Bharat Forge has become the first Indian auto components company to touch the billion dollar mark. Now it wants to grow even bigger.
Bharat Forge is mulling an acquisition in South America to tap crucial automotive markets like Brazil. The company will announce acquisition of non-automotive forging business in North America and Europe during this year.
Bharat Forge plans to expand its non-automotive business from current 17% of total revenue to 40% in four to five years. Its Baramati facility will start operations in April 2008 and it will have the world's largest forging hammer.
Bharat Forge stated that the capacity utilisation in Chinese JV is below 40%. They are incurring a loss of around Rs 16 crore currently. They expect the Chinese JV to turn profitable next year.
Wednesday, May 23, 2007
Central Bank files IPO prospectus with Sebi
Central Bank has filed and IPO prospectus with Sebi, reports CNBC-TV18.
It will issue 8 crore shares.
It will issue 8 crore shares.
Zicom Electronics to invest USD 2 mn in Hong Kong arm
Manohar Bidaye, Chairman, Zicom Electronics, says the company is setting up a Hong Kong subsidiary, Zicom Manufacturing with an investment of USD 2 million. The Hong Kong subsidiary will help in sale of overbranded products.
The company recently bought 49% stake in Dubai-based Unisafe Fire Protection.
Regarding the financial target for FY08, Bidaye says, the company will continue with the 78-80% growth rate, which it posted during past two years.
Bidaye says the company is looking for a couple of acquisitions, but will not be able provide details at this juncture.
The company recently bought 49% stake in Dubai-based Unisafe Fire Protection.
Regarding the financial target for FY08, Bidaye says, the company will continue with the 78-80% growth rate, which it posted during past two years.
Bidaye says the company is looking for a couple of acquisitions, but will not be able provide details at this juncture.
Bharat Forge Q4 net profit at Rs 64.3cr
Bharat Forge has announced its fourth quarter and FY07 results. The company has posted standalone net profit of Rs 64.3 crore (Rs 643 million) in Q4 of FY07 versus Rs 53 crore (Rs 530 million) in Q4 of FY06 and net sales of Rs 510 crore (Rs 5.1 billion) as against Rs 438.4 crore (Rs 4.38 billion).
Other income stood at Rs 22.2 crore (Rs 222 million) versus Rs 14.3 crore (Rs 143 million).
For FY07, company has reported net profit of Rs 241 crore (Rs 2.41 billion) compared to Rs 206.7 crore (Rs 2.06 billion) in FY06 and net sales of Rs 1,864 crore (Rs 18.64 billion) versus Rs 1,578 crore (Rs 15.78 billion).
Other income stood at Rs 22.2 crore (Rs 222 million) versus Rs 14.3 crore (Rs 143 million).
For FY07, company has reported net profit of Rs 241 crore (Rs 2.41 billion) compared to Rs 206.7 crore (Rs 2.06 billion) in FY06 and net sales of Rs 1,864 crore (Rs 18.64 billion) versus Rs 1,578 crore (Rs 15.78 billion).
USD 20 bn spend in realty sector expected: JM Financial
JM Financial expects extra USD 15-20 billion investment in the Indian real estate sector. The lower expectancy of returns is holding back investors, from investing their capital in the real estate sector, it believes.
JM Financial sees 20% plus appreciation in some pockets of real estate. It says the actual demand for real estate will not come down.
JM Financial sees 20% plus appreciation in some pockets of real estate. It says the actual demand for real estate will not come down.
Everest Kanto Q4 net profit at Rs 5.12cr
Everest Kanto Cylinder has come out with fourth quarter numbers of FY07. The company has reported net profit of Rs 5.12 crore (Rs 51.2 million) in Q4 of FY07 as against Rs 10.2 crore (Rs 102 million) in Q4 of FY06.
Net sales posted flat at Rs 80 crore (Rs 800 million). OPM stood at 17.2% versus 19.6% and FY07 consolidated EPS at Rs 39.
Net sales posted flat at Rs 80 crore (Rs 800 million). OPM stood at 17.2% versus 19.6% and FY07 consolidated EPS at Rs 39.
Crude ends above $66/bbl on Nigeria unrest
Crude prices spiked 2.1% to above USD 66 a barrel as continued unrest in Nigeria threatened the OPEC nation's oil exports. Speculation that demand will increase as US refiners make more gasoline to supply summer fuel needs provided support for the prices.
In after hours acces trading, crude is trading at USD 66.89 per barrell up 2 cents on the Nymex.
In after hours acces trading, crude is trading at USD 66.89 per barrell up 2 cents on the Nymex.
Target India: Vodafone launches low cost handsets
Even before Vodafone makes its entry into the Indian mobile market, the UK-based company has launched its first branded entry-level handsets priced between $25 and $45. The Vodafone branded handset has been launched aimed at the emerging and developing markets such as India.
"The Vodafone 125 and Vodafone 225 are part of Vodafone's ongoing commitment to expand access to mobile in emerging markets, where mobile technology and networks are often the only viable and cost effective telecom service. The handsets are therefore key to offering a range of services, particularly in rural areas where mobile penetration is often at its lowest," said a press release.
