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| Wednesday, January 10, 2001, Chandigarh, India   
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India almost at bottom in globalisation Indian oil sector hotspot for investment US makers place hope on new cars
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| SHCIL opens office in Panchkula SEBI curbs on investment
Infosys records 136 pc growth
Motorola profit to plunge 40 per cent
Slowdown ‘mostly healthy’ N.Y. Times to sell TheStreet shares AMR eyes TWA as defensive move Broadcom to buy ServerWorks
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| India almost at bottom in globalisation WASHINGTON, Jan 9 (PTI) — India ranked 49th out of 50 developed and key developing countries in terms of depth of globalisation achieved, being ahead of only Iran, while Singapore is on the top, a media report has said. A T Kearny, a foreign policy magazine, which produced an index to measure the extent of globalisation in the world, has put India almost at the bottom in globalisation but says NRIs play an “extremely important role” in sustaining its economy. India scored particularly well on the indicator for transfer payments, which include both official funds transferred from governments and international organisations as well as remittances from nationals living abroad. “This suggests that India’s overseas population plays an extremely important role in sustaining its economy, relative to overseas populations in many other countries,” editor of the magazine Moises Naim said. India scored dead last on indicators for international travel and tourism and international telephone calls. “These results suggest that it has a long way to go in enhancing its people-to-people contact with the rest of the world.” There were 2,359,000 international travellers in India in 1998. Passengers out were 3,811,000. Travellers as a total share of the population were only 0.63 per cent. For international telephone calls, there were 1,499 million minutes of incoming calls and 436 million minutes of outgoing calls. Minutes per capita per year of international telephone calls were only 1.98. India shows very low levels of Internet penetration relative to other countries. With only one Internet server per 100,000 people in 1998, India ranked behind many African countries in terms of Internet infrastructure. In spite of pockets of high tech development, the number of Internet users in India as a share of the total population remained among the lowest in the world. Naim said globalisation is greater in countries which have civil liberties and political rights and are corruption-free. It acknowledges that Singaporean officials are “authoritarian but at least they are honest.” “Investors perceive public officials and politicians as less corrupt in more globalised countries such as Singapore, Finland and Sweden but more underhanded in closed countries such as Indonesia and Nigeria.” He said with the exception of the USA, most large countries earned low scores overall on the globalisation index because of two reasons. “First, countries with large internal markets produce more of the goods, services and human talent that they require, so have less need to acquire these from abroad. Second, the method of calculating indicators considers each as a share of a country’s economic output or of its population.” “Large countries such as India, China and Brazil have greater populations and more sizeable economies than small countries like Singapore and the Netherlands. So this method disadvantages the former and advantages the latter,” Naim said. |
| Indian oil sector hotspot for investment NEW DELHI, Jan 9 — India has emerged as one of the finest destinations for investment in oil and gas with indicators showing that the country has still a long way to go in catching up with developed countries in terms of usage of energy. Making a strong pitch for foreign investors to invest in India at the inaugural ceremony of the Petrotech 2001, the fourth international petroleum conference and exhibition organised by the Indian Oil Corporation, the Petroleum Minister Ram Naik listed the following reasons that make India a hot spot for investments: — Oil and gas currently meet about 42 per cent of energy consumption in the country. It is estimated to remain as high as 45 per cent by the end of the first quarter of the 21st century. However, while the share of oil is estimated to decline from around 35 per cent to 25 per cent during this period, that of natural gas is estimated to increase from 7 per cent to 20 per cent. — The present level of per capita consumption of hydrocarbon energy in India at about 113 kg of oil equivalent is amongst the lowest in the world, with world average of 927 kilograms. — Demand for oil and gas has been growing at an annual rate of 6 to 7 per