDFC Property Ventures To Pick Up Stake In Banglore’s Nitesh Mall
A Delhi Security Company Makes $235-Million Acquisition In Australia
There Are Still Brave People In IPO Market
Ambani In Race To Acquire UK Football Team Newcastle
Dawnay Day Stake In Indian Arm May Find Way To New Silk Route: Report

Nomura Invests $16 Million In Chennai’s Real Images
Nokia Growth Partners Gets $150M From Nokia; Plans Office In India
Private Equity Deal Making May Not Necessarily See An Increase Post Credit Tightening
Value Pick: New York PE Firm Buys Into Welspun Gujarat
Red Fort Capital Acquires 49% In Godrej Properties’ Kolkata Project

Future Capital Holdings Income Grows 5-Fold; Logistcs Fund Raises $350 Million
Ajay Relan To Raise $500-750 Million Private Equity Fund
Religare Incorporates PE Arm; Real Estate Fund Also On Cards
Guggenheim Partners Aquires Thomas Weisel’s Fund of Funds In India
KKR To List In NYSE Later This Year; May Be Valued At $15 to $19 Billion

Google Plans Venture Capital Arm: WSJ
Vishal Gondal Turns Startup Saviour; Forms Investment Group
Sintex Acquires German Auto Component Maker For $50 Million
Times Group Acquires Failed Jobsite, Stake In Online Store
Government Plans Big Ticket Stake Sale In Axis Bank, PSU Banks

DFJ To Diversify Into Mid-to-Late Stage, Non-Tech Deals; Closes 17 Transactions In 2.5 Years
Deal Analysis: Mahindra Buys Out Kinetic’s Assets
UTV To Invest $75M In Gaming Business; To Acquire Two US-Based Cos
Ajay Relan To Raise $500-750 Million Private Equity Fund
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IndiaPe.com

Anil Ambani eyes UK’s Newcastle United
ADAG makes an entry into PE advisory biz
HDFC Property to buy into Nitesh Mall
Alchemist Gr looks to PE firms to fund restaurant expansion
India 2020 eyeing USD 50 mn investments in growth-stage firms

New Silk Route may acquire Dawnay Day's 50% stake in India Venture
M&A activity losing steam in India
Parsvnath to sell SEZ stake to PE Funds
Baring seeks to invest in Indian retail sector
Unitech to raise USD 1 bn from PE Funds

Nomura to acquire stake in Indian digital media
Videocon's Dhoots look to snap up IOL Netcom
TIL's investment in A1Books of USA
Genesis picks up 5% in Welspun Gujarat from secondary market
Unitech to dilute its 26 per cent stake in telecom business


Source: Above sites.

02 August 2008

Govt releases guidelines for 3G service, MNP

Govt releases guidelines for 3G service, MNP ''

The government today set the ball rolling for introduction of next generation (3G) mobile services, as also mobile number portability that would allow users to switch operators while retaining existing numbers. The new guidelines for 3G spectrum, released today, provides for a reserve price for availing of radio frequency. The price for a 2x5 Mhz block of spectrum for Mumbai and Delhi and category-A shall be Rs 160 crore and for Kolkata and category-B Rs 80 crore and for category-C Rs 30 crore. Government has also decided to allow up to 10 players in the 3G space, including eligible foreign players. The guidelines for Mobile Number Portability, also released by the government today, proposes dividing the country into two zones for implementing the scheme that is prevalent in most mature telecom markets.

The 3G spectrum will be auctioned in 450 mhz band, 800 mhz and 1,900 mhz and the guidelines exempt operators from paying any annual fee in the first year of operations. Operators, however, shall be liable to pay an annual spectrum charge of one per cent of AGR after a period of one year. All those who hold a Unified Access Service Licence or those who are otherwise eligible for obtaining UASL as per DoT guidelines of December 14, 2005 would be eligible to apply for 3G radio waves. As per the guidelines, "the applicant company shall have a minimum paid-up capital of Rs 10 crore on the date of application. Foreign equity shall be subject to extent guidelines and regulation. However, equity of foreign partner in the company shall not be less than 26 per cent." On MNP front, the guidelines said a one time non- refundable entry fee of Rs one crore is required to be paid for securing the service license. "No single company/legal persons/MNP license applicant or MNP licensee company, either directly or indirectly, will have any equity in any of the telecom service provider and vice-versa," the guidelines said.


