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Pintu

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http://www.moneycontrol.com/news/ip...scribed-114x-sees-36-35-bn-demand_492697.html

Coal India IPO subscribed 11.4x, sees $ 35 bn demand
Published on Wed, Oct 20, 2010 at 17:11 | Updated at Wed, Oct 20, 2010 at 17:28 | Source : Moneycontrol.com

India's largest coal producing company Coal India's (CIL) initial public offering (IPO) has received overwhelming response from qualified institutional buyers (QIBs). It has been subscribed 11.4 times so far, reports CNBC-TV18.

Reserved portion of QIBs, which closed today, has subscribed nearly 24 times while retail and non-institutional investors' portion got subscribed just 0.79 times and 1.38 times, respectively.



The issue has seen a total demand of USD 35 billion. It has received bids for 656.15 crore equity shares as against the issue size of 63.16 crore shares. The issue will close on October 21 for retail investors, NIIs and employees.

The government aims to raise more than Rs 15,000 crore through the IPO, which will be largest ever amount raised by an Indian company via offering. The company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder (GoI), whose stake will be 89.99% post the issue.

The offer shall constitute 10% of the post offer paid-up equity share capital of company.

Book running lead mangers to the issue are Citigroup Global Markets India Private Limited, Deutsche Equities (India) Private Limited, DSP Merrill Lynch Limited, ENAM Securities Private Limited, Kotak Mahindra Capital Company Limited and Morgan Stanley India Company Private Limited.
 

plugwater

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Corporate India's M&A deal value at USD5 bn in 2010: Report

NEW DELHI: Corporate India's appetite for growth through inorganic mode has resurfaced with mergers and acquisitions (M&A) deal value in the month of November nearing USD 5 billion -- over three times increase over last year, says a survey.

According to data compiled by research firm VCCEdge, the M&A deal value in November this year nearly trebled to USD 4.9 billion from USD 1.7 billion over the same period last year.

On month-on-month basis, the November M&A deal volume represents a jump of over five times.

There were M&A deals worth about USD 16 billion in 2009, while in the year 2008, it stood at a whopping USD 40 billion.

The uptrend in the deal volume is reflected in the number of transactions as well, with deal count witnessing an upward trend with 59 deals against 41 recorded in the period under consideration last year.

November 2010 has seen the fourth highest monthly M&A deal value over the last twelve months.

Deal valuations witnessed a revival in line with the overall economy, as the average deal amount went up from USD 74 million in November 2009 to USD 151 million in November 2010, VCCEdge said in its monthly deal report.

A sector-wise analysis shows that in the period under review utilities and consumer discretionary were the most targeted sectors with deals worth USD 1.38 billion and USD 1.27 billion, respectively. They accounted for 53 per cent of total M&A deal value during the month.

Other sectors, which contributed significantly to the deal value were energy (USD 564 million), financials, (USD 561 million) and materials (USD 507 million).

In terms of number of deals, consumer discretionary and information technology turned out to be the most active sectors with 11 and 10 deals respectively, followed by industrials with eight deals and financials and consumer staples with seven deals each.

The largest deal in November 2010 was China Huaneng Corp's acquisition of United States-based IntergenInc from GMR Infrastructure . GMR Group acquired 50 per cent stake in Intergen for USD 1.354 million in October 2008.

This was followed by Sahara India's acquisition of 100 per cent stake in Grosvenor House for around USD 757 million. The other top deal of the month was Essar Group's acquisition of 60 per cent stake in Zimbabwe Iron & Steel for a price of USD 500 million.

The top five M&A deals accounted for 68 per cent of total M&A deal value in November 2010, the report added.

http://economictimes.indiatimes.com...SD5-bn-in-2010-Report/articleshow/7065300.cms
 

Pintu

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http://profit.ndtv.com/news/show/hero-honda-part-ways-sign-licensing-pact-129788

Hero, Honda part ways; Sign licensing pact

NDTV Correspondent, December 16, 2010




The Hero Group and the Honda Motor Company today agreed to part ways after 26 years of collaboration. A formal statement in this regard was issued to the Bombay Stock Exchange on the conclusion of the Hero Honda board meeting. Honda had sent a formal communication about the termination of partnership to the Tokyo exchange today morning.