"The Vodafone 125 and Vodafone 225 are part of Vodafone's ongoing commitment to expand access to mobile in emerging markets, where mobile technology and networks are often the only viable and cost effective telecom service. The handsets are therefore key to offering a range of services, particularly in rural areas where mobile penetration is often at its lowest," said a press release.
TV 18 group plans general entertainment channel
The TV 18 group has decided to launch a general entertainment and infomercial channel, initially in India and eventually entering the West Asian, UK and US markets.
According to the plans, the Indian operations would be launched with an investment of around $13 million, funds for which would be routed through companies incorporated in the Cayman Islands and Cyprus, sources said.
The main company through which funds would be routed is Cyprus-based HSN Cyprus.
HSN Cyprus is a joint venture company between Cayman Islands-based Network 18 Holdings Ltd and Mauritius-based SAIF II Mauritius Company Ltd, a subsidiary of SB Asia Investment Fund II LP, which manages funds worth $643 million.
According to the plans, the Indian operations would be launched with an investment of around $13 million, funds for which would be routed through companies incorporated in the Cayman Islands and Cyprus, sources said.
The main company through which funds would be routed is Cyprus-based HSN Cyprus.
HSN Cyprus is a joint venture company between Cayman Islands-based Network 18 Holdings Ltd and Mauritius-based SAIF II Mauritius Company Ltd, a subsidiary of SB Asia Investment Fund II LP, which manages funds worth $643 million.
IOC may upgrade, expand Barauni, Mathura refineries
After Panipat, Koyali and Haldia, IndianOil has set its sight on upgradation-expansion of Barauni (six million tonnes) and Mathura refineries (mt) in Bihar and Uttar Pradesh respectively.
Set up in 1964 for use of light sweet Assam crude, the six-mt Barauni refinery is today run on low sulphur Nigerian crude resulting in high operational cost. Sweet light Nigerian crude is generally costlier by $3-4 a barrel over and above the heavy sour Middle East crude.
"We are planning a low-cost select process upgradation requiring an investment of Rs 1,000-1,500 crore so that the refinery can use 40-50 per cent of high sulphur crude. This will enhance the refining margin by $2-3 a barrel," a senior company official said.
Set up in 1964 for use of light sweet Assam crude, the six-mt Barauni refinery is today run on low sulphur Nigerian crude resulting in high operational cost. Sweet light Nigerian crude is generally costlier by $3-4 a barrel over and above the heavy sour Middle East crude.
"We are planning a low-cost select process upgradation requiring an investment of Rs 1,000-1,500 crore so that the refinery can use 40-50 per cent of high sulphur crude. This will enhance the refining margin by $2-3 a barrel," a senior company official said.
Adani Enterprises Q4 net up at Rs 65.3 crore
Adani Enterprises announced its Q4FY07 result. It posted Q4 net profit of Rs 66.2 crore versus Rs 65.3 crore on YoY basis. During the corresponding quarters, its net sales was up at Rs 3426 crore versus Rs 3256 crore.
The company's Operating Profit Margin was at 3.25% versus 2.80%.
The company's Operating Profit Margin was at 3.25% versus 2.80%.
Tuesday, May 22, 2007
Market Stats - 21st May
BSE Sensex - 14418.60 (+ 115.19)
S&P CNX Nifty - 4260.90 (+ 46.40)
BSE Midcap - 6129.69 (+ 39.74)
BSE 100 - 7384.27 (+ 71.00)
CNX Midcap - 5589.90 (+ 53.80)
S&P CNX 500 - 3537.15 (+ 33.60)
BSE Smallcap - 7294.15 (+ 73.85)
S&P CNX Nifty - 4260.90 (+ 46.40)
BSE Midcap - 6129.69 (+ 39.74)
BSE 100 - 7384.27 (+ 71.00)
CNX Midcap - 5589.90 (+ 53.80)
S&P CNX 500 - 3537.15 (+ 33.60)
BSE Smallcap - 7294.15 (+ 73.85)
Rel Energy, Essar Cons, GVK to bid for Hyderabad's metro
Reliance Energy, Essar Constructions and GVK are among five companies bidding for the Rs 8,500 crore Hyderabad Metro Rail Project.
It is one of India's largest urban infrastructure projects and the Andhra Pradesh government has shortlisted five international consortia to bid for it.
Covering 67 kilometres and over three routes, this project is bigger than the Delhi Metro and has a timeframe of 35 years.
The Andhra Pradesh government will hold 11% stake in this public-private partnership and the bidding is for the balance 89%. And 18% of the capital will be raised via equity, 42% through debt, and the balance will be subsidised by the Government of India.
NVS Reddy, Managing Director, Hyderabad Metro Rail, said, “We will not give this project any operational subsidy but a one-time capital subsidy. As per our financial model, 40% of the cost will be given as viability funding by the Government of India.”
It is one of India's largest urban infrastructure projects and the Andhra Pradesh government has shortlisted five international consortia to bid for it.
Covering 67 kilometres and over three routes, this project is bigger than the Delhi Metro and has a timeframe of 35 years.
