Indian Business News – Selected Extracts (28/06/08)

1. Bill Gates logs out. It is the end of an era. He has retired from the Chairmanship of the company he has created in 1975 – Microsoft. He remains as the world’s richest man in the Forbes list till 2007. His wealth was estimated to be over US$101 billion in 1999. He is married and has three children. We all wish him best of health, wealth and peace in the coming years.
2. The BSE’s 30-shares index sensex took a record fall of 620 points and closed at 13,802. The increasing inflation at 11.42% and the crude oil at record US$142.26 a barrel seem to be responsible for the great fall in the sensex. In bullion market, gold prices spurted on hectic buying to close at Rs.12,750/10gm and silver closed at Rs.24,605/kg.
3. Charitable Trusts can invest abroad through joint ventures and wholly-owned subsidiaries says Reserve Bank of India.
4. India’s first power exchange, Indian Energy Exchange has gone live and received bids for 13,176MWH of power.
5. The Indian real estate player, Unitech plans to dilute 26% in its telecom arm, Unitech Wireless to a strategic foreign partner.
6. Another air-fare hike is in the offing.
7. Banks in India are raising the deposit rates. SBI increases deposit rates by 75 basis points (bps).
8. The US – headquartered auto giant GM’s share plunges below US$12 in NYSE, the lowest in 55 years.

Indian Business News – Selected Extracts (27/06/08)

1. Sun Pharmaceuticals plans a hostile takeover bid for Israeli drug maker Taro Pharma as its merger agreement has fallen through. The Indian major alleges fraud, takes the Israeli drug maker to New York Supreme Court.
2. OPEC President, Algerian Energy Minister Chakib Khelil, forecast that oil prices could rise to US$150-170 a barrel during the northern hemisphere summer.
3. Despite apprehension of a slowdown in the Indian economy, foreign investors are bullish on India. FDI inflow is up by 127% in April, 2008 to US$4 billion.
4. Indian Finance Minister says the 2-digit inflation a 13-week high of 11.05% in early June will stay for some more weeks.
5. Stock markets gain on continuing demand for blue chips. The BSE’s sensex closed at 14,421 showing a rise of 202 points. Crude oil price was at US$133 per barrel. In bullion market, gold closed at Rs.12,340/10gm and silver at Rs.24,090/kg.
6. India has emerged as the world’s fourth most attractive emerging market for FDI in manufacturing businesses.

Indian Business News – Selected Extracts (20/06/08)

1. In another indication that the real estate business in Mumbai is on the downslide, the prime Indian Railway’s 11-acre plot near Bandra Railway Station had few takers, thus forcing the railways to differ its decision for the commercial development of the plot.
2. The BSE’s sensex takes 334 point inflation hit. The sensex closed at 15,088. In bullion market, gold prices advanced further to close at Rs.12,350/10gm and silver closed at Rs.24,390/kg.
3. Major domestic airlines in India have announced an increase of up to Rs.3000 in their base air fares.
4. India’s infrastructure boom has opened a door of opportunities for consumer durable companies, whose institutional business is zooming annually at 40% as compared to the 10% growth rate of retail business.
5. Indian government plans energy ties with Russia and Central Asian Countries (beyond OPEC) to meet it’s oil needs and for building energy security.
6. In India, there are no safety norms for toys. A recent study reveals presence of toxic heavy metals in intimate infant articles such as pacifiers, teethers and nipples. There is an urgent need of legislation to make BIS standards mandatory to be followed by the manufacturers.

Consumer’s Experience – Reliance Fresh

Reliance Fresh retail stores are opened in many places in Mumbai and Navi Mumbai. A typical consumer’s experience in its retail store at Sector 15, Belapur, Navi Mumbai is detailed here.

The vegetables are always in short supply. There are no varieties in vegetables. No consumer wants to go from shop to shop to buy his daily requirements of vegetables. Everybody expected to buy all the vegetable requirements from one shop – Reliance Fresh. Consumer is highly disappointed.

The prices are definitely not cheaper than other vegetable shops. Fruits are very expensive, 40-50% higher than other stores nearby. The worst part of the store is the staff members, both billing and in sales. They are far from courteous; seem to be not interested in the job. They show hardly any interest in doing business for Reliance. Manager is never found in the stores. He is hiding somewhere on the sly and smoking. Too much of plastics are wasted in the store. Definitely, the retail store is not environment-friendly.

