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Food inflation up at 16.49 pc
3G to push growth of telecom sector
Jindal Steel buys Oman’s firm for $464 m
Telcos, content providers gear up for 3G services
PNB to announce base rate by month-end
KR Kamath |
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Daikin targets 50 pc growth
DLF Pramerica to expand network in Punjab
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New Delhi, May 20 Annual food inflation in the previous reporting week was 16.44 per cent. Analysts said food inflation would come down drastically only in the later half of the fiscal when the impact of a normal monsoon becomes visible on crops. Fuel prices remained flat over the week, but analysts said the Cabinet's decision to hike natural gas prices would jack up rates of gas-based fuels. The government yesterday more than doubled the prices of natural gas to $4.20 per mmBtu. "Fuel prices are slated to move up and in the coming days non-food articles will put pressure on inflation," an economist with a leading bank said. On a weekly basis, vegetables turned expensive by 2.41 per cent, onions turned dearer by 5.73 per cent, potatoes by 0.95 per cent and fruits by 0.41 per cent, while prices of urad and moong rose by two per cent each. "Food prices will remain at around 17 per cent for the next 2-3 months. Eventually prices will come down with clarity on this year's monsoon and in the second half of the fiscal we should see some relief," Crisil principal economist DK Joshi said. During the week, prices of non-food articles declined by 0.35 per cent, as raw rubber prices sank 7 per cent and linseed fell 2 per cent. On an annual basis, pulses turned costlier by 33.65 per cent and fruits by 17 per cent. Economists said scorching summer is making management of perishable food articles a difficult task and it is causing prices of fruits and vegetables to shoot up. "The rise in food inflation is due to high vegetables prices which is increasing because of summer pressure on perishables. Timely arrival of monsoon should have some cooling effect," Yes Bank chief economist Shubhada Rao said. However, even if food prices decline after the monsoon, prices of manufactured items may see a rise due to hardening of rates globally. — PTI
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3G to push growth of telecom sector
New Delhi, May 20 Although the telecom operators have expressed confidence that consumers will soon be able to enjoy high-speed data services on their mobile phones, there is also a feeling that the availability of the 3G spectrum would further fuel growth in the telecom sector. The operators feel that they would be able to garner enough subscribers to attain profitability in the 3G sector even though the focus would be to use the spectrum won in the auction for 2G or voice spectrum, which is saturated. It is the voice spectrum that has been providing the telecom operators with huge returns and would continue to do so in the world’s fastest-growing telecom market. Experts point out that even though the telecom operators would gain on the voice spectrum front and would be able to continue with their additions of subscribers, the availability of 3G spectrum would fuel an overall growth for the sector. It would also help usher in a new era of fourth generation telephony with the 4G spectrum lying ready to be auctioned. There is already excitement not only among the telecom operators but also the handset manufacturers. Handset manufacturers say there is already a demand for 3G-compatible phones and they are also attempting to lure buyers of high-end GPRS handsets, which operate on the 2G spectrum. Phones operating on the 3G airwaves, which are up for auction, offer faster data downloads and high-quality video streaming. Nokia is offering a 3G phone from Rs 4,119 onwards, while Sony Ericsson’s model begins at Rs 6,000. At the higher end, Blackberry’s 3G model is priced upwards of Rs 17,000 while Apple’s iPhone 3G is priced at over Rs 30,000. While Aircel, which along with RCom and Bharti Airtel bagged the spectrum in the highest 13 of the 22 circles, said that the 3G spectrum will allow the company to take their data strategy to the next level, RCom said it plans to strongly leverage its media, gaming, cinema and broadcasting capabilities to offer its customers a unique "true 3G experience." In anticipation for the competition, BNSL and MTNL have also begun aggressive marketing. With the backing of the government they are reaching out to their customers offering cheap 3G services, which is expected to put pressure on the private operators also. Analysts pointed out that 3G services would be margin-dilutive in the near term and would eventually lead to significantly higher margins.
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Jindal Steel buys Oman’s firm for $464 m
New Delhi, May 20 The company concluded the buyout agreement yesterday with UAE's Al Ghaith Holdings, which owns the target firm. "Jindal Steel & Power Ltd (JSPL) through its 100 per cent subsidiary Jindal Steel & Power (Mauritius) Ltd has decided to acquire Shadeed Iron & Steel Co (Shadeed), a company incorporated under the laws of the Sultanate of Oman," the leading domestic steel maker said. "...A definitive Share Purchase Agreement and other transaction documents have been signed at $464 million, including the assumption of liabilities," it added. The company said it has tied up $400 million in debt financing from international banks and the balance will come from internal accruals. When contacted, JSPL Director Sushil Maroo said, "The acquisition is part of our plans to expand operations overseas. It is a gas-based unit. We are also setting up 2 MTPA gas-based unit in India. It is a strategic fit for us. It will mark our first overseas presence in the steel space." — PTI |
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Telcos, content providers gear up for 3G services
Mumbai, May 20 “With mobile phones enjoying higher penetration compared to PCs in India, service providers are betting on people using mobile phones as a preferable medium to access the Internet,” says Sujay Banerjee, a telecom analyst with a brokerage here. Users are expected to download music, television programmes, games and use their mobile phones to conduct banking transactions and trade in the stock markets after the introduction of 3G services. Users of high-end mobile phones like the iPhone will now be able to access the Internet faster on mobile phones than before. According to a spokesperson for Vodafone, download speeds on 3G-enabled phones would be far higher. “An MP3 song which takes 8-10 minutes to download in 2G-enabled phone will take just 10-15 seconds,” the official said. According to the Internet and Mobile Association of India (IAMAI), the VAS market is all set to triple from around Rs 6,000 crore in 2008 to Rs 20,000 crore when the 3G services are rolled out early next year. Existing content providers like television channels and music companies are also planning to jump into the 3G bandwagon. Star TV and Zee are coming out with condensed episodes of popular serials for 3G users while music company Saregama will allow mobile phone users to download music from its website. Websites like YouTube have modified content for easier access via 3G-enabled phones. Users of state-owned service providers like MTNL and BSNL, which have already rolled out 3G services, can access such content. However, the private mobile phone companies are expected to provide exclusive content in a bid to stay competitive. “VAS providers and mobile phone service providers will enter into revenue-sharing arrangements as is the practice in the developed markets,” says Banerjee. But mobile phone users won’t find it cheap to access 3G content on their mobile phones. With the mobile phone service providers shelling out big money for the licences and some more for equipment, the prices would be high at least in the beginning. Data downloads would be billed by the megabyte with heavy users having to fork out thousands of rupees every month, say analysts. Even the 3G-equipped mobile handsets are expensive though manufacturers are rolling out inexpensive models for the Indian markets. Apart from the high-end Blackberry and iPhone, Chinese manufacturers like Huawei are coming out with entry-level models priced at between Rs 3,000 and Rs 4,000.
