PM takes steps to address coal supply issues for power projects

On 18th January, 2012, a delegation of industrialists representing the majority of power producers in the country met the Prime Minister under the aegis of Association of Power Producers. They brought to the notice of the Prime Minister key issues affecting the power sector. They informed that the most important and immediate problem is inadequate supply of fuel, especially coal to power plants. They informed that Coal India Limited has been insisting on signing sign fuel supply agreements (FSAs) with assurance of only 50% of the required quantity with the result that no FSAs have been signed since April 2009. The Prime Minister assured the delegation that PMO will work out a road map to deal with the problems relating to power sector and, to this end, a Secretary level Committee headed by Principal Secretary to Prime Minister will deliberate on the issues with a view to finding out pragmatic solutions. The Committee would first focus on the short-term issues and suggest, within a month, the immediate steps to be taken.

As instructed by the Prime Minister, the Committee headed by the Principal Secretary to the Prime Minister met on 1st February 2012. During the meeting it was agreed that Coal India Limited will sign FSAs with power plants that have entered into long-term PPAs with power distribution companies and have been commissioned/ would get commissioned on or before 31st March 2015. For power plants that have been commissioned up to 31st December 2011, FSAs will be signed before 31st March 2012. The FSAs will be signed for full quantity of coal mentioned in the Letters of Assurance (LoAs) for a period of 20 years with trigger level of 80% for levy of disincentive and 90% for levy of incentive. In case of any shortfall in fulfilling its commitment under the FSAs from its own production, Coal India Limited will arrange for supply of coal through imports or through arrangement with State/Central PSUs who have been allotted coal blocks. The proposed course of action has been approved by the Prime Minister...Read More 

Private power firms' shares rise on PM's coal supply initiative 

Coal India slides on PMO diktat on FSAs

Inflation falls below 7% in January

India's annual inflation fell sharply in January from the previous month, data released by the Government showed on Tuesday. The headline WPI inflation for January fell below 7%, raising hope of more easing in the RBI's hawkish monetary policy going forward. Inflation, as measured by the wholesale price index (WPI), was at 6.55% in January as against 7.47% in December, the Union Commerce & Industry Minister said. The January inflation print came more or less in line with expectations. Inflation for November was revised to 9.46% as against the preliminary estimate of 9.11% earlier while the revised WPI for that month now stands at 157.4 as compared to 156.9 earlier. The annual inflation rate was at 9.47% during the corresponding month of the previous year. The official WPI for ‘All Commodities’ for January rose by 0.5% to 157.7 from 156.9 in the preceding month. Build up inflation in the financial year so far was 5.48% compared to a build up of 8.58% in the corresponding period of the previous year.

Onions turned cheaper by ~75.5% in the month under consideration, Vegetable prices were down ~43% on an annual basis. Fruits turned costlier by ~6.4% year over year, while Milk prices increased ~12%. Egg, Meat & Fish became costlier by ~18.6% compared to the year-ago period. Potato prices were down ~23% on an annual basis while Cereal prices went up by ~2.4% year over year. Prices of Pulses rose by ~11.4%. Annual inflation in Rice stood at ~1.35% while Wheat prices were down ~3.5%. In the Non-Food category, prices of Oilseeds rose by ~12.6% from a year ago while that of Fibres fell by ~14.5. Mineral prices climbed 24.8% from last year. In Fuel & Power category, LPG prices were up ~14.3%, petrol by ~15.02% and diesel by ~9.2%. In Manufactured Products category, Food Products prices rose by 5.5%, Edible Oils ~9.5%, Beverages, Tobacco & Tobacco Product 13.2%, and Cotton Textiles 9.4%. Price of Wood & Wood Products increased by ~8.5%, while that of Leather & Leather Products increased 6.5%. Chemicals & Chemical Products' prices jumped by over 9% while that of Non-Metallic Mineral Products rose by 8.3%, Cement & Lime 8.1%, Basic Metals Alloys & Metal Products ~12% and Iron & Semis by 18.5%...Read More

Inflationary pressures in India continued to ease in January: Moody's

How To Set Syria Free, The Rich World's Fragile Recovery And A Special Report On Pakistan

Source: Economist

India remains largest importer of gold in 2011: WGC

India remains the largest country for demand with 933.4 tonnes, which is notable considering the volatility of the gold price and the weakness of the Indian rupee against the US dollar during the second half of the year.

In value terms, total demand reached Rs. 220,507 crores, an increase of 22% from Rs. 181,107 crores in 2010, which was in turn an increase of 98% from Rs. 87,430 crores in 2009.

In terms of tonnage, gold jewellery demand reached 567.4 tonnes in 2011, a decline of 14% from 657.4 tonnes in 2010. This was an increase of 49% from 442.4 tonnes in 2009.

In value terms, total jewellery demand reached Rs. 134,043 crores, an increase of 13% from Rs. 118,314 crores in 2010, in turn a rise of 75% from Rs. 66,860 crores in 2009.

In tonnage, gold investment demand reached 366 tonnes in 2011, an increase of 5% from 348.9 tonnes in 2010. This was an increase of 156% from 136.1 tonnes in 2009.

In value terms, total investment demand reached Rs. 86,464 crores, an increase of 38% from Rs. 62,793 crores in 2010, which was in turn an increase of 205% from Rs. 20,570 crores in 2009.

India experienced a slowdown in demand reduction in tonnage in 2011, a result of high and volatile prices, and challenging economic conditions.

The average price of gold per gram stood at Rs. 2,362 in the year 2011 as compared to Rs 1,800 in 2010, an increase of 31 percent.