The Andhra Pradesh government will hold 11% stake in this public-private partnership and the bidding is for the balance 89%. And 18% of the capital will be raised via equity, 42% through debt, and the balance will be subsidised by the Government of India.
NVS Reddy, Managing Director, Hyderabad Metro Rail, said, “We will not give this project any operational subsidy but a one-time capital subsidy. As per our financial model, 40% of the cost will be given as viability funding by the Government of India.”
LIC mulls credit card foray; in talks with global biggies
India's credit card market is set for the entry of a giant. The country's biggest life insurance company, LIC is set to forge an alliance with one of the world's biggest financial services company to launch credit cards
Sources said that insurance company LIC is in talks for a joint venture, or JV, with GE to launch credit card. Stanchart, DBS and Barclays are also in the race, the sources added.
LIC has over 20 crore customers across the country. The insurance company is targeting two crore credit card holders for its new business.
Sources said that insurance company LIC is in talks for a joint venture, or JV, with GE to launch credit card. Stanchart, DBS and Barclays are also in the race, the sources added.
LIC has over 20 crore customers across the country. The insurance company is targeting two crore credit card holders for its new business.
SAIL Q4 net profit up 72% at Rs 1902 cr
SAIL announced its Q4FY07 result. Its Q4 net profit was up 72% at Rs 1902 crore versus Rs 1103.2 crore on YoY basis. Its net sales during the corresponding quarters were at Rs 10,385 crore versus Rs 9,219 crore.
The EBITDA stood at 32.7% versus 19%.
According to CNBC-TV18 estimates, the company was expected to post net profit of Rs 1796 cr versus Rs 1103.2 cr, up 62.8% on YoY basis. During the same quarters, its net sales was expected to go up by 5.6% at Rs 9737.2 cr versus 9219 cr on YoY basis.
The EBITDA stood at 32.7% versus 19%.
According to CNBC-TV18 estimates, the company was expected to post net profit of Rs 1796 cr versus Rs 1103.2 cr, up 62.8% on YoY basis. During the same quarters, its net sales was expected to go up by 5.6% at Rs 9737.2 cr versus 9219 cr on YoY basis.
Jindal Steel Q4 net profit up at Rs 203cr
Jindal Steel has announced its fourth quarter and FY07 results. It has reported Q4 net profit of Rs 203 crore (Rs 2.03 billion) as against Rs 151 crore (Rs 1.51 billion) in corresponding quarter of previous year and other income of Rs 20 crore (Rs 200 million) versus Rs 7 crore (Rs 70 million).
The company's FY07 net profit stood at Rs 703 crore (Rs 7.03 billion) versus Rs 572 crore (Rs 5.72 billion) and net sales at Rs 3,520 crore (Rs 35.2 billion) as against Rs 2,590 crore (Rs 25.9 billion).
The company's FY07 net profit stood at Rs 703 crore (Rs 7.03 billion) versus Rs 572 crore (Rs 5.72 billion) and net sales at Rs 3,520 crore (Rs 35.2 billion) as against Rs 2,590 crore (Rs 25.9 billion).
ABG likely to bag European order worth Rs 1000 cr
ABG Shipyard is likely to bag an order worth Rs 900 crore to Rs 1000 crore. The order is likely from an European company. ABG’s current order book stands at Rs 3,500 crore.
Parsvnath Developers Q4 net profit at Rs 132cr
Parsvnath Developers has announced its fourth quarter numbers of FY07. The company has reported net profit of Rs 132 crore (Rs 1.32 billion) in Q4 versus Rs 53.8 crore (Rs 538 million) in previous quarter and total income of Rs 412 crore (Rs 4.12 billion) as against Rs 306.4 crore (Rs 3.06 billion).
For year-on-year, Parsvnath has posted Q4 net profit of Rs 132 crore versus Rs 37.5 crore (Rs 375 million) and income at Rs 412 crore as against Rs 243 crore (Rs 2.43 billion).
For year-on-year, Parsvnath has posted Q4 net profit of Rs 132 crore versus Rs 37.5 crore (Rs 375 million) and income at Rs 412 crore as against Rs 243 crore (Rs 2.43 billion).
Avg billing rates to increase by 2-3%: Satyam Computer
Satyam Computer Services is still assessing the impact of rupee on its guidance. Every 1% rupee increase will impact the company's margins by 30 basis points. Another 4% appreciation in the rupee will mean a 120 bps hit on margins.
Srinivas Vadlamani, Chief Financial Officer, Satyam stated that the company had hedged against USD 650 million compared to USD 450 million at the beginning of the year. The overall hedging policy of the company is 50% of the dollar inflows. The company's guidance factors in the rupee at 42.30 per dollar.
Srinivas Vadlamani, Chief Financial Officer, Satyam stated that the company had hedged against USD 650 million compared to USD 450 million at the beginning of the year. The overall hedging policy of the company is 50% of the dollar inflows. The company's guidance factors in the rupee at 42.30 per dollar.
JBF Industries Q4 net profit at Rs 18.3 cr
JBF Industries announced its Q4FY07 result. Its net profit in Q4 was up at Rs 18.3 crore versus Rs 13.5 crore, YoY. Its net sales was during the corresponding quarters was at Rs 477.4 crore versus Rs 176 crore.
