Top 3 News

Heard on the Street

Broking firms on hiring spree to strengthen teams With institutional activity on the rise, many broking houses are strengthening their teams in the hope of getting a share of the pie. Networth Stock Broking is one such firm. The broking firm has hired two dozen professionals in sales, dealing and research over the past month. Buzz is that 10-12 more people are set to join over the next few weeks. Apart from Prakash Divan, who has joined as sales head, others have been hired from Centrum, Quantum, Merrill Lynch, Reliance Securities and Asit C Mehta, among others. Talk is that the boutique broking house is trying to create a presence in the derivative and quantitative space, in addition to fundamental research. HNIs lap up RCom shares despite weak sentiment Even as the wider section of the market paints a gloomy picture for telecom companies over the year or so, a few contrarians are seeing value in them. But they are avoiding the stock considered the best in the pack — Bharti Airtel. Instead, they are going for Reliance Communications despite all the controversy surrounding it, of late. It is rumoured that some leading HNIs have aggressively bought RCom in the Rs 160-175 range. The thinking in the contrarian camp is that Bharti is ‘overowned’, as many institutions have been mopping up its shares amid its sharp decline over the past few month. Contributed by Apurv Gupta & Nishanth Vasudevan

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Is China's economy headed for a crash?

SHANGHAI: James Chanos built one of the largest fortunes on Wall Street by foreseeing the collapse of Enron and other highflying companies whose stories were too good to be true. Now Chanos, a wealthy hedge fund investor, is working to bust the myth of the biggest conglomerate of all: China Inc. As most of the world bets on China to help lift the global economy out of recession, Chanos is warning that China's hyperstimulated economy is headed for a crash, rather than the sustained boom that most economists predict. Its surging real estate sector, buoyed by a flood of speculative capital, looks like "Dubai times 1,000 — or worse", he frets. He even suspects that Beijing is cooking its books, faking, among other things, its eye-popping growth rates of more than 8%. "Bubbles are best identified by credit excesses, not valuation excesses," he said in a recent appearance on CNBC. "And there's no bigger credit excess than in China." He is planning a speech later this month at the University of Oxford to drive home his point. As America's pre-eminent short-seller — he bets big money that companies' strategies will fail — Chanos's narrative runs counter to the prevailing wisdom on China. Economists and governments expect Chinese growth momentum to continue this year, buoyed by what remains of a $586 billion government stimulus program that began last year, meant to lift exports and consumption among Chinese consumers. Still, betting against China will not be easy. Because foreigners are restricted from investing in stocks listed inside China, Chanos has said he is searching for other ways to make his bets, including focusing on construction- and infrastructure-related companies that sell cement, coal and steel. Chanos, whose hedge fund, Kynikos Associates, has $6 billion under management, is hardly the only skeptic on China. But he is certainly the most prominent and vocal. He has been spreading the view that the China miracle is blinding investors to the risk that the country is producing far too much.

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India sets new lot sizes for stocks derivatives


MUMBAI: Indian markets regulator said on Friday it would standardize lot size for stock derivatives based on their value from March 31.

Under the new guideline, stock derivatives priced above 1,600 rupees ($35) will have a lot size of 125 units, while those priced above 800 rupees but below 1,600 would be tradeable in lots of 250 and for above 400 rupees in 500 units.

Share derivatives priced between 201 to 400 rupees would have a lot of 1,000 units; between 101 and 200 rupees in lots of 2,000 units; 51 to 100 rupees at 4,000 units and 25 to 50 rupees in lots of 8,000.

All derivatives priced below 25 rupees will be tradeable in multiples of 1,000, the Securities and Exchange Board of India said in a statement.

The regulator said stock exchanges would review lot sizes every six months, based on the average closing price of the underlying for the last one month. Any revision in lots would be done after at least a two-week notice and any higher lot would be applicable only to new contracts.



Src: ET

Heard on the Street

Heard on the Street

Cerebra snaps winning streak as traders corner co

Shares of Bangalore-based Cerebra Integrated Technologies snapped a 4-day winning streak to close at Rs 14.35, down 2.2% over the previous close. Buzz is that the stock is being cornered by traders close to “friendly circles” on talk that a Singapore-listed firm may pick up a strategic stake in the company. The overseas firm is said to be one of the largest electronic waste management in Singapore, and has been looking to expand its presence in India for some time.

According to people familiar with the development, the talks are at the final stage to set up India’s largest e-waste facility in India. Cerebra recently amended its main objects of memorandum of association to foray into electronic waste management. When contacted, V Ranganathan, MD, said confirmed that there were plans to foray into the e-waste segment.

Desperate house calls for stock recommendations

It is that phase of the bull run when analysts are unable to justify the valuations of shares by conventional ratios. Nevertheless, stocks have to be sold to eager clients, and there has to be some ‘story’ or ‘fundamental’ hook to it. As the joke goes, if a stock can’t be justified as a good buy based on the traditional price to earning multiple, then market it based on its price to cash earnings multiples.

If it still doesn’t look cheap, try the enterprise value to operating profits (EV/EBIDTA) ratio. If that doesn’t work, look at the market capitalisation as a multiple of sales. If that too fails, point out the “embedded value” in the stock in terms of holdings in group companies and other investments. And if everything fails, the scrip can still be marketed as a “concept stock”, only for the discerning investors with a long-term horizon. But above all, get the client to buy it.

Local institution’s sudden frenzy boosts Divi’s Lab

Shares of Divi’s Lab gained over 3% on Thursday to close at Rs 709.65, backed by heavy volumes. Over 10 lakh shares — more than 4 times the 2-week daily average volume — changed hands on both exchanges combined, but less than 30% of those trades resulted in delivery. Dealers said the sudden bout of buying came as a surprise, considering that the company’s third quarter numbers likely to be mediocre, just like those in the two quarters that preceded it.

A domestic institutional investor with a sizeable exposure to the stock is said to have whipped up the frenzy at the counter on Thursday. With most of the leading names already fully priced at current levels, investors now appear to be scouting for companies with not so impressive earnings, but those where a surprise performance could have a multiplier effect on the stock price.

Contributed by Apurv Gupta & Santosh Nair

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Top 5 picks | Mid term picks



sRC: et

Morning Calls 05.01.2010

Top 5 stock picks of the day | Mid-term picks


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Daily Call - Jan 5 2010

Daily Trading - Jan 5 2010

Daily Newsletter - Jan 5 2010

Src: ET and DP Blo

Technicals for the Week Starting Jan 4, 2010

Volumes, volatility should rise

The market registered new 18-month highs as it closed out the last settlement of 2009 with small net gains. The Nifty closed at 5,201.05 for a gain of 0.4 per cent. The Sensex closed at 17,464 for a gain of 0.6 per cent. The Defty was up 0.65 per cent as the rupee strengthened.

Breadth was decent in terms of a wide variety of shares being traded. Advances outnumbered declines comfortably. The FIIs were net buyers while domestic institutions were net sellers. However, volumes were down except on settlement day though that can be explained by the holiday spirit. The BSE 500 and the Midcaps were both up by about 0.6 per cent.

