Diberdayakan oleh Blogger.

Popular Posts Today

Neyveli disinvestment on Aug 2, govt to raise Rs 350cr

Written By Unknown on Rabu, 31 Juli 2013 | 23.25

The government's 3.56 percent stake sale of Neyveli Lignite Corporation (NLC) through the institutional placement route will hit the markets on August 2 and is expected to fetch around Rs 350 crore to the exchequer.

The government is selling 3.56 per cent stake or over 5.58 crore shares in NLC through an institutional placement programme (IPP) in which the Tamil Nadu based state entities would be given preference while allotment of shares.

"The EGoM has decided on a price band for the NLC stake sale. The issue will hit markets on August 2," Disinvestment Secretary Ravi Mathur told reporters after the meeting of the Empowered Group of Ministers here.

He said the price band would be communicated to the stock exchanges shortly.

Earlier this month, market regulator Sebi had given go-ahead to the disinvestment department's proposal to give preference in share allotment to those PSUs located in states in which Neyveli's generating units were located.

Tamil Nadu government has been insisting that it would buy the entire central government stake that is being divested in the state lignite mining and power producing company and had written to Prime Minister Manmohan Singh in this regard last month.

The TN government has said it has 5 state PSUs which can be qualified as QIBs (Qualified Institutional Buyer). The DoD has sought exemption from Sebi so that preference is given to allot shares to these PSUs only.

Shares of NLC closed at Rs 54.35, down 4.82 per cent over previous close on the BSE.

Government currently holds 93.56 per cent stake in NLC and the share sale in done to meet the minimum public holding norm of market regulator Sebi.

Sebi has set a deadline of August 8, 2013, for all listed central public sector units to have a minimum 10 per cent public shareholding.

The department of disinvestment (DoD) was originally planning to divest 5 per cent of its stake in the Tamil Nadu-based mining company.

However, since the IPP mode is allowed only to bring down promoter stake to 10 per cent, the department would now sell only 3.56 per cent or over 5.58 crore shares in the company to lower government stake to 90 per cent.



23.25 | 0 komentar | Read More

DGCA begins probe into JetLite plane engine failure

Aviation regulator DGCA has initiated a preliminary investigation into the JetLite plane engine failure, which led to an emergency landing of the aircraft at the city airport here, sources said.

"We have begun a preliminary probe into the (JetLite plane) incident," Directorate General of Civil Aviation sources told PTI here.

The initial probe involves a general inspection of the aircraft and the engine, etc, sources said, adding that the preliminary findings will be submitted to the authorities soon.

Also read: Jet Airways-Etihad Airways accept riders laid by FIPB

A JetLite flight with 144 passengers on board made an emergency landing at the Mumbai Airport yesterday barely half-an-hour after its take off for Ahmedabad, due to engine failure.

The JetLite flight 9W1625, with 114 passengers on board, took off at 5.47 AM yesterday but landed back at 6.20 AM due to port side engine failure, airport officials had said.



23.25 | 0 komentar | Read More

National Fert OFS subscribed 1.55 times; govt gets Rs 101cr

The government today raised Rs 101 crore from the sale of 3.74 crore shares in National Fertilisers (NFL) after the issue was lapped up in a weak market.

The offer for sale (OFS) attracted bids for over 5.84 crore shares, or 1.55 times of the 3.74 crore shares offered, according to data from the stock exchanges. The indicative price for the share sale was Rs 27 apiece.

"The issue was over-subscribed 1.55 times and the government will receive approximately Rs 101 crore towards divestment receipts," an official statement said.

Sources said most of the bids came from insurance companies, banks and other financial institutions, while retail participation was negligible.

Stock markets today fell in the first half of trade amid rupee weakening to near record low levels. The BSE Sensex closed flat to end at 19,345.70 points.

Mirroring the weak broader sentiment, the NFL scrip touched a low of Rs 25.25, a decline of 5.43 per cent from the previous close on the BSE. The stock later recovered and closed 1.12 per cent higher at Rs 27, amid good response to the OFS.

Also Read: Neyveli disinvestment on Aug 2, govt to raise Rs 350cr

The government set the floor price for the issue at Rs 27 apiece, which was higher than yesterday's close of Rs 26.70.

The stake sale helped the government lower its stake in the company to 90 per cent and comply with Sebi norms on public holding.

IDBI Capital Markets acted as merchant banker for the share sale.

The paid-up equity capital of the company, as on March 31, 2012, was Rs 490.58 crore.

The government proposes to raise Rs 40,000 crore by way of disinvestment in the current fiscal and has raised over Rs 929 crore through stake sales in Hindustan Copper, MMTC and today's NFL.



23.25 | 0 komentar | Read More

Essar Steel front-runner in race for Stemcor India's assets

Ruais-promoted Essar Steel is the front-runner to clinch Stemcor India's assets for which at least a dozen domestic and overseas firms, including Tata Steel , Vale and JSW Steel are also in the fray.

In a meeting held last week in London, Stemcor's senior management had asked Essar Group founder Ravi Ruia to make an upfront payment and take away the assets, which have an estimated enterprise value of USD 800 million, a source told PTI.

Though it could not be immediately ascertained what Ruia had communicated to Stemcor, the source said the British trading firm in the meantime has initiated the process of auctioning the assets which include an iron ore mine and a pellet plant, both located in Odisha.

Essar Steel has the brightest chance of winning the assets as Stemcor management has been continuously favouring Ruias-led firm based on their mutual understanding and faith accruing from a long-time association, the source added.

Stemcor had its first joint venture in India with Essar Steel and jointly, these two firms set up a 3 million tonnes per annum (mtpa) pellet plant at Vizag in Gujarat back in 2001 though Stemcor, later in 2003, sold its stake to Essar Steel.

However, when contacted an Essar Steel spokesperson said: "We keep looking at growth opportunities. However, it is not our policy to comment on any specific proposal."

The assets would help Essar Steel to further consolidate its raw material needs and help the company to hedge itself from the frequent price fluctuations of iron ore.

Meanwhile, almost all Indian steel makers, including Tata Steel, JSW Steel, JSPL, Electrosteel Castings, Adhunik

Metaliks, have evinced interest to buy out Stemcor India's assets. Aditya Birla Group's Essel Mining and Industries and Anil Agarwal's Vedanta are also in the race along with Brazilian miner Vale.

Stemcor has asked all of them to place their initial bids and may allow them to carry out due diligence before putting their final bids. Auction is 6-8 weeks away, the source said.

Earlier in the day, JSPL's Chairman Naveen Jindal said that his company would be "keen" to buy the assets provided those come at an "attractive price".

Stemcor has majority stake in Aryan Mining and Trading Corporation (AMTC), which has 100 MT of iron ore reserves with the licence to mine three mtpa. It also has 10 per cent stake in Mideast Integrated Steel (MISL) in Odisha. MISL has an iron ore mine with a current output of four mtpa.

Stemcor has a subsidiary, Brahmani River Pellets (BRPL), which has a four mtpa beneficiation plant at Barbil, Odisha, and a pellet plant complex at Jajpur, connected by a 220 km underground slurry pipeline.

Also Read: Essar Steel raises $1 bn via external commercial borrowing



23.25 | 0 komentar | Read More

MRPL looking at resuming oil imports from Iran next month

Mangalore Refinery and Petrochemicals is looking at resuming crude oil imports from Iran next month, company's Managing Director P P Upadhya said today. MRPL , which imported 3.9 million tonnes of crude oil from Iran in 2012-13, has not imported any oil from the Persian Gulf nation following insurance issues.

"We are planning to restart oil imports from Iran," he said. MRPL and Hindustan Petroleum Corp stopped imports from Iran in April as insurance companies declined to extend full coverage to refiners processing Iranian crude. At the beginning of the fiscal, MRPL had budgeted for 4 million tonnes of crude oil from Iran out of its total requirement of 15.5 million tonnes.

"I cannot say what will be the volume of import in full fiscal," Upadhya said. India's largest insurer GIC has offered up to Rs 500 crore in reinsurance coverage to the MRPL refinery. With India winning US sanctions waiver to continue import of crude oil from Iran, reinsurance coverage would not be difficult.

Did you read?: Petrol price hiked by 70 paise a litre, diesel by 50 paise

"We have taken a calculated risk (to resume oil imports from Iran)," he said. Private refiner Essar Oil continues to buy Iranian crude. For 2013-14, MRPL plans to import 2.75 million tonnes from Saudi Arabia and another 2.5 million tonnes from Abu Dhabi. Kuwait will give 1.35 million tonnes while 0.55 million tonnes will come from Oman and West Africa each.

It will get 1.7 million tonnes of Mumbai High oil produced by its parent Oil and Natural Gas Corp ( ONGC ) and about 0.40 million tonnes from Mangala oilfields of Cairn. MRPL plans to buy 1.15 million tons of oil from the spot market.



23.25 | 0 komentar | Read More

3G row: HC transfers pleas of Voda, Airtel, Idea to TDSAT

Delhi High Court today sent to telecom tribunal TDSAT separate pleas of Vodafone, Bharti Airtel and Idea Cellular filed against DoT orders asking them to stop providing intra-circle 3G roaming service outside their licensed circles by entering into pacts with other service providers.

"The court is informed that Telecom Disputes Settlement and Appellate Tribunal (TDSAT) is now unctioning and hence, the petitions are transferred. The matters be listed at 11 AM on August 8 before the registrar of TDSAT," Justice V K Jain said.

The court said "interim orders, if any, would continue till the time the tribunal first hears these cases."

The telecom majors have challenged orders of Department of Telecommunication (DoT) by which penalties were imposed on them for offering 3G services outside their licenced circles.

DoT had also asked them not to provide intra-circle 3G roaming service outside their licensed areas.

Bharti Airtel, Vodafone and Idea Cellular have been asked to pay penalties of Rs 350 crore, Rs 550 crore and Rs 300 crore respectively for providing the 3G facilities.