The Hero Group and the Honda Motor Company have signed a new MoU (memorandum of understanding) for a new licensing arrangement. The Hero Group will acquire 26 per cent stake in Hero Honda from the Honda Motor Company. The fresh licensing agreement with Honda will provide new models. The Hero group will pay royalty to Honda and this will remain in line with the current levels or lower, said the company's MD & CEO Pawan Munjal. Hero Honda's stock price had been battered over the last few weeks over concerns that the company will have to pay a higher royalty for the technology thereby putting pressure on the margins.

Munjal also said that the company will be free to develop own products and the new arrangement with Honda will be 'growth oriented'.

The unease between the Hero Group and Honda Motor Company started after the Japanese firm decided to enter the Indian two-wheeler market through it's wholly- owned subsidiary Honda Motorcycle & Scooter India (HMSI).

Honda and the Munjals promoted Hero group hold 26 per cent each in Hero Honda, the world's largest two-wheeler maker. Hero Honda sold 4.5 million two-wheelers in the last fiscal, grabbing 48 per cent of the growing Indian two-wheelers market, which is the second biggest in the world after China.
 

Pintu

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http://profit.ndtv.com/news/show/hero-group-to-buyout-honda-s-stake-in-hero-honda-129856

Hero Group to buyout Honda's stake in Hero Honda

Press Trust of India, December 16, 2010 (New Delhi)



The Hero Group and Honda Motor Co on Thursday said they are ending their 26-year old two-wheeler joint venture -- Hero Honda, with the Indian partner agreeing to buy out its Japanese counterpart for an undisclosed sum.

The two parties have signed a new licencing agreement which will replace their existing joint venture pact. As part of the deal the Indian partner will buy the entire stake of Honda in a phased manner amongst two or more qualified promoters at a discount.

Moreover, Hero Honda will continue to pay royalty at the current levels to Honda, while it will now be able to export two-wheelers and also develop its own R&D capabilities.

The Hero Group and Honda hold 26 per cent each in Hero Honda that started operations in 1984 to become the world's largest two-wheeler maker today.

Upon completion of the stake buyout, Hero Group would become the sole promoters of the company.

"This is the most important announcement I have made in last 25 years... The board has approved an MoU between Hero Honda and Honda," Hero Honda Managing Director and CEO Pawan Munjal said.

He, however, declined to share the financials involved in the deal but said it would be funded through debt.

A senior Hero Group official said the deal has been transacted at a discount from the current market prices but the exact value could not be ascertained.

"The proposed transaction has been concluded keeping in view the paramount interest of the stake holders. It is in line with past similar transactions of disengagement by foreign JV partners involving discount," the official said.

Commenting on the deal, Honda Managing Director and COO Regional Operations (Asia and Oceania) Fumihiko Ike said: "In order to assure service to the customers, Honda will grant the necessary license to enable continued production and sales of current products as well as license for new products."

Asked by when the whole deal is likely to be completed, Munjal said it is expected to be over by "sometime next year."

The new agreement enables Hero Honda to continue producing, selling and servicing its current products. Honda will also grant new licences for new products which will be produced and sold under the new brand name.

Moreover, two-wheeler maker will change its name and the brand name will gradually be shifted from the current 'Hero Honda' to a new original name.

"The existing JV agreement will cease to exist once the new licencing agreement comes into effect, but till 2014 we are free to use the Honda brand," Munjal said.

In anticipation of the announcement that came after the market hours, Hero Honda shares today jumped 3.57 per cent and closed at Rs. 1,679.10 a piece on the Bombay Stock Exchange.

Munjal said the royalty paid to Honda will start coming down gradually from January next year and thus the total sum paid would be lower.

"Once we develop our own capability, we would not be paying royalty for the products which we were importing earlier," he added.

"Royalty to remain in line or even lower... it is incorrect that royalty will go up to 8 per cent," he added.

The royalty paid in 2009-10 on an average stood at 2.3 per cent to 3 per cent of sales.

Post the separation, Hero Honda will be able to export its products across the globe and can look for manufacturing opportunities overseas.

"Hero Honda can go out and can make its presence felt globally," Munjal said, adding that the company can now establish distribution networks across the globe.

Besides, the two-wheeler major is free to set up its own R&D capabilities and acquire technology.

"It will be business as usual for the time being at Hero Honda and there will be no change in ground operations in the immediate future."

"The two companies have also put in place processes and means of support to ensure a gradual and smooth transition," the domestic auto maker said.

Explaining the reasons for the break-up, Munjal said when the JV agreement was signed in 1983-84, "times were different".

"The country has changed, market has changed and vision has changed. This company now wants to go beyond that, which the current agreement does not allow," he said.