GSM operators hail 3G policy
NEW DELHI: GSM industry on F hailed the 3G mobile telephony guidelines announced by the government saying the move will boost mobile broadband in the country. The world-wide association of GSM operators (GSMA) and lobby of domestic players COAI in a joint statement said, "The Indian government's 3G policy is a fair and transparent way of allocating additional spectrum among the service providers." Further, the automatic extension of the existing 2G licences would ensure continuity and stability of services, the associations added. A leading telecom vendor Ericsson termed the 3G policy a next step in the telecom revolution. "This will help bridge the urban-rural digital divide and lead to penetration of broadband services in the country," P Balaji, Vice President (Marketing and Strategy), Ericsson India, said. CDMA operators' association AUSPI, however, said they were still studying the guidelines. But the CDMA Development Group, a CDMA user group, welcomed the policy and said DoT's decision to open globally harmonised band in 450 MHz, 1900 MHz and 2100 MHz is good for the industry. Industry body FICCI said the 3G policy would attract huge investments in the country to the tune of 8-10 billion dollars over the next two to three years. "The 3G guidelines would allow an open global and transparent auction process consistent with best global practices," FICCI President Rajeev Chandrasekhar said in a statement. CDMA technology innovator Qualcom said the 3G policy will benefit the entire wireless communication eco-system.

Handset, service costs key to 3G success in India
Telecom: Govt to start MNP in 2 months
Govt allows mobile number portability; to start in 2 months
MTNL shares up 6% on 3G spectrum allocation
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India unveils 3G policy

India on Friday joined the elite list of countries to announce a policy for third generation mobile service that will enable customers to enjoy voice, video, data and downloading facilities on their mobile phones.
Telecom Minister A Raja, unveiling the much-awaited 3G policy that would allow up to 10 players in a service area including foreign companies, said that the government expects up to Rs 40,000 crore (Rs 400 billion) from the auctioning of spectrum for 3G services.
India has 60 Mhz of 3G spectrum available. The auction will take place in the 2.1 Ghz band.
Government has set a base price of Rs 2,020 crore (Rs 20.20 billion) for each bid for a pan-India license. Initially, there will be three to five operators to sell the 3G services, including state run BSNL and MTNL [Get Quote].

The PSUs have an edge to start the 3G services earlier than others as they do not have to bid for the spectrum as they only have to match the highest bid in their respective circles. BSNL CMD Kuldeep Goyal said the PSUs should be able start the 3G service in six months. MTNL shares soared 3.76 per cent to Rs 107.70 on the priority treatment.One block shall be allocated to MTNL in Delhi and Mumbai/Metro service areas and BSNL in other areas.

He said an external agency would be appointed in the next 15 days to oversee the e-auctioning process and by December he expects the mobile operators to roll out 3G services.
As per the guideline, any licensed telecom operator can bid for 3G spectrum and the radio waves will be auctioned in 5-10 blocks depending on the availability. Each successful bidder will be allocated only one block in a service area.As per the guidelines, spectrum will be auctioned in the 450 Mhz, 800 Mhz band for EVDO (for CDMA players) and in 1900 band when it is available.
According to the reserve price for 3G spectrum fixed by the government, 2x5 Mhz block of spectrum for Mumbai, Delhi and category-A cities would cost Rs 160 crore (Rs 1.60 billion), for Kolkata and category-B Rs 80 crore (Rs 800 million)and category-C Rs 30 crore (Rs 300 million).

India, which has 287 million wireless subscribers, saw its mobile user base grow 25 times in the last five years making it the second largest wireless market in the world after China.
There are strict roll out obligations for 3G operators to discourage hoarding of spectrum. If the licensee does not achieve the roll out obligations, even after being given one year to do so, would have to make a payment of 2.5 per cent of its successful auction bid per quarter. And after that also if it does not roll out service, then its spectrum will be withdrawn.


Source:ET,rediff