India growth figures for the period January to December 2011 vs. 2010:

Record investment demand boosts global gold demand

Govt to promote India as international filming destination

Monster Employment Index India up 6% YoY

FM sees March-end inflation closer to 6%

The Union Finance Minister Pranab Mukherjee said that he is now confident that moderation in inflation would continue in the coming months, though softening in the prices of manufactured goods despite the rapid decline in non-food primary inflation, may be more gradual. The Finance Minister said that he now expects that the March end 2012 inflation will be closer to 6%. The Union Finance Minister Pranab Mukherjee was reacting to the monthly headline inflation figures released today, i.e. 14th February 2012.  The Union Finance Minister Pranab Mukherjee said that the main worry going forward is on edible oils, milk and some animal proteins which may continue to threaten food inflation, as the required institutional reforms in agricultural marketing and improvement in storage and cold chains will operate with a lag. The Finance Minister further said that moreover, these are areas where States have to take a lead and take advantage of Central Government initiatives in these areas announced in the last two Union Budgets.  Earlier, the monthly headline inflation data was released today. The annual headline inflation rate (year-on-year) for January 2012 has declined to 6.55% as against 7.47% in December 2011 and 9.47% in January, 2011. There has been a significant decline in January food inflation, which is negative at -0.52% for the first time in the present round of inflation. The manufactured inflation has declined to 6.49% from 7.41% in the preceding month. Inflation in fuel and power group of items has also declined, though only marginally.

India should aim for at least 9% GDP growth: PM

Govt expected to focus on fiscal consolidation: Dun & Bradstreet

PM sets targets for awarding road, highway projects

On the direction of the Prime Minister Dr. Manmohan Singh, the Ministry of Road Transport and Highways has assured that 15 major projects of 1,547 kilometers of Roads and Highways will be awarded within this financial year. Another 11 projects for 1,731 kms of Roads will be considered by the Public Private Partnership Approval Committee, next week for speedy approval. This will ensure that the target for the current financial year of 7,999 kms is met on time. A meeting attended by Member Secretary Planning Commission, Secretary Department of Economic Affairs, Secretary Ministry of Road Transport & Highways along with Principal Secretary to the Prime Minister decided that Cabinet approvals will be sought within next week to complete this task. The Cabinet Committee on Infrastructure will also consider a proposal by the MORTH on the Eastern Peripheral Expressway to clear the project in its meeting scheduled for next week. This Expressway will help in decongesting the National Capital Region on Uttar Pradesh and Haryana side along with the Western Peripheral Expressway which is nearing completion. The Road Transport and Highways Ministry would also indicate its targets for the next year within this month.

Agricultural productivity in foodgrain must rise: PM

EGoM clears ONGC disinvestment; Stake sale in BHEL deferred

The Empowered Group of Ministers (EGoM) on Wednesday approved the disinvestment of Government stake in oil & gas major ONGC while deferring a move on a stake sale in state-run power equipment maker BHEL. The high-powered panel, which is headed by Finance Minister Pranab Mukherjee, cleared the auction route for the stake sale not just in ONGC but also in other public sector companies. Market regulator SEBI said last month that it would allow shareholders of the country's top 100 companies by market value to raise funds by auctioning their stakes through stock exchanges. It set a minimum offer size of 1% of the company's paid-up capital worth at least Rs. 250mn. Other PSU companies in which the Government is looking to sell shares include SAIL, National Buildings Construction Corp Ltd. and steelmaker Rashtriya Ispat Nigam Ltd. Media reports said that the Oil Ministry need not go to the Union Cabinet to seek approval for the ONGC disinvestment. Other details like timing and pricing of the ONGC disinvestment will be decided at the next EGoM, Union Petroleum Minister, Jaipal Reddy, told reporters in New Delhi. He added that the ONGC stake sale will take place in the ongoing financial year itself. On BHEL, Heavy Industries Minister Praful Patel said the its disinvestment may happen in FY13. He cited unfavourable market and business environment for putting off the stake sale in BHEL. It is premature to talk about disinvestment in BHEL now, Patel was quoted as saying. Shares of both the companies advanced in a rising market after the announcements. BHEL shares rose by more than 2.5% while ONGC was up by ~1.5%. Separately, Disinvestment Secretary, Haleem Khan, said that the EGoM has, in general, approved opting for the auction route in respect of those issues where follow-on public offering (FPO) has already been approved by the Cabinet. The EGoM was slated to take a call on stake sale in ONGC and BHEL, with a view to garnering about Rs. 145bn in the current fiscal year. the Disinvestment Secretary also confirmed today that the Government would not be able to raise a budgeted Rs. 400bn through share sales in the current fiscal year ending on March 31.

Govt subsidy alleviates liquidity pressure on IOC: Moody's

Jaipal Reddy rules out deregulation of diesel prices

Direct ATF imports by Indian carriers to be reality soon: Govt

The Ministry of Civil Aviation has written to the Ministry of Commerce on 15th February 2012 to take steps to allow direct import of Air Turbine Fuel (ATF) by Indian carriers in pursuance of the decision of the Group of Ministers’ (GOM) on Civil Aviation, which was taken in the GOM meeting held on 7th February 2012. The GOM in its meeting decided that the Ministry of Commerce will permit direct import of ATF by or on behalf of Indian carriers directly as the actual user and on actual use basis.   The decision has come against the background that ATF prices in India are 30 to 40 % more than the prices in international market due to high base price and higher taxes. The sales tax on ATF in different States in India is on much higher side, and varies between four to 30 % in different States. The Minister of Civil Aviation has recently written to all Chief Ministers of the States to bring down the rate of sales tax on ATF in order to make ATF cheaper for the Indian carriers. It may be mentioned that the revenue from sales tax on ATF contributes only 0.5 % to 2% of the total sales tax collection of the States while in terms of operational cost of the airlines its portion is almost 40%, which makes the operational cost of the airlines very high. However, most of the States have not responded favourably. The Indian carriers would have to make their own tie-ups with the suppliers having infrastructure to import ATF directly for their use. The sourcing of ATF through direct imports has the potential to lower overall procurement cost of ATF for the airlines as sales tax varying from 4 to 30 percent in different States will be required to be paid only on unavoidable local purchase. Also this would bring down the cost of working capital to the air lines as suppliers credit on lower interest rates will be feasible.