Indian Business News – Selected Extracts (19/06/08)

1. In a sudden development, the non-executive Chairman of the Board at Bombay Stock Exchange and a Director on the board have resigned from their respective posts. The reason reported to be: micro-management of the BSE operations by some members.
2. Honda drives in India’s first hybrid car, Civic sedan with a price tag of Rs.21.5 lakh in Delhi. The petrol-electric car will be more environment-friendly and fuel-efficient.
3. Stock market’s slide returns. The Bombay Stock Exchange (BSE)’s sensex closed at 15, 422, losing 275 points. In bullion market, gold gains further to close at Rs.12,285/10gm and silver at Rs.24,230/kg.
4. Telecom solutions provider Tata Communications plans to acquire 50% stake in China Enterprise Communications (CEC) for an undisclosed amount.
5. Vijay Mallya’s UB Group has developed the technology to manufacture diet whisky and vodka in India, for which US patent was granted.
6. Ambanis trade charges over the right of refusal on the on-going merger talks of Rel. Comm with African telecom major, MTN.
7. Pfizer and Ranbaxy end Lipitor row. The agreement between the pharma majors settles the 5-year patent litigation world-wide on the cholesterol drug lipitor.
8. Indian Oil Minister compliment Saudi Arabia for its decision to increase oil production by 300,000 barrels per day to calm global crude prices.

Indian Business News – Selected Extracts (17/06/08)

1. The weak sentiments in the Mumbai Stock Market, high inflation, economic slowdown are causing weak response to the initial public offerings (IPOs). A large number of companies are shying away from the primary market and are postponing their investment plans. Most of the IPOs listed in 2008 are quoting at discount.
2. Daiichi (Japan) makes open offer for further 20% in Ranbaxy Laboratories. If the offer is fully accepted, Daiichi’s stake in Ranbaxy will rise to 58.1%.
3. Oil prices are climbing on growing demands from China and India, whose economies expanded the past years at an average annual rate of 10.2% and 7.3% respectively. Crude oil futures hit a record close to US$140 a barrel. Dollar also weakened against the euro. The state governments opined the the forex reserves could be used for oil buy.
4. Lehman Brothers Real Estate Partners will invest US$175 million to acquire 50% stake in Unitech’s domestic realty project in Mumbai.
5. Telco companies see huge scope for expansion in rural sector. There are only 22% subscribers in villages as on December 2007. Spice, Airtel and Rel. comm are in the forefront.
6. Investment bank Lehman Brothers Holdings posted a quarterly loss of US$2.8 billion matching its forecast.
7. One of the country’s largest and oldest PSU banks, Canara Bank has joined hands with MNC giant HSBC and Oriental Bank of Commerce to form an life insurance company. This is the 19th insurance company in India. The new company will have an access to over 40 million customers.
8. The BSE’s sensex opened 325 points higher, but later pared to 15,396, still showing a gain of 206 points. Sentiments were high in IT, bank and realty stocks. In bullion market, gold prices ended higher at Rs.12,200/10gm and silver at Rs.23,935/kg.

Indian Business News – Selected Extracts (15/06/08)

1. Mediclaim woes: Payment hassles between hospitals and third-party agents (TPAs) of mediclaim insurers cause unnecessary delays in settling the claims. There are instances where a few TPAs, with the help of some doctors, cheat the insurance firms. Many TPAs lost their credit and are banned by some hospitals.
2. Indian carriers may import cheaper fuel as an alternative to purchases from domestic oil companies. Oil from these companies will be costlier than imported oil. The actual user of imported aviation turbine fuel (ATF) will not be subject to sales tax.
3. Ambani families are at war again: Mukesh Ambani of RIL tells MTN that it has the first right of refusal. This is in reference to the Reliance Communications’ merger talks with the telecom giant MTN.
4. Inflation at 7-year high of 8.75% due to rises in food prices.
5. Cars of “affluent” to cost more due to additional taxes imposed by the government.
6. India’s External Affairs Minister Pranab Mukherjee, who was India’s Chief negotiator for the nuclear deal with the US, made it clear that the UPA government will not back track on the nuclear issue. He said nuclear power is crucial for the country’s energy security.
7. Saudis to hike oil output to ease shortage. Saudi Arabia is currently pumping about 9.5 million barrels a day and the increase will make it 10 million barrels a day. Saudis are concerned about a slump in demand if spiraling crude oil prices are not checked.