Earlier, the Supreme Court had directed the DoT not to take any coercive step against some firms including Bharti Airtel.

The DoT had on March 15 imposed a penalty of Rs 350 crore on Bharti Airtel, saying such pacts were illegal and amounted to sub-letting of 3G spectrum.

The DoT had also issued similar orders to Vodafone and Idea directing them to scrap 3G intra-circle roaming pacts.



23.25 | 0 komentar | Read More

Srei Infra seeks Sebi nod to raise up to Rs 200cr via NCDs

Written By Unknown on Selasa, 30 Juli 2013 | 23.26

Srei Infrastructure Finance Ltd has sought market regulator Sebi's approval to raise up to Rs 200 crore through non-convertible debentures (NCDs).
    
Srei is planning to garner Rs 100 crore through secured, redeemable, NCDs and would have the option to retain over- subscription of up to Rs 200 crore, the company said in a draft prospectus filed with Sebi.

Also read: Sebi seeks fresh details on Godrej Properties rights issue
    
NCDs are loan-linked securities issued by a company and can't be converted into stocks. They usually carry a higher interest rate than a convertible debenture.
    
"Public issue by Srei Infrastructure of secured redeemable NCDs of face value of Rs 1,000 each for an amount up to Rs 1,000 million with an option to retain over subscription up to Rs 1,000 million, aggregating to Rs 2,000 million," the company said.
    
The funds raised through the issue would be used for financing activities, to repay existing loans and meet business operations including for capital expenditure and working capital requirements.
    
The lead managers to the issue are ICICI Securities, A K Capital Services, Trust Capital Investment Advisors and Srei Capital Markets. Besides, Karvy Computershare is the registrar to the issue.
    
Earlier, Srei Infrastructure's board had approved to raked in funds not exceeding Rs 1,500 crore by way of a public issue of NCDs in one or more tranches during 2013-14.



23.26 | 0 komentar | Read More

Sovereign bonds disastrous; 15% credit growth possible: SBI

Only an orderly depreciation in the rupee can be considered as stability and elevated interest rates beyond September will affect banks, says Diwakar Gupta, executive director, State Bank of India (SBI).

Also Read: RBI chief against sovereign bonds; inflation risk persists

In an interview to CNBC-TV18, Gupta adds that higher rates will lead to asset quality stress and views sovereign bonds to be disastrous for the economy. "A credit growth rate estimate of 15 percent is reasonable and the government needs to accelerate equity inflows and discourage debt inflows."

Below is the edited transcript of the interview on CNBC-TV18.

Q: When will the Reserve Bank of India (RBI) actually begin rolling back those liquidity tightening measures?

A: The RBI governor has said the central bank will begin to withdraw some of these measures when it feels there is a return of adequate stability. Though adequate stability is a debatable definition, some amount of depreciation is bound to occur given the difference in the inflation rates of our economy and those of the developed world. I view an orderly depreciation in the rupee as considered stability. However, when that will happen is very hard to guess.

Q: Based on the slowdown in the economy across industry segments - how much more stress do you anticipate on balance sheets and asset quality for banks like SBI?

A: I think there is going to be significant mark-to-market losses for all banks if the current elevated rates continue beyond September. Because in September there will be a mark-to-market on the quarterly earnings and likewise if rates continue to be high, at the short-term, corporates will not be able to borrow disintermediate credit at previous levels, so their costs are going up. It will certainly result in higher rates for the borrowers, for the companies, industry, producers and therefore cause additional stress on asset quality.

Q: The Reserve Bank has estimated credit growth at about 15 percent and growth in deposits at 14 percent for FY14. Do you believe that will be achievable?

A: A 15 percent growth rate could be expected because agriculture and retail would continue to grow at that rate. The differentiator would really be large corporates, mid corporates and small-and-medium enterprises (SME). And how the economy performs will determine very much what the credit growth will be. We hope that growth for the economy will come in at 5.5 percent or so and therefore credit growth for this segment also will come in between 12-15 percent, giving an average of close to 15 percent for the entire banking system.

Q: The Chief Economic Advisor said that the Reserve Bank and the government are on the same page as far as growth and stability are concerned. But one area of difference seems to be on the issue of sovereign bond where the Reserve Bank has made it clear, it is not in favour of sovereign bonds, doesn't believe in the merits of the argument for a sovereign bond at this of time. As the country's largest bank, where do you stand on the issue?

A: It may or may not be cards, but personally I would think it is will be disastrous to have a sovereign bond issue. Any kind of debt-creating inflow is only postponing the problem and giving the economy an additional cost which it can do without.

The real solution lies in seeing how equity inflows, non-debt creating inflows can be accelerated and this requires initiatives on the policy front. I think we should discourage inflows on debt. You see the kind of debt outflows that we have seen recently and that creates a big risk for an economy which needs help —equity flows and foreign direct investment (FDI).



23.26 | 0 komentar | Read More

Gati Infra to invest Rs 1,188cr in Sikkim power project

Gati Infrastructure said today it would jointly invest Rs 1,188 crore with GE Energy Financial Services India, in its 110 MW hydroelectric power project in Sikkim, which it had commissioned in May.

"The 110 megawatt Chuzachen hydro-electric project in East Sikkim harnesses water flow from rivers Rangpo and Rongli, with turbines and generators supplied by Alstom India. The project built at a cost of Rs 1,188 crore is the first one of this magnitude under private ownership," the company said in a statement issued here.

It said that GE Energy Financial Services India has invested Rs 257 crore in the project through a share subscription agreement. "Sikkim is a growing economy in the North East, with average rainfall higher than in several other Himalayan states. With glacial melt and perennial rivers, Sikkim has a peak potential capacity of 8,000 megawatts of hydro-electric power," Gati Infrastructure promoter Mahendra Agarwal said.

The project was comissioned in May this year and IDFC is the lead financier, with a loan at the project level, the company said.



23.26 | 0 komentar | Read More

CIL trade unions have agreed for 5% disinvestment: Minister

Jul 30, 2013, 05.59 PM IST

A five percent stake sale will fetch the government about USD 1.5 billion at current market price. Coal India's trade unions had earlier threatened to go on an indefinite strike if the government went ahead with the sale.

Like this story, share it with millions of investors on M3

CIL trade unions have agreed for 5% disinvestment: Minister

A five percent stake sale will fetch the government about USD 1.5 billion at current market price. Coal India's trade unions had earlier threatened to go on an indefinite strike if the government went ahead with the sale.

Like this story, share it with millions of investors on M3

CIL trade unions have agreed for 5% disinvestment: Minister

A five percent stake sale will fetch the government about USD 1.5 billion at current market price. Coal India's trade unions had earlier threatened to go on an indefinite strike if the government went ahead with the sale.

Share  .  Email  .  Print  .  A+A-
Major trade unions of state-owned Coal India have agreed to allow a five percent disinvestment in the company instead of the planned 10 percent, Coal Minister Sriprakash Jaiswal said on Tuesday.

The Indian government has been keen to sell 10 percent stake in Coal India through a share auction to achieve its target of raising Rs 4000 crore through stake sales in the current fiscal year.

Also Read: Government mulls plan to start coal banking system

A five percent stake sale will fetch the government about USD 1.5 billion at current market price.

Coal India's trade unions had earlier threatened to go on an indefinite strike if the government went ahead with the sale.


From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'

The latest earning numbers FIRST on CNBC-TV18


23.26 | 0 komentar | Read More

Govt seeks Cabinet nod to keep parties out of RTI

The government has decided to keep political parties out of the ambit of Right to Information (RTI) Act and may seek approval of an amendment at a meeting of Union Cabinet on Thursday.

A draft note on the issue  has been prepared by the department of personnel and training (DoPT) — the nodal department for implementation of the  transparency law —seeking to amend the RTI Act 2005 and it will be put up before the Cabinet for its nod, official sources said.

The move comes after the Central Information Commission (CIC) in June held that six national parties — Congress, BJP, NCP, CPI-M, CPI and BSP — have been substantially funded indirectly by the central government and were required to appoint Public Information Officers (PIOs) as they have the character of a public authority under the RTI Act.

Also Read: Sebi gets RTI requests for over 17-year old files

The CIC had given a six-week deadline to all these political parties to appoint PIOs and Appellate Authorities (AAs) for the purpose. The decision from transparency watchdog evoked sharp reactions from political parties, especially the Congress. The party which has been credited with bringing in the transparency law opposed the directive. Of the  six political parties, only CPI has followed the CIC's order in time and even responded to an RTI query.

The government seeks to change the definition of public authorities mentioned under Section 2 of the RTI Act to keep  all recognised political parties out of the jurisdiction of RTI, the sources said.

After Cabinet's nod, the government will have to introduce a Bill in this regard in the Monsoon Session of Parliament beginning August 5, it said.

The Centre's flagship Right to Information Act empowers a citizen to seek time-bound information on all matters of  governance by paying a fee of Rs 10.

The ministry of personnel will also seek Cabinet approval on August 1 in for  official amendments in the Whistle-blower's Protection Bill, which seeks to keep information that could compromise strategic and economic interests and impact foreign relations out of the ambit of the Bill aimed at protection of  whistle-blowers from harassment.



23.26 | 0 komentar | Read More

Telangana or Andhra, conducive biz environment must: Reddy

Telangana or Andhra Pradesh, both states would have to ensure conducive business environment for industries Sangita Reddy, MD of Apollo Hospitals said commenting on the resolution passed by Congress working committee to create a new state of Telangana.

The UPA coordination committee and Congress working committee have endorsed a separate Telangana state despite opposition from state Congress leaders.

"With this decision being taken it is hoped that new infrastructure is developed on both sides, the business environment in both is stable or the political environment and all other environments are stable which is conducive to business growth," Reddy said.

Also read: Hyderabad to be the joint capital of Telangana, Seemandhra

She said both state had tremendous growth opportunities. She hoped that issues around the power, the sharing of assets and distribution of liabilities are dealt quickly and judiciously dealt with so that people can get on with their lives.