Outlook: The intermediate trend looks bullish but the short-term trend is difficult to diagnose. The market may be range bound between 5,100-5,250 in the early sessions of next week. The bullish intermediate trend suggests that the next target would be about 5,300. Expect intra-day volatility and volumes to rise regardless of market direction.

Rationale: Last week saw thin trading and tightly range-bound movement between 5,150-5,220. A movement beyond 5,225 and a close beyond that would reinforce earlier target projections of 5,300. On the downside, the intermediate trend will only be threatened if the market moves below 4,950.

Counter-view: Early January sometimes sees a continued absence of volumes, particularly until FIIs have established their attitude for the new fiscal. If volumes don't pick up, the market could drift downwards. Also the breadth of trading suggests that there is speculative retail participation and that sometimes comes right before a major correction.

Bulls & Bears: The IT index was the only underperformer last week, perhaps due to the rupee strengthening. Sector-wise, there was some selling in pharma. The rest of the market registered net gains but as mentioned above, on generally low volumes and with very little volatility. One sector-wise "long" possibility is PSUs since there appears to be selective buying across several PSU majors.

As such, it is difficult to target shorts and in most stocks, the trader should wait and watch for clear trends to be established before making large commitments. Stick to the highly liquid stocks in the F&O segment rather than dabble in smaller scrips that are retail-backed or operator-driven. In the absence of institutional participation, smaller scrips are more vulnerable to sell-offs.

MICRO TECHNICALS

NTPC
Current Price: Rs 235.65
Target Price: Rs 245

The stock has made a recent surge on high volumes. It has cleared severe resistance at Rs 230 and appears to have a minimum target of Rs 245-250 and it may run till Rs 260. Keep a stop at Rs 230 and go long. Consider booking partial profits at Rs 245 and reset the stop to Rs 240 and the target to Rs 255.

SBI
Current Price: Rs 2,269
Target Price: Rs 2,375

The stock has recovered from recent lows of Rs 2,135 aided by short-covering. It is capable of moving up till around Rs 2,350-2,375 before it hits heavy selling pressure. Keep a stop at Rs 2,240 and go long. Start booking profits above the Rs 2,350-mark.

PRAJ INDUSTRIES
Current Price: Rs 105.7
Target Price: Rs 110

The stock appears to have completed a bullish formation. It should have a target in the range of Rs 115-120 but there is strong resistance at Rs 110. Go long with an initial stop at Rs 101. Above Rs 109, you can exit. Or else, book partial profits at Rs 110, reset the stop loss to Rs 107 and reset the target to Rs 115.

DLF
Current Price: Rs 361.2
Target Price: Rs 385

The stock is consolidating and trading in a wide range between Rs 350-390. It could move up till the Rs 385-390 level if it develops a little volume. Keep a stop at Rs 355 and go long. Increase the position beyond Rs 370 and book profits beyond Rs 385.

NATIONAL ALUMINIUM
Current Price: Rs 417.9
Target Price: Rs 440

A recent burst of buying has pushed the stock up past resistance at Rs 405. The target would be something like Rs 440. Keep a trailing stop at Rs 405 and go long. Book partial profits at Rs 430 and reset the stop loss to Rs 425.

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Smart Portfolios ends 2009 on a high 04-JAN-10 Although Smart Portfolios kicked off on September 1, 2009, it feels good to end the calendar year on a cheerful note.

Markets at a glance 04-JAN-10 The prime minister’s assuring words about the robust economic growth and a firm close of European and Asian indices helped consolidate gains in a truncated week on account of Muharram and New Year.

A decade of good returns 04-JAN-10 Even the most practiced soothsayer will struggle to make any detailed predictions for the next 10 years.

Exploit low volatility in range-trading market 04-JAN-10 The December settlement concluded with very little volatility and a fair amount of carryover.

Volumes, volatility should rise 04-JAN-10 The market registered new 18-month highs as it closed out the last settlement of 2009 with small net gains.

Eyeing acquisitions 04-JAN-10 Strong brands, value for money strategy and focus on new markets and products will help Godrej Consumer sustain high growth rates.

Analysts' corner 04-JAN-10 The government has re-introduced a 5 per cent export tax on iron ore fines and doubled the duty on iron ore lumps to 10 per cent.

'Gold is my favourite currency' 04-JAN-10 Marc Faber, the legendary investor and the author of Gloom, Boom & Doom report shares his outlook on various asset classes including gold, agri-commodities and equities.

Insuring the future 04-JAN-10 To fund the expansion plans of its insurance and healthcare arms, Max India is issuing compulsorily convertible debentures and convertible warrants to Goldman Sachs and the promoters, respectively.

Bullish signals for 2010 04-JAN-10 The markets were on a roller coaster over the last two years which made it difficult to predict the road ahead.

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SESA GOA
Reco price: Rs 404
Current market price: Rs 410.95
Target price: Rs 344
Downside: 16.3%
Brokerage: Angel Broking


he government has re-introduced a 5 per cent export tax on iron ore fines and doubled the duty on iron ore lumps to 10 per cent. Last year, it had withdrawn the duties on iron ore fines on account of the sharp dip in iron ore prices; however, it had retained a 5 per cent levy on lumps. A pick-up in iron ore exports (up 21 per cent year-on-year to 53.2 million tonnes in April-October 2009) and improved export realisations (by over 70 per cent since April) prompted the government to raise the iron ore duties.

Sesa exports 90-95 per cent of its iron ore output. The brokerage expects Sesa’s 2009-10 and 2010-11 EPS to be negatively impacted by 3.3 per cent and 8.5 per cent, respectively. It has introduced 2011-12 estimates for Sesa and expects iron ore realisations to increase by 21.5 per cent (earlier 10 per cent) in 2010-11 and by 10 per cent in 2011-12, on the back of strong Chinese demand. Iron ore pricing negotiations are expected to start early next year (reports suggest a 20-30 per cent hike). But, considering what happened last year, it is difficult to predict whether China will accept the price hike.

At Rs 404, the stock is trading at 6.7 times 2011-12 estimated EV/EBITDA. The brokerage has recommended a ‘sell’ on the stock. At its target price of Rs 304, it will trade at 6 times 2011-12 estimated EV/EBITDA, which is at the higher end of its historic trading range.

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INDIABULLS REAL ESTATE
Reco price: Rs 218
Current market price: Rs 220.20
Target price: Rs 259
Upside: 17.6%
Brokerage: ICICI Securities

The developments in Indiabulls Property Investment Trust (IPIT) and new project launches look inspiring. Total saleable area of IPIT has increased from 5 million square feet (MSF) to 6.3 MSF owing to change in FSI. It has 2 MSF of constructed office space, of which 0.9 MSF has been leased and another 0.3 MSF is expected to be leased in March 2010 quarter. The management expects new leases to be done at Rs 185-190 per square feet, up from Rs 175 earlier.