cent as compared to the world average of 2 per cent. With the population having crossed 100 crore, this growth rate translates into quantum jump in annual demand for petroleum products. — Planning experts are of the opinion that in order to drastically reduce poverty in the country quickly during the first quarter of the century, a higher growth rate of 9 to 10 per cent of India’s economy may be required. In the event of such high growth materialising, the demand for oil and gas would further soar. Currently India imports about two-thirds of its oil requirements. The oil import bill for the last fiscal was of the order of $ 12 billion. For the current fiscal year ending March 2001, it is projected to go up to about $ 17.5 billion. Thanks to the sharp increase in price of crude oil in the international market. Mr Naik said the time has come for the community of nations to join hands to frame a better “World Petroleum Economic Order” which would ensure long-standing, mutually beneficial economic and trade relations amongst the oil producing and oil consuming nations. The new order should help provide energy security and insulation from violent international price fluctuations, he added. “There is a need for all the developing oil importing countries to engage the oil exporting countries at the political level to ensure reasonable prices”, he added. Naik said India was paying attention to the upstream sector as it would enable the country to achieve energy security through indigeneous production and investment in equity oil abroad. Exploration activities have been given a new impetus under the New Exploration Licensing Policy. He said the New Exploration Licensing Policy was based on attractive terms of offer comparable to the best in the world and ensuring level playing field for all. He said the success of the New Exploration Licensing Policy was reflected in the award of 25 blocks in April 2000 within a record time of seven months from the bid closing date. The road show for the second round of exploration bids opened on December 18 and the road show for its commences Wednesday to coincide with the Petrotech. The downstream sector also has an important role in ensuring the energy security of the country and from June 2000, the Government has allowed 100 per cent foreign direct investment in this sector. Describing the 21st century as the “Century of Gas”, Naik said India was emerging as a large gas consuming market with a growing gap between demand and supply. Besides increasing indigenous production, India is looking for import of natural gas and Liquefied Natural Gas. Media stocks fall MUMBAI, Jan 9 (PTI) — Media stocks like Zee Telefilms, Balaji Tele, Pentamedia Graphics, Mukta Arts, Padmalaya Tele and Tips Ind suffered a further setback today in the light of the overnight arrest of Bharat Shah, who was reportedly a big financier to a leading broker having high stakes in these counters. |
| US makers place hope on new cars DETROIT, Jan 9 — US automakers, forced to slash output as markets crumble, were putting a brave face on their plight on Monday by introducing new products at the car show here which they hope will excite buyers and restore some market share already lost to foreign companies. General Motors Corp , the world’s biggest car manufacturer and market leader in the USA announced earlier on Monday that like Ford and Daimler Chrysler’s Chrysler subsidiary, it would take an ax to first quarter output. Showing the financial world’s growing disillusionment with the automotive sector, all the US big three car makers were downgraded by leading investment firms on Monday. But automotive leaders were attempting to pour oil on troubled waters at the Detroit car show, pointing with pride to glamorous new models, and reminding investors that although car sales are expected to skid in 2001, they will still likely be at historic highs. Ford Motor Co Chief Executive Jacques Nasser said he still believes the US auto industry will end this year with one of the best sales performances in history, despite a slowdown in the US economy. To underline its confidence that it has the products to beat importers and rebuild market share, Ford introduced the retro-styled 2002 Thunderbird coupe. “It’s the ultimate American dream car,” Ford division President Jim O’Connor told reporters. Other US carmakers have unveiled new products too. On Sunday, Chrysler introduced its new Jeep sport utility vehicle — Liberty. Ford also unveiled a new 3.9 liter V8 coupe concept car — the 49. GM shook the dust covers off five concept vehicles, including the Buick Bengal roadster and the Cadillac Vizon. The record sales pace in the 1990s has hidden a dangerous development for domestic US car and light truck makers. — Reuters |