He also said Hero Honda's plans to set up its fourth plant is on track and an announcement to that effect would be made soon.

On Honda's part, Ike said this deal would enable the Japanese company to focus on its wholly-owned two-wheeler subsidiary Honda Motorcycle & Scooter India (HMSI).

Hero Honda had sold 4.6 million two-wheelers in the last fiscal, grabbing 48 per cent of the Indian two-wheelers market, which is the second biggest in the world after China.

In 2004, the Hero group and Honda had extended their agreement for 10 years. Under it, the Japanese partner would continue to provide technology to the JV. It was to come up for renewal in 2014.
 

Pintu

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http://profit.ndtv.com/news/show/honda-hero-to-part-ways-more-clarity-to-emerge-in-2011-129970

Honda, Hero to part ways: More clarity to emerge in 2011

NDTV Correspondent, December 16, 2010 (New Delhi)




Ending a 26 year partnership and months of speculation, India's Hero group and Japan's Honda announced the termination of their marriage that created India's biggest seller of two-wheeler vehicles.

Hero will buy back its 26 per cent holding from Honda for an undisclosed sum. The two parties have signed a new licencing agreement which will replace their existing joint venture pact. As part of the deal the Indian partner will buy the entire stake of Honda in a phased manner amongst two or more qualified promoters at a discount.

Hero Honda will continue to pay royalty at the current levels to Honda, while it will now be able to export two-wheelers and also develop its own R&D capabilities. Upon completion of the stake buyout, Hero Group would become the sole promoters of the company.

However, neither group disclosed what the percentage of the royalty will be, or at what price the stake was being bought back, thus, raising still more questions about why the details were kept under wraps for the listed company.

"Those are not the details, we plan to share with you either now or not in the future," said Sunil Kant Munjal, chairman of Hero Corporate Services.

That was the recurring theme on all financial matters in a deal that will see Honda exiting a 26 year old joint venture with India's Hero. There is the promise of disclosure only once the transaction has gone through sometime next year.

But this clearly raises more questions than it answers. There is no clarity on the tenure of the licensing agreement nor the valuation of the stake buy. What the Munjals did clarify is that contrary to reports the royalty payout to Honda will actually decline and not go up for the company.

"Unlike the current perception that royalty will go up, royalty will in fact start coming down from January next year. And very soon will be no royalty on all our existing products," said Pawan Munjal, MD of Hero Honda.

Hero Honda says the company name will be changed in due course but for now it will be business as usual and even its portfolio for vehicles remains unchanged at least till 2014.

For Honda this will mean unbridled growth of its own business and model portfolio in India since there will be no non-compete clause between the two.

"The growth in the India is phenomenal, Honda will continue to exert more effort for our customers in India and for further development of Indian market," said Fumihiko Ike, president and chief executive at Asian Honda Motor Co.

The deal still throws up many question marks. The Hero Honda shareholder is left wondering whether this is good for him despite the assurances from the management. More clarity say sources will only come at the start of the New Year.
 

Pintu

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http://timesofindia.indiatimes.com/...-600m-for-Honda-stake/articleshow/7102965.cms

PEs to raise $600m for Honda stake
Reeba Zachariah & Boby Kurian, TNN, Dec 15, 2010, 06.07am IST

MUMBAI: Private equity investors courting the Munjal family to part buy Honda Motor Corporation's 26% stake in Hero Honda are talking to Standard Chartered Bank, Royal Bank of Scotland and HSBC to raise up to $600 million to finance their share purchase in the India's largest motorcycle firm, said sources directly familiar with the matter. PE giants, including Bain Capital, Warburg Pincus and TPG Capital, are in the race to buy a little below 15% indirect stake in Hero Honda.

"PEs are looking to limit their equity exposure and seeking funds to buy into the business," said a banker who did not wish to be named as talks were private. Interestingly , private equity investors bidding to buyout Patni Computer Systems are also in the market for leverage financing as they increasingly seek acquisition opportunities in the country.

The Munjals, the Hero Group promoters, are expected to acquire long-time ally Honda's stake in a deal topping $1 billion. This transaction, executed through an overseas-incorporated special purpose vehicle , will be backed by bridge loans. At least two PE investors will then acquire up to 60% stake in the SPV, valuing this entity at around $1.5 billion . However, the structuring and valuation of the private equity investment in the SPV has not been finalized. Emails sent to the Munjals and Hero Honda didn't elicit any reply.