Below is the verbatim transcript of the interview

Q: There are some interesting data points that we managed to pick up earlier. Andhra Pradesh based companies have the four major airports in the country, they have a majority of the power projects, they have a majority of road projects. How do you think the formation of a separate state could possibly have any impact on projects which are underway?

A: I think that industry is primarily based on finding a good environment and creating profit as well as building infrastructure. So, the origin of the company hopefully should be of secondary importance and the development of a region or a state should be the primary importance. So, with this decision being taken it is hoped that new infrastructure is developed on both sides, the business environment in both is stable or the political environment and all other environments are stable which is conducive to business growth. It is hoped that issues around the power, the sharing of assets be it the distribution of liabilities are all quickly, conducively and judiciously dealt with so that we can get on with our lives and people can focus on progress.

Q: It is interesting that you are pointing out that irrespective of where the company is based of course it is development at the end of the day, which should be the major focus, but I know views on the creation on Telangana and Hyderabad are very polarised. Now there are also reports that suggest that Hyderabad will be the capital of both Telangana and Andhra Pradesh. What would you like to see the government do with Hyderabad? Should it according to you maybe be a Union Territory, should it be a capital of both the states and how do you think this could possibly change things?

A: I think that in any situation we need to think win-win for both people and the angle is really what is the immediate-term, what is medium-term, what is long-term. In the long-term the development of another city in another region is always better for the country at large and we should focus our thought process on thinking of the country as a whole and in fact continue to be aspiring to be global citizens, put some of the negativity behind us, find the positives of how we can move forward. But I think the important point is for the leadership of Telangana to strive very hard to make every community feel welcome in the region and ensure that they hold onto the positives of Hyderabad city, which is this cosmopolitan nature and environment.

Q: Are you anticipating there could be any impact on investments into Andhra Pradesh and Telangana? There are reports which are already tricking in which says that the real estate sector has already started seeing projects being delayed, payments being delayed because of this entire uncertainty. What are your views on that?

A: Actually, one of the views which many of us in the industry feel is that we wanted a decision. The uncertainty was the problem, now that you have a decision there maybe a short-term temporary blip, but from that onwards my assumption is that both regions will actually grow and in fact potentially the Andhra region will grow faster, but Telangana will grow as well is my feeling and the real estate prices are depressed, business is about spotting opportunities. I believe that both regions are a tremendous opportunities for growth right now - Hyderabad, Telangana and Andhra.



23.26 | 0 komentar | Read More

Sebi revokes restrictions against two firms

Written By Unknown on Senin, 29 Juli 2013 | 23.26

Restrictions imposed on Adani Ports & Economic Zone Ltd and Nagarjuna Agrichem, as also their directors and promoters, for not meeting Sebi's minimum public shareholding norms have been revoked by the market regulator, as they have now complied with the directions.

While Adani Ports complied with the guidelines after Sebi's deadline of June 3, the other company had met the norms on the last day itself but failed to intimate the regulator and bourses about the same on time.

The Securities and Exchange Board of India (Sebi) had imposed various restrictions on 105 firms and their promoters and directors on June 4 after the expiry of deadline for  achieving minimum 25 per cent public holding.

The regulator had frozen the voting rights and corporate benefits of promoters and directors of these companies and barred them from holding any new position on boards of listed firms and also, among others. It had also warned of further actions including levy of monetary penalties, initiation of criminal proceedings, restricting the trading activities of related stocks and other possible directions.

In separate orders on the two firms, Sebi said that the restrictions are being revoked as they have complied with the  norms. On Adani Ports, Sebi said the company had allotted further shares only on June 7, which was much after the due date, in order to achieve compliance.

Noting that two other listed companies of the Adani Group had complied with the minimum public shareholding norms before the prescribed time frame and the company has also complied with Sebi's norms, though belatedly, the regulator "do not propose to initiate further action against the company". However, Sebi warned the company for its conduct and advised to ensure compliance with all the applicable laws and regulations administered by Sebi, in letter and spirit.

In Nagarjuna Agrichem case, Sebi said the company has complied with the 25 per cent public shareholding norms on June 3, 2013, last date prescribed for compliance. However, the firm failed to intimate the regulator about the same on time as it had sent the message through courier service.

"Having achieved compliance on the last day, the company should have been equally serious in disseminating timely information regarding its compliance to Sebi and the BSE through faster communication modes like e-mail, facsimile message, etc," the  regulator noted.

After considering facts that these companies have complied with the minimum public shareholding norms, Sebi said, it has revoked the directions issued vide the interim order dated June 4, 2013 against the company, Nagarjuna Agrichem and Adani Ports & Economic Zone their directors, promoters and promoter group, with immediate effect.



23.26 | 0 komentar | Read More

Cabinet may take final call on Walmart lobbying case

The findings of a one-man panel set up to probe retail giant Walmart's lobbying activities may soon go to the Union Cabinet, which would also look into suggestions made by various ministries in this regard. 

Also read: Panel probing Walmart lobbying to submit report in few days
    
Pursuant to submission of this probe report, an Action Taken Report (ATR) has been prepared after taking into account suggestions made by the Corporate Affairs Ministry, the Ministry of External Affairs and the Department of Industrial Policy and Promotion (DIPP).
    
The ATR has been sent by the Corporate Affairs Ministry for the Union Cabinet's approval and it would be tabled in the Parliament during the next session, along with the findings of the probe panel, sources said.
    
While the contents of the ATR were not immediately known, there are talks about Indian government preparing to frame guidelines for lobbying activities.
    
Lobbying is legal in the US and many other countries, where concerned companies and their registered lobbyists need to make quarterly disclosures about such activities. However, India has no such guidelines in place.
    
The government-appointed panel remained inconclusive on whether Walmart violated Indian laws in carrying out lobbying with US lawmakers to enter India's lucrative retail market. The panel submitted its report on May 18.    

In the wake of intense political pressure and heated debate in Parliament, the government in January had set up the one-man panel, headed by former Chief Justice of Punjab and Haryana High Court Mukul Mudgal.
    
However, the inquiry remained inconclusive as the panel was not satisfied with the replies given by the US retailer on various issues, including on the exact amount spent on its India-specific lobbying activities.
    
With the findings remaining inconclusive, the retailer may face another probe, while it is already being investigated by the Enforcement Directorate for other suspected violations.     

Among others, the committee also looked into Walmart's lobbying activities with government officials in India.     

In the meantime, Walmart recently announced a sudden exit of Raj Jain, head of its Indian venture with Bharti group.     

This committee was set up after a political uproar over disclosure about Walmart's lobbying among the US lawmakers since 2008 for facilitating its entry into the Indian market.     

Walmart spent a total amount of USD 6.13 million (about Rs 33 crore) on lobbying for various issues, including on "discussions related to FDI in India", during 2012, as per the US Congressional records. It had been lobbying on India-related issues since at least 2008 and continued to do so till at least first quarter of 2013.
    
However, Walmart halted its lobbying with the American lawmakers on India-specific issues during the last quarter ended June 30, as per its latest quarter disclosure reports.



23.26 | 0 komentar | Read More

Drug retailers need more time to sell old stock

The new Drug (Price Control) Order (DPCO) that slashed the prices of essential drugs with effect from today would incur a massive loss to the tune of Rs 600 crore for drug retailers in Kerala as they have already taken the drugs on a higher price, medical-shop owners here complained.

Also read: Mkts slide on RBI steps; pick IT, pharma: Edelweiss

The order should not be implemented before selling off the current stock of medicines, which had been purchesed on older rates, V Ajith Kumar, a member of All Kerala Chemists & Drugs Association (AKCDA) told a press meet here today. "The government has reduced the maximum selling price of 153 medicines from today. The implementation of the order from today will cause a huge loss of around Rs 600 crore for drug retailers in the state," he said.

He, however, said the retail drug shop owners were not against the price reduction of essential medicines but requested the authorities to show some humanitarian consideration to small-scale medical shop owners as well. "The price control of drugs is really a good one. But, its immediate implementation will cause huge capital loss to us. So, we need at least three months time to clear the present stock," he said.

He also said drug retailers would go for strike closing the shops if the authorities would not hear their plea. The Department of Pharmaceuticals had notified the Drug (Price Control) Order (DPCO) 2013 in May reducing the price of 348 essential medicines.



23.26 | 0 komentar | Read More

Jet-Etihad deal nod restores faith of investors: Ajit Singh

The Jet-Etihad deal is ready for takeoff as India's largest FDI investment in aviation has been given the green signal by the foreign investment promotion board. The nod has been given with 4 conditions and if both the airlines agree to it then the deal will be taken up by the cabinet.

Aviation Minister Ajit Singh told CNBC-TV18 that civil aviation ministry had many issues with the earlier agreement, but now the agreement has only one issue and that is with the language of the deal. According to him any company in India has to be governed by the Indian laws and thus some change in language is needed.

Sebi has not come out with it officially, to which Singh feels said that Sebi had sent their comments to FIPB and it is finally clearing it. "So, it is for the FIPB to announce it and they have done it,' he added.

Singh said the clearance of the deal restores faith of investors. "All issues pertaining to place of business have been resolved," he told CNBC-TV18. 

The minister also assured of clarity on bilateral treaty soon.

Also read: FIPB clears Jet Airways-Etihad Airways deal but with riders

Below is the verbatim transcript of his interview to CNBC-TV18

Q: What is the issue with the agreement now?

A: There were lot of problems earlier put forward by Securities and Exchange Board of India (Sebi) and Corporate Affairs Ministry. Civil Aviation Ministry had many issues with the earlier agreement. But now the agreement has only one issue and that is about some change in language because one of the clauses says it is governed by the English law and under London rules of arbitration all disputes will be taken there. For arbitration it is acceptable, that is what happens in most deals between two countries, but it has to be governed by Indian laws and it is just some change in language. Obviously, any company in India has to be governed by the Indian laws.

