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Cell
firms hike call rates Steel
price hike hits hand tool exporters
Hosiery
market warms up in Arab countries Plan to
sell Fortis to Radhasoami Satsang ONGC to
invest Rs 10,000 cr |
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MyDoom
worm knocks SCO site Another
VRS by IFCI on the cards
Downward trend
may continue
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Cell firms hike call rates New Delhi, February 1 The post-paid cell-to-cell STD rates are set to increase by 50 per cent to Rs 2.99 per minute from Rs 1.99 in case of calls over 200 km, although charges for distance up to 200 km will remain unchanged at Rs 1.99. For pre-paid customers, the cell-to-cell STD charges are expected to increase to Rs 2.99 from Rs 2.40 for all distances. According to industry sources, the hike in charges for cell-to-fixed line STD will range from 25-50 per cent depending on distance. For instance, cell-to-fixed line STD between 50-200 km would now cost Rs 2.99 as against Rs 1.99 previously, while in case of distance ranging 200-500 km it will go up to Rs 3.99 from Rs 2.99. For cell-to-fixed line STDs beyond 500 km, the tariff is slated to go up by 25 per cent to Rs 4.99 from Rs 3.99. Among those who have increased tariff, particularly for STD calls, are Bharti, Hutch, BPL and Spice Telecom. Reliance Infocomm said it would follow suit, while the Tatas were also expected to revise the rates soon. In case of local call by post-paid subscribers, the cell-to-fixed lines charges has increased to Rs 2.49 from Rs 1.99. The rates have been increased proportionately in different packages. There is no change in cell-to-cell calls in this category. The hike in tariff is a result of Trai’s imposing an access deficit charge (ADC) to be paid by cellular players to the BSNL, especially in the STD category. In the local segment, the cellular operators accused BSNL of “discriminatory” practice for calculating pulse rates. For pre-paid cell-to-fixed line, local calls will go up to Rs 2.99 while cell-to-cell will surge to Rs 2.49 from Rs 2.40. In the international long distance (ISD) segment, there is unlikely to be any change in tariff except for the Gulf region, which will go up to Rs 18.99 from Rs 15.99 for post-paid subscribers and for pre-paid clients it is slated to rise to Rs 19.99 from Rs 16.99.
— PTI
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Steel price hike hits hand tool exporters Ludhiana, February 1 Mr S.C. Ralhan, president, Ludhiana Hand Tools Association, says, “We are looking towards the domestic market to stay in business during these difficult times. The profit margin in the industry has come down by 10 to 12 per cent within one year due to the increase in the cost of production by over 20 per cent. The steel prices have increased by 50 to 60 per cent within one year. The fall in dollar price against rupee by about 8 per cent has further brought down the average industry margin to about 4 per cent.” In Ludhiana and Jalandhar, there are about 300 hand tool manufacturing units employing over 75,000 persons. The annual production of the industry is around Rs 600 crore, including exports worth about Rs 500 crore, mostly to West Asia and South East Asian and European countries. He said about 100 units from Ludhiana alone were exporting hand tools worth over Rs 300 crore annually. The total exports of hand tools from Punjab had increased from Rs 380 crore in 2000-01 to about Rs 500 crore in 2002-03. Mr Ralhan said, “The annual domestic market is about Rs 150 to Rs 200 crore, and we are already supplying our products worth over Rs 100 crore. But this year, we will have to give more importance to the domestic market. The boom in the construction and auto sectors besides the good monsoon have enhanced the demand for hand tools in the domestic market. India also imports hand tools from China and Taiwan. The product range includes pliers, spanners, screw drivers, hand tool kits for auto mechanics and other repair industry.” The exporters said they would be lucky if they were able to maintain last year’s exports of about Rs 500 crore this year. Mr Jatin Chadda, Director Exports at Shiv Forgings, here said, “We are facing stiff competition from manufacturers in China, Taiwan and Korea in the international market. Though the total world market of hand tools is in the range of Rs 16,000 to Rs 17,000 crore, India has a negligible share in the market. Nagore in Rajasthan is another centre of hand tools manufacturing in the country.” Mr Sanju Tandon, CEO, Eastman Casts and Forge Ltd, said, “The steel prices are now like the volatile stock market. Since the manufacturers are unable to quote fixed prices to customers, they have cut down production by 15 to 30 per cent. The glut in the domestic market has also affected profit margin.” Said another exporter, “Only those manufacturers will survive in these difficult times, who can charge a higher price from their customers in the domestic or international market. We have already brought down the cost of production by about 10 per cent through energy saving, waste control or management efforts. Some of the units have also retrenched contract labour and are focusing on an increase in labour productivity to meet stiff competition from imports.”