Airlines stocks fly as OMCs reduce ATF prices

Aviation Ministry unveils guidelines to promote International connectivity

The Ministry of Civil Aviation, Government of India has decided to allow the Indian Scheduled Carriers including Air India to utilize the allocated bilateral till such time they reach the maximum permissible limit under Air service Agreements (ASAs). Air India’s operational plan will receive due consideration in allocation of the traffic rights and entitlements. The Ministry has supported the approach outlined in the Inter Ministerial Group (IMG) discussion paper in this context. The allocation of the traffic rights to Indian Scheduled Carriers shall be done well in advance upto a maximum limit of five schedules keeping in mind the demands from them, their capacities and capabilities, operational plans and other relevant factors. The utilization of allocated rights will be subject to regular monitoring and oversight by the Ministry of Civil aviation. In case of underutilization or non utilization of the allocated rights, the ministry may consider cancellation of the rights and levy of appropriate penalty. Under the new arrangement, code share operations will be encouraged. All possible steps will be undertaken to promote the development of the hub to enable Indian Carriers to carry 6th freedom traffic and attain a dominating position in the region. In order to cater to peoples’ travel, trade and commerce needs to countries where ASAs do not exists, the Ministry will consider creation of traffic rights through ASAs with these countries. The Ministry would regularly review the bilateral for promoting international connectivity with various potential regions of the world keeping in mind the demand by Indian Scheduled Carriers, international passenger traffic, trade and commerce and potential global and regional issues.

Ajit Singh forms panel to examine wage issues

PC sales plummet by 22.7% in Q4 2011: IDC

In Q4 2011, India PC market recorded its lowest shipments in the last six quarters, disrupted largely by the supply shortage and subsequent price inflation of the Hard disk drives. The India PC market shipments for Q4 2011 (October – December) stood at 2.39 million units i.e. a sequential drop of 22.7% over the previous quarter even as the overall year on year decline was noted to be at 3.8%. According to Kiran Kumar, Sr. Analyst at IDC, "The HDD scenario posed an immense challenge starting October when the consumer & SMB growth was the strongest. The non-branded PC market was reduced to less than 2/3rd of its size as HDDs were available in the market with a 100% price increment, coupled with the dollar surge, which further wiped off any chances of carrying the momentum forward in the 3 months of Q4 2011".

Despite a slowdown, Dell maintained its market leadership with a 16.4% market share in Q4 2011. Lenovo secured the second spot with its success in the enterprise and consumer space. "Strong channel focus coupled with expanding reach and their aggressive marketing efforts ensured Lenovo’s success in the India PC market" comments Kiran. While de-prioritization of conventional desktops backed by a focus on profitable growth put HP in the third spot in Q4 2011. IDC estimates that a total of 10.48 million PCs have been shipped in CY 2011 (January – December), which reflects a 6% year-on-year growth over the previous year.  While Desktops have registered a year-on-year decline of 4.4%, Portables witnessed a stirring growth of 22.9% over the same period. 

India PC market declined 6.5% in Q4 CY11: Gartner

Govt delinks UAS licences from spectrum

"Recommendations of TRAI on ‘Spectrum Management and Licensing Framework’ of May 11, 2010 along with its further recommendations of February 08, 2011, clarifications of May 03, 2011 and response dated November 03, 2011 were considered by the Telecom Commission. After consideration of the recommendations of the Telecom Commission, the Department of Telecommunications has taken following decisions:

• No more UAS licences linked with spectrum will be awarded.
• All future licences will be Unified Licences and allocation of spectrum will be delinked from the licence. Spectrum, if required, will have to be obtained separately. A final view on implementation of the Unified License Regime would be taken after receipt of detailed Guidelines and Terms & Conditions from TRAI for Unified Licence including migration path for all existing licence(s) to Unified Licence.
• In the event of any auction of spectrum pending finalisation of the Unified Licensing Regime, UAS licence without spectrum may be issued which could be subject to a requirement to migrate to Unified licence as and when the regime is put in place. Detailed guidelines for such UAS licence without spectrum would be finalised after receipt of recommendations of TRAI in this regard.
• There will be uniform licence fee across all telecom licenses and service areas which will progressively be made equal to 8% of the Adjusted Gross Revenue (AGR) in two yearly steps starting from 2012-13...Read More

SBI rating unaffected by weakening loan quality: S&P

Standard & Poor's Ratings Services said that its rating on State Bank of India (SBI; BBB-/Stable/A-3) is not affected by a significant slippage in the bank's loan quality. We anticipate that SBI's credit provisioning costs for the fiscal year ending March 31, 2012, will not be significantly higher than the projected credit losses based on our risk-adjusted capital framework. The bank's credit losses have been significantly higher than domestic peers' so far in fiscal 2012. We expect SBI's stand-alone credit profile (SACP) to underpin the rating. The jump in SBI's nonperforming assets and credit losses could pressure our current "adequate" assessment of its risk position. This could, in turn, strain the bank's SACP, which we assess at 'bbb'. Nevertheless, SBI's SACP has adequate cushion to absorb some slippage in loan quality. We therefore believe it is unlikely that the SACP will fall to 'bb', which is our downward rating trigger. On a stand-alone basis, SBI's reported ratio of gross nonperforming assets to gross advances increased to 4.61% at the end of December 2011, from 4.19% at the end of September 2011. The ratio was 3.28% at the end of March 2011.

NTPC to award orders worth Rs. 220bn: report

NTPC plans to award Rs. 220bn equipment orders in the next 45 days as it won legal battle in Supreme Court against Ansaldo Caldaie India, according to reports. NTPC will call fresh price bids from BHEL, L&T and BGR Energy that had technically qualified for Rs. 90bn contract to supply nine boilers of 660-mw each, says report. If NTPC places orders as planned, it will be a big relief for equipment suppliers who have been starved on new contracts in the current fiscal year, says report. There are reports that another Rs. 80bn contract for nine turbine generators will be placed on Bharat-Forge-Alstom, BHEL and JSW-Toshiba.

KG-D6 output to fall 40% in FY14: RIL

Oil ministry officials reportedly said that Reliance Industries had written to the government that gas output from its D6 block was expected to drop by about 40% to 22.60 million standard cubic meters per day in 2013-14. Reports also stated that the company had sent broad projections for output.

The D6 field's current output is about 37 mmscmd, out of that 19 mmscmd is supplied to the power sector consumers, says report.

Govt may send legal notice to RIL: reports

Reliance seals sixth well in D6 block: reports

BP cuts value of its holding in RIL assets

Sterlite Industries asked to pay US$82.75mn to Asarco

Bankruptcy Court of Southern District of Texas, United States has issued an order regarding (i) Asarco's breach of contract claim and (ii) Sterlite's application for refund of $ 50 million paid to Asarco in December 2009. The Bankruptcy Court, vide its order dated Feb 13, 2012, has said that Asarco is entitled to a gross amount of US$ 132.75 million in incidental damages. This amount shall be reduced by $ 50 million paid to Asarco in December 2009, making Asarco entitled for a net amount of US$ 82.75 million. Court has rejected Company's application of refund of $ 50 million. Sterlite is examining the order and will take appropriate action based on legal advice.