Q: There are also clauses where it says any change in shareholders' agreement (SHA) will have to first approved by the Indian government?

A: That is always there whether it says or not. The shareholders' agreement means number of directors, how decisions are taken and all that. So, under the Indian Aircraft Act of 1934 any change they make, they have to take approval from the Civil Aviation Ministry.

Q: What about the clearance from Sebi? It had written to Jet explaining what are the possible roadblocks and hurdles that it has in clearing it?

A: Sebi has cleared everything. All they said was that shareholder agreement doesn't have to be signed now, but whatever they have signed and we have raised their issues, they have already changed it and they have met all the requirements.

Q: Sebi has not come out with it officially. It is something that is market-moving information that you are giving it to us?

A: Sebi send their comments to FIPB. FIPB is finally clearing it. So, it is for the FIPB to announce it and they have announced it.



23.26 | 0 komentar | Read More

FIPB nod to Jet-Etihad deal positive: Experts

The Foreign Investment Promotion Board (FIPB) has cleared the much awaited Jet-Etihad deal , but with certain riders. Jet Airways is likely to receive Rs 2,058 crore by offloading 24 percent stake to Etihad.

Reacting to the FIPB's go-ahead, Kumkum Sen, partner, Bharucha Partners points out that a conditional clearance would not in any manner hamper the deal. "If the FIPB feels that is the way of overcoming the roadblock then why not? Etihad and Jet will both have to comply certain conditions going forward." On the government placing the decision in Sebi hands, Kumkum Sen adds, "It is up to Sebi, however, all regulators are trying to make this deal happen."

Market expert SP Tulsian of sptulsian.com says that the FIPB clearance would be seen as positive by the market.

Amber Dubey, partner and head — aviation, KPMG, terms the clearance as a positive development. "However, one has to also step back and just take a look at the amount of hours, weeks or months spent on going through a private contract between two private entities in a sector where there is very little for government to intervene in. The whole process, due to the number of approvals needed, has completely wasted the time of various government agencies. Frankly, this needs to be debated upon. I am sure if we go by the Mayaram Committee, the FDI limit should be taken to 100 percent or at least 74 percent for foreign carriers."

On how the benefits and the synergies will translate into reality, Dubey says, "We have to just step back a little and view the whole deal in its entirety. It is not a question of whether this is good or bad. This deal is very essential to keep Jet Airways alive. Frankly speaking, there is little to lose on shift of MRO operations to Abu Dhabi and all concerns are due to an irrational taxation policy. The deal will enable synergy of benefits in procurement of oil, spare parts, aircrafts or even training of personnel."

On the aspect of effective control, officials from Jet and Etihad have amended the shareholder and various other agreements, Ravi Nath of RNC Legal says that the open offer at this point may be announced. "In my opinion, there is no need for an open offer. On the issue of control, Sebi will have to check if there is effective control in the revised agreement."

Clarifying Sebi's role, JN Gupta, former executive director, Sebi explains, "First, we have the meaning of control according to the government needs to understood. The takeover code is limited to the protection for the minority shareholders concerned. Second, it needs to be seen if the provisions of the takeover code or FIPB's riders are followed in spirit."



23.26 | 0 komentar | Read More

2G: Essar Tele seeks joint trial with A Raja, others

Essar Teleholdings Limited, facing trial in a case arising out of the probe into the 2G spectrum scam, today moved a special CBI court seeking joint trial with former Telecom Minister A Raja and others in pursuance to the Supreme Court's order holding them as co-accused in the case.

The firm also said that since they have been treated as "co-accused" by the apex court in its recent order, a separate trial would constitute "breach of directions of the apex court" and there is also a possibility that evidence being recorded in Raja's case may be used against it.

"The applicant (ETHL) is bringing the new position of the CBI, accepted by the Supreme Court, to the notice of this court so that appropriate directions be issued to rectify the defect that has crept in the past and to conduct both the trials as one trial," it said.

"As a result of the acceptance of the stand of the CBI by the Supreme Court, a piquant situation has arisen," it said,  adding the agency had never told the trial court that they should be tried together with Raja and others due to which "independent trials are being conducted."

"This new stand of the CBI having been accepted, this situation would require to be remedied," it said. The apex court, on July 1 this year, had dismissed the plea of Essar Teleholdings Ltd (ETHL) and Loop Telecom that they along with their promoters cannot be tried in the case arising out of 2G scam by the special CBI court as they have not been charged under the Prevention of Corruption Act.

The bench, while dismissing their plea, had referred to section 220 (trial for more than one offence) and section 223 of CrPC (persons charged jointly), saying that the petitioners were co-accused in the said 2G scam case and may be charged and can be tried together with the other accused.

Senior advocate Harish Salve today filed the application before Special CBI Judge O P Saini, who asked the agency to file its response by August 1.

Essar group promoters Ravi Ruia and Anshuman Ruia and Loop Telecom promoters I P Khaitan and Kiran Khaitan, Essar group Director(Strategy and Planning) Vikash Saraf, along with three companies ETHL, Loop Telecom Pvt Ltd and Loop Mobile India Ltd are facing trial in the case.

ETHL, in its plea, said, "Issue appropriate directions to ensure that proceedings ....are assimilated into one trial and for this purpose issue  appropriate directions to rectify the situation as to the past and for further proceedings, direct that the trial being...is conducted in conformity with section 220 with 223 CrPC".

It referred to the Supreme Court's order saying they are "co-accused" along with those who have been charged under the provisions of the Prevention of Corruption Act and section 220 CrPC "envisages a composite trial in which all the accused are tried together and the entire evidence received in the matter can be used against any of the accused".

It also said that CBI had argued in the apex court that their final report, in which ETHL and others were named, was a "supplementary charge sheet relating to the 2G scam cases". It said if the CBI's stance was known to them at the stage of framing of charges, they would have challenged the legality of the charge sheet itself and the court should now consider the matter afresh from the stage of filing of the final report and frame fresh charges. ETHL and others are facing trial for the offence under section 120 B (criminal conspiracy) read with section 420 (cheating) of IPC, while substantial charge of cheating was framed against Saraf.

Raja along with 16 others including DMK MP Kanimozhi are facing trial in the 2G case for various offences punishable under the IPC and the Prevention of Corruption Act.



23.26 | 0 komentar | Read More

Lanco in talks to restructure $1.5 bn debt - paper

Written By Unknown on Minggu, 28 Juli 2013 | 23.25

Infrastructure builder Lanco Infratech has started discussion with its bankers to restructure debt worth Rs 90 billion as a weak economy takes a toll, the Business Standard newspaper reported on Saturday.

Also read: Government mulls plan to start coal banking system

If the process is approved by lenders, Lanco would be the second debt-laden company to go for major loan restructuring in the last year after lenders to wind turbine maker Suzlon Energy in November agreed to restructure about 110 billion rupees of its debt.

Lanco, which produces power and builds roads, and residential and commercial buildings in India, is looking to restructure a part of its debt after its attempts to sell some assets failed, the newspaper reported, citing unidentified bankers.

The company, which acquired Australia's Griffin Coal Mining Co for about $760 million in 2011, is exploring the option, a Lanco spokesman told Reuters, adding the possible process would not impact any of its units including the Australian business.

He declined to give details.

Lanco, which had total debt of 336 billion rupees, as of the end of March, posted losses in the last two financial years, as the weak Indian economy, growing at its slowest in a decade, hit infrastructure investment.

Banks bring cases to the so-called corporate debt restructuring process to negotiate relaxed repayment terms with struggling borrowers.

"We told the company that something needed to be done about the huge debt, as it had exhausted all its options," a senior state-run bank official was quoted in the Business Standard report as saying about the possible Lanco restructuring.

Project bottlenecks, largely because of problems in acquiring land and high funding costs, have also sapped investment in the infrastructure industry in Asia's third-largest economy.

Reflecting the poor economic climate, the earnings outlook of many mid-sized and debt-laden Indian infrastructure builders such as Jaiprakash Associates Ltd and GMR Infrastructure Ltd has deteriorated.

Many lenders have expressed worry about loans to the power, commercial real estate, construction, aviation, textile and metals sectors, which are among those hardest-hit by slowing growth and sluggish policymaking that has deterred investment.



23.25 | 0 komentar | Read More

Ad firms Publicis, Omnicom in merger talks: Report

Advertising groups Publicis Groupe SA and Omnicom Group Inc are in late-stage merger talks, Bloomberg reported, citing a person with knowledge of the matter.

The deal, which the report said is likely to be structured as a merger of equals, would combine Publicis agencies such as Leo Burnett Worldwide and Saatchi & Saatchi with Omnicom's BBDO Worldwide and DDB Worldwide.

The combined entity would be the world's largest advertising company by revenue, overtaking current leader WPP .

Bloomberg, however, reported that the talks could still collapse.

New York-based Omnicom and Paris-based Publicis were not immediately available for comment.

Omnicom shares were up about 3 percent in trading after the bell. They closed at USD 65.11 on the New York Stock Exchange on Friday.

Publicis' shares closed up 1.5 percent at 59.35 euros on Friday.



23.25 | 0 komentar | Read More

US chief executives can't break cost-cutting habit

A disconcerting trend lurks beneath the recent round of solid profit forecasts announced by companies ranging from United Technologies Corp to Wendy's Co : More than three years into the recovery, CEOs are still relying on cost cuts to prop up earnings.

While the cuts are not as severe as those that followed the 2008 financial crisis, companies remain cautious, mindful that revenue growth is still tepid. As a result, many appear to be more comfortable wringing efficiencies out of their businesses than gearing up for accelerated production.

The risk is those cuts may be too deep at this stage in the economic cycle, and prevent companies from responding if and when demand takes off.

"Corporate America has cost-cut just about as much as they can," said Jeffery Saut, chief investment strategist at Raymond James Financial. "I think the economy is going to pick up, and if you're understaffed and don't have enough throughput in your factories, yeah, I think you're going to miss out on some things."