| SHCIL opens office in Panchkula PANCHKULA, Jan 9 — Stock Holding Corporation of India opened its new office here today. The office was inaugurated by Mr B.V. Goud, MD and CEO. Speaking on the occasion, Mr Goud said, “There has been a persistent demand from the local brokers and investors for starting a local office as the clients had to go to the Chandigarh office to avail the services of SHCIL. The investors can avail facilities like depository services, sale of shares from their demat accounts, take instant payment and other facilities offered by the corporation in other parts of the country. SHCIL has a distribution network with 138 offices in 87 cities and has around 6 lakh accounts across the country. The total investor population in Panchkula that is supposed to benefit from this branch is around 3000 clients. Despite having an official five-day week. SHCIL plans to keep this office running for six days, including Saturdays. SHCIL also intends to add an extension counter at Mohali in the near future. SEBI curbs on investment MUMBAI, Jan 9 (PTI) — The Securities and Exchange Board of India (SEBI) has tightened norms for investment disclosure standards for directors and employees of mutual funds. “Mutual fund employees involved in research, dealings and investment decisions would now have to take prior permission (15 days in advance) before making investments”, B.G. Deshmukh, Chairperson of SEBI’s Mutual Fund Committee, told newsmen after its meeting here today. These employees would have to make transactions on delivery basis and be required to retain the purchased securities for at least 60 days, he said. Deshmukh said asset management company directors would have to report the investment transactions of values exceeding Rs one lakh. SEBI would issue detailed guidelines for investment disclosure by mutual fund employees shortly, he said adding “the norms are being made stricter to create public confidence and improve ethical standards for MF industry.” |
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Asian Paints promoters hike stake NEW DELHI, Jan 9 (PTI) — Asian Paints, leader in the domestic market with 40 per cent share is planning to set up operations in Oman and Mauritius this year in a bid to expand its overseas presence, as per the Centre for Industrial and Economic Growth’s latest report. The company, which recorded 21 per cent higher sales turnover last fiscal at Rs 11.7 billion, also acquired Delmege Forsth & Co, Sri Lanka’s second largest paints facility last fiscal to further the endeavour CIER’s report titled “Emerging Market Trends 2000-01” said. The company’s promoters have bought 1.833 million Asian Paints shares, representing 4.5 per cent stake, from Kotak Mahindra Capital Company (KMCC) at Rs 406 per share, the report said adding that this raised their stake in the company to 45 per cent from 40.5 per cent earlier. Akash Optifibre gets Rs 60 cr contract new delhi, Jan 9 (UNI) — Bharat Sanchar Nigam Limited (BSNL) today awarded a Rs 60 crore contract to Akash Optifibre Ltd. Akash would become the largest supplier to bsnl in the current financial year. Currently majority of Akash’s business is derived from DoT and amounts to 70 per cent of the total turnover of the business. Major industry players who participated in the bidding process were arm, Birla Ericsson, Gujarat Optical, hfcl, Optel, RPG, Sterlite Optical, Sterlite Telecab, Sudarshan and Vindhya Telelinks. Akash has currently two manufacturing facilities at Bhiwadi and one at Jaitpura, Rajasthan with a total capacity of 150,000 km. Wipro in deal with Thames Water new york, Jan 9 (PTI) — ‘Thames Water’, Britain’s largest water and wastewater service provider, has selected Wipro Technologies, the software development unit of Wipro Limited, as a key strategic out-sourcing partner for application development, support and maintenance in applications. The multi-million dollars deal came after an exhaustive global selection process involving several leading global information technology vendors. Videocon’s CTV marketshare falls NEW DELHI, Jan 9 (PTI) — Mirroring the downslide in the domestic colour television (CTV) market, erstwhile leader Videocon’s share slipped to almost half over the last three years from 19.2 per cent in 1998 to 10.6 per cent in January-November 2000, as per market research agency ORG. The CTV market meanwhile grew by 64 per cent to 4.55 million units till November last year from 2.8 million units in 1998, but remained nearly flat last year and is expected to close 2000 at five million units, registering 9 per cent growth. Videocon International Chairman V.N. Dhoot was not immediately available for comments. ESL’s domestic sales rise 13 pc MUMBAI, Jan 9 (PTI) — Essar Steel’s domestic sales volume of hot rolled coils (HRC) increased by 13 per cent at 2.6 lakh tonnes in the third quarter ended December 31 compared to 2.30 lakh tonnes in the same period of the previous