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PNB to announce base rate by month-end
Chandigarh, May 20 The RBI has set a deadline of July 1 for banks to implement a base rate. The bank has worked out the new base rate keeping in mind the cost of deposits, overhead costs and profit margins. “Our prime lending rate is 11 per cent. The base rate could be between 8.5 per cent to 9 per cent and we will announce it by the end of this month,” said PNB chairman KR Kamath. He, however, added that a base rate lower than the PLR would not affect their profitability. A lower rate would attract more inflow of credit and deposits, thus ensuring more business for the bank. “It would only affect those banks which have a very high PLR. The cost of deposits for PNB is quite low, which stands at 5.29 per cent currently, against 5.5 per cent last year," he said. He added that since interest rates were dependent on liquidity available in the system, the high liquidity would not have much affect on interest rates. The chairman also said though the bank was not coming out with an initial public offer, it would raise tier-II capital (deposits made by non-listed companies) to the tune of Rs 2,500 crore this year. “Of this, Rs 500 crore will be raised next week. We already have Rs 6,800 crore as tier II capital,” he added. The bank will also focus on overseas expansion and upgrade two rep offices into full-fledged branches. “The rep offices at Oslo (Norway) and Shanghai will be upgraded to bank branches. The bank is also set to acquire a 64 per cent stake in JSC Dana Bank in Kazakhistan by July this year,” said Kamath. Besides, the bank is also looking at expanding its branch network within the country. This year, the bank hopes to add 110 new bank branches to its network of 5,000 branches.
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Daikin targets 50 pc growth
Chandigarh, May 20 This was stated by the company’s deputy managing director, Kanwal Jeet Jawa, while interacting with mediapersons here today. “Though we have gained enough footprint in the VRV (variable refrigerants) and chillers segment, we are now looking at a major expansion from smaller air conditioners (between 0.75 ton to 2 ton capacity),” he said. The company has recently set up a manufacturing facility at Neemrana in Rajasthan, with an investment of Rs 356 crore. It will have a capacity to manufacture 20,000 VRV units and 1,800 chillers. The smaller air conditioners will initially be imported from Japan. Jawa said Punjab is a big market for them as it accounts for 12 per cent of the total air conditioner market in the country. “This year we hope to earn Rs 75 crore from the Punjab market,” he said. |
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DLF Pramerica to expand network in Punjab
Patiala, May 20 While talking to The Tribune, he said till April 30, 2010, their company had issued 24,612 policies, out of which 10,120 (41 per cent) were issued by their offices in Punjab. “As of April 30, 2010, 65 per cent of the DPLI’s business in India, in terms of new business premium, comes from the Punjab region,” he said. While stating that DPLI was already present in 18 cities across Punjab, including Chandigarh, Jalandhar, Amritsar, Ludhiana, Bathinda, Abohar, Patiala and Moga, Sood said they planned to set up branches in several other locations in the state. “We have a large team of employees and life associates in Punjab. Nearly 60 per cent of our sales force and 40 per cent of our company’s total employees are based in our offices in Punjab,” he said. |
Jet Airways Q4 profit up 10 pc Nalco bags export award R-Infra wins Rs 925-cr project Pramerica gets nod for MF biz
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Food inflation went up by a notch to 16.49 per cent for the week ended May 8 and analysts expect prices to remain stuck around this level until the advent of a normal monsoon.
Annual food inflation in the previous reporting week was 16.44 per cent.
Mobile phone service providers are lining up a wide range of applications for users who sign up when 3G networks begin to roll out nationally sometime next year. The mobile companies, which are collectively shelling out a whopping Rs 67,000 crore to the Indian government for 3G spectrum, will soon begin tying up with Value-Added Service (VAS) providers to source exclusive content.
In a major relief to customers, Punjab National Bank is set to announce its base rate at 8.5 per cent-9 per cent. Since the base rate will be the new reference rate for determining lending rates for banks, a lower base rate will ensure that rate of interest on deposits and advances will also come down.