Also read: US regulator announces $885 mn settlement with UBS

Of course many companies, including Coca Cola Corp and 3M Co , are expecting an uptick in demand through next year. US business spending on capital goods is rising and even Europe is showing some very early signs of life.

Thomson Reuters data shows that revenue growth among S&P 500 companies over the next six months is expected to rise 2.2 percent, and 3.9 percent in the first six months of 2014. That compares with the 0.8 percent rise that companies posted from January through June of this year.

But the brightening forecasts aren't stopping many companies - even those with bulging order books like Boeing Corp. and General Electric Co - from remaining defensive.

Boeing, which employs about 174,000, has said it expects to cut more workers this year than the 8,000 to 10,000 it plans to hire. And GE Chief Executive Jeff Immelt told analysts this quarter that cost controls were one of the company's "execution levers," given that he sees no improvement in the business environment for the rest of the year.

"There is continuing concern about the economy," said Chad Moutray, chief economist for the National Association of Manufacturers. "There still is a bit of a wait-and-see approach out there."

The cost cuts are not necessarily through jobs. In fact, US employment gains in the first half held steady at about 200,000 a month. Even though growth has slowed in recent months, some economists say many businesses have no choice but to beef up staff, after aggressively wielding the axe during the 2007-2009 recession.

Those reductions were part of a brutal cost-cutting cycle that helped businesses build a USD 1.8 trillion cash stockpile. Analysts say firms still want to hold the line on costs, but now have little choice when it comes to hiring.

To compensate, some US companies are paring back elsewhere. Ford Motor Co closed two British factories this week and plans to close one in Belgium by the end of next year. Meanwhile, it is looking to hire 3,000 US salaried workers this year.

Instead of layoffs, Wendy's said on Tuesday it would sell 425-company operated stores to franchisees to save money.

And General Electric Co said it planned to cut costs this year with a mix of layoffs, coordination of large purchases of supplies and its "simplification program," though the conglomerate declined to provide details.

PRESSURE FROM INVESTORS

In calculating strategy, revenue is crucial. Among industrial companies that reported quarterly results as of Wednesday, revenue rose only 1.3 percent, according to Thomson Reuters data.

"The absence of revenue growth is what's driving the cost cuts," Vertical Research Partners analyst Jeff Sprague said. "Companies continue to run things very tightly. They can't control the macro, so they're trying to control what they can."

In general, S&P 500 companies are expected to post revenue increases of 1.6 percent this quarter against an estimated 4.1 percent profit increase, according to Thomson Reuters I/B/E/S.

"Investors are expecting a certain return," said Greg Harrison, senior research analyst for Thomson Reuters. "When revenue is not growing and the economy is growing slowly, the only way to give them that return is to cut costs or buy back shares."

Take United Technologies. The diversified manufacturer earlier this week lifted its full-year profit forecast despite warning that revenue would end up at the lower end of its previous outlook.

United Tech, with more than 218,000 employees, said some 575 employees in its Pratt & Whitney jet engine business accepted buyout offers last week, while the company has begun laying off workers at its Sikorsky helicopter unit. Similar cuts at other units may follow.

Those trims still stand to be far less severe compared with a round of layoffs in March 2009, when United Tech announced it would slash 11,600 jobs as a result of the economic downturn.

Oversupply plaguing the mining and metals industries has led to a wave of spending pullbacks. The latest to do so was mining equipment maker Caterpillar Inc , which said on Wednesday it would reduce costs after announcing a 43.5 percent drop in quarterly profit.

Many of the industrial cuts reflect a consistently sharper focus on efficiency among large companies, analysts said, rather than a reaction to a setback.

"The more mature the company, the more ingrained a process it is for them," said Daniel Holland, an analyst at Morningstar.

CALIBRATING SPENDING

But industrial companies are not the only ones cutting costs. McDonald's Corp and advertising company Interpublic Group of Cos pulled back spending in regions where they are seeing weakness - China and Europe, respectively. The moves illustrate how companies may be more adept at calibrating spending to meet demand.

While companies had been attuned to the need to increase efficiency, the focus sharpened after the recession, analysts said.

"You've got a much more cost-conscious discipline in corporations than you did six years ago before the crisis," said Oliver Pursche, president of Gary Goldberg Financial Services.

The question for these companies is whether they are nearing the point that cost cuts could damage their operations.

"We're certainly getting to the point where you are starting to cut into the muscle of these operations," said John Dowling, a portfolio manager with the investment advisory firm Golub Group.



23.25 | 0 komentar | Read More

Vikas Khanna explores his 'Junoon' for cooking in Manhattan

The Indian food and beverage industry is currently worth US 41 billion and is expected to grow at 11 percent to touch USD 68 billion by 2013. A lot of Indian startups are attracted to the industry.

41 year old Vikas Khanna, chef and author, Restaurant Wheels and chocolate café and an online aggregator for hotels and even consultants for the F&B market, is India's answer to Gordon Ramsay. Having studied at the Culinary Institute of America, Cornell University, the New York University, Vikas wears many hats. He is a chef, restaurateur, food writer, filmmaker and most recently the host of the popular TV Show MasterChef India. Vikas currently has his plate full with his restaurant Junoon.

Also Read: Wedding industry is recession proof

"I think it is fantastic that we celebrate the spirit of actually using your heart more than your brain," says Vikas Khanna.

Vikas set up the Indian food restaurant Junoon in 2005 in Manhattan with his partner Rajesh Bhardwaj and they haven't looked back ever since.

Raised in Amristar, Vikas says he learnt the art of cooking from his grandmother and his first tryst with serving food to people was at the Golden Temple during his teenage years. From his first venture which is a catering company which he started at the age of 17 to offering ten books and partnering with top chefs like Gordon Ramsay and Bobby Flay, Vikas has surely come a long way.

"We have a very small menu as compared to most of the competition in New York city because I want to focus on certain things. I think that is very powerful. If one comes to my restaurant, one has a dish from Oriya and the next dish comes from Pondicherry and the third dish comes from Punjab. I am giving a place to dishes which are less known so when the customer comes in and sees something new on the menu and they trust the face of the restaurant they feel that let me order that to discover a new flavour," says Khanna.

His passion for his native cuisine has elevated this simple curry from a USD 6 to USD 40 fine dining experience. Even though there is no immediate plan to open another Junoon yet, Vikas has 11 cook books, Savour Mumbai is ready for launch and he is currently writing an encyclopedia on Indian cuisine, which will include 2,000 recipes and will hit the book stores in 2016.



23.25 | 0 komentar | Read More

Reworking your beverage menu? Here's an agency to help you

For 33-year-old Nikhil Agarwal, his agency for the food and beverages (F&B), All Things Nice, is out to introduce and educate people on wines, single mot chocolates and even cigars. The consultant sommelier and founder of the agency, advises restaurants and hotels on wine list. They also offer staff training in some cases.

Also read: Book your doctor's appointment online with Practo

The company that was founded in 2010, with an investment of Rs 20 lakh, caters to over 60 clients and hopes to gross revenues of Rs 80 lakh by the end of the financial year. Agarwal's love affair with the vintage beverage began with ZooLa. It continued at Moet-Hennessy, before landing at Diageo.

A trained sommelier and wine consultant, Nikhil acquired a specialized degree from UK's Wine & Spirit Education Trust. Today with All Things Nice, he organizes wine tastings and helps restaurants create a right beverage menu. The agency also works with wineries and distilleries, helping them in their marketing efforts.

Nikhil Agarwal, sommelier and director, All Things Nice said, "We consult hotels and restaurants in their training and beverage programme. We work with the large number of corporates to do food and drink events. We work with a lot of wine and spirit brands in their training and their promotional aspects.

The organisation arranges four to five events every month. With over 90 corporate tie-ups since its inception and 2.4 lakh registered people on the venture's website, the company has crossed revenues of over Rs 2 crore.  Agarwal is almost in a mission mode of spreading out his passion for wine.

"We have another concept by the name of Wine Week, which we launched in February 2013. That allows all of us to indulge in wine for one week and enjoy the pleasures of wine and food. We are doing it again in August 2013. We are quite confident that we will be able to take this into Pan India levels", adds Agarwal.

With plans to diversify brand All Things Nice into other hospitality business, Nikhil's immediate target is to open his first restaurant next year.



23.25 | 0 komentar | Read More

Restructure cheaper; no worry on fall in cash level: Ambuja

Forty-eight hours after Ambuja Cements announced restructuring of ownership by parent Holcim , the airwaves have been flooded with reactions and concerns from minority shareholders, investors, and analysts.

Ambuja Cements managing director, Onne Van Der Weijde, in an interview to CNBC-TV18, explains that a restructuring of operations is more cost-effective and offers more synergies than a full merger.

Weijde adds that deployment of cash does not deplete Ambuja's cash reserves significantly and would still allow for acquistions and expansion.

Below is the edited transcript of the interview on CNBC-TV18

Q: Let me start by asking you, if this was the structure that you had originally envisaged when you entered India and you acquired control over a period of time in two leading cement companies — ACC and Ambuja — was subsidiarisation the first step towards full consolidation?

A: No I don't think so. That was not part of our plans at that time. It was developed over time. But first I would like to explain what we are doing now. We want to create more value by going after synergies.

We have been working with Ambuja and I was previously the CFO of ACC . We have been working with both companies to achieve synergies, cost reductions, implement policies and set up governance structures. A lot has been already implemented. Earnings at Ambuja and ACC are under pressure due to impact on  the topline from poor growth in volumes and prices. So, we started to focus on measures to improve the bottomline.

Q: Can you explain why you did not find it appropriate to carry out a full merger at this point in time?

A: We have targeted two specific areas of synergies and I don't think a full merger is needed to achieve that.

Q: So is a merger still an option?

A: It is still an option that we will exercise after synergies in a majority of areas are achieved. Though a full merger may offer synergies, there is also a significant element of cost involved.