The brokerage believes that IPIT is undervalued and estimates its equity value at Rs 6,000 crore or Singapore dollar $0.50 per unit (currently trading at $0.26). In 2009-10, Indiabulls Real Estate (IBREL) launched about 20 MSF of residential projects, including in Mumbai (9 MSF). Of the total, 2 MSF has already been sold (including 0.5 MSF in IPIT). IBREL recently raised Rs 2,700 crore through a QIP, which is yet to be deployed. The company is looking at strategic, big-ticket land-banks, particularly in Navi Mumbai, Dharavi and Mantralaya projects.

Since the stocks’ downgrade by the brokerage on July 31, 2009, it has underperformed the broader markets by 25 per cent. However, given the increase in saleable area at IPIT, pick-up in residential sales and bottoming of commercial lease rentals, it is upgrading the stock to ‘buy’ with target price of Rs 259 per share.

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TRANSPORT CORPORATION OF INDIA
Reco price: Rs 90
Current market price: Rs 89.75
Target price: Rs 100
Upside: 11.4%
Brokerage: Kotak Securities

Transport Corporation of India (TCI) has formed a strategy to cross sell its services through its five divisions. Each division would cross market services and provide single point logistics solutions to its clients. This is expected to increase business for TCI, going ahead. Based on its JV experience with Mitsui (Transystem Logistics International), TCI has been able to replicate the model and deliver efficient supply chain solutions (SCS) to industries like FMCG, retail and automobiles.

SCS is expected to grow at 30-35 per cent and the segment’s profitability is better than the overall business. TCI plans to increase its warehouse space from 8 MSF currently to 10 MSF by March 2011. About 15 per cent of the warehouse space is owned by TCI and rest is leased. In the real estate business, it is looking at jointly developing properties (at Delhi, Chennai, Bangalore, etc) for construction of residential and commercial space.

The implementation of GST could also bring in additional business through higher outsourcing of logistics activities to the third party logistics players like TCI. At Rs 90, the stock is trading at 1.7 times book value, 12.8 times earnings and 7.3 times cash earnings based on 2010-11 estimated numbers earnings. Maintain ‘accumulate’.

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HSIL
Reco price: Rs 61.25
Current market price: Rs 72.10
Target price: Rs 74
Upside: 2.6%
Brokerage: HDFC Securities

HSIL, earlier known as Hindustan Sanitaryware & Industries, enjoys a 40 per cent market share in the organised sanitary-ware industry. HSIL has increased its portfolio by adding more products in its bathroom and kitchen appliances products; it launched around 150 new products last year, of which, 60 per cent was in the premium category. Further, it has also started to venture into marketing and distribution of imported products to capitalise on its existing brand and distribution network. Besides, HSIL plans to increase its existing capacity by installing another kiln at its Bahadurgarh plant at a cost of about Rs 15-20 crore.

HSIL is expected to deliver revenue growth of 20.2 per cent and 23.7 per cent in 2009-10 and 2010-11, respectively on the back of enhanced product portfolio, increased demand and capacity utilisation. Its EBIDTA margins could stabilise in the 17-18 per cent range. However, higher depreciation and interest costs could be an over-hang. In 2009-10, HSIL’s PAT is expected to remain flat while in 2010-11, the same could increase by 29.1 per cent. Being an industry leader, HSIL is well positioned in the north as well as south to tap potential demand and is expected to grow faster than the industry. At Rs 61.25, the stock is trading at 8.2 times its 2010-11 EPS of Rs 7.5.

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OM METALS INFRAPROJECTS
Reco price: Rs 30
Current market price: Rs 31.50
Target price: Rs 39
Upside: 23.8%
Brokerage: SBICAP Securities

Om Metals Infraprojects is the largest hydro-mechanical equipment supplier in India with a market share of over 60 per cent. The company presently has an order book of Rs 636 crore, which is 3.5 times first half 2009-10 annualised sales and is expected to be completed in next 3 years. This provides substantial medium-term revenue visibility. In addition, the company has submitted bids for more projects, which are expected to take the total order book to over Rs 800 crore by 2009-10.

The company has recently forayed into the infrastructure segment by winning two contracts for the development of a port and a multi-product SEZ, both in Pondicherry. The SEZ project is spread over 860 acres and the company has a 20 per cent stake in it. It has a 50 per cent stake in the port project, which is to be developed in next 5-6 years. Both projects are expected to be developed through separate SPV's.

Further, there is potential to unlock value from its saleable land-bank (1.5 MSF) situated at Hyderabad, Jaipur, Mumbai, Faridabad and Kota. The stock is trading at 5.3 times its core 2010-11 estimated earnings. Maintain ‘buy’.

Current market prices as on December 30

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Top 5 stock picks of the day | Mid-term picks

Stocks that witnessed wild swings in last 3 months

Analyst's Pick: LARGE CAP: Anand Rathi Financial Services
3 Jan 2010, 0154 hrs IST

We are optimistic about M&M’s volume growth in the rest of FY10 and expect residual growth of 11 per cent in tractors and 20 per cent in UVs.

Analyst's Pick: LARGE CAP: Anand Rathi Financial Services
3 Jan 2010, 0153 hrs IST

We expect volume growth of 17.1 per cent in FY10, fuelled mainly by the Nano and the CV segment.

Analyst's Pick: MID CAP: Angel Broking
3 Jan 2010, 0148 hrs IST

The company is expected to clock around a 2.7 per cent y-o-y and 9.9 per cent yoy growth in net sales for FY2010E and FY2011E respectively.

Analyst's Pick: MID CAP: Angel Broking
3 Jan 2010, 0146 hrs IST

MSSL’s consolidated net sales is expercted to register substantial growth in FY2010E. On the margin front, we estimate the company to register a contraction owing to the increasing contribution of outside India sales.

Analyst's Pick: SMALL CAP: ICICI Securities
3 Jan 2010, 0143 hrs IST

Automotive Axle derives major revenues from the top two commercial vehicle makers Ashok Leyland and Tata Motors. They have reported strong growth in the past few months, indicating the revival of the segment.

Heard on the Street
1 Jan 2010, 0505 hrs IST

The New Year, with lots of multi-starrer and multibanner releases, has given investors in stocks of film producers and exhibitors a reason to rejoice.

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2010 Stock Picks Strategy

Results Preview - 3QFY2010

Morning Call - Jan 4 2010

Src: Economictimes, Business-Standard, DP Blog and etc

Stock Reports and Mkt analysis from Leading Sources

Mutual Funds Investment Picks - 2010

Weekly Newsletter - Jan 2 2010

Markets likely to test new highs

Weekly Newsletter - Jan 3 2010

ValueGuide 2010

Sobha Developers

Mutual Funds Analysis

Royal Orchid Hotels

Daily Newsletter - Jan 4 2010

Top Stock Picks - 2010

2010 Yearly Stock Picks

Hindalco Industries

Blackstone - 2010 will be a difficult year

IVRCL Infrastructure

Navneet Publications

Everest Kanto

Jet Airways, Wipro, Moser Baer, Sesa Goa, Voltas

Reliance Infrastructure

Elecon Engineering

MOre @ http://www.deadpresident.blogspot.com/


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TECHNICAL ANALYSIS: Index Outlook: Optimism reigns supreme
Indian equities bid a fitting adieu to 2009 with the Sensex waving merrily from its 52-week high. The New Year will begin on an irritating note for market intermediaries as trading begins an hour early from Monday. But then, as the ancient ...

