 |
|
|
Surging Crude
Govt looks at cost-cutting
Spending on IT solutions at all-time high
MTN Deal |
|
JCB plans to make India business hub
Chandigarh, May 15
Global leaders in earthmoving equipment, JCB, proposes to make India a business hub for its operations across South East and West Asia. The UK-based group, through its Indian subsidiary, JCB India, is expanding its facilities in India, so that they can begin exporting equipment to other countries across Asia. The group is in the process of investing Rs 300 crore for the expansion of its facilities in Ballabgarh (Haryana) and Pune.
Beer consumption ‘lowest’ in India
Core sectors grow by 9.6 pc in March
India drops in world competitiveness ranking
Spectrum Row
PNB Q4 net at Rs 544 crore
|
|
FM rules out cut in import duty
New Delhi, May 15 A day after the cement companies agreed to cut prices between Rs 3 and Rs 7.5 per bag of 50 kg, finance minister P Chidambaram said there was big scope for further reduction in retail prices. "I do think that there is a scope for significant reduction in cement prices," Chidambaram told reporters here. When asked whether the government would consider the request from the cement industry to cut excise duty, Chidambaram said "I do not know". In the past two months, government has taken various fiscal measures such as cutting import duties on edible oils besides banning export of cement and non-basmati rice to contain inflation, which has touched a 42-month high of 7.6 per cent. He said there was no proposal to cut import duty on crude oil because it has no impact on administered prices. With the oil prices crossing $125 a barrel, the state-owned marketing companies are suffering higher losses as they have not been allowed to pass on the entire burden onto the consumers due to pressure from the Left parties. The government has so far been partly compensating the oil firms like Indian Oil Corporation, HPCL and BPCL by giving them bonds. Asked whether the government would reward steel producers for reducing prices by way of withdrawing export duty, the minister said he has not received any such any proposal from the steel ministry. Chidambaram said export duty was imposed on the recommendation of the steel ministry. "If there is a rethinking, I suppose the ministry of steel will send me a proposal," he said. Earlier this week, steel secretary Raghav Sharan Pandey had said that the producers' demand for the withdrawal of export duty was under consideration of the government and a decision was expected soon. At a meeting with commerce and industry minister Kamal Nath yesterday, cement manufacturers agreed for a small roll back in prices. Nath had said though price increase was only two per cent in the past one year, the industry had agreed for a reduction in rates. On currency appreciation, Chidambaram said the rupee value was a function of demand and supply. Whether government would withdraw sops that were given to exporters after the rupee appreciation against dollar, the finance minister quipped, "Are you suggesting that". — PTI
|
|
Govt looks at cost-cutting
New Delhi, May 15 The finance ministry is at loggerheads with the oil PSUs (and oil ministry) stating that these companies are getting paid ‘manufacturing cost’ of products at par with the international prices. Simply put, when oil companies import crude oil they get paid for the same at international prevailing price of crude. In addition to this, they get an ‘international price’for the products manufactured in India. For example, if the cost of manufacturing of petrol is say Rs 5, then the oil companies are paid Rs 20 for it because Rs 20 is the prevailing international price, even though the cost is far less. This pricing distortion is not agreeable to finance ministry, their contention being why should the oil companies be paid international prices for products they manufacture in India. The oil PSUs namely IOC, Bharat Petroleum, and Hindustan Petroleum, had in 2004 lobbied to get international prices for their manufactured products despite the fact that finance ministry and Planning Commission were opposed to the idea. The principles of giving these companies international prices for products were endorsed by Dr C Rangarajan Committee. Four years back, these principles were justified because oil prices were low and the companies pushed this idea, which was not in favour of the common man on the plea that profits made would be invested for further expansion programmes. However, now the situation has changed with the oil prices playing truant and every step from procuring crude oil to reaching the petrol pump is being studied for cutting down costs, say industry sources. For years, these companies have made handsome profits based on this pricing structure, add industry sources. The finance ministry and Planning Commission is justified in giving the oil companies the payment for products as per the cost of manufacturing in these trying times, and thereby protecting the consumers, explain industry sources. In addition to this, these oil companies, after getting international prices have not made investment in new technology or refinery upgradation. Every project by the PSU oil companies is delayed and has massive cost overruns, sometimes two or three times. Can Indian companies in such a competitive scenario afford to have such a luxury, say sources in the government. If India is looking at becoming a refinery hub in the South Asian region, then these fundamentals have to be dealt with at this stage only. |
|
Spending on IT solutions at all-time high