JP Associates Q4 net profit up at Rs 131 cr
JP Associates announced its Q4FY07 result. Its Q4 net profit was at Rs 131 crore versus Rs 70 crore on YoY basis. During the corresponding quarters, its net sales was at Rs 886 crore versus Rs 855 crore. Its Q4 operating margin was at 29.7% versus 18% on YoY basis and FY07 EPS was at Rs 19.10.
Crude hovers around $65 mark on supply concerns
Crude prices continued to trade near the USD 65 mark after stalling near a three-week high last week on signs that rising US gasoline stockpiles may damp motor-fuel prices.
China raises interest rates yet again
n an effort to cool an investment boom in the world's fastest-growing economy, China's Central Bank has raised interest rates for the fourth time this year.
The Central Bank also ordered banks to put aside more money as reserves and widened the yuan's daily trading limit against the dollar.
The Central Bank also ordered banks to put aside more money as reserves and widened the yuan's daily trading limit against the dollar.
Reliance close to deal with Alcatel Lucent
Reliance Communication has finalised a deal with Alcatel-Lucent for supply of Code Division Multiple Access (CDMA) equipment used for offering mobile services. This is the first major contract Alcatel-Lucent will be getting from India after the merger of French major Alcatel with US equipment vendor Lucent.
Lucent had earlier supplied CDMA equipment to Reliance in 2004. The deal size is estimated at around $350 million and will be officially announced shortly, according to industry sources.
The contract will enable Reliance to undertake its major expansion plans involving over 20,000 towers across the country. The company has said that it will invest close to $2.5 billion in 2007-08 in expanding its telecom network to more number of towns and cities across the country. The company is also looking to launch new services, including direct-to-home and Internet Protocol Television by third quarter of the next fiscal. Currently, Reliance is the number two cellular firm in terms of subscribers and is adding close to a million new users a month.
Lucent had earlier supplied CDMA equipment to Reliance in 2004. The deal size is estimated at around $350 million and will be officially announced shortly, according to industry sources.
The contract will enable Reliance to undertake its major expansion plans involving over 20,000 towers across the country. The company has said that it will invest close to $2.5 billion in 2007-08 in expanding its telecom network to more number of towns and cities across the country. The company is also looking to launch new services, including direct-to-home and Internet Protocol Television by third quarter of the next fiscal. Currently, Reliance is the number two cellular firm in terms of subscribers and is adding close to a million new users a month.
Sun Pharma acquires Taro Pharma for $454m
Sun Pharma has acquired Israel-based Taro Pharma for USD 454 million. The company will acquire Taro shares at USD 7.75 in cash, a 27% premium to its May 18 closing. The transaction represents a total equity value of approximately USD 230 million.
The domestic pharma major will refinance about USD 224 million in net debt of Taro. Sun Pharma had raised USD 350 million in FCCBs in 2004. Dilip Sanghvi, Chairman and Managing Director of Sun Pharma says that FCCB proceeds will be used to fund Taro Pharma acquisition and does not see any need to raise fresh debt for the acquisition.
Sun Pharma will provide USD 45 million interim equity to Taro by buying 7.5 million shares immediately.
The domestic pharma major will refinance about USD 224 million in net debt of Taro. Sun Pharma had raised USD 350 million in FCCBs in 2004. Dilip Sanghvi, Chairman and Managing Director of Sun Pharma says that FCCB proceeds will be used to fund Taro Pharma acquisition and does not see any need to raise fresh debt for the acquisition.
Sun Pharma will provide USD 45 million interim equity to Taro by buying 7.5 million shares immediately.
Monday, May 21, 2007
LIC MF Tax Plan declares 10% dividend
LIC Mutual Fund has announced a dividend of 10% (Rs 1 unit at face value of Rs 10) in LIC MF Tax Plan an open-ended ELSS scheme, aims to provide long term capital appreciation and tax saving u/s 88 of IT Act . The last dividend announced by the scheme was of 25% in October 2006.
FT India Balanced Fund announces 30% dividend
Franklin Templeton Investments (India), has announced a dividend of 30% (i.e. Rs 3 per unit on face value of Rs 10), in its – FT India Balanced Fund, an open end balanced scheme with an objective to provide long term growth of capital and current income by investing in equity, equity related securities and high quality fixed income instruments.
The last dividend announced by the scheme was of 25% in May 2006. Over the last one year, FT India Balanced Fund has yielded 13.41% as compared to 12.18% given by its benchmark Crisil Balanced Fund Index as on April 30, 2007.
The last dividend announced by the scheme was of 25% in May 2006. Over the last one year, FT India Balanced Fund has yielded 13.41% as compared to 12.18% given by its benchmark Crisil Balanced Fund Index as on April 30, 2007.
UTI Banking Sector Fund declares 35% dividend
UTI Mutual Fund has announced a dividend of 35% (Rs3.50 per unit on face value of Rs10/-) in its UTI Banking Sector Fund. Pursuant to the payment of dividend, the NAV of the dividend option of the fund would fall to the extent of payout and statutory levy if any.