STOCK MARKETS: Sensex outlook for 2010
If 2008 was a year of unprecedented decline in the equity market, 2009 will go down as the year of astounding rebound. In the Outlook for 2009 published on December 28, 2008, we had expected one leg of the bear market to end in the first ...

STOCKS: Orchid Chemicals & Pharmaceuticals: Sell
Shareholders can consider paring their exposure to the stock of Orchid Chemicals & Pharmaceuticals, which recently sold its antibiotic injectables business to the US-based Hospira Inc for $400 million (about Rs ...

STOCKS: Bombay Rayon Fashions: Buy
Investors with a long-term perspective can buy the stock of small-cap textile player Bombay Rayon Fashions (BRFL), manufacturer of fabric and apparel. At Rs 189, the stock trades at 10.6 times its trailing 12-month per share earnings. Though ...

STOCKS: India Cements: Book Profit
Investors in the stock of India Cements can consider booking profits at this point and entering the stock at a later date. Oversupply worries in the Southern region and the resultant pressure on prices in this region may curtail the ...

MUTUAL FUNDS: Tata Dividend Yield Fund: Hold
Investors can retain units of Tata Dividend Yield Fund (Tata Dividend), considering its steady returns track record over the long term. The fund seeks to invest in stocks that yield dividends higher than that of ...

INVESTMENTS: Investment ideas for 2010
The year 2009 started off on a subdued note for equity investors but by year-end both the BSE Sensex and Nifty were trading 80 per cent higher. With the markets trading at a price-earning multiple of well over 21 times from 11 times at the ...

STOCK MARKETS: Sensex in 2010
Global backdrop. Despite the strong gains recorded by equities across the world, most global benchmarks are still some way away from their previous peaks. The MSCI World index is positioned exactly half-way up the decline that ensued after the ...

TECHNICAL ANALYSIS: Index Strategy: Bull call spread on Nifty
Overall market sentiments as we move into a new trading year appear no less than bullish given the healthy rollovers seen in December derivative contracts. Traders can consider playing this uptrend in the market by setting a bull call spread ...

TECHNICAL ANALYSIS: Stock Strategy: Short strangle on Tata Power
Tata Power (1,382): The stock has been moving in narrow range for sometime. It closed last week above the crucial level of Rs 1,350. The outlook appears bullish as long as it stays above this level. The stock finds its next resistance at ...

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Wkly Tech Analysis: Old highs may be tested

The year 2009 ended on a high note, with benchmark (BSE & NSE) indices registering best yearly gains in the last two decades and touching fresh 19-month peaks. The year, however, will be most remembered for the Sensex and the Nifty hitting the upper circuit for the first time.

In the week under review, the markets surprisingly moved in an extremely narrow band despite the two holidays and the derivatives expiry. The BSE benchmark index, the Sensex, moved in a narrow range of 200-odd points. The index touched a high of 17,531 and settled with a gain of 104 points at 17,465.

Among index stocks, Reliance Infrastructure surged over 4 per cent. NTPC, Grasim, Bharti Airtel, SBI, Hindalco and Jaiprakash Associates were the other major gainers. Sun Pharma dropped 3.6 per cent. DLF, Wipro and ITC were some of the other prominent losers.

Lack of momentum on the upside suggests the up move may halt temporarily. The Sensex needs to sustain above 17,550 for further gains, while on the downside, the index may seek support at 17,385-17,335, below which the bears are likely to have the upper hand.

The longer-term picture, since we are at the start of the New Year, looks quite promising. Chances are that we may re-test the 21,000-mark this calendar year, while there are multiple strong supports for the index on the downside. The bias will remain bullish as long as the index remains above 13,840 this year. There is a further deeper support around 11,590 in case of extreme bearishness. On the positive front, the Sensex is first likely to target 19,550, followed by 21,090, in 2010.

The Nifty moved in a range of 62 points and ended with a gain of 23 points at 5,201. Last week, I had mentioned that the Nifty needed to sustain above 5,210 for fresh bullishness. As we see, the index was unable to close above 5,210 on any single day. Currently, the chart suggests that the Nifty needs to close above 5,237 for fresh bullishness. The Nifty may face resistance around 5,225-5,240 and find support around 5,177-5,163. A dip below 5,163 could see the index fall to 5,100 and then further lower to 5,010.

Unlike the Sensex, the yearly Nifty chart reveals that it will be difficult for the index to attain its 2008 peak (6,357) this year. In fact, the index has strong resistance around 6,225. The first significant target for the index is 5,790. On the downside, the index is likely to find considerable support around 4,600 and further lower at 4,175.

Src: BusinessLine and DP Blog, Business-Standard and Etc

India to overtake China in 2020

India to overtake China in 2020: Swaminathan Aiyar



In the past decades, India has been world number one in starvation deaths, foreign aid and bribery. In the 2000s, it was transformed from a

What is IIP? Know what is monetary policy India's road to economic reform India a safe bet

chronic under-performer to a potential superpower. Here are eight predictions of what it will look like in 2020:

India will overtake China as the fastest-growing economy in the world. China will start ageing and suffering from a declining workforce, and will be forced to revalue its currency. So its growth will decelerate, just as Japan decelerated in the 1990s after looking unstoppable in the 1980s. Having become the world’s second-biggest economy, China’s export-oriented model will erode sharply — the world will no longer be able to absorb its exports at the earlier pace. Meanwhile, India will gain demographically with a growing workforce that is more literate than ever before. The poorer Indian states will start catching up with the richer ones. This will take India’s GDP growth to 10% by 2020, while China’s growth will dip to 7-8%.

India will become the largest English-speaking nation in the world, overtaking the US. So, the global publishing industry will shift in a big way to India. Rupert Murdoch’s heirs will sell his collapsing media empire to Indian buyers. The New York Times will become a subsidiary of an Indian publishing giant.

In the 2000s, India finally gained entry into the nuclear club, and sanctions against it were lifted. By 2020, Indian companies will be major exporters of nuclear equipment, a vital link in the global supply chain. So, India will be in a position to impose nuclear sanctions on others.

India, along with the US and Canada, will develop new technology to extract natural gas from gas hydrates — a solidified form of gas lying on ocean floors. India has the largest gas hydrate deposits in the world, and so will become the biggest global producer. This will enable India to substitute gas for coal in power generation, hugely reducing carbon emissions and making Jairam Ramesh look saintly.

India will also discover enormous deposits of shale gas in its vast shale formations running through the Gangetic plain, Assam, Rajasthan and Gujarat. New technology has made the extraction of shale gas economic, so India will become a major gas producer and exporter. Meanwhile, Iran’s mullahs will be overthrown, and a new democratic regime will usher in rapid economic growth that creates a shortage of gas in Iran by 2020. So, the Iran-India pipeline will be recast, but in reverse form: India will now export gas to Iran.