Indian Business News – Selected Extracts (13/06/08)

1. Global crude oil prices were ruling above US$138 a barrel on Thursday. India may go for another hike in fuel prices and cuts in subsidies.
2. In the Annual General Body meeting of Reliance Industries Limited, Mukesh Ambani declared about his ambitious plans for the future. Apart from the retail rollout, Reliance put much of its money in oil and gas exploration and production business. It made a capital expenditure of Rs.19,503 Cr in last one year.
3. Ranbaxy’s takeover by Daiichi (Japan) may be a paradigm shift in Indian pharma. Indian pharma is credited with supplying affordable drugs for millions around the world. India is the biggest supplier of cheaper versions of essential drugs to the developing world and has a share of nearly 25% in overall generic space.
4. Capital goods sector in India, which is key to the industrial growth grew at the rate of 14.2% as against 10.9% in April, 2007. Fourteen of 17 industries showed positive growth in April.
5. The Reserve Bank of India issued draft guidelines for mobile banking in Indian rupees. The proposed norms include securing customers’ personal information. Banks have been requested to give their feedback by June 30, 2008.
6. Stock markets in Mumbai moved up, with the BSE sensex closing at 15,250, 65 points higher. In bullion market, gold (99.5 purity) closed lower at Rs.12,070/10gm and silver at Rs.23,905/kg.

Indian Business News – Selected Extracts (12/06/08)

1. Interest rates to be hiked again. Reserve Bank of India (RBI) raises its short-term lending rates to banks by 0.25% to rein in inflation. The move will force banks to raise the loan rates in turn.
2. India’s biggest lender bank, State Bank of India said that India is witnessing an “indirect” impact of the US sub-prime crisis. This is felt in the form of a tightening liquidity system and firmness in pricing.
3. Ranbaxy CEO, Mr. Malvinder Singh announced the largest sell-off for a listed company in domestic market Ranbaxy to Japanese MNC Daiichi Sankyo at a cost of over US$ 4 billion. It will be a win-win for both, say analysts. The Japanese drug market is worth US$60 billion, second largest in the world.
4. Stock markets in Mumbai moved up, with the BSE sensex closing at 15,185, 296 points higher. Realty, capital goods and banking stocks were in demand. In bullion market, gold closed at Rs.12,120/10gm and silver at Rs.23,910/kg.
5. An Indian firm, Lupin managed to get approval for the sale of a generic medication, Ramipril capsule by the FDA, US, despite stiff opposition from the patent holder. The capsule is the generic equivalent of US-based King Pharmaceuticals Altace capsule.
6. As per the report of International Energy Agency, Russia was the biggest crude oil producer in the world in the first quarter of 2008. The crude oil out put was 9.5 million barrels per day (MBPD) as compared to Saudi Arabia’s 9.2 MBPD. The US is ranked third with 5.1 MBPD.
7. India’s GSM cellular subscriber base touched 205.4 million in May, 2008. India is the world’s second largest wireless market.

Indian Business News – Selected Extracts (11/06/08)

1. Prices of flat are skyrocketing throughout the country. In Maharashtra State, the state government is going to levy 5% Value Added Tax (VAT) on the builders, which ultimately will be made to pay by the flat buyers. Thus, a 10 lakh flat will call for the payment of additional 50,000 rupees as VAT. In the recent past, builders have been minting money in real estate and they should absorb this tax without burdening the flat buyers.
2. India’s automobile industry has reported an 8.09% rise in its overall vehicle sales in May 2008.
3. As per a top aviation industry consultant, aviation sector is likely to suffer losses to the tune of more than US$2 billion in 2008-09. Jet fuel now costs Rs.71,759 (US$1,673) a kiloliter in Mumbai.
4. Due to continuing demand for dollars from oil companies, Indian rupee is fast approaching Rs.43 level against the US dollar.
5. Stock markets in Mumbai remain in the red with BSE sensex closing below 15,000 mark. The sensex closed at 14,889 – a 10 month low, losing 177 points. Pharma and FMCG scripts were in demand. In bullion market, gold moved down closing at Rs.12,320/10gm and silver at Rs.24,280/kg.
6. After announcing a tie-up for bringing iphone, Bharti Airtel and Apple extended their partnership to launch the 3G version of iphone in India.
7. Aditya Birla group flagship, Grasim Industries has hived off its sponge iron business to Welspun Power and Steel of BK Goenka group

Indian Business News – Selected Extracts (09/06//08)

1. Unfinished irrigation projects along the Krishna basin prompted the Maharashtra government to offer the projects to private sector. Five projects worth about Rs.1974 Cr will go for public private partnerships (PPPs).
2. As per the credit rating agency Moody’s, public sector banks in India have been losing around an average one per cent market share per annum over last 15 years to the private sector.
3. India’s biggest carmaker Maruti Suzuki has emerged as the fourth most reputed among auto companies in the world – according to Global 200: The World’s Best Corporate Reputations list.
4. The BSE ‘s 30-share sensex crashed today (Monday) by over 500 points to close at 15,066. Runaway inflation and crude prices make market players jittery. Nymex crude closed at US$136.75 per barrel.
5. The world’s top industrialized nations (G-8) and leading oil consumers pledged on Sunday to fight skyrocketing energy prices by increasing efficiency and accelerating investments in new technologies.
6. Pharma companies restructure portfolios to cash in on lifestyle segment boom. The lifestyle segment (chronic diseases) is growing double digit and faster than all other areas in the pharma market.
7. The New India Assurance will soon be re-launching its birthright insurance scheme. The birthright insurance covers pregnant women against risk of giving birth to children with congenital anomalies.
8. Industries are required to display emission data online–to make monitoring pollution more transparent and accountable, as per the Central Pollution Control Board.