Tata Motors Group global wholesales up 21% in January

The Tata Motors Group global wholesales, including Jaguar Land Rover, were 119,799 nos., in January 2012, higher by 21% over January 2011. Cumulative sales for the fiscal are 985,260, higher by 13% compared to the corresponding period in 2010-11. Global sales of all commercial vehicles – Tata, Tata Daewoo and the Tata Hispano Carrocera range -- were 53,014 nos. in January 2012, a growth of 15%. Cumulative sales for the fiscal are 478,339 nos., a growth of 17%. Global sales of all passenger vehicles were at 66,785 nos. in January 2012, higher by 26%. Cumulative sales for the fiscal are 506,921 nos., higher by 10%. Global sales of Tata passenger vehicles and the distribution offtake in India of Fiat cars were at 37,492 nos., for the month, higher by 14%, over January 2011. Cumulative sales for the fiscal are at 261,216 nos. Global sales of Jaguar Land Rover in January 2012 were at 29,293 vehicles, higher by 44% over January 2011. Jaguar sales for the month were 4,547 nos., higher by 49%, while Land Rover sales were 24,746 nos., higher by 43%. Cumulative sales of Jaguar Land Rover for the fiscal are 245,705 nos., higher by 25%. Cumulative sales of Jaguar are 44,468 nos., lower by 3%, while cumulative sales of Land Rover are 201,237 nos., higher by 34%.

Tata Motors launches Tata Sumo Gold

MCX sets price band of Rs 860-1032/share for IPO

The Multi Commodity Exchange Ltd. (MCX), India's biggest commodity exchange by turnover, has set a price band of Rs. 860 to Rs. 1,032 per share for its proposed initial public offering (IPO). MCX is offering about 6.4 million shares in the IPO, which aims to raise as much as Rs. 6.6bn. The IPO is scheduled to open on February 22 and will close on February 24. MCX will become the first Indian bourse to list its shares on an exchange. MCX's majority shareholder Financial Technologies India Ltd. and investors including public sector banks State Bank of India (SBI) and Bank of Baroda (BOB) will sell part of their holdings in the IPO, according to the prospectus. Morgan Stanley, Citigroup and Edelweiss Capital are the book running lead managers to the MCX issue. Post the IPO, FTIL's stake in MCX will fall to ~ 26% from 31.2%. MCX, the largest commodity bourse in India, has more than 70% share in an annual estimated turnover Rs. 177 lakh crore for the entire commodity derivatives market. Globally, MCX is the fifth largest commodity exchange. In the bullion segment, it is ranked among the top two positions. MCX would be the first exchange in India to go public.

Aegis planning US$300-400mn IPO: report

Sun Pharma gives update on generic Protonix litigation

Sun Pharmaceutical Industries Ltd. announces that in the ongoing litigation pending in the United States District Court of District of New Jersey ("the District Court") regarding Sun Pharma subsidiary’s and Teva’s ("defendants") generic Pantoprazole products, Wyeth has submitted to the District Court confidential expert reports claiming damages against defendants arising out of defendants earlier at-risk launches. Earlier in 2010, the District Court had denied defendants motion for judgment as a matter of law seeking to reverse the jury verdict that the patent is not invalid. The District Court is yet to rule on patent misuse. Wyeth’s experts have estimated the purported damages from Sun Pharma to be US$960mn. Wyeth’s experts have also claimed Teva may be liable for some of Sun Pharma's damages and vice versa. In due course, Sun Pharma will also serve upon the parties expert reports providing its own assessment on the purported damages. After this, patent misuse and appropriate level of damages will be determined. Sun Pharma believes that it has sound reasons to disagree with these overstated claims of Wyeth, and also continues to believe that the patent is invalid and unenforceable and will pursue all available legal remedies including appeals.

Sun Pharma falls as Wyeth seeks US$960mn

Glenmark's GRC 17536 completes Phase I trials in Europe

Kingfisher Airlines gains despite wider Q3 loss

Shares of Kingfisher Airlines advanced 0.75% to end at Rs. 26.95 despite the loss posted in the third quarter. The beleaguered airline owned by Vijay Mallya posted a wider third-quarter loss on spiraling fuel costs, weaker rupee and cut-throat competition. Kingfisher Airlines and other airline shares are up after Indian Oil Corp. (IOC) and other state-run oil marketing companies (OMCs) cut aviation turbine fuel (ATF) prices by Rs. 350.70 per kilolitre (0.56%) with effect from midnight tonight. This is the second reduction in ATF prices this month after a 3% cut on February 1. Kingfisher Airlines' net loss for Q3 FY12 was Rs. 4.44bn in the three months ended Dec. 31, compared with a net loss of Rs. 2.54bn in the same period a year earlier, Bangalore-based Kingfisher said in a statement. Kingfisher suffered an additional fuel cost of Rs. 1.9bn during the fiscal third quarter as compared with last year, the company said. Operating revenue fell 19% to Rs. 13.4bn, the airline said. The debt-laden Kingfisher Airlines is ~25% owned by banks and its top lender State Bank of India (SBI) has refused to add to the loans while terming it as non-performing asset (NPA). 

Kingfisher Airlines Q3 EBITDA loss at Rs 1.47bn

Unitech clarifies on Telenor accusations

Unitech on Thursday said that there was no breach of warranties on its part and that it will contest any demand for compensation by its Norwegian partner Telenor. "The Supreme Court has cancelled all the UAS licences and spectrum granted on and after January 10, 2008, and has raised multiple questions on the government policy which in no manner can be considered as breach of warranties on the part of Unitech Ltd," Unitech said in a statement. The realty company said that it will be incorrect to claim or even suggest that the cancellation of the UAS licences by the Supreme Court demonstrates a breach of any warranties on the part of Unitech. "At best, Telenor group can invoke the provisions between the governments for the protection of their investment in India, but they shall have no valid claim on Unitech and any demand from Unitech shall be contested," Unitech said. On Wednesday, Telenor blamed its Indian partner Unitech for the cancellation of 22 licences held by their telecom joint venture Uninor and sought indemnity and compensation from it. "Telenor Group holds Unitech liable for the breach of warranties related to the cancellation of licences - seeking compensation for all investment, guarantees and damages caused by the Supreme Court order," Telenor said in a statement. Telenor also said that it was looking for new Indian partner to continue its business in India.