The last dividend announced by the scheme was of 25% in September 2005. Over the last one year, UTI Banking Sector Fund has yielded 32.46% as compared to 18.92% given by its benchmark S&P CNX Banks as on May 16, 2007.
The last dividend announced by the scheme was of 25% in September 2005. Over the last one year, UTI Banking Sector Fund has yielded 32.46% as compared to 18.92% given by its benchmark S&P CNX Banks as on May 16, 2007.
IPO issues open now
Equity Offer Price Open Close
Time Techno 290-315 18-05 23-05
Decolight Ceram 45-54 24-05 29-05
Time Techno 290-315 18-05 23-05
Decolight Ceram 45-54 24-05 29-05
Honeywell eyes $1 bn revenue from India by 2010
Industrial supplies manufacturer Honeywell is targeting revenues of USD 1 billion from India by 2010.
Currently, their four businesses in India - automation and control solutions, aerospace, specialty materials and transportation systems - make up USD 600-700 million of its global revenues, which stand at USD 32 billion.
Honeywell says that India and China will be among its fastest growing markets in the next five years. In India, however the growth will come mostly from automation solutions, especially the security systems.
Currently, their four businesses in India - automation and control solutions, aerospace, specialty materials and transportation systems - make up USD 600-700 million of its global revenues, which stand at USD 32 billion.
Honeywell says that India and China will be among its fastest growing markets in the next five years. In India, however the growth will come mostly from automation solutions, especially the security systems.
Vodafone Essar may make a call on the stock exchanges
Vodafone Essar may soon join Reliance Communication, Bharti and Idea on the stock exchanges.
The shareholder's agreement states that if after three years, either shareholder wants the company to go public, the other will not block the move.
The agreement says, ‘After third anniversary of the effective date, either an Essar group shareholder or a Vodafone group shareholder will be entitled to require Hutch Essar to take all reasonable steps to effect an IPO. Such IPO to be effected on either NSE, BSE or any international stock exchange outside USA.’
Hutch-Essar has had IPO plans since 2004. But Hutch delayed the plans due to internal stake restructuring and also due to the spat over ownership of BPL Mobile's Mumbai circle. Had it happened, the IPO may have presented Essar an opportunity to encash a part of its stake.
The Ruias have a say on Hutch going public and also in the running of the company. Essar's consent is a must for all major business decisions.
The shareholder's agreement states that if after three years, either shareholder wants the company to go public, the other will not block the move.
The agreement says, ‘After third anniversary of the effective date, either an Essar group shareholder or a Vodafone group shareholder will be entitled to require Hutch Essar to take all reasonable steps to effect an IPO. Such IPO to be effected on either NSE, BSE or any international stock exchange outside USA.’
Hutch-Essar has had IPO plans since 2004. But Hutch delayed the plans due to internal stake restructuring and also due to the spat over ownership of BPL Mobile's Mumbai circle. Had it happened, the IPO may have presented Essar an opportunity to encash a part of its stake.
The Ruias have a say on Hutch going public and also in the running of the company. Essar's consent is a must for all major business decisions.
Dabur Pharma Q4 net profit up at Rs 2.73 cr
Dabur Pharma has declared its Q4 and FY07 results. The company's Q4 net profit was up at Rs 2.73 crore from Rs 20 lakh.
The company's net sales was up at Rs 59.6 crore versus Rs 53 crore.
The company's net sales was up at Rs 59.6 crore versus Rs 53 crore.
Max India Q4 net loss at Rs 3.82 cr
Max India announced its Q4 numbers. Its Q4 net loss of Rs 3.82 crore versus profit of Rs 4.8 crore in Q4FY06.
Sunday, May 20, 2007
Market Stats
BSE Sensex - 14303.41 (+3.70)
S&P CNX Nifty - 4214.50 (-5.05)
BSE Midcap - 6089.95 (+1.16)
BSE 100 - 7313.27 (-1.59)
CNX Midcap - 5536.10 (+16.30)
S&P CNX 500 - 3503.55 (-3.95)
BSE Smallcap - 7220.30 (+7.74)
S&P CNX Nifty - 4214.50 (-5.05)
BSE Midcap - 6089.95 (+1.16)
BSE 100 - 7313.27 (-1.59)
CNX Midcap - 5536.10 (+16.30)
S&P CNX 500 - 3503.55 (-3.95)
BSE Smallcap - 7220.30 (+7.74)
Aditya Birla Group to launch 'More' in retail
The USD 25 billion Aditya Birla Group has 'More' to show off in the retail space. Quite literally that is. CNBC-TV18 reports on the new Birla brand and what it will offer.
It promises more quality and convenience and even a store by that name. It is Aditya Birla Group's offering in the organised retail landscape. The Birlas expect to roll out 15 stores in Pune next month.
Hypermarket is the other format the group plans to enter. And for this retail foray, the group plans an investment of Rs 7,000-8,000 crore. However, the unlisted entity, Aditya Birla Retail will tap debt and equity in due course of time.
Kumar Mangalam Birla, Chairman, AV Birla Group, said, We have made a commitment to our shareholders that each company will stick to its own core business; therefore, the idea of doing it altogether with resources pulled from the different public listed companies is not something that is in keeping with the commitment.