Indian Business News – Selected Extracts (06/06//08)

1. Fuel hikes in India could lead to 3-4% hike in road freight charges. Fuel constitutes 50-60% of the total cost and it is difficult to absorb the hike.
2. Verizon Wireless agreed to buy Alltel Corporation for US$28.1 billion in cash to overtake AT&T as the biggest mobile phone company in the US.
3. The BSE ‘s 30-share sensex gained 255 points to close at 15,770 on Thursday. IT stocks rallied on the back of weak rupee against the dollar, ONGC gained on the back of petro-product price hike. Volatile trading was witnessed in Reliance Industries stocks. In bullion market, gold prices dropped further to close at Rs.12100/10gm and silver at Rs.23,800/kg.
4. Tata Group from India has emerged as the world’s sixth most reputed company, while Reliance Industries failed to make the grade. The global list is topped by Japanese auto maker Toyota, followed by US based internet search giant Google.
5. WIPRO has undertaken significant leadership restructuring and pan-global geographic re-grouping. Services currently account for 95% of Wipro’s revenues.
6. Continental Airlines to cut 3000 jobs and reducing capacity by 11% in view of the record fuel price.
7. Indian government amends money laundering law to cover transfer services, credit cards. The union cabinet decided to amend the Prevention of Money Laundering Act, making it mandatory for these financial intermediaries to report all suspected transactions involving international money transfers.

Indian Business News – Selected Extracts (04/06//08)

1. Indian Telecom service provider, Spice Communications is open to all offers, including stake sale, needs fund for expansion. Waiting proposal from Telekom Malaysia, which holds 39.2% stake in the company.
2. General Motors is planning to close four truck plants and could sell Hummer brand to cut slow-selling trucks from its lineup in response to the higher gasoline prices.
3. The Indian stock market regulator, SEBI is going to allow exchange-traded currency futures to enable investors mange volatility in the currency markets.
4. Indian government’s reluctance to raise fuel prices in step with input cost will result in the three major state-owned oil companies losing Rs.246,000Cr in revenues this fiscal.
5. India lost its position to Vietnam as the most attractive emerging market destination for retail investment. India has been at the top of the global retail development index (GRDI) for the past few years due to steep and consistent rise in the income levels of Indian consumers.
6. India’s mining industry is projected to touch over US$30 billion accounting for about 2.5% of the GDP in the next four years.
7. The BSE ‘s 30-share sensex lost 101 points to close at 15,965. This was the lowest close for the sensex since April 11. Power and Capital goods stocks were worst hit. In bullion market, gold closed at Rs.12,315/10gm and silver at Rs.23,820/kg.

Indian Business News – Selected Extracts (02/06/08)

1. Airlines in India may cut routes and lower flight frequency in order to cut costs resulting from 19% hike aviation turbine fuel prices. The fuel surcharge for national and international flights is set to rise sharply.
2. Arun Sarin, India’s hottest global CEO is said to be in the most wanted list by Indian companies.
3. Virgin, Britain’s first national commercial rock radio station is acquired by Bennett Coleman & Co Ltd (BCCL) for 53.2 million Pounds. It is the first foray beyond domestic shores by any Indian media group. The Virgin Radio has 2.7 million-strong fan following and prestigious London FM and national AM licenses.
4. India’s oil subsidy may shoot up three times to 2.2% of the GDP this year. The country paid US$8.7 billion in oil subsidies in 2007 or 0.7% of the GDP.
5. The International Air Transport Association (IATA) is calling for 100% e-ticketing globally which will help Aviation Industry to save US$3 billion annually.
6. Chinese authorities are set to open the sluice gates of the securities industry so that foreign companies can raise capitals and list in the Shanghai Stock Exchange. Local companies are also allowed similar benefit and get listed in foreign stock exchanges.
7. Sterlite Industries (India) inked an agreement to acquire 100-year old American Copper firm Asarco for US$2.6 billion in cash. The company employs 2,600 people and is currently the third-largest copper producer in US, produced 235,000 tonnes of refined copper in the year 2007.