Q: Won't implementing synergies also take up a lot of time? In the newly-formed India management committee structure, the management of both ACC and Ambuja will have to work together along with representatives from parent Holcim to arrive at synergies. So why not conduct the merger and then arrive at synergies?

A: The synergies would result in benefits worth Rs 900 crore which is not a small amount.

Q: Wouldn't a merger offer increased benefits?

A: Yes, but a merger might turn out to be a distraction too. It is only after considerable evaluation of the options available that we decided to enable the synergies first.

I would also like to clarify the management structure you mentioned. There are completely two independent management teams and it is only in the targeted areas that the management of both companies will work together. And there will be no participation by representatives from Holcim.

Q: Did you get unanimous approval from the independent directors for this restructuring proposal?

A: Absolutely.

Q: And did your independent directors raise questions?

A: They raised a lot of questions and wanted a lot of explanations.

Q: Did any of your independent directors raise questions about the rationale for Ambuja Cements having to buyback 9.7 percent of its own equity owned by Holcim India?

A: They were some initial questions about whether it was necessary. But when I explained that it was basically a washout and was for historic reasons, they agreed. The shares that we are acquiring will be cancelled.



23.25 | 0 komentar | Read More

Ad firms Publicis, Omnicom in merger talks: Report

Written By Unknown on Sabtu, 27 Juli 2013 | 23.25

Advertising groups Publicis Groupe SA and Omnicom Group Inc are in late-stage merger talks, Bloomberg reported, citing a person with knowledge of the matter.

The deal, which the report said is likely to be structured as a merger of equals, would combine Publicis agencies such as Leo Burnett Worldwide and Saatchi & Saatchi with Omnicom's BBDO Worldwide and DDB Worldwide.

The combined entity would be the world's largest advertising company by revenue, overtaking current leader WPP .

Bloomberg, however, reported that the talks could still collapse.

New York-based Omnicom and Paris-based Publicis were not immediately available for comment.

Omnicom shares were up about 3 percent in trading after the bell. They closed at USD 65.11 on the New York Stock Exchange on Friday.

Publicis' shares closed up 1.5 percent at 59.35 euros on Friday.



23.25 | 0 komentar | Read More

US chief executives can't break cost-cutting habit

A disconcerting trend lurks beneath the recent round of solid profit forecasts announced by companies ranging from United Technologies Corp to Wendy's Co : More than three years into the recovery, CEOs are still relying on cost cuts to prop up earnings.

While the cuts are not as severe as those that followed the 2008 financial crisis, companies remain cautious, mindful that revenue growth is still tepid. As a result, many appear to be more comfortable wringing efficiencies out of their businesses than gearing up for accelerated production.

The risk is those cuts may be too deep at this stage in the economic cycle, and prevent companies from responding if and when demand takes off.

"Corporate America has cost-cut just about as much as they can," said Jeffery Saut, chief investment strategist at Raymond James Financial. "I think the economy is going to pick up, and if you're understaffed and don't have enough throughput in your factories, yeah, I think you're going to miss out on some things."

Also read: US regulator announces $885 mn settlement with UBS

Of course many companies, including Coca Cola Corp and 3M Co , are expecting an uptick in demand through next year. US business spending on capital goods is rising and even Europe is showing some very early signs of life.

Thomson Reuters data shows that revenue growth among S&P 500 companies over the next six months is expected to rise 2.2 percent, and 3.9 percent in the first six months of 2014. That compares with the 0.8 percent rise that companies posted from January through June of this year.

But the brightening forecasts aren't stopping many companies - even those with bulging order books like Boeing Corp. and General Electric Co - from remaining defensive.

Boeing, which employs about 174,000, has said it expects to cut more workers this year than the 8,000 to 10,000 it plans to hire. And GE Chief Executive Jeff Immelt told analysts this quarter that cost controls were one of the company's "execution levers," given that he sees no improvement in the business environment for the rest of the year.

"There is continuing concern about the economy," said Chad Moutray, chief economist for the National Association of Manufacturers. "There still is a bit of a wait-and-see approach out there."

The cost cuts are not necessarily through jobs. In fact, US employment gains in the first half held steady at about 200,000 a month. Even though growth has slowed in recent months, some economists say many businesses have no choice but to beef up staff, after aggressively wielding the axe during the 2007-2009 recession.

Those reductions were part of a brutal cost-cutting cycle that helped businesses build a USD 1.8 trillion cash stockpile. Analysts say firms still want to hold the line on costs, but now have little choice when it comes to hiring.

To compensate, some US companies are paring back elsewhere. Ford Motor Co closed two British factories this week and plans to close one in Belgium by the end of next year. Meanwhile, it is looking to hire 3,000 US salaried workers this year.

Instead of layoffs, Wendy's said on Tuesday it would sell 425-company operated stores to franchisees to save money.

And General Electric Co said it planned to cut costs this year with a mix of layoffs, coordination of large purchases of supplies and its "simplification program," though the conglomerate declined to provide details.

PRESSURE FROM INVESTORS

In calculating strategy, revenue is crucial. Among industrial companies that reported quarterly results as of Wednesday, revenue rose only 1.3 percent, according to Thomson Reuters data.

"The absence of revenue growth is what's driving the cost cuts," Vertical Research Partners analyst Jeff Sprague said. "Companies continue to run things very tightly. They can't control the macro, so they're trying to control what they can."

In general, S&P 500 companies are expected to post revenue increases of 1.6 percent this quarter against an estimated 4.1 percent profit increase, according to Thomson Reuters I/B/E/S.

"Investors are expecting a certain return," said Greg Harrison, senior research analyst for Thomson Reuters. "When revenue is not growing and the economy is growing slowly, the only way to give them that return is to cut costs or buy back shares."

Take United Technologies. The diversified manufacturer earlier this week lifted its full-year profit forecast despite warning that revenue would end up at the lower end of its previous outlook.

United Tech, with more than 218,000 employees, said some 575 employees in its Pratt & Whitney jet engine business accepted buyout offers last week, while the company has begun laying off workers at its Sikorsky helicopter unit. Similar cuts at other units may follow.

Those trims still stand to be far less severe compared with a round of layoffs in March 2009, when United Tech announced it would slash 11,600 jobs as a result of the economic downturn.

Oversupply plaguing the mining and metals industries has led to a wave of spending pullbacks. The latest to do so was mining equipment maker Caterpillar Inc , which said on Wednesday it would reduce costs after announcing a 43.5 percent drop in quarterly profit.

Many of the industrial cuts reflect a consistently sharper focus on efficiency among large companies, analysts said, rather than a reaction to a setback.

"The more mature the company, the more ingrained a process it is for them," said Daniel Holland, an analyst at Morningstar.

CALIBRATING SPENDING

But industrial companies are not the only ones cutting costs. McDonald's Corp and advertising company Interpublic Group of Cos pulled back spending in regions where they are seeing weakness - China and Europe, respectively. The moves illustrate how companies may be more adept at calibrating spending to meet demand.

While companies had been attuned to the need to increase efficiency, the focus sharpened after the recession, analysts said.

"You've got a much more cost-conscious discipline in corporations than you did six years ago before the crisis," said Oliver Pursche, president of Gary Goldberg Financial Services.

The question for these companies is whether they are nearing the point that cost cuts could damage their operations.

"We're certainly getting to the point where you are starting to cut into the muscle of these operations," said John Dowling, a portfolio manager with the investment advisory firm Golub Group.



23.25 | 0 komentar | Read More

Vikas Khanna explores his 'Junoon' for cooking in Manhattan

The Indian food and beverage industry is currently worth US 41 billion and is expected to grow at 11 percent to touch USD 68 billion by 2013. A lot of Indian startups are attracted to the industry.

41 year old Vikas Khanna, chef and author, Restaurant Wheels and chocolate café and an online aggregator for hotels and even consultants for the F&B market, is India's answer to Gordon Ramsay. Having studied at the Culinary Institute of America, Cornell University, the New York University, Vikas wears many hats. He is a chef, restaurateur, food writer, filmmaker and most recently the host of the popular TV Show MasterChef India. Vikas currently has his plate full with his restaurant Junoon.

Also Read: Wedding industry is recession proof

"I think it is fantastic that we celebrate the spirit of actually using your heart more than your brain," says Vikas Khanna.

Vikas set up the Indian food restaurant Junoon in 2005 in Manhattan with his partner Rajesh Bhardwaj and they haven't looked back ever since.

Raised in Amristar, Vikas says he learnt the art of cooking from his grandmother and his first tryst with serving food to people was at the Golden Temple during his teenage years. From his first venture which is a catering company which he started at the age of 17 to offering ten books and partnering with top chefs like Gordon Ramsay and Bobby Flay, Vikas has surely come a long way.

"We have a very small menu as compared to most of the competition in New York city because I want to focus on certain things. I think that is very powerful. If one comes to my restaurant, one has a dish from Oriya and the next dish comes from Pondicherry and the third dish comes from Punjab. I am giving a place to dishes which are less known so when the customer comes in and sees something new on the menu and they trust the face of the restaurant they feel that let me order that to discover a new flavour," says Khanna.

His passion for his native cuisine has elevated this simple curry from a USD 6 to USD 40 fine dining experience. Even though there is no immediate plan to open another Junoon yet, Vikas has 11 cook books, Savour Mumbai is ready for launch and he is currently writing an encyclopedia on Indian cuisine, which will include 2,000 recipes and will hit the book stores in 2016.



23.25 | 0 komentar | Read More

Reworking your beverage menu? Here's an agency to help you

For 33-year-old Nikhil Agarwal, his agency for the food and beverages (F&B), All Things Nice, is out to introduce and educate people on wines, single mot chocolates and even cigars. The consultant sommelier and founder of the agency, advises restaurants and hotels on wine list. They also offer staff training in some cases.

