PaRCha – JNU – AISA material – 2010 ID-26054
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Page No. 12, Vol: 1, Issue: 101 D.L No.79 Dated 19/05/2010 The Bengal Post Rs 2.50 The Bengal Post Kolkata Friday October 8, 2010 Page 12 .
BUSINESS .
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BHEL bags Rs 3,700-cr order .
New Delhi: BHEL has bagged a Rs 3,700-crore order from Karnataka Power Corporation Ltd for setting up the 700 MW Bellary Thermal Power Station in Karnataka. PTI .
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FDI retail policy soon: Centre .
New Delhi: The govern-ment, on Thursday, indi-cated that a new policy on foreign direct investment (FDI) in the politically sensi-tive multi-brand retail sector will come soon. At present, India does not allow FDI in the lucrative retail sector, which employs 33 million people and is dominated bykirana shops. PTI .
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Pantaloon Retail gets board nod .
Mumbai: Pantaloon Retail (India) has approved the proposal to raise Rs 750 crore in one or more tranches by issuing equity shares or any other financial instrument to be finalised later. The board of directors approval came at its meet-ing held on Thursday. PTI .
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India shines in emerging markets .
Mumbai: Emerging markets have witnessed a drop in economic growth for the second consecutive quarter in July-September quarter, according to HSBC Emerging Markets Index. However, India has reported robust growth in output. BPC .
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SpiceJet launches first foreign flight .
New Delhi: Low-cost carrier SpiceJet on Thursday launched its international operations with its first flight taking off from here for Kathmandu. PTI .
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Nokia launches C3 handsets in India .
Kochi: Nokia has launched Nokia C3 in India, claimed to be the first device to bring a full QWERTY keyboard to mobile phone platform-Series 40. Nokia C3 allow users to view, post, com-ment, share locations and even update their status on social networks. PTI .
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ING India launches two Ulip plans .
Kolkata: ING Life India, in its 10th year of operations, has come out with unit linked insurance plans –ING Uttam Jeevan and its single premium variant, ING Uttam Jeevan SP. Being non-medical insurance products, both provide long-term investment solutions. BPC .
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Spandana scales up agri loans .
Kolkata: Spandana, one of the largest microfinance companies in India, has scaled up its agri-family loans and has disbursed over Rs 500 crore to small and marginal farmers till September 30 after complet-ing a three-year pilot run in Andhra Pradesh. BPC New York: Quota reforms is International Monetary one of the key issues that Fund is rebuked for reflect-finance minister Pranab ing the economic dynamics Mukherjee will raise at the of the same era. annual meeting of the He pointed out that the International Monetary emerging developing coun-Fund (IMF) and the World tries were making a sub-Bank, which kicks off in stantial contribution to the Washington on Thursday. world’s output and GDP, .
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Quota reforms in the IMF Mukherjee said, adding: is one of our basic objec-According to us, the quota tives… we want that at least and governance structures 5-6 per cent quota should of the IMF does not reflect be increased in the IMF and the ground realities. emerging market Underling the urgent economies of the world need for reforms, should have their shares, Mukherjee said that global Mukherjee said in New York economic realities should on Wednesday. get reflected in the share in .
This is one of the sub-the quota and governance jects that will emerge in the architecture of the world’s course of my discussions financial institutions. with the authorities of the Meanwhile, a German World Bank and IMF, he official told the media in added. Berlin on Tuesday that .
The Brussels Declaration Germany was asked to give on more effective global up as many as two seats on economic governance, the IMF board to modernise adopted at the conclusion of the institution if other ready the eighth ASEM summit, countries, including the US stated that IMF quota shares would do so, Dow Jones should be shifted to reported. dynamic emerging markets "We Europeans are inter-and developing countries by ested in a package solution. at least five per cent from We are willing to give up over-represented to under-quota shares, but the same represented countries. must be true for other, over-.
Like the United Nations’ represented countries," the Security Council, which is official said, speaking on criticised for reflecting the condition of anonymity political power structure because the negotiations that existed after the Second are yet to begin in World War, the Washington. PTI .
Brussels/New Delhi: The European Commission has slapped a fine of over 458 million euros on the ArcelorMittal and 16 others for operating a price-fixing cartel for nearly two decades. .
