bgyan newsletter - 24nov - 30nov

8/8/2019 BGyan Newsletter - 24Nov - 30Nov

1/11

B-GyanWeekly Newsletter

24 November 2010 30 November 2010

Power & Energy | Finance | FMCG | IT & Telecom | Manufacturing


2/11

B-Gyan Newsletter 24.11.2010-30.11.2010 1

POWER & ENERGY

Planning Commission asked to set up panel on pooled pricing of gasThe Petroleum Ministry has asked the Planning Commission to constitute a committee to suggest a

mechanism for averaging out the price of imported LPG with cheaper domestic gas. This is expected

to make gas prices uniform for consumers.

At present, gas is sold in different parts of the country at varying rates depending on the source. Any

decision on a mechanism for pooled pricing of gas is likely to be in place, a year from now, he said.

Currently, the basic price of gas in the country ranges from $ 4.2/mBtu to $ 7/mBtu (both domestic

and imported gas) and the consumer gets them for $ 7/mBtu and $ 10/mBtu, respectively.

http://www.thehindubusinessline.com/2010/11/30/stories/2010113052030200.htm

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India Coal ministry sees 104 mlnT coal shortfall in FY12India's coal deficit is seen at 104 million tonnes in the next fiscal to March 2012, according to a

transcript of a speech to be delivered by Coal Minister Sriprakash Jaiswal.

Availability of coal, which accounts for more than half of the country's power generation capacity,

for the power sector was seen at 388 million tonnes in the current fiscal versus a requirement of

440 million tonnes.

India's coal imports are seen rising fast with local production unable to keep pace with demand.

While India continues to produce a majority of the coal that it consumes, imports of coal are also

rising at a fast pace, already contributing to over 10 percent of coal consumption.

http://in.reuters.com/article/idINSGE6AT08320101130

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JSW Energy to buy Canadian firm for C$422 mJSW Energy is to acquire all the shares of Toronto-listed CIC Energy for about Canadian $422 million.CIC is developing the Mmamabula Energy Complex at its Mmamabula coalfield in south-eastern

Botswana. There are plans to develop coal mines, set up power plants and convert coal to

hydrocarbon there.

The deal is expected to be completed by the last quarter of this fiscal. Coal production in the fields is

expected to commence in three to five years.http://www.indianexpress.com/news/jsw-energy-to-buy-cic-for-c422-m/714951/

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3/11


Suzlon unit gets 295 MW contractREpower Systems AG, a unit of Indian wind turbine maker Suzlon Energy Ltd, said on Friday it has

signed a contract with Belgium's C-Power for delivery of 48 wind energy turbines.

The contract with the Belgian offshore project company is for a total rated power of about 295

megawatts.

http://economictimes.indiatimes.com/news/news-by-industry/energy/power/Suzlon-unit-gets-295-

MW-contract/articleshow/6993152.cms

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Dabhol project generates```220-cr profitsAfter years of operational losses and

shutdowns, the Dabhol power plant is seeing a

rebound with half yearly profits at`220 crore

in the last fiscal. Ratnagiri Gas and Power Pvt

Ltd (RGPPL) made all six gas turbines

operational earlier this year, achieving full

capacity of 1,940 MW on March 31.

NTPC Ltd, which is operating the gas-based project and has been instrumental in turning around the

project, has a 29.65-per cent stake in RGPPL, with GAIL (India) Ltd and the Maharashtra State

Electricity Board being the other key shareholders. But troubles are still imminent, with escalating

costs and output which might be met only in 4-5 years.

http://www.thehindubusinessline.com/2010/11/28/stories/2010112851930100.htm

http://www.businessworld.in/bw/2010_11_27_An_Expensive_Repair.html

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MoEF okays Jaitapur nuclear project; but with 35 ridersThe Union ministry of environment and forests (MoEF) today okayed the 10,000 MW Jaitapur

nuclear power project in Maharashtra, to be developed by the Nuclear Power Corporation (NPC) in

collaboration with French power equipment maker firm Areva. The ministry also laid down 35conditions and safeguards, of which 12 are general and 23 specific. The clearance comes barely a

week after a similar one was granted to the Navi Mumbai airport. An agreement is expected to be

signed between Areva and NPC next month when French President Nicolas Sarkozy visits India.