Also read: Book your doctor's appointment online with Practo

The company that was founded in 2010, with an investment of Rs 20 lakh, caters to over 60 clients and hopes to gross revenues of Rs 80 lakh by the end of the financial year. Agarwal's love affair with the vintage beverage began with ZooLa. It continued at Moet-Hennessy, before landing at Diageo.

A trained sommelier and wine consultant, Nikhil acquired a specialized degree from UK's Wine & Spirit Education Trust. Today with All Things Nice, he organizes wine tastings and helps restaurants create a right beverage menu. The agency also works with wineries and distilleries, helping them in their marketing efforts.

Nikhil Agarwal, sommelier and director, All Things Nice said, "We consult hotels and restaurants in their training and beverage programme. We work with the large number of corporates to do food and drink events. We work with a lot of wine and spirit brands in their training and their promotional aspects.

The organisation arranges four to five events every month. With over 90 corporate tie-ups since its inception and 2.4 lakh registered people on the venture's website, the company has crossed revenues of over Rs 2 crore.  Agarwal is almost in a mission mode of spreading out his passion for wine.

"We have another concept by the name of Wine Week, which we launched in February 2013. That allows all of us to indulge in wine for one week and enjoy the pleasures of wine and food. We are doing it again in August 2013. We are quite confident that we will be able to take this into Pan India levels", adds Agarwal.

With plans to diversify brand All Things Nice into other hospitality business, Nikhil's immediate target is to open his first restaurant next year.



23.25 | 0 komentar | Read More

Lanco in talks to restructure $1.5 bn debt - paper

Infrastructure builder Lanco Infratech has started discussion with its bankers to restructure debt worth Rs 90 billion as a weak economy takes a toll, the Business Standard newspaper reported on Saturday.

Also read: Government mulls plan to start coal banking system

If the process is approved by lenders, Lanco would be the second debt-laden company to go for major loan restructuring in the last year after lenders to wind turbine maker Suzlon Energy in November agreed to restructure about 110 billion rupees of its debt.

Lanco, which produces power and builds roads, and residential and commercial buildings in India, is looking to restructure a part of its debt after its attempts to sell some assets failed, the newspaper reported, citing unidentified bankers.

The company, which acquired Australia's Griffin Coal Mining Co for about $760 million in 2011, is exploring the option, a Lanco spokesman told Reuters, adding the possible process would not impact any of its units including the Australian business.

He declined to give details.

Lanco, which had total debt of 336 billion rupees, as of the end of March, posted losses in the last two financial years, as the weak Indian economy, growing at its slowest in a decade, hit infrastructure investment.

Banks bring cases to the so-called corporate debt restructuring process to negotiate relaxed repayment terms with struggling borrowers.

"We told the company that something needed to be done about the huge debt, as it had exhausted all its options," a senior state-run bank official was quoted in the Business Standard report as saying about the possible Lanco restructuring.

Project bottlenecks, largely because of problems in acquiring land and high funding costs, have also sapped investment in the infrastructure industry in Asia's third-largest economy.

Reflecting the poor economic climate, the earnings outlook of many mid-sized and debt-laden Indian infrastructure builders such as Jaiprakash Associates Ltd and GMR Infrastructure Ltd has deteriorated.

Many lenders have expressed worry about loans to the power, commercial real estate, construction, aviation, textile and metals sectors, which are among those hardest-hit by slowing growth and sluggish policymaking that has deterred investment.



23.25 | 0 komentar | Read More

Restructure cheaper; no worry on fall in cash level: Ambuja

Forty-eight hours after Ambuja Cements announced restructuring of ownership by parent Holcim , the airwaves have been flooded with reactions and concerns from minority shareholders, investors, and analysts.

Ambuja Cements managing director, Onne Van Der Weijde, in an interview to CNBC-TV18, explains that a restructuring of operations is more cost-effective and offers more synergies than a full merger.

Weijde adds that deployment of cash does not deplete Ambuja's cash reserves significantly and would still allow for acquistions and expansion.

Below is the edited transcript of the interview on CNBC-TV18

Q: Let me start by asking you, if this was the structure that you had originally envisaged when you entered India and you acquired control over a period of time in two leading cement companies — ACC and Ambuja — was subsidiarisation the first step towards full consolidation?

A: No I don't think so. That was not part of our plans at that time. It was developed over time. But first I would like to explain what we are doing now. We want to create more value by going after synergies.

We have been working with Ambuja and I was previously the CFO of ACC . We have been working with both companies to achieve synergies, cost reductions, implement policies and set up governance structures. A lot has been already implemented. Earnings at Ambuja and ACC are under pressure due to impact on  the topline from poor growth in volumes and prices. So, we started to focus on measures to improve the bottomline.

Q: Can you explain why you did not find it appropriate to carry out a full merger at this point in time?

A: We have targeted two specific areas of synergies and I don't think a full merger is needed to achieve that.

Q: So is a merger still an option?

A: It is still an option that we will exercise after synergies in a majority of areas are achieved. Though a full merger may offer synergies, there is also a significant element of cost involved.

Q: Won't implementing synergies also take up a lot of time? In the newly-formed India management committee structure, the management of both ACC and Ambuja will have to work together along with representatives from parent Holcim to arrive at synergies. So why not conduct the merger and then arrive at synergies?

A: The synergies would result in benefits worth Rs 900 crore which is not a small amount.

Q: Wouldn't a merger offer increased benefits?

A: Yes, but a merger might turn out to be a distraction too. It is only after considerable evaluation of the options available that we decided to enable the synergies first.

I would also like to clarify the management structure you mentioned. There are completely two independent management teams and it is only in the targeted areas that the management of both companies will work together. And there will be no participation by representatives from Holcim.

Q: Did you get unanimous approval from the independent directors for this restructuring proposal?

A: Absolutely.

Q: And did your independent directors raise questions?

A: They raised a lot of questions and wanted a lot of explanations.

Q: Did any of your independent directors raise questions about the rationale for Ambuja Cements having to buyback 9.7 percent of its own equity owned by Holcim India?

A: They were some initial questions about whether it was necessary. But when I explained that it was basically a washout and was for historic reasons, they agreed. The shares that we are acquiring will be cancelled.



23.25 | 0 komentar | Read More

Won't raise funds; focus remains on core biz: Dewan Housing

Written By Unknown on Jumat, 26 Juli 2013 | 23.25

Dewan Housing Finance Corp , which is looking to buy 74 percent stake in DLF 's life insurance joint venture with US-based Prudential International Insurance Holdings has no plans to raise funds from the market now.

Though CMD Kapil Wadhawan shared no financial details of this deal, he told CNBC-TV18 that the company has already asked for regulatory approval for this deal. "We have been scouting for a right partner and we expect this deal to be value accretive," he added.

Property developer DLF has agreed to sell its 74 percent stake in its life insurance joint venture as a part of its strategy to divest "non-core" assets to pare debt.

He further added that the company will continue to focus on its core business of home loan and housing finance.

Below is the edited transcript of his interview:

Q: Could you just walk us through the deal and some more parameters in terms of the valuation that this deal has been struck at?

A: Significant development from our standpoint. After being in housing finance for 30 years and successfully distributing life insurance for the past couple of years we thought it was time to look at manufacturing of life products and there came in the opportunity. We have been in the market for some time now looking at the right partner and we thought that this transaction with Prudential, there was a common meeting of minds.

Prudential is a strong large insurance player. They have a presence in multiple markets around the world and with strong credentials of consumer lending on the ground, we thought it would be a good partnership with Prudential and there was incline from DLF to get out of this space. Unfortunately I am not in a position to spell out any financial details as of now because we are still awaiting regulatory approvals on this transaction. We have made the agreement yesterday and have approached the regulators for seeking their consent.

Q: How swiftly do you think you can ramp up this business because Pramerica Mutual Fund has a very small market share in the insurance business and the business was also in the red? Do you think you can ramp it up much faster from here?

A: We believe so. The existing shareholders have already pumped in a lot of capital, they have already invested close to Rs 600 crore. We believe that with our kind of distribution on the ground and a strong loyal customer base which is increasing and our existing contribution to the existing underwriter, we will be in a position to ramp up this business very shortly.

Q: What about capitalizing this deal because this will put some pressure on your tier I capital? How do you intend to shore it up?

A: It has been value accretive that is all I can say and in the long run it is going to be value accretive for the shareholders of DHFL . We have a significant contribution to make to this joint venture, our distribution network and existing business that we do on the ground. But in the long-term we don't see contributing much into the capital of this business considering that there is already enough contribution being provided by the company on account of its distribution and the existing life business.

Q: Will DHFL need to raise any money in order to fund this deal whether via debt or some kind of equity offering, do you need to raise any capital?

A: DHFL is adequately capitalized to focus on its core business and will continue to do so without coming into the market and raising fresh capital. We have a capital adequacy ratio which is way above the required capital requirement as laid down by the national housing bank. And we don't think that over the next one year we will be coming into the market for raising any fresh capital at all.



23.25 | 0 komentar | Read More

HUL CEO Nitin Paranjpe to head Unilever's Home Care biz

Jul 26, 2013, 01.44 PM IST

Sanjiv Mehta, currently, chairman, North America & Middle East, Unilever, will be the new CEO and MD of Hindustan Unilever from Oct 1.

Like this story, share it with millions of investors on M3

HUL CEO Nitin Paranjpe to head Unilever's Home Care biz

Sanjiv Mehta, currently, chairman, North America & Middle East, Unilever, will be the new CEO and MD of Hindustan Unilever from Oct 1.

Like this story, share it with millions of investors on M3

HUL CEO Nitin Paranjpe to head Unilever's Home Care biz

Sanjiv Mehta, currently, chairman, North America & Middle East, Unilever, will be the new CEO and MD of Hindustan Unilever from Oct 1.

  .   Share  .  Email  .  Print  .  A+A-
Moneycontrol Bureau

Hindustan Unilever , the largest fast moving consumer goods maker in India, on Friday said, Nitin Paranjpe, its current CEO and MD, is joining Anglo-Dutch parent Unilever as President, Home Care, effective October 1.