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Hudco to promote city centres, malls New Delhi, February 1 To this effect, the corporation is already in advanced stages of discussion with the local municipal bodies of Panchkula, Thiruvananthapuram and Lucknow. “Some sort of discussion have also been initiated in Patiala and also with HUDA for setting up an India Habitat Centre (IHC) type of real estate in Gurgaon”, Chairman and Managing Director of Hudco Dr P S Rana told The Tribune in an interview. The India Habitat Centre located in the prime Bungalow Zone area of New Delhi and is today a major landmark in the Capital. Described by many as a major civil engineering highlight in conformity with ecological norms, the IHC houses many office complexes while offering other recreation and leisure facilities. “We are trying to set some precedents by some demonstration projects”, Dr Rana said, adding that IHC type of city centres in various cities offers multiple benefits to the local civic bodies in the form of increased revenue and real estate development. He identified health, education, leisure, recreation and shopping as the next major thrust areas for Hudco. “After
roti, kapda aur makaan these are the next necessities. Every man seeks to spend maximum on these (health, education, leisure, recreation and shopping) according to his affordability. With more purchasing power demand for these things will only improve”, he observed. India has a strong base in knowledge base activity and these will be manifested in greater demand for real estate pertaining to these. “There should be a situation when office space should be cheaper than residential space”, he said. Dr Rana, however, clarified that Hudco would not deviate from its core competence of real estate financing. “In some projects we might pick up equity and be the technical co-provider or the facilitator”, he said. The second thrust area of the corporation, he said, was that of training and research activity. “The objective is to create a system for proper documentation and reliable data-base. Empirical evidence suggests that worldwide the housing sector has always been used as an
instrument for economic recovery. Unfortunately, in India there is no specific quantification of this sector on the demand and supply situation”, he said. Hudco is going to soon start construction of multi-crore India Education Centre at Noida which will not only house knowledge-based educational institutions but also facilitate research, academic training and consultancy in the areas of human habitation and environment. The India Education Centre, spread in 10 acres along the NH-24, will also have a Vedic Research Centre which will undertake research and documentation in areas of
Vedic knowledge related with health and environment. While China and Japan are making commercial use of their ancient knowledge “Feng Shui”, no systematic effort has been made in India to put its ancient
Vedic knowledge to constructive use, Dr Rana pointed out saying that Hudco is taking an humble step in that direction. Along with the Vedic Research Centre, it will also have a Human Settlement Management Institute and a Centre for Good Governance. Research and documentation of Vastu Sastra concept will be followed by proper training of professionals like engineers and architects so that these concepts can be used while planning and designing of buildings. “Hudco will be instrument in establishing these institutes and a partner in
propagating and commercialising the fruits of research in this field”, Dr Rana said. Discussions with organisations have already started for making them partners in the India Educational Centre which can be used by many institutes planning to start new programmes. Hudco is also
collaborating with state governments to establish Hudco chairs in all Administration and Training Institutes for urban settlements. Seventeen states have already taken initiative in this regard. Hudco will give Rs 7 lakh per year for five years for training of professional in urban planning in these institutes. Mr Rana said Hudco which has made Rs 286.51 crore profit in the first three quarters of the current fiscal year replough part of it in improving the quality of basic life of people by establishing such
demonstration units as centres of excellence throughout the country. It will be replicated on a larger scale to provide quality infrastructural facilities in major cities. Hudco Bazaar in August Kranti Bhavan at Bhikaji Cama Place in South Delhi will function as a shopping mall for common man. Situated over 4.5 acre it offers a built up space of 18,823 sq meter consisting of shops and office spaces of different sizes.