NPC will first procure two European Pressured Reactors (EPRs) of 1,650 Mw each from Areva and

later four more to bring the total generation capacity to 10,000 MW. The first unit is expected to

come up in 2017-18. The project entails an investment of`1 lakh crore.

http://www.business-standard.com/india/news/moef-okays-jaitapur-project35-riders/416474/________________________________________________________________


4/11


FINANCE

GDP grows by 8.9 pct in Q2Driven by good performance of agriculture and manufacturing, the Indian economy grew by 8.9 per

cent in the second quarter of the current fiscal, up from 8.7 per cent in the corresponding period a

year ago. This took the overall economic expansion during the first half (April-September) to 8.9 per

cent, up from 7.5 per cent in the corresponding period a year ago. According to the data released by

the government, farm sector during the second quarter recorded a growth rate of 4.4 per cent, up

from 0.9 per cent in the corresponding period a year ago. The manufacturing sector during the same

period recorded a growth rate of 9.8 per cent as compared to 8.4 per cent during the same period

last year.

http://financialexpress.com/news/gdp-grows-by-8.9-pct-in-q2/718041

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Asian markets tumble on China, eurozone worriesAsian stocks slumped on Tuesday with Shanghai falling nearly three percent and Tokyo almost two

percent as markets worried about Chinese economic tightening and the troubled eurozone. The

euro slipped to fresh two-month lows in Asian trade, due to skepticism that Ireland's international

bailout package can prevent eurozone debt contagion. Shanghai's plunge came as expectations

mounted of an imminent interest rate hike, following a slew of other measures this month to coolthe mainland economy and tame inflation -- the latter a political priority for the government.

http://economictimes.indiatimes.com/markets/global-markets/Asian-markets-tumble-on-China-

eurozone-worries/articleshow/7014245.cms

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Rupee edges up on strong GDP data; euro hurtsThe rupee seesawed on Tuesday before closing marginally stronger as positive sentiment due to a

better-than-hoped economic expansion in the September quarter was offset by sharp losses in the

euro.

The partially convertible rupee closed at 45.88/89 per dollar, off its low of 46.12, its weakest since

Sept. 17, and 0.1 per cent above Monday's close of 45.93/94. On the month, however, the rupee fell

3.2 per cent, in its biggest monthly decline since May, when it had shed 4.3 per cent and snapped

four consecutive monthly gains.

http://economictimes.indiatimes.com/markets/forex/Rupee-edges-up-on-strong-GDP-data-euro-

hurts/articleshow/7016135.cms

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5/11


Banks get aggressive for deposits, up rates 100 bpsDeposit rates have increased over 100 basis points in the last ten days as banks are getting

aggressive to mobilise resources to fund the growing demand for loans in the busy season. In the last

ten days, at least five government banks have increased deposit rates and more are expected to

follow suit.

Growth in deposits in the current financial year has been the sluggish, and far below the Reserve

Bank of India (RBI) projection of 18 per cent. What is more worrying is that the outstanding deposit

in commercial banks fell by`65,000 crore for the fortnight ended November 5, as compared to the

previous fortnight. According to latest RBI figures, deposits registered 15.23 per cent year-on-year

growth to`48,10,227 crore. The softer interest regime which prevailed for most part of 2009 and till

middle of 2010, had made deposits unattractive. Inflation rate is still near double digit mark, and real

returns to depositors continue to be negative. RBI, during its mid-quarter review of monetary policy

in September, cautioned banks that low deposits growth could hamper loan demand.

http://www.business-standard.com/india/news/banks-get-aggressive-for-depositsrates-100-bps/416191/

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MOIL IPO subscribed 5.22 times on Day 3In a staggering performance, the initial public offer of state-run MOIL received a more than five

times subscription till noon on the third day of issue on Tuesday. The initial public offer (IPO) of the

manganese ore major got subscribed 5.22 times till 1200 hours, attracting total bids of 17.5 crore

equity shares, as compared to 3.36 crore shares on offer, a National Stock Exchange data said. The

government has fixed the price band of shares under the offer at`340-375 apiece. The government(both centre and state) will divest 20 per cent of its stake in the company under the IPO. Edelweiss

Capital, IDBI Capital Market Services and JP Morgan India Private Ltd are the book running lead

managers to the issue.

http://www.financialexpress.com/news/moil-ipo-subscribed-5.22-times-on-day-3/718063/0

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6/11


FMCG

Future Group plans fruits, vegetables storesKishore Biyani-led Future Value Retail plans to open standalone farm fresh stores selling only fruits

and vegetables in neighbourhood locations on the lines of the Safal fruits-and-vegetables chain run

by Mother Dairy. Currently, the group sells fruits and vegetables at about 191 Food Bazaar outlets

across the country. The size of Food Bazaar outlets ranges from 8,000 square feet to 15,000 square

feet and the company is looking at dedicating an area of 1,000-2,000 square feet only for food and

vegetables within the store.