Telenor seeks damages from Unitech; Eyes new future in India

Marico to acquire Paras brands from Reckitt Benckiser

Marico Limited, one of India’s leading Consumer Products & Services Groups in the Beauty and Wellness space, has executed documents to acquire Set Wet, Livon, Zatak and certain other Personal Care brands currently owned by Reckitt Benckiser (RB). RB had acquired these brands from Paras Pharmaceuticals in a deal completed during April 2011. The transaction envisages transfer of all key assets including intellectual property rights, supply agreements and third party manufacturing agreements (Paras PC business), for an undisclosed consideration. These assets are in the process of being transferred to a separate company in which Marico will acquire 100% shares. The closing of the transaction is scheduled to take place over the next few months. The Paras PC business is expected to achieve a turnover of over Rs. 150 crore during FY12. Brands in the portfolio are amongst the top three positions in the hair gels, male deodorant and leave-on hair serum categories. This acquisition gives Marico an opportunity to participate in the rapidly growing deodorant and male grooming categories in India. The portfolio addresses the grooming needs of the youth and is supported by India’s demographic profile. Marico will also leverage its distribution strength in India to provide a fillip to the growth of the brands. The acquisition of this business is expected to further reduce Marico’s dependence on edibles oils and hair oils.

LVMH's PE arm buys 8% in Fabindia: report

Max India denies planned exit by Max New York Life

Max India Ltd. has clarified about the following facts regarding a news article relating to the Company and its Joint Venture Max New York Life Insurance Company Limited (MNYL). MNYL is a high performing, profitable organization built on strong fundamentals. We are fully committed to serving the best interest of our customers through market leading products and services. We are confident that MNYL will continue to grow its business and strengthen its leadership position in the Indian life insurance sector. MNYL has been outperforming the private life insurer space. It is a profitable company today with a profit of Rs. 3.39bn for nine months ended December 31, 2011. It has been consistently gaining market share and currently the largest non-bank led private life insurer. As a high performing organization, there is interest shown periodically by potential investors, to participate in our future growth. However, there is no firm development to report as of date and thus the commercials published under the Article stand denied. Max India remains fully committed to the life insurance business in India. The Company was reponsing to a newspaper article titled "New York Life to Exit Indian Insurance JV".

Network18 Media, TV18 Broadcast gallop on RIL share purchase

Shares of Network18 Media and Investments was locked at the 20% upper circuit at Rs. 47.80 and TV18 Broadcast ended at Rs. 35.60 up 14.3% after Independent Media Trust, recently set up by Mukesh Ambani-led Reliance Industries group, purchased 27.14 lakh shares worth about Rs. 110mn in Network18 Media and Investments. RB Holdings, one of the promoter of Network18 Media, sold 27.14 lakh shares to Independent Media Trust, according to block deal data available on the stock exchanges. Independent Media Trust bought 27,14,720 shares of Network18 Media for Rs. 40.05 apiece, valuing the transaction at Rs. 108.7mn. RB Holdings held 46,246,057 equities or 32.37% stake in Network18 Media as of December quarter. It may be recalled that RIL, through Independent Media Trust is infusing funds in the form of loan into Network18 Media, the TV18 group's holding company, and TV18 Broadcast Ltd., the flagship company.

Essar Oil files review petition in SC on sales tax

Shikha Sharma reappointed MD & CEO of Axis Bank

AXIS Bank Ltd has announced that at the meeting of the Board of Directors of the Bank held on February 13, 2012, the Board has approved the reappointment of Smt. Shikha Sharma as Managing Director and Chief Executive Officer of the Bank for a further period of three years with effect from June 01, 2012 i.e. for the period June 01, 2012 to May 31, 2015. The re-appointment will be subject to approval of the Reserve Bank of India and subject to confirmation by the shareholders of the Bank at the next General Meeting.

P Kishore resigns as Everonn MD and Director

Everonn Education Ltd. said on Tuesday that its Board of Directors at a meeting held on February 13, inter alia, considered and approved the resignation of P. Kishore as a Managing Director and Director from the Board.The company's Board also approved the appointment of Dino Varkey and Rakesh Sharma, the nominees of Varkey Group Ltd. as Additional Directors of the Company.

Zydus Wellness’s MD Anand Deo resigns

TTK Prestige ties up with World Kitchen 

TTK Prestige Ltd has informed that the Company has concluded business relationship arrangements with World Kitchen, a US based corporation. Pursuant to this relationship, the Company will be able to enhance its presence in high end Tableware, Glassware and Store-ware range of products. The products will be marketed and distributed on the strength of the brands of both the parties. The international brands that will be dealt with in India consist of CORELLE, CORNINGWARE, VISION, PYREX and SNAPWARE. The relationship consists of providing a platform of Pan-India distribution to start with and eventually getting into manufacture / finishing of select products in India. The products are expected to be launched during first quarter of financial year 2012-13.

Gati to form JV with Japan's KWE,

Aptech signs agreement with Syntea SA

Alfa Laval Delisting offer evokes huge investor response

Attracting huge investor response on day one, Alfa Laval delisting offer already got 26.86% of the 10,20,101 required for the succesful deslisting, which is 2,73,987 shares being tendered. It is one of the largest response for the delisting offers on first 2 days in the recent past. The current public shareholding is 11.23 %, which is 2,040,202 shares and for the offer to be successfully delisted minimum 50 % of the shares i.e. 1,020,101 shares should be subscribed to the offer. Most of the offers came at a price range between Rs. 3000 - Rs. 3200. The company had given the indicative offer price of Rs. 2850, however, market feels the offer is likely to get completed between Rs. 3100 - Rs. 3200 per share. Offer open from February 15, 2012 – February 22, 2012. Indicative price of Rs. 2,850 per Equity Share. JM Financial Consultants Private ltd is the merchant banker assisting Alfa Laval with the delisting.