More is being positioned as a neighbourhood supermarket, but unlike Pantaloon and Reliance, it is keeping away from being a price warrior. One can expect the usual set of private labels, not only in staples, but also categories like home and personal care. The group is busy tying up with vendors and is hoping to leverage the group's presence for that. By next year, 5,000-10,000 employees will come on board Birla Retail. The company refused to share details on its real estate bank which is the biggest challenge in retail today.
Sumant Sinha, CEO, Aditya Birla Retail, said, We are obviously looking at renting and leasing to the extent we can, and where we can't, we are looking at buying real estate. We will consider it and if it requires financing, we will look at innovative ways of doing it.
Meanwhile, foreign alliances have been clearly ruled out. Birla's domestic acquisition, retail chain Trinethra with 500,000 sq feet of space and 170 stores has given it a presence in South India. And Trinethra's hypermarket in Mysore, which is to be rebranded as More, is now a learning ground for Birla's hypermarket rollout.
It promises more quality and convenience and even a store by that name. It is Aditya Birla Group's offering in the organised retail landscape. The Birlas expect to roll out 15 stores in Pune next month.
Hypermarket is the other format the group plans to enter. And for this retail foray, the group plans an investment of Rs 7,000-8,000 crore. However, the unlisted entity, Aditya Birla Retail will tap debt and equity in due course of time.
Kumar Mangalam Birla, Chairman, AV Birla Group, said, We have made a commitment to our shareholders that each company will stick to its own core business; therefore, the idea of doing it altogether with resources pulled from the different public listed companies is not something that is in keeping with the commitment.
More is being positioned as a neighbourhood supermarket, but unlike Pantaloon and Reliance, it is keeping away from being a price warrior. One can expect the usual set of private labels, not only in staples, but also categories like home and personal care. The group is busy tying up with vendors and is hoping to leverage the group's presence for that. By next year, 5,000-10,000 employees will come on board Birla Retail. The company refused to share details on its real estate bank which is the biggest challenge in retail today.
Sumant Sinha, CEO, Aditya Birla Retail, said, We are obviously looking at renting and leasing to the extent we can, and where we can't, we are looking at buying real estate. We will consider it and if it requires financing, we will look at innovative ways of doing it.
Meanwhile, foreign alliances have been clearly ruled out. Birla's domestic acquisition, retail chain Trinethra with 500,000 sq feet of space and 170 stores has given it a presence in South India. And Trinethra's hypermarket in Mysore, which is to be rebranded as More, is now a learning ground for Birla's hypermarket rollout.
BSE completes demutualisation process
Bombay Stock Exchange (BSE), has completed the process of demutualisation.
This means that the broker stake in BSE is now down to 49%. Shareholders of BSE have placed their stake with 19 domestic and overseas investors for Rs 5,200 per share. It translates into BSE's market cap at around USD 1 billion.
This means that the broker stake in BSE is now down to 49%. Shareholders of BSE have placed their stake with 19 domestic and overseas investors for Rs 5,200 per share. It translates into BSE's market cap at around USD 1 billion.
ICICI Bank targets new segments, on hiring spree
The slow down in retail loans seem to be pinching ICICI Bank as it has frozen fresh recruitment on the retail loans side. But recruitments in other growth areas for the bank have not stopped. The board has approved addition of 8,500-11,000 workforce this year, a 22% increase over the last year, reports CNBC-TV18.
Selling retail loans has become an area of low focus for ICICI Bank.The bank officials confirmed that they have frozen recruitments in the retail assets segment, in which it already employs 4,500-4,700 people.
The officials admitted that recruitments have been put on hold due to the slowdown in loan growth on acount of interest rate pressures.
However, the overall pace of recruitment remains unchanged, they added. The bank's board has approved addition of 8,500 to11,000 people into the bank this year, a 22% increase over the last year.
These fresh recruits will be hired for deposit mobilisation, small and medium sized businesses and rural banking, which the bank says are its new focus areas.
The bank has already recruited 800 new candidates this quarter for these businesses. And it will start an induction process for 3,000 more in next week taking its employee force to 37,000.
Source : http://www.moneycontrol.com/india/news/business/icici-bank-targets-new-segmentshiring-spree/282106
Selling retail loans has become an area of low focus for ICICI Bank.The bank officials confirmed that they have frozen recruitments in the retail assets segment, in which it already employs 4,500-4,700 people.
The officials admitted that recruitments have been put on hold due to the slowdown in loan growth on acount of interest rate pressures.
However, the overall pace of recruitment remains unchanged, they added. The bank's board has approved addition of 8,500 to11,000 people into the bank this year, a 22% increase over the last year.
These fresh recruits will be hired for deposit mobilisation, small and medium sized businesses and rural banking, which the bank says are its new focus areas.
The bank has already recruited 800 new candidates this quarter for these businesses. And it will start an induction process for 3,000 more in next week taking its employee force to 37,000.