http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/Future-Group-

plans-fruits-vegetables-stores/articleshow/6985101.cms

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FMCG market in rural India to touch $100 bn by 2025: NielsenThe fast moving consumer goods market in rural India is tipped to touch $100 bn (around`45,735

crore) by 2025 on the back of "unrelenting" demand driven by rising income levels. In addition,

premium skin care brands typically associated with the urban population are growing nearly twice as

fast in rural areas, he added. At present, rural consumers spend about USD 9 billion per annum on

FMCG items and product categories such as instant noodles, deodorant and fabric, with the pace of

consumption growing much faster than urban areas, as per the findings.

http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/FMCG-

market-in-rural-India-to-touch-100-bn-by-2025-Nielsen/articleshow/6983123.cms____________________________________________________________________

Amway India eyes```2,500 cr turnover by 2012Direct selling FMCG Company, Amway India, is eyeing a`2,500 crore turnover in the next two-years

by expanding reach, launching new products and strengthening its marketing. Amway India is a

wholly-owned subsidiary of USD 8.2 billion US-based Amway Corporation. The companymanufactures its products through seven third-party contract manufacturers in the country with

Baddi-based Sarvotham Care being Amway India's largest vendor (contract manufacturer).

The company offers 123 products in personal care, home care, nutrition and wellness, cosmetics and

great value products

http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fashion-/-cosmetics-/-

jewellery/Amway-India-eyes-Rs-2500-cr-turnover-by-2012/articleshow/7013913.cms

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7/11


Old-time consumer electronics brands looking to return in newavatarsA legion of old-time consumer electronics brands such as Akai, Panorama, Weston, Kelvinator, Oscar

and Maharaja Whiteline that once ruled the roost in India, are looking to return in new avatars.

Among the pack of comeback kids is Ashoke Mukherjee, the entrepreneur who in the 1980s gave

India its first big audio and music system brand Sonodyne. Riding the comeback wave are singular

brands too. Videocon, for instance, is re-launching Kelvinator, once almost a generic name for

refrigerators. Akai, founded in Japan and based in Singapore, is selling a 32-inch LED TV.

http://economictimes.indiatimes.com/news/news-by-industry/cons-products/electronics/Old-time-

consumer-electronics-brands-looking-to-return-in-new-avatars/articleshow/6993177.cms

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India top innovation market for MNC, food cos.India figures among the top three innovations markets for multinational foods companies.

The main driver, of course, is the booming domestic market, driven by a buoyant middle class that is

expanding as the economy grows in an impressive speed and brings more people out of poverty to

join the consumer class. Theres an increasing recognition of talent available in India in the technical

and scientific food research space. Also, the cost of innovation is still a lot lower here compared to

developed markets.

http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/India-top-

innovation-market-for-MNC-food-cos/articleshow/7007866.cms

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8/11


IT & TELECOM

Outsourcing market: Too much dependence on India is seen to be ariskThe Mumbai terror attack of 2008 created a term that is increasingly coming into the lexicon of IT

outsourcing, India plus one. Some attribute the origin of that term to Forrester Research , which,

following the terror attack and the Satyam scandal, recommended that companies should derisk by

spreading their outsourcing operations beyond India, to at least one other country.

Recently, Hewlett-Packard's VP of enterprise services Robb Rasmussen said in an interview to

CIO.com that a lot of HP clients want an India-plus-one strategy. Historically, they've had a presence

in India, but to mitigate risk, they'd like to have some assets somewhere else, he said.

http://economictimes.indiatimes.com/tech/ites/Outsourcing-market-Too-much-dependence-on-

India-is-seen-to-be-a-risk/articleshow/6998710.cms

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A Facebook Founder Begins a Social Network Focused on CharitiesChris Hughes, one of the founders of Facebook and the chief digital organizer for Barack

Obamas presidential campaign, knows a thing or two about building online communities.

Now he is applying his expertise to a new venture called Jumo, which aims to connectpeople with nonprofits and charitable organizations. The site, which is being unveiled on

Tuesday, aims to do what Yelp did for restaurants, Mr. Hughes said, indexing charities to

help people find and evaluate them.

http://www.nytimes.com/2010/11/30/technology/30jumo.html?_r=1&ref=technology

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Indian mid-tier software firm MphasiS turns billion-$ firmMphasis, the first among Indian mid-tier software services firms to achieve billion-dollar revenues,

said higher volumes from owner Hewlett-Packard, apart from acquisition of smaller firms will help

the company double its revenues from $1 billion-plus right now.