Sanjiv Mehta, currently Unilever's Chairman for North Africa and Middle East region, will replace Paranjpe as HUL 's new MD and CEO from Oct 1, the company said.

Mehta will also be responsible for the South Asia cluster, which includes India, Pakistan, Sri Lanka, Bangladesh and Nepal.

At 12:15hrs, HUL shhares were trading down 3.2 percent at Rs 666.25 on NSE. HUL had also slipped 3 percent on Thursday, after Unilever flagged slowing growth concerns in emerging markets including India.

Also Read: HUL Q1 net beats street; shares slip on slower sales growth


Tags: Hindustan Unilever, HUL, Unilever, Nitin Paranjpe, CEO, MD, President, Home Care, Sanjiv Mehta, North America and Middle East, Chairman, South Asia

From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'

The latest earning numbers FIRST on CNBC-TV18


23.25 | 0 komentar | Read More

Etihad agrees to cut number of directors on Jet board

Abu Dhabi-based Etihad Airlines has agreed to halve the number of directors on the Jet Airways Board to two posts under the Rs 2,058 crore deal, giving the Indian promoters 'effective control' of the carrier.

Also read: CommMin intervenes to ease Jet-Etihad deal through

This, alongwith other details of an amended shareholding agreement (SHA), has been forwarded to Finance Ministry ahead of the FIPB meeting on July 29 to consider the proposal. As per the revised shareholding agreement, Etihad would have two directors on the board after the deal, as against the earlier proposal of four directors in the 10-member board, sources said.

This seeks to address the concerns of Foreign Investment Promotion Board (FIPB) and market regulator Sebi with regard to effective control after the foreign direct investment, which is the largest FDI in the aviation space so far.

The agreement says that major decisions, including appointment of independent directors and the chairman and vice-chairman will now be taken on the basis of majority of votes.
    
However, there will be no change in the shareholding pattern with Etihad picking up 24 percent, key promoter Naresh Goyal holding 51 percent and the remaining 25 percent with others, including institutions and individuals.
    
Besides Finance Ministry, the Department of Industrial Policy and Promotion (DIPP) would be scrutinising the revised proposal over the weekend so that a firm view could be taken at the meeting on Monday.
    
Shares of Jet Airways jumped 19.36 percent to Rs 402 in afternoon trade on the BSE.



23.25 | 0 komentar | Read More

PNB seeks Rs 1,500 cr capital support from govt

Punjab National Bank today said it has sought Rs 1,500 crore fund support from the government to enhance its capital base.

"We have approached the government and sought Rs 1,500 crore in the current fiscal," PNB Chairman and Managing Director K R Kamath said after announcing first quarter numbers here.

Also read: Hope to maintain margin at 3.5% going ahead: PNB

The government holds 58 percent stake in PNB and with the fresh capital infusion it will go up further. Last fiscal, the bank got Rs 1,250 crore through preferential issue of shares to the government.

The government has already announced that the public sector banks will get Rs 14,000 crore additional capital from government in the 2013-14 fiscal.

"Before end of March 2013, we should provide Rs 12,517 crore to infuse additional capital into 13 public sector banks. In 2013-14, I propose to provide a further amount of Rs 14,000 crore for capital infusion," Finance Minister P Chidambaram had said in his Budget speech.

"We should ensure that public sector banks always meet Basel III regulations as they come into force in phase manner," he had said while presenting the Union Budget 2013-14 in Parliament in February.

Implementation of Basel III capital regulations envisage enhancing requirement of core equity capital by banks due to higher capital ratios. The Basel III capital ratios will be fully phased in as on March 31, 2018.



23.25 | 0 komentar | Read More

Mahindra's realty firm forms JV with StanChart

Realty firm Mahindra Lifespace Developers today announced equal joint venture with UK's Standard Chartered Bank for developing housing projects in India with proposed investment of about Rs 1,000 crore.

Also Read: Transfer pricing: MNCs receive I-T notices

Mahindra Lifespace, part of USD 16.2 billion Mahindra Group, has entered into a joint venture arrangement with SCM Real Estate (Singapore) Pvt Ltd, an investment arm of Standard Chartered Bank.

Mahindra Lifespace and SCM would have an equal stake in the JV. "The proposed developments will be undertaken through Watsonia Developers Pvt Ltd, in which both Mahindra Lifespace and SCM will hold equal stake. The combined investment commitment is approximately Rs 1,000 crore over multiple projects," company said in a filing to the BSE.

The first two projects under this JV will be for premium housing in Bangalore and Gurgaon. "Our association with Standard Chartered Bank marks an important milestone for us with a partner who is equally committed and optimistic about the opportunities for sustainable residential developments in India," Mahindra Lifespace Developers MD and CEO Anita Arjundas said.
    
Mahindra Lifespace is present in nine cities -- Mumbai, Pune, Nagpur, Gurgaon, Faridabad, Jaipur, Chennai, Hyderabad and Bangalore.

It has already developed 8.3 million sq ft and has over 11.3 million sq ft of ongoing and future projects, including 1.55 million sq ft development by the JV. The projects developed by the JV would be marketed under the Mahindra Lifespace brand, the statement said.

The company had posted a net profit of Rs 97.49 crore over revenue of Rs 351.52 crore in 2012-13 fiscal. Its scrip closed at Rs 445.85 on BSE, down 0.81 percent.



23.25 | 0 komentar | Read More

Wipro signals demand pick-up after profit rise

Wipro , India's third-largest software services exporter, sounded upbeat about demand for its outsourcing services, after posting an 11 percent rise in quarterly net profit helped by an increase in large contracts.

The company expects revenues from IT services business for the current quarter that ends September 30 will range between USD 1.62 billion and USD 1.65 billion, a sequential increase of 2 percent to 3.9 percent.

Also read: Wipro Q1 net up 3%; guides for $1.62-1.65b Q2 rev growth

Most analysts were expecting the company to say sales in the current quarter would rise 1-3 percent. Wipro does not give an annual forecast.

Wipro joins bigger rivals Tata Consultancy Services and Infosys , who signalled a pick up in demand for the Indian IT outsourcing providers' services with their better-than expected forecasts earlier this month.

Indian IT providers are expected to get a boost next year from what analysts forecast to be the strongest demand for technology services among US businesses and institutions since the aftermath of the 2008 financial crisis.

"We've seen an increase in deal closures in Q1 and we're hopeful that the momentum will continue in the quarters to come...we're fairly confident of the future going forward," CEO T.K. Kurien told reporters.

Consolidated net profit for the fiscal first quarter ended June 30 rose to 16.23 billion rupees from 14.66 billion rupees a year earlier, Bangalore-based Wipro said after market close on Friday.

That compares with the 16.3 billion rupee average of 21 analyst estimates according to Thomson Reuters I/B/E/S for the company, whose customers include Citigroup, Apple and Cisco Systems.

IT services revenue rose 0.2 percent from the January-March quarter to USD 1.59 billion. It added 28 new clients during the quarter.

"Strong pickup in large deal closures and strong order book bodes well for growth in Q3 and Q4," Kuldeep Koul, an analyst with Mumbai-based brokerage ICICI Securities said.

Earlier this month, Infosys retained its annual forecast of 6-10 percent growth for the year that ends March 2014, while TCS said it would beat the upper end of the 12-14 percent export growth estimate by the local industry lobby.

India's export-driven USD 108 billion outsourcing sector, however, faces cut-throat competition and possible visa rules changes in the United States, its biggest market, that will make it more costly and difficult to send workers there.



23.25 | 0 komentar | Read More

Maruti Suzuki seeks to raise exports as local sales stall

Written By Unknown on Kamis, 25 Juli 2013 | 23.26

Jul 25, 2013, 06.04 PM IST

The company warned that it expects discounts on car prices to increase in the current quarter due to weak demand, especially as diesel-powered cars lose their popularity after the government allowed monthly increases in prices of the fuel.

Like this story, share it with millions of investors on M3

Maruti Suzuki seeks to raise exports as local sales stall

The company warned that it expects discounts on car prices to increase in the current quarter due to weak demand, especially as diesel-powered cars lose their popularity after the government allowed monthly increases in prices of the fuel.

Like this story, share it with millions of investors on M3

Maruti Suzuki seeks to raise exports as local sales stall

The company warned that it expects discounts on car prices to increase in the current quarter due to weak demand, especially as diesel-powered cars lose their popularity after the government allowed monthly increases in prices of the fuel.

Share  .  Email  .  Print  .  A+A-
Maruti Suzuki , India's biggest carmaker, is seeking to sell more cars overseas to offset slowing demand at home, where it expects sales volumes to grow between zero and 5 percent in the current financial year.

Also Read: Tata Motors hints at price hike before Diwali

The company warned that it expects discounts on car prices to increase in the current quarter due to weak demand, especially as diesel-powered cars lose their popularity after the government allowed monthly increases in prices of the fuel.

Maruti is India's leader in the small car market and accounts for 40 percent of all passenger vehicles sold in the country. It faces increased competition as global automakers step up launches in a market that has endured falling sales for eight months in a row - down from double-digit growth just two years ago.

"Exports are high on our agenda particularly when the domestic markets are not growing," a Maruti executive said on a conference call with analysts, adding that the firm wants to expand in existing markets with more products.

However, Maruti expects export volumes to be flat for the current financial year. Exports accounted for 8 percent of total sales of 266,434 vehicles during the quarter.

Maruti, 56.2 percent owned by Japan's Suzuki Motor Corp, said net profit rose 49 percent to Rs 632 crore for the three months to June, helped by cost cuts, favourable exchange rates and the company's merger with its engine production unit.

Analysts on average had expected the company to report a net profit of Rs 662 crore for the period, according to Thomson Reuters I/B/E/S.


From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'

The latest earning numbers FIRST on CNBC-TV18


23.26 | 0 komentar | Read More
techieblogger.com Techie Blogger Techie Blogger