Source : http://www.moneycontrol.com/india/news/business/icici-bank-targets-new-segmentshiring-spree/282106
BoB hikes 1-yr deposit rate to 9.5%
Bank of Baroda has hiked the one-year deposit rate to 9.50% from 8.25%
Tatas' small car project to get tax concession
The Tatas are going to get tax concession worth Rs 18,000 for every 1,00,000 units sold via its small car project. This was the incentive earlier offered by Uttranchal, which the West Bengal government matched to bring the project to Singur.
The Bengal government has offered a refund of VAT for 10 years and a Rs 200 crore loan at 1% for 20 years. It has also offered a concession in lease rent for a 645-acre plot. Tata Motors is to pay Rs 1 crore a year for the first five years.
Tata Motors will invest Rs 1,700 crore, of which, Rs 1,200 crore will be invested in the small car plant, while Rs 500 crore will go in the vendor park infrastructure.
Meanwhile, the Bengal government will earn Rs 850 crore in lease rent over 90 years and sees revenue income of Rs 400-450 crore a year in the long run.
The Bengal government has offered a refund of VAT for 10 years and a Rs 200 crore loan at 1% for 20 years. It has also offered a concession in lease rent for a 645-acre plot. Tata Motors is to pay Rs 1 crore a year for the first five years.
Tata Motors will invest Rs 1,700 crore, of which, Rs 1,200 crore will be invested in the small car plant, while Rs 500 crore will go in the vendor park infrastructure.
Meanwhile, the Bengal government will earn Rs 850 crore in lease rent over 90 years and sees revenue income of Rs 400-450 crore a year in the long run.
GE may sell plastics unit for $11 bn
General Electric may be close to selling its plastics unit for almost USD 11 billion.
It may sell its plastics unit to Riyadh-based chemicals company Saudi Basic Industries, or SABIC.
A source told Reuters earlier this week that at least three bidders are in the final stages - SABIC, Dutch petro-chemical maker Basell and private equity firm Apollo Management.
It may sell its plastics unit to Riyadh-based chemicals company Saudi Basic Industries, or SABIC.
A source told Reuters earlier this week that at least three bidders are in the final stages - SABIC, Dutch petro-chemical maker Basell and private equity firm Apollo Management.
World Bank President Wolfowitz quits
Paul Wolfowitz has resigned as World Bank President after international furore sparked by his involvement in a pay raise for his girlfriend.
The White House, which had backed Wolfowitz, said President George W Bush reluctantly accepted his decision. The bank said it would start an immediate search for his successor.
The White House, which had backed Wolfowitz, said President George W Bush reluctantly accepted his decision. The bank said it would start an immediate search for his successor.
Dr Reddy's FY07 net profit up at Rs 325.2cr
Dr Reddy's has declared its fourth quarter and FY07 results. The company's FY07 net profit was at USD 215 million and revenue of USD 1.5 billion (US GAAP).
The company's FY07 net profit was at Rs 932.7 crore.
Its Q4FY07 net profit stood at Rs 325.2 crore as compared to a loss of Rs 23.5 crore, YoY. Its net sales were up at Rs 1557.3 crore versus Rs 697.4 crore.
The company's FY07 net profit was at Rs 932.7 crore.
Its Q4FY07 net profit stood at Rs 325.2 crore as compared to a loss of Rs 23.5 crore, YoY. Its net sales were up at Rs 1557.3 crore versus Rs 697.4 crore.
Tata Motors Q4 net profit up at Rs 577 crore
Tata Motors has announced its Q4FY07 results. It posted Q4 standalone net profit of Rs 576.7 crore versus Rs 458.1 crore on YoY basis. Its standalone Q4 net sales was at Rs 8267 crore versus Rs 6,882.8 crore, YoY.
Its fourth quarter OPM was at 11.69% vs 12.9% on YoY basis.
Its fourth quarter OPM was at 11.69% vs 12.9% on YoY basis.
Tata Motors Q4 net profit up at Rs 577 crore
Tata Motors has announced its Q4FY07 results. It posted Q4 standalone net profit of Rs 576.7 crore versus Rs 458.1 crore on YoY basis. Its standalone Q4 net sales was at Rs 8267 crore versus Rs 6,882.8 crore, YoY.
Its fourth quarter OPM was at 11.69% vs 12.9% on YoY basis.
According to CNBC-TV18 estimates, it was expected to post Q4 net profit of Rs 562.6 crore versus Rs 458.1 crore, up 22.85 on YoY basis. During the corresponding quarters, the company was expected to post net revenue of Rs 8224.6 crore versus Rs 6882.8 crore, up 19.5% YoY.
Its fourth quarter OPM was at 11.69% vs 12.9% on YoY basis.
According to CNBC-TV18 estimates, it was expected to post Q4 net profit of Rs 562.6 crore versus Rs 458.1 crore, up 22.85 on YoY basis. During the corresponding quarters, the company was expected to post net revenue of Rs 8224.6 crore versus Rs 6882.8 crore, up 19.5% YoY.
Sun Pharma FY07 net profit up at Rs 629cr
Sun Pharma has declared its fourth quarter and FY07 results. The company's FY07 net profit was at Rs 629 crore versus Rs 461.3 crore on standalone basis.