MphasiS, which follows a November to October fiscal year, said revenues for the year ended

October grew by 18% to 5,037 crore and net profit improved by 20% to`909 crore.

http://economictimes.indiatimes.com/tech/software/Indian-mid-tier-software-firm-MphasiS-turns-

billion--firm/articleshow/6979218.cms

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9/11


Gartner warns of more destructive online attacks by 2015World's leading IT research and advisory firm Gartner has forecast that by 2015, online sabotages

will become multi-modal and very damaging and that even a G-20 nation's critical infrastructure will

be disrupted and damaged by such cyber attacks.

By 2015, a G20 nation's critical infrastructure will be disrupted and damaged by online sabotage.

Online attacks can be multimodal, in the sense of targeting multiple systems for maximum impact,

like financial system, (stock exchanges) physical plant (control systems of a chemical, nuclear or

electric plant), or mobile communications (mobile message routers), Managing Vice-President and

Gartner fellow Darryl Plummer said in a report titled Gartner's Top Predictions for IT Organisations

and Users, 2011 and Beyond: IT's Growing Transparency released this week.

http://economictimes.indiatimes.com/tech/internet/Gartner-warns-of-more-destructive-online-

attacks-by-2015/articleshow/7016510.cms

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Google Is Said to Be Poised to Buy GrouponGoogle is near a deal to acquire Groupon, the pioneering online discounter, for as much as $6 billion,

people with direct knowledge of the matter told DealBook on Monday. A deal, in the $5 billion to $6

billion range, could be struck as soon as this week, these people said, cautioning that the talks could

still fall apart. At that price, Groupon known for its daily discounts would be one of Googles

largest acquisitions, dwarfing its $3.1 billion purchase of DoubleClick, the display advertising giant, in

2007. The deal would also be Googles boldest foray in local business online advertising, a large and

untapped market it has been trying to get into, most recently by promoting Marissa Mayer tooversee the local business and attempting to buy Yelp, the local review site, last year.

http://dealbook.nytimes.com/2010/11/30/google-is-said-to-be-close-to-buying-groupon/

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10/11


MANUFACTURING

Ford plans second plant in India, Gujarat on radarWith the Indian car market booming, Ford is planning to set up a second plant and has approached

the Gujarat government for land. Ford which has announced eight new models for India by 2015, has

been suggested a site near Sanand, where Tata Motors also has its factory for Nano, by Gujarat state

government officials. Ford has been riding high after the success of its Figo hatchback and wants to

ramp up quickly to drive in new models and keep the momentum going.

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles

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M&M buys Ssangyong for $463 mnMahindra & Mahindra (M&M) and Ssangyong Motor Company Limited (SYMC) of Korea signed adefinitive agreement in Seoul for M&M to acquire a 70 per cent stake in SYMC. The total cost of

acquisition is $463 million with $378 million in new stock and $85 million in corporate bonds.

As a premier manufacturer of sports utility vehicles (SUV) and recreational vehicles (RV), SsangYong

manufactures premium automobile products in Korea.

http://www.thehindu.com/business/companies/article907282.ece

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Brose India Automotive systems to start production next yearBrose India Automotive Systems, part of the Germany headquartered Euro two billion Brose Group ,

would commence production at its manufacturing facility in Pune next year. The company, which

forayed into the Indian market in 2006, caters to the automobile original equipment manufacturers

and suppliers. The company's focus is to engage with local OEMs and International OEMs operating

in India and provide them with locally produced parts.


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11/11


BMW to expand capacityGerman luxury carmaker BMW Group will expand its capacity for the second time in less than a year

as demand for luxury cars is rising propelled by increasing purchasing power. BMW Group plans to

ramp up its capacity to 8,000 units per year at its Chennai plant by early 2011 from the current 3,000

units. The luxury car market grew 40% to 9,959 units in April-October period this year, according to

data compiled by Society of Indian Automobile Manufacturers (SIAM).


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L&T bags```1,030-cr order for construction worksThe company's buildings and factories operating division has secured`1,030-crore orders for the

construction of commercial and residential buildings, including metro depot facilities and add-on

orders from various ongoing projects. It includes a `385-crore order for the construction ofresidential buildings from leading developers and a`645-crore order from unnamed clients.

http://economictimes.indiatimes.com/news/news-by-industry/indl-goods

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