It is amazing how such a significant number of com-panies abused nearly the entire European construc-tion market for such a long time and for such a vital LM Mittal product. This was almost as if they were acting in a and ArcelorMittal Wire planned economy, said France by 60 per cent Joaquín Almunia, commis-because they had already sion vice-president in been fined twice for cartels charge of competition. in the steel sector. .
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The commission is the The commission has executive arm of the fined 17 pre-stressing steel European Union. producers a total of over .
Earlier on June 30, the 458 million euro for oper-European Commission had ating a price-fixing and fined 17 pre-stressing steel market-sharing cartel producers 518.5 million between January 1984 and euros for fixing prices of a September 2002 in all the type of steel used in con-countries that then formed crete. On September 30, the the EU except the United Commission corrected Kingdom, Ireland and errors in the calculation of Greece. the fine, after which the During 18 years, the new figure stands at 458 companies fixed individual million euro. quotas and prices, allocated .
The pre-stressing steel clients and exchanged sen-comprises of long, curled sitive commercial informa-steel wires used with con-tion. In addition, they mon-crete in construction sites itored price, client and to make foundations, bal-quota arrangements conies or bridges. through a system of .
ArcelorMittal was national co-ordinators and imposed the largest indi-bilateral contacts, it added. vidual fine — over 230 mil-This is in breach of lion euro. Besides, the com-Article 101 of the Treaty on mission increased the fines the Functioning of the for ArcelorMittal Fontaine European Union. PTI .
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Apple CEO and co-founder Steve Jobs (R) receives a pen from California Governor Arnold Schwarzenegger during a signing ceremony at Lucile Packard Children’s Hospital in Palo Alto, California on Tuesday to create the nation’s first living donor registry for kidney transplants. Jobs was a liver transplant recipient in 2009. AP/PTI .
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Pranab to push for quota .
reforms at IMF meeting .
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Union finance minister Pranab Mukherjee with India’s ambassador to the US Meera Shankar, in New York on Wednesday. PTI .
9pc growth likely soon .
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New York: India, the world’s second fastest growing major economy, has called the global investor commu-nity to participate in the growth story, saying the country was poised to expand by nine per cent. .
"In the short term, it is reasonable to expect that the Indian economy will go back to the robust growth path of around nine per cent average, he said. .
Recalling how the country managed to withstand the impact of global financial meltdown, which pulled down the economic growth to 6.7 per cent in 2008-09 from nine per cent in the preceding three years, Mukherjee told global investors that India presents an opportunity for investment that you cannot afford to miss. .
India’s economic growth rate was 7.4 per cent in 2009-10 and is expected to be over 8.5 per cent during the cur-rent fiscal. From over 9 per cent average for three years till 2007-08, growth slipped to 6.7 per cent in 2008-09 owing to the global economic crisis. PTI .
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NBFCs keen to raise .
capital to Rs 1000 cr .
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Our Correspondent should be allowed to enter .
the banking sector, he added. Mumbai: The Finance Mahindra and Mahindra, Industry Development the Aditya Birla Group, Tata Council (FIDC), on Thursday, Capital, Shriram Transport said that non-banking Finance, Magma Fincorp are finance companies (NBFCs) some of the corporate are willing to raise their cap-houses interested in new ital to Rs 1,000 crore from banking licenses and their the existing Rs 500 crore to representatives attended the get a new banking license. meeting called by the RBI on The Reserve Bank of India Thursday to discuss the (RBI), on Thursday, had a issue. meeting with corporates CII open to tapping for-seeking new banking eign capital: Meanwhile, the licenses. Speaking to Confederation of Indian reporters after the meeting, Industry, on Thursday, said: Mahesh Thakkar, director Considering the need to general, FIDC said: Right attract large capital to the now, the NBFCs capital banking sector to fund requirement is Rs 500 crore growth, we are open to the and we are ready to raise it idea of tapping foreign up to Rs 1,000 crore. The RBI shareholder capital as well. wants to increase the capital However, a level-playing requirement for NBFCs while field must apply to both for-allotting new banking eign shareholders and licenses. domestic promoters. .
FIDC is a representative CII also seconded the view body of NBFCs. that the minimum capital for .
In August 2010, the RBI new banks should be at least had released a discussion Rs 1,000 crore. paper on the entry of new While speaking with banks in the private sector. reporters, Alok Prasad, chief Comprehensive guidelines executive officer of on new banking licenses will Microfinance Institution be framed and applications Network, said CII has will be invited after the dis-expressed a view that corpo-cussions, based on feedback, rates and NBFCs should be the RBI has said. considered for bank licenses. .