year. The exports declined by 50.85 per cent at 1.15 lakh tonnes during Q3 from 2.34 lakh tonnes in the corresponding period of last year. ESL attributed the fall to “increasing protectionism by developed countries”. The company was in the process of developing alternate export markets. Morepen net profit up 91 pc NEW DELHI, Jan 9 (TNS) — Morepen Laboratories today announced a rise in net profit by 91 per cent at Rs 239 million as compared to the profit of Rs 125 million in the corresponding period last year. The gross turnover reached Rs 1.112 million this quarter compared to Rs 847 million in the third quarter last year. The company has been ranked amongst the top Indian pharmaceutical companies in terms of return to investors and share performance over the last 12 months. |
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Infosys records 136 pc growth BANGALORE, Jan 9 (PTI) — Infosys Technologies Limited today announced a robust 136.18 per cent growth in its total income which stood at Rs 551.54 crore for the third quarter ended December 31, 2000. For the last quarter ended December 31,1999, the company had a total income of Rs 233.52 crore. The company posted from its “ordinary activities” net profit of Rs 166.33 crore, a 125.41 per cent rise over the corresponding amount of Rs 73.79 crore for the quarter ended December 31,1999. The audited financial results for the quarter and nine months ended December 31, 2000, were announced in a statement here today after they were taken on record by the company board at its meeting here. E-business engagements comprised 28.30 per cent of revenues in the quarter, as against 31.4 per cent in the quarter ended September 30,2000. The majority of these engagements involved building robust e-commerce infrastructure for Fortune 1000 companies. Dot-com start-up companies accounted for 5.8 per cent of the total revenues — down from 9.5 per cent compared to the previous quarter. Telecommunication and other start-up companies accounted for 3.5 per cent of total revenues for the quarter — up from 2.7 per cent for the last quarter. Total income for the nine-month period ended December 31, 2000 was Rs 1,387.86 crore, a 118.40 per cent increase over Rs 635.47 crore for the corresponding period in the previous year, the statement said. Net profit from ordinary activities was Rs 441.65 crore, a 120.71 per cent rise over the corresponding amount of Rs 200.10 crore for the nine-month period ended December 31,1999. “We have accelerated our plans for the creation of physical infrastructure and training facilities in order to meet out growth objectives,” T.V. Mohandas Pai, Director, Finance and Administration and Chief Financial Officer, said. Infosys increased its employees strength to 8,910 as on December 31, 2000, up from 7,925 as on September 30, 2000 and 4,996 as on December 31, 1999. The strength of the software personnel increased to 7,824 from 6,941 as on September 30,2000. Satyam’s net up 142 pc Satyam Computer has recorded an impressive net profit growth for the quarter ended December 31. During the reporting quarter, Satyam has posted a net profit of Rs 875.09 million, registering an increase of 142 per cent as against Rs 361.87 mn a year ago. Total income during the quarter ended December 31, stood at Rs 3.33 billion as compared to Rs 1.78 bn in the same period last fiscal, while the annualised earnings per share of Satyam stood at Rs 3.11. The other income of Rs 52.17 mn for the quarter ended December 31,2000 includes an amount of Rs 49.30 mn from realised and unrealised gains due to foreign currency fluctuation. The total manpower strength as against 7.048 associates as on September 30, 2000 signifying an increase of 1093 associates. Motorola profit to plunge 40 per cent CHICAGO, Jan 9 (Reuters) — Motorola Inc., battered by problems in its handset and semiconductor units, this week is expected to report fourth-quarter earnings as much as 40 per cent below last year’s, but Wall Street cares more about whether the wireless communications gear maker can turn it around for 2001, analysts said. “We already know what happened last quarter. They preannounced,” Deutsche Banc Alex. Brown analyst Brian Modoff said. “(The key) will really be more the outlook, where do we see this year, particularly handsets, semiconductors and broadband cable.” Motorola, the world’s No. 2 wireless handset maker, warned last month that its earnings for the fourth quarter would be far short of Wall Street’s expectations because of a slowing semiconductor market and delays in achieving cost cuts in wireless phone production. It now expects fourth-quarter sales of $10 billion and earnings per share of 15 cents, excluding special items, well off prior guidance of $10.5 billion in sales and 27 cents a share in earnings. In the fourth quarter of 1999 it had earned 26 cents per share. Analysts expect Motorola to reveal more specific forecasts for full year 2001. They said they would be watching closely for comments on this year’s performance expectations for each of the company’s businesses. According to a recent Gartner Dataquest report, Nokia has a market share of 30.6 per cent, up over three percentage points from the second quarter. Motorola, meanwhile, saw its market share shrink 2.3 point to 13.3 per cent over the same period and Ericcson’s fell 0.6 percentage point to 9.7 per cent. |