Its FY07 standalone net sales at Rs 1,662.5 crore as compared with Rs 1,320.7 crore. Its other income stood at Rs 638 crore versus Rs 401 crore.
Its fourth quarter consolidated net profit stood at Rs 212 crore versus Rs 142.8 crore.
Its FY07 standalone net sales at Rs 1,662.5 crore as compared with Rs 1,320.7 crore. Its other income stood at Rs 638 crore versus Rs 401 crore.
Its fourth quarter consolidated net profit stood at Rs 212 crore versus Rs 142.8 crore.
Federal Bank FY07 net up at Rs 293 cr
Federal Bank announced its Q4FY07 and FY07 result. The bank has posted FY07 net profit of Rs 293 crore versus Rs 225.1 crore, YoY basis. Its full year net interest income has gone up to Rs 732.4 crore versus Rs 599.8 crore.
In the Q4FY07, the bank has posted net profit of Rs 100 core versus Rs 50.73 Cr on yoY basis.
In the Q4FY07, the bank has posted net profit of Rs 100 core versus Rs 50.73 Cr on yoY basis.
CLSA Mauritius buys 3% addl stake in IL&FS
CLSA Mauritius has purchased an additional 3% stake in IL&FS Investsmart today, sources said. The company had also acquired a similar 3% stake in IL&FS on Thursday.
Inflation for week ended May 5 at 5.44%
Inflation for the week ended May 5 stood at 5.44% as against 5.66%. The market estimated it at 5.24%.
HDFC Bank to raise Rs 4200 crore
HDFC Bank has plans to raise around Rs 4200 crore via placing 1.35 crore shares with promoter group at Rs 1023.49/ share and Overseas/ domestic follow-on issue.
Few key points:
* To raise RS 4200 crore
* To place 1.35 cr shares with promoter group at Rs 1023.49/ share to maintain their stake at around 23% levels; (To raise Rs 1390.1 cr)
* To raise remaining stake via Overseas/ domestic follow-on issue
* Equity dilution of 11.13%
* Promoter stake to increase to 22.9% post pref issue from 21.6% currently
* Overseas/Domestic Issue size: $660.45 m
* Has enough head room to go for a $ 660.45 m Secondary ADS Issue
FY08 Earning Valuations:
* Net Interest Income; Rs 4487 cr
* Net Profit: Rs 1475 cr
* Fully Diluted FY08E EPS: Rs 41
* FY08 PE: 25.6x
Few key points:
* To raise RS 4200 crore
* To place 1.35 cr shares with promoter group at Rs 1023.49/ share to maintain their stake at around 23% levels; (To raise Rs 1390.1 cr)
* To raise remaining stake via Overseas/ domestic follow-on issue
* Equity dilution of 11.13%
* Promoter stake to increase to 22.9% post pref issue from 21.6% currently
* Overseas/Domestic Issue size: $660.45 m
* Has enough head room to go for a $ 660.45 m Secondary ADS Issue
FY08 Earning Valuations:
* Net Interest Income; Rs 4487 cr
* Net Profit: Rs 1475 cr
* Fully Diluted FY08E EPS: Rs 41
* FY08 PE: 25.6x
To bring down inflation in two months: PM
Prime Minister Manmohan Singh said the government is working at bringing down inflation to 5% within the next two months.
Bajaj Auto demerger
Auto giant Bajaj Auto Board on Thursday approved a demerger scheme, splitting group into three separate entities with the creation of two new companies.
As part of the scheme, Bajaj Holdings and Investment (which would be the new auto company) would be renamed as Bajaj Auto and the existing Bajaj Auto would be renamed as Bajaj Holdings and Investment (which would act as the primary investment company).
The auto business will be transferred to Bajaj Holdings. Bajaj Auto, consequently, will be renamed Bajaj Holdings. Rs 1,500 crore cash will be transferred to Bajaj Holdings. The new Bajaj Holdings will get Rs 3,700 crore cash or cash equivalents. Besides, it will get holdings of group companies, worth Rs 2,700 crore. Its share capital would be Rs 150 crore.
More on Bajaj Auto Demerger:
Bajaj Auto holdings: Rs 1051 (20% holding co discount)
Bajaj Auto: Rs 1021
Bajaj Finserve: Rs 573.3* at 51% stake in insurance co’s
Sum of parts value = Rs 2645 per share
As part of the scheme, Bajaj Holdings and Investment (which would be the new auto company) would be renamed as Bajaj Auto and the existing Bajaj Auto would be renamed as Bajaj Holdings and Investment (which would act as the primary investment company).
The auto business will be transferred to Bajaj Holdings. Bajaj Auto, consequently, will be renamed Bajaj Holdings. Rs 1,500 crore cash will be transferred to Bajaj Holdings. The new Bajaj Holdings will get Rs 3,700 crore cash or cash equivalents. Besides, it will get holdings of group companies, worth Rs 2,700 crore. Its share capital would be Rs 150 crore.
More on Bajaj Auto Demerger:
Bajaj Auto holdings: Rs 1051 (20% holding co discount)
Bajaj Auto: Rs 1021
Bajaj Finserve: Rs 573.3* at 51% stake in insurance co’s
Sum of parts value = Rs 2645 per share
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