The NBFCs are currently The RBI was just listening to doing business in rural and various viewpoints and their semi-urban areas and have officials have conveyed that better chances of getting before taking a call on new licenses for new banks, bank licenses they would lis-Thakkar said. Corporates ten to all views, Prasad with strong financial records added. .
Manappuram plans to raise Rs 2,300 cr in 6 months .
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Our Correspondent .
Kolkata: Kerala-based gold loan financier Manappuram General Finance & Leasing Ltd (Magfil), flagship com-pany of the Manappuram Group, plans to raise Rs 2,300 crore in the next six months. .
The company plans to open 400 branches in the eastern region, including Orissa and West Bengal, within two years. Nationally, 300 more branches will be operational before March 2011. .
We are planning to raise Rs 1,000 through sale of shares to qualified institu-tions, another Rs 1,000 .
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Mithun Chakraborty. .
Prabir Bhattacharya .
against non-convertible debentures and Rs 300 crore against tier II debentures, said executive chairman V.P. Nandakumar, MAGFIL, while signing up actor Mithun Chakraborty to be its brand ambassador in Kolkata on Wednesday. .
Brand ambassadors will help the company connect and communicate the Manappuram brand value to its current users, Nandakumar added. .
The loan book of Magfil last year stood at Rs 2,500 crore and this year, at September-end, the figure crossed Rs 5,000 crore. As a result, the company is plan-ning to achieve a loan book of Rs 8,000 in the current fis-cal of 2010-11. Last year, our loan book showed Rs 2,500 and, this year, we had tar-geted Rs 4,500 but in six months, we have crossed Rs 4,500. Now we are targeting Rs 8,000,said Nandakumar. .
Indian households own 20,000 tonne of gold which amounts to two thirds of the countrys GDP while the total quantity of mortgaged gold is 1,500 tonne. Manappuram manages around 40 tonne of mort-gaged gold assets. .
The company plans to open 100 more branches in and around Kolkata. .
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Reliance Life president and ED Malay Ghosh (L) with Ujjaini Dasgupta, senior VP and business head, health insurance, in the city on Thursday. Debabrata Biswas .
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Reliance Life makes entry .
into health insurance space .
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Our Bureau .
Kolkata: Reliance Life Insurance Company (RLIC), one of the fastest growing players in the private life insurance space hopes to break-even this year as it enters into the fifth year of its operations. The life insur-ance major plans infuse Rs 258 crore to drive a 20 per cent growth this fiscal. .
The company on Thursday, made its foray into the health insurance segment with its first product offering Reliance Care Life For You, a pure reimbursement plan for individuals and their family members and has targeted almost Rs 2000 crore of pre-mium in the next five years from its health vertical. .
Talking on the companys new initiative and growth trajectory of the company, Malay Ghosh, president and executive director, Reliance Life said, We hope to cover five lakh lives and garner a premium of Rs 150 crore this year. In three years this should touch Rs 1000 crore. .
The policy term under this plan is three years with the premium fixed for the entire period, irrespective of the claims. We have roped in two third party administra-tors and have created a pre-ferred network of over 6,000 hospitals to provide hospi-talization and would lever-age our distribution strength of 1247 branches and over 2 lakh advisors to sell the healthcare solution. We aim to be amongst the top three health insurers by 2012, Ghosh said. .
With a huge number of changes in the life insurance sector along, it would be interesting to see the com-panys growth over the next five years over its product lines. While the companys is still awaiting guidelines on the IPO front to dilute 10 per cent of its stake, back of the envelop calculations at a 20 per cent Y-o-Y growth puts Reliance Life on the top quar-tile of private life companies. Aiming at a new business premium of around Rs 10,000 crore, a doubling of renewal premium at Rs 20,000 crore and a Rs 2000 crore from its health portfo-lio would gross up a pre-mium of around Rs 32,000 crore in the next five years. .
The company proposes to launch a number of plans eventually and may increase its share of unit linked plans to 60 per cent from 49.75 per cent at present. .
The company is trying to tie up with banks for few services including paying premiums. It is opening up 100 branches this year and scaling up its alternate dis-tribution channels. .
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Saradha sets up biscuits unit in Assam .
Our Special Correspondent .