Akzo Nobel India cuts royalty rates, defers buyback

Akzo Nobel India Ltd. said that its Board of Directors in a meeting held on October 21, has announced a royalty proposal for its Paints Business, in order to gain smooth access to AkzoNobel group's technology and brands. Taking cognizance of the views expressed by certain shareholders, the Company had sought a reduction in the royalty rates. At its meeting held on February 14, the Company's Board approved a reduction of 1% in the effective royalty rates, from a level of ~3% approved earlier w.e.f. October 2014. As announced earlier, up to September 2014, the rate of royalty applicable will remain unchanged at ~1% of net sales. Akzo Nobel India's Board also agreed to consider a buyback of shares from minority shareholders, for implementation at the earliest opportunity, on completion of the ongoing merger process. The Board will, after due evaluation, decide on proceeding with the implementation of the buyback proposal on closure of the merger, after obtaining all necessary approvals.

Mahindra concludes its city-wise XUV500 draw 

Mahindra & Mahindra Ltd. (M&M), India’s leading SUV manufacturer, concluded its XUV500 draw and announced the names of 7200 winning applicants who were selected through an automated process. It had received an overwhelming 25000+ booking applications from customers in the second phase of bookings for its XUV500. Bookings for the XUV500 had re-opened on 25th January across 19 cities in India namely Mumbai, Delhi, Chennai, Bangalore, Pune, Hyderabad, Kolkata, Ahmedabad, Chandigarh / Panchkula, Ludhiana, Jallandhar, Patiala, Kochi, Trivandrum, Calicut, Trissur, Coimbatore, Nagpur and Nasik. Mahindra conducted a city-wise draw to ensure a fair chance for all applicants during the second phase of bookings, across the 19 cities. Applicants not selected in the draw are entitled to the refund of the deposit amount of Rs. 80,000/-. Winning applicants will be notified by the respective dealerships and the winning serial numbers will also be published on the XUV500 website, www.mahindraxuv500.com from 5:00pm on 15th February 2012. Applicants can also call a toll-free number, 1800-266-7000 to get information about the XUV500 draw results. Bookings in the second phase were open for 10 days from 25th January till 3rd February 2012. As a customer-centric measure and to ensure fair and transparent allotment, Mahindra undertook an XUV500 draw since the number of booking applications had exceeded 7200. This was done to also ensure a reasonable waiting period for the customers selected in the XUV500 draw.

Volvo Auto India launches D3 engines

Aimed to strengthen its commitment and value proposition, Volvo Auto India launched its existing product portfolio of luxury sedan S80, premium sedan S60 and luxury compact SUV XC60 with an all new 5-cyliner turbo D3 diesel engine. Making it worthwhile for India customers, all three models have been priced extremely competitively to appeal to those waiting to make a bold statement in true Scandinavian style. A personification of silence and efficiency, the new variants of S60, S80 and XC60 with D3 Kinetic engine will be priced Rs. 23.99L, Rs. 31.99L and Rs. 33.99L respectively, Ex-showroom Delhi. Designed to deliver 163 horsepower with an impressive 400 Nm torque, D3 variants of S60, S80 and XC60 will deliver mileage of 18.5 KMPL, 17.8 KMPL and 14.7 KMPL respectively. Cars equipped with the new engine will be available for retail at Volvo dealerships across India with immediate effect...Read More

HSCI resumes normal production at Greater Noida plant

Greece bailout talks remain in a limbo

Greek stocks slid on Wednesday on media reports that the debt-strapped eurozone nations' second bailout might be postponed until after the scheduled national elections in April. Eurozone finance ministers may delay part or all of a €130bn (US$171bn) bailout package for Greece, reports said. Greece faces a €14.5bn bond repayment on March 20. In order to avoid a default, European officials would allow a planned, private-sector voluntary debt swap that aims to cut Greece's debt burden by €100bn proceed, reports said. Separately, Eurogroup President and Prime Minister of Luxembourg Jean-Claude Juncker said that he was confident the Eurogroup will be able to grant the next bailout package to Greece given recent negotiations. The group is scheduled to grant the second bailout to Greece by Monday. Juncker said that he had received strong assurances from Greece's coalition parties, along with a timeline of how Greece will carry out additional consolidation measures. Eurozone finance ministers released a statement reporting progress on negotiations with Greece over new austerity measures. A much-anticipated meeting of eurozone finance ministers scheduled for Wednesday was canceled on Tuesday. Instead, the Eurogroup of 17 eurozone finance ministers held a teleconference after which they pointed to substantial further progress. The euro area leaders are scheduled to meet again on Monday.

Greek parliament approves austerity measures

China will continue to invest in eurozone debt

Chinese central bank governor Zhou Xiaochuan said on Wednesday that China would play a bigger role in solving Europe's long-running debt problems. Beijing will continue to invest in eurozone government debt, said the head of People's Bank of China, adding that he believed the challenges faced by the eurozone can be solved. Asian stocks extended gains on Zhou's remarks. Zhou was speaking at an exhibition on the euro in Beijing with European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy. The Chinese central bank governor said he fully supports monetary measures taken by the European Central Bank (ECB) to mitigate the fallout from the credit crisis. China plans to streamline and expand investment in Europe, he said. Zhou also repeated recent statements by Chinese Premier Wen Jiabao that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility (EFSF). Meanwhile, Barroso praised the trend of European integration, saying that it was inseparable from the future of the euro. Europe was moving toward a fiscal union, while the ECB was ensuring that banks have liquidity, Barroso said. At the same time, it was important not to forget the importance of growing the economy and creating jobs, he added. Separately, Treasury Secretary Timothy Geithner said on Tuesday that European leaders are getting a better handle on the debt crisis.