Ludhiana, May 15 Unlike even three years ago, when the SMEs in this sector were highly price-sensitive when it came to technology, they are now more concerned about the results and improved efficiencies IT solutions can offer them. The $941-million US-based Parametric Technology Corporation has recorded a 100 per cent year-on-year growth in its clientele in this segment and is now focussing on tapping markets like Punjab where it is finding "wide acceptance for IT". "Spending on IT solutions is on an all-time high in manufacturing segment. Complexities in product designs have increased and a large number of companies worldwide are outsourcing engineering services to India, which is acting as a growth driver. The best part of it is that the growth is not restricted to large corporates, it is percolating rapidly to small and medium enterprises," Rohit Biddappa, senior marketing manager, PTC India, told The Tribune. "With more and more players entering the competition with a diverse set of product offerings, the fight for the top position is becoming intense. Most enterprises, hence are looking beyond the traditional CAD, manufacturing and engineering software, and are opting for value proposition to enhance productivity and become more competitive in the global engineering and manufacturing landscape," he added. He said PTC, that provides product life cycle management, content management and dynamic publishing solutions to more than 50,000 companies worldwide, is increasing its focus on states like Punjab that had a high growth potential. |
|
Speculations rife as Bharti Airtel maintains secrecy
Girja Shankar Kaura Tribune News Service
New Delhi, May 15 While the Asian Wall Street Journal, which has been following the developments closely, came out with a report today that country’s number one mobile operator Bharti Airtel's negotiations with MTN were now headed towards complete takeover by the former, other reports suggested that Bharti may seek a merger or share swap with the group to try and avoid a bidding war. Other reports ruled a complete takeover, which would involve an all-cash deal, a difficult proposition. A 51 per cent buyout may itself touch the $40 billion, experts point out. The Wall Street Journal, quoting a person familiar with the situation, said while Bharti still wants majority control (a 51 per cent stake), MTN prefers a full takeover, which, in South Africa can be portrayed as a merger of equals. Incidentally, the news of Bharti seeking a merger or a share swap with MTN helped push up its shares today after the stock had fallen sharply last week on concerns over funding a deal that could touch $40 billion and the risk of a bidding war. A successful deal would be India's biggest foreign acquisition and create the world's sixth-largest mobile operator, with more than 130 million subscribers in more than 20 countries. Bharti Group chairman Sunil Mittal is also understood to have held talks with MTN's top management in London yesterday to work out a broad scheme of arrangements for a possible merger between the two companies. Mittal is said to have met MTN chairman M C Ramaphosa, CEO P F Nhleko and single majority stakeholder Azim Mikati to put forward Bharti's proposals in which it also is said to have insisted on 'exclusivity agreement' with MTN. Experts, meanwhile, said Bharti may seek a merger or share swap with MTN Group to try to avoid a bidding war. They also ruled out an all-cash deal for 100 per cent of MTN and asserted that a majority stake was the more likely outcome. It is also said that Bharti wants to offer 70 per cent stock and 30 per cent cash for a possible merger to the MTN shareholders. MTN is apparently seeking around 200 rands per share.
|
|
JCB plans to make India business hub
Chandigarh, May 15 The UK-based group, through its Indian subsidiary, JCB India, is expanding its facilities in India, so that they can begin exporting equipment to other countries across Asia. The group is in the process of investing Rs 300 crore for the expansion of its facilities in Ballabgarh (Haryana) and Pune. Talking to TNS here today, Vipin Sondhi, managing director and CEO, JCB India, said the new facility set up by the company at Pune for heavy line machinery like tracked excavators, wheel loading shovels and vibratory compactors, has already started exporting machinery to Indonesia. “This plant has an annual capacity of 4,500 machines and will be producing 1,500 machines in the first year of operations. As we start utilising the plant to its optimum capacity, we are targeting 10-15 per cent of the machinery for the export market,” he said. Sondhi said they were also upgrading their facility in Ballabgarh at an estimated cost of Rs 300 crore. “This plant has a capacity to manufacture 50 machines (back hoes) a day, which will be upgraded so as to produce 100 machines a day. The capacity expansion will be over in the last quarter of this year, making this the largest facility in the world,” he added. He said 24 per cent of the total volumes for JCB were coming from the Indian subsidiary, and of the 72,000 machines produced by the company across all its facilities, 17,000 units were produced in India. The company clogged an annual turnover of Rs 3,200 crore in 2007, and is witnessing an average annual growth of 25 per
cent. “At this time, we are working on strengthening our dealership network, by training the personnel and ensuring a regular supply of spare parts,” he said. He added that though India was witnessing a huge growth in infrastructure sector, there is lack of trained manpower for operating sophisticated machinery. “Thus we have started training personnel in running our machines. We have set up four training institutes and will increase these to six by the end of this year. We are also training army jawans in operating our equipment, so that they can get employment on retirement,” he added. |
|
|
Beer consumption ‘lowest’ in India