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Hosiery market warms up in Arab countries Ludhiana, February 1 Besides, the end of quota regime by December 2004, would also open new avenues for the export of readymade garments. The industry can achieve higher targets provided the government back-up is there. These are the views of the young entrepreneurs who have taken up the export of knitted garments to these countries. These young entrepreneurs under the leadership of Mr Sanjiv Gupta have formed the Apparel Exporters Association Ludhiana (Appeal) to give a boost to exports. The other active members are Mr Ashwani Dhawan, Mr Arvind Nayar, Mr Rakesh Nayar and Mr Rajiv Nayar. They have pressed upon the state and the Central governments for the provision of better facilities in fashion and designing and other benefits which are being extended by the neighbouring states. According to Mr Rakesh Nayyar, the export of woollen and cotton hosiery garments to the Arab countries is worth Rs 100 crore at present and there is a good scope for expansion. Saudi Arabia, Yemen, Kuwait and UAE are the main buyers of Indian goods. This year the growth of export was 18 per cent. According to Mr Nayar, these are mass markets and China is a major rival. China has the capacity to provide cheaper garments. Mr Arvind Nayyar another exporter to the West Asian countries says that the Arabs prefer cheap goods and Dubai is the main trading centre. From Dubai, goods are sent to other countries. Polyster-based garments are more in demand in these countries. Super markets in The Arab countries are now buying good quality goods. Mr Sanjiv Gupta maintains that the end of quota regime would bring good times for the Indian exporters of readymade garments as the overall exports will rise. Ludhiana exports goods worth about Rs 800 crore to the world markets. Mr Gupta laments that the government is not providing any back-up compared with the Tirupur complex in Tamil Nadu which has come up only during the past 10 years. The export of readymade garments from Tirupur has touched a record Rs 4000 to 5000 crore because of the state back-up and unity among the entrepreneurs. “We lack basic infrastructure despite the fact that ours is a 100 years old industry,” he admits.
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Plan to sell Fortis to Radhasoami Satsang Chandigarh, February 1 "However, we will continue to run the healthcare segment of the hospital", said Mr Shivinder Mohan Singh, Joint Managing Director of Fortis Healthcare Ltd, in an interview here today. "It is a well-thought-out move in accordance with the later business practices all over the world," he said. "We will not like our capital to be tied down in real estate. Our strength lies in our core business of health care. Hence, the move to divest ourselves of the real estate part. We have already approached the PUDA for a no objection certificate for the deal". Mr Shivinder Mohan Singh said the capital thus freed would be utilised elsewhere to expand the healthcare business of the company. "You will a see a lot activity on the part of the Fortis Healthcare in 2004. We are already in the process of setting up two hospitals in Delhi and Noida. In Noida, we have acquired a 5.5 acre for setting up a Rs 80 crore hospital. Another piece of land measuring about Rs 7.5 acres has been acquired in west Delhi where another hospital costing about Rs 100 crore will be set up". Punjab would continue to be the main focus of activities of Fortis Healthcare. In addition to the 200-bed hospital at Mohali, Fortis would soon be setting up hospitals in Bathinda and a few other towns.
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ONGC to invest Rs 10,000 cr Mumbai, February 1 “We currently plan to spend approximately Rs 10,000 crore on capital expenditure relating to the exploration and development of our domestic oil and gas properties during fiscal 2005,” the ONGC said in its draft prospectus filed with
SEBI. The company planned to spend Rs 3,500 crore on capital expenditure relating to current overseas exploration and development activities of its overseas arm ONGC Videsh (OVL). The ONGC also intends to implement a number of advanced recovery technologies to redevelop its maturing fields and improve recovery of crude oil reserves.
— PTI
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Flu rumours hit poultry business Hisar, February 1 Panic spread after a local daily published reports that thousands of birds in poultry farms in Sarsod and Muklan villages of this district had died due to bird flu. After this, the sale of chickens in the region
nose-dived and also affected the sale of broilers in Delhi and Uttar Pardesh. According to Mr Jagbir Singh, President of the Poultry Owners Association, there were about 1,000 poultry farms and hatcheries in the area, which supplied more than 1.5 lakh birds daily to Delhi, Punjab and Uttar Pardesh. Now, hardly 20,000 to 25,000 broilers were being supplied to these markets at very low prices. Delhi was the main market for this region. The wholesale dealers of neighbouring states had cancelled their orders. About 40 trucks had returned from Delhi markets on Friday. The local supplies had also touched a new low as sales had come down. The rates had also been reduced drastically. He said there was no outbreak of the disease in these villages. Some chickens had died due to a common disease called the Cronical Respiratory Disease (CRD) and severe cold. However, there was no case of bird flu in the area.