Kolkata: Bhasank Foods, a unit of the Saradha Group, has set up a factory at Dhubri in Assam to cater to the increasing demand for qual-ity biscuits and other baked foods in this state and the North East. .
Speaking at the inaugura-tion of the unit in the pres-ence of the health minister of Assam, Himanta Biswa Sarma, Sudipto Sen, chair-man-cum-managing direc-tor of the Saradha Group, said: Bhasank Foods, a unit of the Saradha Group, will offer scope for employment to the people of Assam as part of its prime endeavour to push for socio-economic growth in the North East. The company looks upon the development of the state and the region as its mission. .
The company will aim to position its brands at par with the market leader, the company said in a release. The four variants are Saradha Milk Marie, Saradha Salt Run, Saradha U & I and Saradha Top. More flavours like Makhan Delight, Milk koot and Coconuty are on the anvil. .
The 12-year-old group has a presence across various segments. These include realty, agro development, tours and travels, cement, exports, bio-gas and educa-tion. .
Under Saradha Realty, some of its key projects are Saradha Garden at Joka, Saradha Enclave near Contai, Beach Resort at Frazergunge, Jungle Resort at Lataguri and Matiali, a seven-star resort at Sonarpur, Guwahati and a Tourist Hub and Health Resort at Shimla. .
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Cairn gets shareholders nod for selloff .
New Delhi: Cairn Energy plc on Thursday secured the approval of shareholders for sale of majority stake in its Indian arm to Vedanta Resources but the closure of the deal depends on certain conditions, including open offer from Sesa Goa that is likely to miss the October 11 timeline. .
About 99 per cent of the .
94.89 crore shareholders unanimously approved the sale of 40-51 per cent stake in Cairn India to Vedanta Group for an estimated .48 billion, a Cairn Energy spokesperson said from Edinburgh where the general meeting was held. .
This means that ONGC, which partners Cairn India in several of its properties, will not be able to make a counter offer now or exercise its pre-emption right. .
But the Cairn-Vedanta deal is far from conclusion. Besides seeking its share-holder approval before October 30, Vedanta Group will have to complete the Indian open offer for the transaction to reach its logi-cal end. PTI .
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Italian luxury brands eye India .
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New Delhi: Fondazione Altagamma, a body of luxury brands of Italy, on Thursday said many top Italian compa-nies will be giving a big push to strengthen presence in India and will soon be announcing their investments. .
"In the next few months a number of Italian brands will announce their investments for expanding and strengthening presence in India," Fondazione Altagamma, executive director Armando Branchini said on the sidelines of CII luxury goods forum. .
He said Fondazione Altagamma, which has 70 members, expects the total number of single-brand stores of Italian firms in India to touch 200 by 2020 from 30 at present. .
The 30 single brand stores of Italian brands that are already present in India is too less as compared to China, which has about 400 stores, he said. .
"But in the next ten years, by 2020, about 200 stores are likely to come up in India by existing as well as new Italian brands," Branchini added. .
While he did not provide the specifics about the size of the investments that could come in by the Italian luxury brands, Branchini said expansion in India has been slow due to policies and also lack of appropriate retail space. .
"The pace of growth in India has been very slow as compared to China because of several factors like FDI restrictions, heavy custom duties (that drives customers to shop abroad) and limited appropriate commercial space for selling luxury brands," he said. .
Italian brands started coming to India around 2000. It has been almost a decade but the pace of growth has been very slow.Yet, things are slowly chang-ing and the environment is gradually favouring expansion of luxury brands, Branchini added. .
"A host of attractive retail spaces that are coming up, such as UB City in Bangalore, DLF Emporio in Delhi and Mumbai’s Galleria, which offer the right ambience, is attracting a lot of brands to set up shops in India," he said. PTI .
Here for long .
haul: Armani .
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New Delhi: Stating that it is in India for the long haul, Italian luxury firm Giorgio Armani on Thursday said it is not in a hurry to expand in the coun-try and would rather adopt a cali-brated approach. .
"We are not in a hurry to open shops here as we want no mistakes here. But yes, we will need to have a different approach for India," Giorgio Armani Group deputy chairman John Hooks said at a CII summit here. We are currently understanding and experimenting," he said. The com-pany has two stores in Delhi and will be opening the third one in Mumbai next week. It is also looking to take Giorgio Armani stores to Bangalore, Hyderabad and Chennai. PTI .
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