More and more regions of India will demand separate statehood. By 2020, India will have 50 states instead of the current 28. The new states will not exactly be small. With 50 states and a population of almost 1.5 billion, India will average 30 million people per state, far higher than the current US average of 6 million per state.

China, alarmed at India’s rise, will raise tensions along the Himalayan border. China will threaten to divert the waters of the Brahmaputra from Tibet to water-scarce northern China. India will threaten to bomb any such project. The issue will go to the Security Council.

Islamic fundamentalists will take over in Afghanistan and Pakistan. The US will withdraw from the region, leaving India to bear the brunt of consequences. Terrorism will rise in India, but the economy will still keep growing. How so? Well, 3000 people die every year falling off Mumbai’s suburban trains, and that does not stop Mumbai’s growth. Terrorism will bruise India, but not halt its growth.


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Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Last updated on: December 31, 2009 21:18 IST

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Bhupesh Bhandari

India Inc entered the 21st Century more confident and more competitive. Many of the previous decade's top ten were not even around a decade earlier. In this era of change few thought in year 2000 that by 2010 Ratan Tata would continue to head any list of high performers. He did!

Life began for Ratan Tata in 2000. That year, Tata Tea acquired Tetley of the United Kingdom. This was the first major acquisition of a global brand by an Indian company.

Four years later, it was Tata Motors' turn -- it bought the heavy vehicles business of bankrupt Daewoo Motors in South Korea. Next year, Tata Steel acquired NatSteel in Singapore. All of this paled into insignificance in 2007 when Tata Steel bought Anglo-Dutch steel maker Corus for $12 billion. It made Tata Steel the fifth largest steel company in the world.

A year later, Tata Motors became the new owner of marquee brands Jaguar and Land Rover after it paid Ford $2.3 billion. The crowning glory came in 2009 when he launched an ultra-low-cost car, the Nano. Not bad at all.

The decade that draws to an end will go down in history as the one in which Indian business spread its footprint across the globe. Strong economic growth till 2008, which was driven by domestic consumption, had filled the coffers of most companies.

The flow of global capital had taken the stock markets to new heights, which made Indian businessmen rich beyond compare. The list of Indian billionaires had become long. They had the money to buy assets that were on the block. Click NEXT to read on further. . .

Image: Tata Group chairman Ratan Tata.
Photographs: Reuters

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Last updated on: December 31, 2009 21:18 IST

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Bhupesh Bhandari

India Inc entered the 21st Century more confident and more competitive. Many of the previous decade's top ten were not even around a decade earlier. In this era of change few thought in year 2000 that by 2010 Ratan Tata would continue to head any list of high performers. He did!

Life began for Ratan Tata in 2000. That year, Tata Tea acquired Tetley of the United Kingdom. This was the first major acquisition of a global brand by an Indian company.

Four years later, it was Tata Motors' turn -- it bought the heavy vehicles business of bankrupt Daewoo Motors in South Korea. Next year, Tata Steel acquired NatSteel in Singapore. All of this paled into insignificance in 2007 when Tata Steel bought Anglo-Dutch steel maker Corus for $12 billion. It made Tata Steel the fifth largest steel company in the world.

A year later, Tata Motors became the new owner of marquee brands Jaguar and Land Rover after it paid Ford $2.3 billion. The crowning glory came in 2009 when he launched an ultra-low-cost car, the Nano. Not bad at all.

The decade that draws to an end will go down in history as the one in which Indian business spread its footprint across the globe. Strong economic growth till 2008, which was driven by domestic consumption, had filled the coffers of most companies.

The flow of global capital had taken the stock markets to new heights, which made Indian businessmen rich beyond compare. The list of Indian billionaires had become long. They had the money to buy assets that were on the block. Click NEXT to read on further. . .

Image: Tata Group chairman Ratan Tata.
Photographs: Reuters

Next

350)this.width=350;">

Prev Next

Reliance Industries got even bigger in 2002 when it announced India's biggest gas discovery in the Krishna-Godavari basin.

That year it acquired Indian Petrochemicals Corporation and merged Reliance Petroleum to become the country's largest company in the private sector. RIL entered the Fortune 500 list two years later.

In 2000, Reliance Industries' assets were worth Rs 50,000 crore -- not small by any standard. Today, the assets are worth Rs 2,45,706 crore. The revenue of the unified Reliance Group stood at Rs 21,541 crore in 2000. In 2008-09, in contrast, Reliance Industries clocked a turnover of Rs 1,39,269 crore.

Image: Reliance Industries chairman Mukesh Ambani.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

But the decade's big story for the Ambani family was sibling rivalry. Anil, the younger of the two Ambani brothers, accused Mukesh of usurping the family stake after the death of patriarch Dhirubhai in July 2002.

It turned out to be a no holds barred fight, which should come to a head early in the New Year in the nation's Supreme Court. In the settlement of 2005, Mukesh retained control of the oil & gas and petrochemicals business, while Anil got power and telecom.

Mukesh has since then diversified into retail, while Anil has taken strides in entertainment -- he acquired Adlabs and Steven Spielberg's Dreamworks studio. The Reliance business empire thus looks very different from ten years ago.

Image: Reliance founder late Dhirubhai Ambani (seated), with his sons Mukesh and Anil (right).
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

Hindalco, of the Aditya Birla Group, bought Canadian aluminum maker Novelis for $6.4 billion.

Suzlon, set up in 1995 by Tulsi Tanti and now the world's third-largest wind energy company, shelled out $525 million for Hansen Transmissions of the Netherlands and $1.6 billion for REpower of Germany.

Vijay Mallya downed Scottish whiskey maker Whyte & Mackay for close to $1 billion. Dr Reddy's paid over $500 million for Betapharm of Germany, Ranbaxy $324 million for Terapia of Romania.

There were numerous other buys across the world in telecom, engineering, financial services, FMCG, information technology et al. In addition, Indians began to get plum projects. GMR bagged a $2.57 billion project to modernise an Istanbul airport. Indian business, in short, acquired a global spread.

Image: Aditya Birla Group chairman Kumaramangalam Birla.
Photographs: Rediff Archive

Prev Next

350)this.width=350;">

Prev Next

Almost 530 million Indians own a phone now and Bharti Airtel has grown to cater to a 110 million of them. It has a 24 per cent share of the GSM mobile phone market, though its share of revenue is 31.8 per cent.

This clearly shows that the company has moved up the value chain -- it has managed to acquire better customers than rivals. Airtel, surveys have shown, is the second most-admired Indian brand after state-owned Life Insurance Corporation.

The company wants to take it to the top slot as quickly as possible.

Growth of homespun information technology companies has been no less spectacular.

Image: Bharti Airtel chairman Sunil Bharti Mittal.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

The big three -- TCS (Tata Consultancy Services), Infosys and Wipro --all earn over a billion dollars in revenue every quarter.