Chandigarh, May 15 While in Europe per capita consumption of beer is around 100 litres, it is 25 litres in China and 16 litres in Vietnam while in India it is just 1.5 litres. “In spite of low per capita consumption, beer industry has tremendous potential for growth in India because of the young profile of its population, tropical or hot climate, increasing exposure to western lifestyle and growing emphasis of the government on promoting milder drinks,” says Pradeep
Gidwani, managing director, Carlsberg and South Asia Breweries, India. Talking to The Tribune here this afternoon, he said India as of now consumes 150 million cases of 650 ml bottles annually, which perhaps is the lowest consumption in the world. Pradeep
Gidwani, who is here to launch Carlsberg, the “super premium beer” in the city, says after the National Capital Region, Carlsberg has chosen Chandigarh. “From here we go to Mumbai, Kolkata and then come to Punjab,” he says revealing that in less than eight months presence in India, the company has invested Rs 200 crore and four of its breweries in each of four zones of the country have been either commissioned or are about to be commissioned. Talking about competition, he says Carlsberg will have no competition as “we are creating top-end brand”. Further, he says, “Carlsberg is the only mated beer and all malt consumed by all four Carlsberg breweries in India will be imported from the same source.” He says that Carlsberg is one of the top producers of beer in the world with presence in 150 countries. Carlsberg also plans to bring beer in 650 ml bottles and also fresh beer from its breweries at Paonta Sahib (Himachal Pradesh), Aurangabad (Maharashtra), Greenfield brewery in Alwar (Rajasthan) and Kolkata, adds Pradeep
Gidwani, hoping to touch a production 700,000 hectolitres of beer annually from these plants. |
|
|
Core sectors grow by 9.6 pc in March
New Delhi, May 15 Even though the growth of six core industries — crude oil, cement, electricity, coal, petroleum refinery products and finished steel — in March this year was less than 10.5 per cent a year ago, it was encouraging, given the dismal industrial growth. So far as the whole of 2007-08 is concerned, growth in these six areas declined to 5.6 per cent in fiscal 2007-08 from 9.2 per cent in the previous year. In March 2008, three of the six core industries, however, performed badly as crude oil production declined by 0.3 per cent, petroleum refinery output remained stagnant and electricity generation grew by just 3.6 per cent in March compared to 8 per cent a year ago. It was mainly finished steel and cement, which pushed up the growth of six infrastructure industries in March. Finished steel production grew by 21.8 per cent from 16.6 per cent, while cement output rose by 9.3 per cent from 5.5 per cent. Coal production growth dipped by 9.3 per cent from 10.6 per cent during the month. — PTI
|
|
India drops in world competitiveness ranking
Geneva, May 15 Asian tigers Singapore and Hong Kong ranked just behind the US, as they did last year. Switzerland jumped two places to fourth, while Luxembourg rounded out the top five most competitive national economies, said the Lausanne, Switzerland-based IMD business school, publisher of the World Competitiveness Yearbook. "The big question is whether the United States will be No 1 after this year," project director Stephane Garelli said, adding that the report was based on 2007 data that do not fully reflect all of the problems in US financial markets. The study lists 55 economies according to 331 criteria that measure how the nations create and maintain conditions favourable to businesses. Rounding out the top 10 most competitive nations were Denmark, Australia, Canada, Sweden and the Netherlands. China and India both dropped two places in the report, to 17th and 29th, respectively. Russia fell four spots to 49th. Venezuela was ranked last for the third year in a row, immediately preceded by Ukraine, South Africa, Argentina and Indonesia. — AP
|
|
DoT seeks PM’s intervention
New Delhi, May 15 Telecom secretary Siddartha Behura is learnt to have made a request to the Prime Minister's Office to convene a meeting that will include PMO, DoT, telecom regulator TRAI and finance secretary to resolve the controversy over spectrum allocation and pricing. He said the department is in dialogue with the ministry of finance regarding certain issues relating to guidelines for auction of 3G spectrum and pricing of 2G spectrum. DoT has also suggested that since recommendations of TRAI are involved in the matter, chairman of the regulator may also be called for this meeting. The issue of 3G spectrum heated up after differences emerged between DoT and TRAI as the latter favoured allowing only existing operators for 3G auctioning. — PTI
|
|
PNB Q4 net at Rs 544 crore
New Delhi, May 15 The bank had a net profit of Rs 238 crore in the fourth quarter of 2006-07 fiscal, PNB said in a statement. The total income of the bank rose to Rs 4,417 crore for the fiscal ended March 31, up by 19 per cent, from Rs 3,713 crore in the year-ago period. PNB has declared a dividend of 130 per cent, at the rate of Rs 13 per share, on every Rs 10 share held, for the year ended March 31. For FY'08 ended March 31, 2008, the bank announced a net profit of Rs 2,049 crore, a growth of 33 per cent over the year-ago period. It had a net profit of Rs 1,540 crore in FY'07. The total income rose to Rs 16,263 crore for FY'08, from Rs 12,967 crore in the previous fiscal.
— PTI |
SEBI clears Rel Infra IPO Airtel has 4m users in Delhi L&T to build rigs Lafarge buys L&T’s RMC biz Vodafone offers STD at Re 1 Yahoo’s marketing platform FinMin rejects NTPC's FPO Cadila to market 4 drugs in US
|
|||||
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Letters | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