Fed officials divided on QE3; See modest US growth

US shares ended lower on Wednesday after minutes from the latest Federal Reserve policy meeting dashed hopes for another round of quantitative easing (QE). The minutes from the Federal Open Market Committee’s Jan. 24-25 meeting showed that only a few members of the policy-setting panel favored another round of bond purchases. The Federal Reserve minutes showed that central bank policymakers expect modest economic growth and a gradually decline in the unemployment rate. The unemployment rate fell sharply to 8.3% in January from 9% late last summer. Fed economists said they had revised their projection for real GDP down a bit prior to the meeting. White fourth-quarter GDP picked up to a 2.8% rate from 1.8% in the third quarter, some Fed officials noted that final sales, which exclude inventory behavior, actually slowed in the final three months of the year. A number of Fed officials remained open to adding more long-term securities to the central bank's balance sheet if the economic outlook deteriorated or if inflation seemed likely to remain below the 2% target for a long time. Economists at Bank of America still expect the Fed to introduce another round of asset purchases in the fall. A majority on the FOMC thought that sales of assets on its balance sheet would start no earlier than 2015. In its statement after the Jan. 24-25 meeting, the FOMC had stated that it plans to hold rates at exceptionally low levels through late 2014, if the economy unfolds as now forecast. Jeffrey Lacker, the president of the Richmond Federal Reserve Bank, dissented at the meeting. He said that a preemptive tightening would be needed to prevent a spike in inflation expectations prior to the end of 2014.

OECD gauge shows signs of positive momentum

The composite leading indicators (CLIs), designed to anticipate turning points in economic activity relative to trend, point to a positive change in momentum for the OECD as a whole, driven primarily by the United States and Japan. But similar signs are beginning to emerge in a number of other developed economies, the OECD's December survey of growth prospects showed on Monday. The CLIs for India and Russia also show signs of an upward change in growth momentum, it added. The CLIs for all other major OECD economies, the Euro area and Brazil continue to point to below trend growth, the OECD said. But tentative signs are emerging that the recent deterioration in CLIs is moderating, and the CLIs for seven of the fifteen countries in the Euro area are now pointing towards a positive change in momentum, it said. However, the CLI for China points more strongly to a slowdown this month than in last month’s assessment, the OECD said. The reading improved for the OECD group of industrialised economies as a whole, rising 0.2 points in December to 100.4, versus its long-term average of 100. The US reading rose for a third month running, this time by 0.7 points to 102.0, while the Japan reading, which stopped dropping three months earlier, rose 0.2 points to 101.9 in December. India's reading rose 0.6 points even if, at 95.6 in December, it was still well below its long-term average. Russia's reading rose 0.2 to 102.4. The readings for China, Brazil and the euro area continued to drop, however, with China down 0.5 points at 99.3, Brazil down 0.1 at 93.7 and the euro zone down 0.1 as well at 98.3.

Crude oil nears six-week high

Crude oil prices traded near their best levels in six weeks after encouraging data on the US economy and talk of resolution to the long-running debt problems confronting Greece stoked hope of higher global demand for fuel. Conflicting media reports on Iran halting oil supplies to six European nations also added fuel to the fire. In addition, crude inventories declined for the first time in four weeks in the US, the world’s biggest energy consumer. Crue oil futures traded in New York were poised for the biggest weekly gain this year after US jobless claims dropped to the lowest level since 2008. European governments were reportedly considering lower interest rates on emergency loans to Greece and were planning to seek ECB's help in plugging a financing gap for the second bailout. The premium between the Brent oil traded in London and the West Texas Intermediate (WTI) crude reached its highest level in a week.

Crude for March delivery was last quoted at $102.46 a barrel on the New York Mercantile Exchange. Prices on Thursday rose to $102.31, the highest close since Jan. 4. US crude futures were up 3.8% this week, the most since the period ended Dec. 23. Brent oil for April settlement was at $120.32 a barrel on the ICE Futures Europe exchange. The contract jumped to $120.11 on Thursday, the highest close in eight months. The premium in Brent to WTI for the same month was at $17.56, the widest in a week, compared with a record $27.88 on Oct. 14. Iran reportedly stopped crude exports to France and the Netherlands and threatened to end shipments to four other European countries, state-run Mehr news agency reported. However, Iran's state-run Fars news agency gave a conflicting account on the same, saying that Iran had just warned six European Union (EU) nations about a halt to oil exports. Separately, US crude stockpiles fell by 171,000 barrels last week, data from the Energy Information Administration showed. They were projected to rise 1.5 million barrels.

BOJ surprises with new easing, inflation target

The Bank of Japan (BOJ) surprised the markets on Tuesday by expanding its asset-purchase program and setting a temporary inflation target, while keeping its key interest rate range unchanged. The BOJ today added to monetary easing after exports tumbled and the world's third-largest economy contracted by more than forecast in the fourth quarter. Governor Masaaki Shirakawa’s Board unexpectedly expanded an asset-purchase program to 65 trillion yen (US$835bn) from 55 trillion yen. The Japanese central bank maintained the overnight lending rate at between zero and 0.1%. The BOJ said that the 10 trillion yen (US$128bn) increase in the asset purchases would be earmarked for the purchase of Japanese government bonds. Most economists had expected no new action from the Japanese central bank on the bond buying front. Separately, the BOJ set a 1% inflation target for the time being, making a clearer commitment to end deflation as opposed to its earlier stance when it defined the level as its "understanding" on long-term price stability. The Japanese yen slid while local stocks swung from loss to gain and ten-year government bond futures jumped following the BOJ's policy announcement. Japan’s economy shrank at an annualized pace of 2.3% in the fourth quarter of 2011 on weak exports, a report showed yesterday.

Japan’s GDP shrinks 2.3% in Oct-Dec quarter

Eurozone Q4 GDP shrinks 0.3% QoQ

The eurozone economy contracted by 0.3% in the final quarter of 2011 compared to the previous quarter, the European Union statistics agency Eurostat said in a preliminary estimate on Wednesday. Economists had forecast a 0.4% contraction. GDP in the 17-nation euro area grew by 0.1% in the third quarter. The eurozone economy grew by 0.7% in the October to December period of 2011 compared to the final quarter of 2010. Separate reports today showed that Germany, Europe's largest economy, shrank by a smaller-than-expected 0.2% in the fourth quarter of 2011, while the French economy unexpectedly expanded. Italy saw its GDP contract for a second consecutive quarter, qualifying for a technical recession.

German Q4 GDP shrinks 0.2%; France barely grows

Italy back in recession...Q4 GDP falls 0.7% QoQ

The Italian economy contracted for a second consecutive quarter in the final three months of 2011, meeting a widely-used definition of recession, official data showed on Wednesday. Italy's national statistics office, Istat, said today that preliminary GDP shrank by 0.7% in the fourth quarter of 2011 compared to the previous three months, when the economy had shrunk by 0.2%. Europe's third-largest economy contracted by 0.5% in the October to December period compared to the final quarter of 2010. Economists had forecast a 0.4% quarterly contraction.