From a few thousand at the turn of the last decade, TCS has on its rolls 143,000 men and women in 42 countries. Infosys employs 105,000 people in its 50 centres spread across India, China, Australia, the Czech Republic, Japan, Poland, Canada and the United Kingdom.

Wipro has 95,000 people in its 50 centres across the globe -- it is the world's largest independent provider of research and development services. These companies have used the organic as well as inorganic route to growth.

Image: Former TCS chief executive officer S Ramadorai.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

It was a paradigm shift. Businessmen were no longer ashamed of selling off their businesses. It came to be known as unlocking value.

Apart from Ranbaxy, quite a few other Indian pharmaceutical companies changed hands during the decade -- Matrix Labs, Panacea Biotech and Dabur Pharma.

In other sectors, Gujarat Ambuja was sold to Holcim, Shaw Wallace breweries to SABMiller and distilleries to Mallya, and Maruti Suzuki became a subsidiary of Suzuki Motor Corporation. It became a long list. Investment bankers say more iconic names will be sold in the years to come.

Image: Malvinder Mohan Singh who sold Ranbaxy to Daiichi of Japan.
Photographs: Rediff Archive

Prev Next

350)this.width=350;">

Prev Next

This was also the time Indians began to innovate their business model. Take ITC, for example. It was in the 1990s a largely cigarette company. But YC Deveshwar, who took over as the company's chairman in 1996, was quick to realise the need to spread the risks.

Tobacco was hardly a sunrise business. As it was not a "public good", the government was always ready to increase the taxes. So, the company expanded its hotel and paper business, and, more important, made a big splash in FMCG -- from personal care to snack food, stationery, lifestyle retail, matches and even incense sticks.

This part of the business has grown from Rs 109 crore in 2002-03 to Rs 3,014 crore in 2008-09. It was the first to seize the opportunity in the rural markets when it set up e-choupals which dispensed market-related information to farmers.

Image: ITC chairman Yogi Deveshwar.

Prev Next

350)this.width=350;">

Prev Next

The decade will always be remembered for the way Indians bought, shopped and banked. There was a virtual credit explosion -- people bought everything from automobiles to homes and even a pair of jeans on installments. Credit card numbers recorded a huge jump. Banks automated rapidly and sold more than just deposits and lockers.

Such a strategy helped ICICI Bank race past all banks in the sweepstakes, except State Bank of India. In the early parts of the decade, it brought its wholesale and personal banking operations under one roof.

This gave it added muscle. It was at the forefront of installing ATMs (automated teller machines) across the country, which cut the queues in its branches and therefore improved service standards. It went aggressive on credit cards, personal loans and cross-sold products to depositors -- life insurance, automobile finance, housing loans, advisory services etc.

It made Indian banks rethink their business model, including SBI. Its assets stood at $77 billion in June 2009, up from around $3 billion ten years ago.

Image: ICICI Bank CEO Chanda Kochchar.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev More

ICICI Bank's counterpart in retail was Kishore Biyani. The unassuming Marwari from Mumbai first got into organised retail with the Pantaloons family store in 1997. This was followed in 2001 with the launch of Big Bazaar, a hypermarket format that democratised shopping in India.

It blended the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality. Supply chain expertise did not exist in India.

Biyani built it from scratch. When commodity prices shot up to unheard of levels in 2007 and 2008, he held on to his prices. His people in the store wore T-shirts that said "Garv se kaho hum kanjoos hain" (Say with pride we are misers).

When large FMCG companies didn't agree for higher margins, he stopped stocking their merchandise -- such was his clout. With his large scale of operations, he always paid the lowest rent in the industry. He introduced the concept of store brands or private labels in the country.

Big Bazaar was followed by a number of other formats including Food Bazaar, Central and Home Town. He also diversified into finance, logistics and media. In between, he even wrote a book which was aptly titled "It happened in India".

Image: Future Group chairman Kishore Biyani.
Photographs: Rediff Archive

Prev More

Source:

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Last updated on: December 31, 2009 21:18 IST

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Users

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350)this.width=350;">

Next

Bhupesh Bhandari

India Inc entered the 21st Century more confident and more competitive. Many of the previous decade's top ten were not even around a decade earlier. In this era of change few thought in year 2000 that by 2010 Ratan Tata would continue to head any list of high performers. He did!

Life began for Ratan Tata in 2000. That year, Tata Tea acquired Tetley of the United Kingdom. This was the first major acquisition of a global brand by an Indian company.

Four years later, it was Tata Motors' turn -- it bought the heavy vehicles business of bankrupt Daewoo Motors in South Korea. Next year, Tata Steel acquired NatSteel in Singapore. All of this paled into insignificance in 2007 when Tata Steel bought Anglo-Dutch steel maker Corus for $12 billion. It made Tata Steel the fifth largest steel company in the world.

A year later, Tata Motors became the new owner of marquee brands Jaguar and Land Rover after it paid Ford $2.3 billion. The crowning glory came in 2009 when he launched an ultra-low-cost car, the Nano. Not bad at all.

The decade that draws to an end will go down in history as the one in which Indian business spread its footprint across the globe. Strong economic growth till 2008, which was driven by domestic consumption, had filled the coffers of most companies.

The flow of global capital had taken the stock markets to new heights, which made Indian businessmen rich beyond compare. The list of Indian billionaires had become long. They had the money to buy assets that were on the block. Click NEXT to read on further. . .

Image: Tata Group chairman Ratan Tata.
Photographs: Reuters

Next

350)this.width=350;">

Prev Next

Reliance Industries got even bigger in 2002 when it announced India's biggest gas discovery in the Krishna-Godavari basin.

That year it acquired Indian Petrochemicals Corporation and merged Reliance Petroleum to become the country's largest company in the private sector. RIL entered the Fortune 500 list two years later.

In 2000, Reliance Industries' assets were worth Rs 50,000 crore -- not small by any standard. Today, the assets are worth Rs 2,45,706 crore. The revenue of the unified Reliance Group stood at Rs 21,541 crore in 2000. In 2008-09, in contrast, Reliance Industries clocked a turnover of Rs 1,39,269 crore.

Image: Reliance Industries chairman Mukesh Ambani.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

But the decade's big story for the Ambani family was sibling rivalry. Anil, the younger of the two Ambani brothers, accused Mukesh of usurping the family stake after the death of patriarch Dhirubhai in July 2002.

It turned out to be a no holds barred fight, which should come to a head early in the New Year in the nation's Supreme Court. In the settlement of 2005, Mukesh retained control of the oil & gas and petrochemicals business, while Anil got power and telecom.

Mukesh has since then diversified into retail, while Anil has taken strides in entertainment -- he acquired Adlabs and Steven Spielberg's Dreamworks studio. The Reliance business empire thus looks very different from ten years ago.

Image: Reliance founder late Dhirubhai Ambani (seated), with his sons Mukesh and Anil (right).
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

Hindalco, of the Aditya Birla Group, bought Canadian aluminum maker Novelis for $6.4 billion.