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MyDoom worm knocks SCO site
London, February 1 In a statement issued on Sunday morning, the Utah-based company confirmed MyDoom knocked its site, http://www.sco.com, out of commission. "Internet traffic began building momentum on Saturday evening and by midnight Eastern Time the SCO website was flooded with requests beyond its capacity," the statement read. The speed and severity of the attack surprised security officials. "It was spectacularly successful," said Mikko Hypponen, research manager at Finnish anti-virus firm F-Secure. As intended, Sco.com was the only discernible victim on Sunday. There were no other reports of outages or slowdowns elsewhere online due to the worm. MyDoom.A, also known as Novarg or Shimgapi, emerged on Monday in the form of a spam e-mail message that contained a well-disguised virus attachment. It was programmed to take control of unsuspecting computer users' PCs from which it would launch a debilitating denial-of-service attack on SCO on Sunday. SCO has drawn the ire of the so-called "open source" programming community who object to SCO's claims they have copyright control over key pieces of the Linux operating system.
— Reuters
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Another VRS by IFCI on the cards
New Delhi, February 1 ''The first round of VRS has already been completed. The IFCI is working out modalities to execute the next round of VRS before its merger with PNB scheduled to be completed within this financial year,’’ IFCI outgoing Chairman-cum-Managing Director V P Singh told reporters here yesterday. He, however, clarified that the present strength of around 700 staff will not pose a big problem in the merger scheme. Describing the merger as a ''win-win situation’’ for both financial institution and the bank, Mr Singh said the IFCI would act as PNB’s investment banking division.
— UNI |
Downward trend may continue
It
was yet another week of profit-booking on the bourses. Both the indices, BSE and S&P Nifty, continued to move into reverse gear and lost about 2 per cent each. The week saw major companies declare their quarterly results. Most of these were either in line or better than expectations. The market continued to see selling pressure gather momentum as indices continued to fall. The current week is likely to be an eventful because Finance Minister, Jaswant Singh, is scheduled to present the vote-on-account in Parliament. The vote-on-account will allocate funds to various departments until the new government takes over and frames the regular Budget. While the Finance Minister is unlikely to announced any major changes in tax laws, his speech will be widely watched. The Minister is also likely to forecast strong economic growth for the new financial year. With the season for quarterly results nearing closure, there is no immediate trigger for the market. This situation can see the indices drifting lower or sideways in the coming weeks. Moreover, there is a slowdown in inflows from FIIs this month. Nervousness has also stemmed due to a setback in markets across Asia on account of the bird flu. This flu can force overseas investors to channel their funds out of Asia, back to Europe or the USA.
Software Despite the good December quarter results declared by the software companies and promising outlook, the sector witnessed a bout of selling. While stocks seemed to realign closer to valuations they deserved. Another important cause, which seemed to have turned the sector out of favour, was the news of increasing protectionism against the Indian IT sector from developed economies such as the USA and the UK. The US Senate recently introduced a Bill (not yet a law) that bans the outsourcing of US government contracts. Further, the backlash against outsourcing continued with two Colorado lawmakers introducing Bills that will deny State contracts to companies that move out jobs to India and other countries. Investors looking to buy in the software sector should keep an eye on the development in the USA.
Tata Motors Spectacular December quarter results were declared by Tata Motors. The company posted a 179 per cent jump in its bottomline on the back of a 55 per cent growth in topline. This helped it to gain 11 per cent on the bourses last week to close at Rs 520. The commercial vehicle sector is likely to grow at a slow rate in the next financial year, as the pent up demand dries up. Strong cash flow, export orientation and debt reduction are the only positives in the medium term. The stock is now trading at a P/E of Rs 19.65 on the annualised nine-month earnings which discounts all these above factors. As such future upside in the stock in the short run may be limited.
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TVS Motor sales Jet website Supercomm |
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New Delhi, February 1