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Slowdown ‘mostly healthy’ ATLANTA: The US Economic slowdown now under way is “mostly healthy”, Federal Reserve Bank of Atlanta President Jack Guynn said on Monday, cautioning against overreacting to moderation in the world’s largest economy. Guynn, calling the US economy the “envy of the world”, predicted growth of about 3 per cent in 2001, a slight uptick in the unemployment rate — which will remain low — and stable inflation. “In the long term, though, I think the moderation of growth that we’ll witness in 2001 will be a mostly healthy thing,” Guynn said in remarks prepared for delivery to the Atlanta Rotary Club. “It will help the economy avoid some serious imbalances that might otherwise have begun to accumulate, and it will help ensure that growth remains sustainable.” Guynn cautioned policymakers, businesses, investors and consumers against overreacting to the moderation, noting that “inflated expectations could be just as damaging as rising prices” to the US economy. “Slower GDP growth is not the same thing as no growth; a slightly higher unemployment rate is not the same thing as high unemployment; and a very modest uptick in measured inflation does not signal a return to accelerating inflation,” he said. “Businesses, consumers, investors — and, yes, even policymakers — should not allow inflated expectations to distort their thinking,” he said. “I look forward to another solid year from the US economy, even as it makes some necessary adjustments. And I hope — for the sake of all of us — that you will too.’’ — Reuters. N.Y. Times to sell TheStreet shares WASHINGTON: New York Times Co., which had ended a joint venture newsroom between its online unit and financial news provider TheStreet.com Inc., plans to sell more than one million of its shares in TheStreet, a regulatory filing on Monday said. The media giant made a filing with the Securities and Exchange Commission on January 4 announcing its intention to sell 1.425 million common shares it acquired from TheStreet in May 1999. The shares had a market value of $3.6 million, said the filing, which was publicly released on Monday by the SEC. A New York Times spokeswoman did not immediately return a telephone call seeking comment on the planned stock sale. New York Times shares were down 5/8 to $41-3/4 in afternoon activity on the New York Stock Exchange. Their 52-week high is $48-8/16. — Reuters AMR eyes TWA as defensive move NEW YORK: Plans by AMR Corp.’s American Airlines to buy beleaguered Trans World Airlines Inc. Are in part a spoiling move aimed at preventing a rival becoming a greater threat, analysts said on Monday. “TWA is at the end of its rope —American is just picking it up with the hope that somebody else doesn’t,” said Michael Boyd, an aviation consultant in Evergreen, Colo. American, owned by Fort Worth, Texas-based AMR Corp. Is holding talks on a possible purchase of TWA, the No. 8 US airline, and some other airline assets, sources familiar with the situation said. The purchase would first involve St. Louis, Mo.-based TWA filing for Chapter 11 bankruptcy protection. — Reuters LOS ANGELES: High-speed communications chip maker Broadcom Corp. Said on Monday it would buy privately held ServerWorks Inc. In a stock deal valued at about $1.03 billion, allowing Broadcom to extend its reach to servers that power the Internet and corporate networks. Broadcom Chief Executive Henry Nicholas said the acquisition gives his company a stake in the fast-growing market for servers, and allows it to help build capacity for them to better handle the increased data that Broadcom’s chipsets are helping sending through the Internet. “ServerWorks” impressive customer base, coupled with its aggressive technology roadmap and proven track record, will enable Broadcom to enhance the entire Internet and Intranet infrastructure,” he said in a statement. — Reuters |
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Nissan Motor Company President Carlos Ghosn poses with a “near-production-ready” Z sports car during a press preview on Monday at the auto show in Detroit. The car combines “the feline grace of the 1990 300 ZX with the kick-back power of the 1970 original” 240Z. The car will have “$50,000 performance for an under-$30,000 price” said Ghosn. — Reuters photo