Suzlon, set up in 1995 by Tulsi Tanti and now the world's third-largest wind energy company, shelled out $525 million for Hansen Transmissions of the Netherlands and $1.6 billion for REpower of Germany.

Vijay Mallya downed Scottish whiskey maker Whyte & Mackay for close to $1 billion. Dr Reddy's paid over $500 million for Betapharm of Germany, Ranbaxy $324 million for Terapia of Romania.

There were numerous other buys across the world in telecom, engineering, financial services, FMCG, information technology et al. In addition, Indians began to get plum projects. GMR bagged a $2.57 billion project to modernise an Istanbul airport. Indian business, in short, acquired a global spread.

Image: Aditya Birla Group chairman Kumaramangalam Birla.
Photographs: Rediff Archive

Prev Next

350)this.width=350;">

Prev Next

Almost 530 million Indians own a phone now and Bharti Airtel has grown to cater to a 110 million of them. It has a 24 per cent share of the GSM mobile phone market, though its share of revenue is 31.8 per cent.

This clearly shows that the company has moved up the value chain -- it has managed to acquire better customers than rivals. Airtel, surveys have shown, is the second most-admired Indian brand after state-owned Life Insurance Corporation.

The company wants to take it to the top slot as quickly as possible.

Growth of homespun information technology companies has been no less spectacular.

Image: Bharti Airtel chairman Sunil Bharti Mittal.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

The big three -- TCS (Tata Consultancy Services), Infosys and Wipro --all earn over a billion dollars in revenue every quarter.

From a few thousand at the turn of the last decade, TCS has on its rolls 143,000 men and women in 42 countries. Infosys employs 105,000 people in its 50 centres spread across India, China, Australia, the Czech Republic, Japan, Poland, Canada and the United Kingdom.

Wipro has 95,000 people in its 50 centres across the globe -- it is the world's largest independent provider of research and development services. These companies have used the organic as well as inorganic route to growth.

Image: Former TCS chief executive officer S Ramadorai.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

It was a paradigm shift. Businessmen were no longer ashamed of selling off their businesses. It came to be known as unlocking value.

Apart from Ranbaxy, quite a few other Indian pharmaceutical companies changed hands during the decade -- Matrix Labs, Panacea Biotech and Dabur Pharma.

In other sectors, Gujarat Ambuja was sold to Holcim, Shaw Wallace breweries to SABMiller and distilleries to Mallya, and Maruti Suzuki became a subsidiary of Suzuki Motor Corporation. It became a long list. Investment bankers say more iconic names will be sold in the years to come.

Image: Malvinder Mohan Singh who sold Ranbaxy to Daiichi of Japan.
Photographs: Rediff Archive

Prev Next

350)this.width=350;">

Prev Next

This was also the time Indians began to innovate their business model. Take ITC, for example. It was in the 1990s a largely cigarette company. But YC Deveshwar, who took over as the company's chairman in 1996, was quick to realise the need to spread the risks.

Tobacco was hardly a sunrise business. As it was not a "public good", the government was always ready to increase the taxes. So, the company expanded its hotel and paper business, and, more important, made a big splash in FMCG -- from personal care to snack food, stationery, lifestyle retail, matches and even incense sticks.

This part of the business has grown from Rs 109 crore in 2002-03 to Rs 3,014 crore in 2008-09. It was the first to seize the opportunity in the rural markets when it set up e-choupals which dispensed market-related information to farmers.

Image: ITC chairman Yogi Deveshwar.

Prev Next

350)this.width=350;">

Prev Next

The decade will always be remembered for the way Indians bought, shopped and banked. There was a virtual credit explosion -- people bought everything from automobiles to homes and even a pair of jeans on installments. Credit card numbers recorded a huge jump. Banks automated rapidly and sold more than just deposits and lockers.

Such a strategy helped ICICI Bank race past all banks in the sweepstakes, except State Bank of India. In the early parts of the decade, it brought its wholesale and personal banking operations under one roof.

This gave it added muscle. It was at the forefront of installing ATMs (automated teller machines) across the country, which cut the queues in its branches and therefore improved service standards. It went aggressive on credit cards, personal loans and cross-sold products to depositors -- life insurance, automobile finance, housing loans, advisory services etc.

It made Indian banks rethink their business model, including SBI. Its assets stood at $77 billion in June 2009, up from around $3 billion ten years ago.

Image: ICICI Bank CEO Chanda Kochchar.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev More

ICICI Bank's counterpart in retail was Kishore Biyani. The unassuming Marwari from Mumbai first got into organised retail with the Pantaloons family store in 1997. This was followed in 2001 with the launch of Big Bazaar, a hypermarket format that democratised shopping in India.

It blended the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality. Supply chain expertise did not exist in India.

Biyani built it from scratch. When commodity prices shot up to unheard of levels in 2007 and 2008, he held on to his prices. His people in the store wore T-shirts that said "Garv se kaho hum kanjoos hain" (Say with pride we are misers).

When large FMCG companies didn't agree for higher margins, he stopped stocking their merchandise -- such was his clout. With his large scale of operations, he always paid the lowest rent in the industry. He introduced the concept of store brands or private labels in the country.

Big Bazaar was followed by a number of other formats including Food Bazaar, Central and Home Town. He also diversified into finance, logistics and media. In between, he even wrote a book which was aptly titled "It happened in India".

Image: Future Group chairman Kishore Biyani.
Photographs: Rediff Archive

Prev More

Source:

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Top 10 Indian companies of the decade

Last updated on: December 31, 2009 21:18 IST

Email
this

Save to
My Page

Ask
Users

Write a
Comment

350)this.width=350;">

Next

Bhupesh Bhandari

India Inc entered the 21st Century more confident and more competitive. Many of the previous decade's top ten were not even around a decade earlier. In this era of change few thought in year 2000 that by 2010 Ratan Tata would continue to head any list of high performers. He did!

Life began for Ratan Tata in 2000. That year, Tata Tea acquired Tetley of the United Kingdom. This was the first major acquisition of a global brand by an Indian company.

Four years later, it was Tata Motors' turn -- it bought the heavy vehicles business of bankrupt Daewoo Motors in South Korea. Next year, Tata Steel acquired NatSteel in Singapore. All of this paled into insignificance in 2007 when Tata Steel bought Anglo-Dutch steel maker Corus for $12 billion. It made Tata Steel the fifth largest steel company in the world.

A year later, Tata Motors became the new owner of marquee brands Jaguar and Land Rover after it paid Ford $2.3 billion. The crowning glory came in 2009 when he launched an ultra-low-cost car, the Nano. Not bad at all.

The decade that draws to an end will go down in history as the one in which Indian business spread its footprint across the globe. Strong economic growth till 2008, which was driven by domestic consumption, had filled the coffers of most companies.

The flow of global capital had taken the stock markets to new heights, which made Indian businessmen rich beyond compare. The list of Indian billionaires had become long. They had the money to buy assets that were on the block. Click NEXT to read on further. . .