Moody's reviews ratings of global investment banks

Moody's Investors Service has announced a review of 17 banks and securities firms with global capital markets operations. Underpinning this review is Moody's view that these firms face challenges that are not fully captured in their current ratings. Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions. These difficulties, together with inherent vulnerabilities such as confidence-sensitivity, interconnectedness, and opacity of risk, have diminished the longer term profitability and growth prospects of these firms. Nine of the 17 banks and securities firms included in Moody's review are headquartered in Europe. 

Specifically, Moody's has taken the following actions with regard to the long-term ratings and standalone credit assessments of the 17 global banks and securities firms:

• For 6 firms, placed long-term ratings on review for downgrade
• For 4 firms, extended reviews for downgrade that had been announced prior to today
• For 7 firms, extended reviews for downgrade initiated with today's earlier announcement on European banks
• Moody's has also taken a range of actions on the short-term ratings of these 17 firms

Moody's reviews ratings for European banks

S&P cuts ratings of 7 Portuguese financial firms

World Bank President Robert Zoellick to step down on June 30

World Bank Group President Robert B. Zoellick announced today he would step down at the end of a five-year term in which a transformed Bank played an historic role during the global economic crisis, using record replenishments to provide more than $247 billion to help developing countries boost growth and overcome poverty. "I’m honored to have led such a world class institution with so many talented and exceptional people. Together we have focused on supporting developing countries to navigate crises and adjust to global economic shifts. The Bank has recognized that we live in a world of multiple poles of growth where traditional concepts of the "Third World" are now outdated and where developing countries have a key role to play as growth drivers and responsible stakeholders...Read More

Kellogg Company to acquire P&G's Pringles for US$2.9bn

Kellogg Company K -0.19% announced that it has entered into an agreement to acquire Procter & Gamble's Pringles business ("Pringles") for $2.695 bn. Pringles is an excellent strategic fit for Kellogg Company. It significantly advances the company's goal of building a global snacks business on par with its global cereal business. Kellogg has established a strong U.S.-based snacks business since its successful acquisition of Keebler more than a decade ago. With the acquisition of Pringles, the company will build a truly global snacks platform and organization for further growth...Read More

Mirae Asset Global Investments to acquire Indonesia’s

Vodafone mulls bid for C&W Worldwide

Vodafone Group Plc, the UK-based mobile service provider, said on Monday that it was evaluating the prospect of making a takeover offer for Cable & Wireless Worldwide Plc.  A London newspaper had reported that Vodafone might offer £700mn or about US$1.1bn, for C&W Worldwide. Vodafone didn't specify a bid figure in its statement today. Vodafone said it regularly reviews opportunities in the sector and confirms that it is in the very early stages of evaluating the merits of a potential offer for CW&W. "Any offer, if made, will be in cash, but Vodafone reserves the right to change the specie of consideration," Vodafone said in a statement. In November, C&W Worldwide had named a new CEO, Gavin Darby.  He joined C&W from Vodafone, where he had held positions, including heading the UK business and the international operations. Vodafone has until 5 pm on 12th March to make a firm offer or withdraw. Other groups that could take an interest in CW&W's assets include the private equity firm Apax Partners, according to reports. Cable & Wireless sells telecom and internet services to major UK businesses. Its share price has taken a severe beating since it split from Cable & Wireless's Caribbean-based telecoms arm in 2010. It has been impacted by the squeeze on government spending and the weak economy, leading it to report heavy losses for the six months to September 30 and warn of no dividend payments in order to bolster its balance sheet. A series of profit warnings have slashed the share price of Cable & Wireless by 70% over the last 12 months. Shares of Cable & Wireless soared after the Vodafone announcement.

Boeing signs record deal with Lion Air worth US$22.4bn

Boeing and Jakarta-based Lion Air today finalized a firm order for 201 737 MAXs and 29 Next-Generation 737-900ERs (extended range). The agreement, first announced last November in Indonesia, also includes purchase rights for an additional 150 airplanes. "The 737 MAX is the best choice for Lion Air and the best airplane to serve our passengers," said Rusdi Kirana, Lion Air Founder and President Director. "We're excited to be the first airline in Asia to fly the 737 MAX and to be the global launch customer of the 737 MAX 9." With orders for 230 airplanes valued at US$22.4bn at list prices, this deal is the largest commercial airplane order ever in Boeing's history by both dollar value and total number of airplanes. Lion Air will also acquire purchase rights for an additional 150 airplanes...Read More

Worldwide Smartphone sales up 47% in Q4 2011: Gartner

Worldwide smartphone sales to end users soared to 149 mn units in the fourth quarter of 2011, a 47.3% increase from the fourth quarter of 2010, according to Gartner, Inc. Total smartphone sales in 2011 reached 472 mn units and accounted for 31 percent of all mobile devices sales, up 58 percent from 2010. Smartphone volumes during the quarter rose due to record sales of Apple iPhones. As a result, Apple became the third-largest mobile phone vendor in the world, overtaking LG. Apple also became the world's top smartphone vendor, with a market share of 23.8 percent in the fourth quarter of 2011, and the top smartphone vendor for 2011 as a whole, with a 19 percent market share. "Western Europe and North America led most of the smartphone growth for Apple during the fourth quarter of 2011," said Roberta Cozza, principal research analyst at Gartner. "In Western Europe the spike in iPhone sales in the fourth quarter saved the overall smartphone market after two consecutive quarters of slow sales." The quarter saw Samsung and Apple cement their positions further at the top of the market as their brands and new products clearly stood out. LG, Sony Ericsson, Motorola and Research In Motion (RIM) again recorded disappointing results as they struggled to improve volumes and profits significantly. These vendors were also exposed to a much stronger threat from the midrange and low end of the smartphone market as ZTE and Huawei continued to gain share during the quarter. Worldwide mobile device sales to end users totaled 476.5 mn units in the fourth quarter of 2011, a 5.4 percent increase from the same period in 2010 (see Table 1). In 2011 as a whole, end users bought 1.8 billion units, an 11.1 percent increase from 2010. "Expectations for 2012 are for the overall market to grow by about 7 percent, while smartphone growth is expected to slow to around 39 percent," said Annette Zimmermann, principal research analyst at Gartner...Read More