Image: Tata Group chairman Ratan Tata.
Photographs: Reuters

Next

350)this.width=350;">

Prev Next

Reliance Industries got even bigger in 2002 when it announced India's biggest gas discovery in the Krishna-Godavari basin.

That year it acquired Indian Petrochemicals Corporation and merged Reliance Petroleum to become the country's largest company in the private sector. RIL entered the Fortune 500 list two years later.

In 2000, Reliance Industries' assets were worth Rs 50,000 crore -- not small by any standard. Today, the assets are worth Rs 2,45,706 crore. The revenue of the unified Reliance Group stood at Rs 21,541 crore in 2000. In 2008-09, in contrast, Reliance Industries clocked a turnover of Rs 1,39,269 crore.

Image: Reliance Industries chairman Mukesh Ambani.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

But the decade's big story for the Ambani family was sibling rivalry. Anil, the younger of the two Ambani brothers, accused Mukesh of usurping the family stake after the death of patriarch Dhirubhai in July 2002.

It turned out to be a no holds barred fight, which should come to a head early in the New Year in the nation's Supreme Court. In the settlement of 2005, Mukesh retained control of the oil & gas and petrochemicals business, while Anil got power and telecom.

Mukesh has since then diversified into retail, while Anil has taken strides in entertainment -- he acquired Adlabs and Steven Spielberg's Dreamworks studio. The Reliance business empire thus looks very different from ten years ago.

Image: Reliance founder late Dhirubhai Ambani (seated), with his sons Mukesh and Anil (right).
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

Hindalco, of the Aditya Birla Group, bought Canadian aluminum maker Novelis for $6.4 billion.

Suzlon, set up in 1995 by Tulsi Tanti and now the world's third-largest wind energy company, shelled out $525 million for Hansen Transmissions of the Netherlands and $1.6 billion for REpower of Germany.

Vijay Mallya downed Scottish whiskey maker Whyte & Mackay for close to $1 billion. Dr Reddy's paid over $500 million for Betapharm of Germany, Ranbaxy $324 million for Terapia of Romania.

There were numerous other buys across the world in telecom, engineering, financial services, FMCG, information technology et al. In addition, Indians began to get plum projects. GMR bagged a $2.57 billion project to modernise an Istanbul airport. Indian business, in short, acquired a global spread.

Image: Aditya Birla Group chairman Kumaramangalam Birla.
Photographs: Rediff Archive

Prev Next

350)this.width=350;">

Prev Next

Almost 530 million Indians own a phone now and Bharti Airtel has grown to cater to a 110 million of them. It has a 24 per cent share of the GSM mobile phone market, though its share of revenue is 31.8 per cent.

This clearly shows that the company has moved up the value chain -- it has managed to acquire better customers than rivals. Airtel, surveys have shown, is the second most-admired Indian brand after state-owned Life Insurance Corporation.

The company wants to take it to the top slot as quickly as possible.

Growth of homespun information technology companies has been no less spectacular.

Image: Bharti Airtel chairman Sunil Bharti Mittal.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

The big three -- TCS (Tata Consultancy Services), Infosys and Wipro --all earn over a billion dollars in revenue every quarter.

From a few thousand at the turn of the last decade, TCS has on its rolls 143,000 men and women in 42 countries. Infosys employs 105,000 people in its 50 centres spread across India, China, Australia, the Czech Republic, Japan, Poland, Canada and the United Kingdom.

Wipro has 95,000 people in its 50 centres across the globe -- it is the world's largest independent provider of research and development services. These companies have used the organic as well as inorganic route to growth.

Image: Former TCS chief executive officer S Ramadorai.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev Next

It was a paradigm shift. Businessmen were no longer ashamed of selling off their businesses. It came to be known as unlocking value.

Apart from Ranbaxy, quite a few other Indian pharmaceutical companies changed hands during the decade -- Matrix Labs, Panacea Biotech and Dabur Pharma.

In other sectors, Gujarat Ambuja was sold to Holcim, Shaw Wallace breweries to SABMiller and distilleries to Mallya, and Maruti Suzuki became a subsidiary of Suzuki Motor Corporation. It became a long list. Investment bankers say more iconic names will be sold in the years to come.

Image: Malvinder Mohan Singh who sold Ranbaxy to Daiichi of Japan.
Photographs: Rediff Archive

Prev Next

350)this.width=350;">

Prev Next

This was also the time Indians began to innovate their business model. Take ITC, for example. It was in the 1990s a largely cigarette company. But YC Deveshwar, who took over as the company's chairman in 1996, was quick to realise the need to spread the risks.

Tobacco was hardly a sunrise business. As it was not a "public good", the government was always ready to increase the taxes. So, the company expanded its hotel and paper business, and, more important, made a big splash in FMCG -- from personal care to snack food, stationery, lifestyle retail, matches and even incense sticks.

This part of the business has grown from Rs 109 crore in 2002-03 to Rs 3,014 crore in 2008-09. It was the first to seize the opportunity in the rural markets when it set up e-choupals which dispensed market-related information to farmers.

Image: ITC chairman Yogi Deveshwar.

Prev Next

350)this.width=350;">

Prev Next

The decade will always be remembered for the way Indians bought, shopped and banked. There was a virtual credit explosion -- people bought everything from automobiles to homes and even a pair of jeans on installments. Credit card numbers recorded a huge jump. Banks automated rapidly and sold more than just deposits and lockers.

Such a strategy helped ICICI Bank race past all banks in the sweepstakes, except State Bank of India. In the early parts of the decade, it brought its wholesale and personal banking operations under one roof.

This gave it added muscle. It was at the forefront of installing ATMs (automated teller machines) across the country, which cut the queues in its branches and therefore improved service standards. It went aggressive on credit cards, personal loans and cross-sold products to depositors -- life insurance, automobile finance, housing loans, advisory services etc.

It made Indian banks rethink their business model, including SBI. Its assets stood at $77 billion in June 2009, up from around $3 billion ten years ago.

Image: ICICI Bank CEO Chanda Kochchar.
Photographs: Reuters

Prev Next

350)this.width=350;">

Prev More

ICICI Bank's counterpart in retail was Kishore Biyani. The unassuming Marwari from Mumbai first got into organised retail with the Pantaloons family store in 1997. This was followed in 2001 with the launch of Big Bazaar, a hypermarket format that democratised shopping in India.

It blended the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality. Supply chain expertise did not exist in India.

Biyani built it from scratch. When commodity prices shot up to unheard of levels in 2007 and 2008, he held on to his prices. His people in the store wore T-shirts that said "Garv se kaho hum kanjoos hain" (Say with pride we are misers).

When large FMCG companies didn't agree for higher margins, he stopped stocking their merchandise -- such was his clout. With his large scale of operations, he always paid the lowest rent in the industry. He introduced the concept of store brands or private labels in the country.

Big Bazaar was followed by a number of other formats including Food Bazaar, Central and Home Town. He also diversified into finance, logistics and media. In between, he even wrote a book which was aptly titled "It happened in India".

Image: Future Group chairman Kishore Biyani.
Photographs: Rediff Archive

Prev More

Source:




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