The extent of debt financing for the PE investors will depend on the valuation of the SPV warehousing the 26% stake held by Honda. "PEs will be taking between 50-60 % stake in this entity, giving them just under 15% stake in the main company Hero Honda, which will soon be sporting a new name. Hero Honda stock closed 3.30% lower at Rs 1,713 on the BSE, pegging the company's market cap at Rs 34,223 crore.

Recent media reports have named at least six private equity investors—KKR , Carlyle, Bain, Warburg, TPG and Apollo—who have expressed interest in partnering the Munjals post Honda exit. Sources said the Munjals have entered into definitive discussions with at least three, and may end up roping in at least two of them, to part buy Honda's stake. The Munjals' bridge loan facility to acquire Honda's stake is based on the comfort of termsheets extended by these PE investors, as their follow up investment would help them to pay back the short term loans.

Sources said an initial agreement between the Munjals and Honda could be signed shortly, but the entire deal making, including the buy-in of private equity investors , would take at least a couple of months.
 

NSG_Blackcats

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Vijay Mallya owned Kingfisher Airlines has completed its Rs 8000 crore debt recast. All the 18 lenders of Kingfisher Airlines have approved & implemented the debt restructuring package according to sources. Rs 650 crore of lenders' debt has been converted into preferential shares. This amount will be converted into equity at the time of GDR issue. Similarly the promoters' debt of Rs 750 crore has also been converted in to prefential shares and will be later convert into equity at the time of GDR listing.

Rs 800 crore of debt has been converted into redeemable shares for a period of 12 years. Kingfisher Airlines has also received Rs 800 crore as additional cash facility. The biggest relief for Kingfisher has come in the form of lower interest rate. The airline's average interest rate is down to 11% from 20%. This would help the airline in saving Rs 500 crore annually on interest cost.
 

Pintu

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http://economictimes.indiatimes.com...0-crore-q3-net-profit/articleshow/7374386.cms

27 Jan, 2011, 10.05PM IST,IANS
Hindustan Motors posts Rs 15.80 crore Q3 net profit

KOLKATA: Hindustan Motors Ltd Thursday reported a net profit of Rs.15.80 crore during the quarter ended December 2010 as compared to loss of Rs 24.89 crore in the corresponding period last year.

According to a company release, the company, maker of Ambassador cars, posted net sales of Rs.152 crore during the third quarter of current fiscal as compared to Rs.150 crore in the corresponding quarter last year.

The company has earned profit on sale of property and investment of Rs.43.59 crore during the quarter, the release added.
 

Pintu

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http://www.google.com/hostednews/af...ocId=CNG.e4c0f8b05d70ed1feaeb1c2cf03f5035.1b1

India's Reliance Com quarterly profit halves

(AFP) – 3 hours ago

MUMBAI — India's second biggest mobile phone firm Reliance Communications said on Monday third-quarter net profit had more than halved, its sixth straight quarterly fall, as intense competition hurt the fast-growing sector.

Reliance Communications (RCom), controlled by billionaire Anil Ambani, said consolidated net profit fell 57 percent to 4.8 billion rupees ($106 million) for the three months to December, from 11.08 billion rupees a year earlier.

Revenues fell near three percent to 50.04 billion rupees, the company said in a statement to the Mumbai stock exchange.

The earnings however beat market forecasts, as analysts had expected the firm to report a profit of about four billion rupees.

RCom, the flagship of the Reliance ADA group, is in a cut-throat price war in the world's fastest-growing mobile sector, where tariffs are often less than one US cent a minute.

On Monday, RCom shares rose 0.26 percent or 0.25 rupees to 97.4 at the Bombay stock exchange, prior to earnings data, on bargain-hunting.

The stock plunged last week after rumours swirled that India's top accounting firm was looking into the group's finances, which the company has since denied as being "completely false and baseless".

The company said revenues declined marginally due to a "conscious effort of moving away from low-margin business", it said in a statement.

The company has so far been unsuccessful in its fund-raising plans to reduce a heavy debt burden of $6.4 billion, as of September-end.

RCom is seeking to sell a stake in its tower business after talks with telecom tower major GTL Infrastructure fell through last year.

It is also looking for a strategic or private equity investor to pick up a 26 percent stake in the company.

Reliance paid the government 85.8 billion rupees for third-generation (3G) spectrum at a concluded auction and is now expected to spend billions more upgrading its network.

The company, with total wireless subscribers of 125.6 million in December 2010, said it will launch 3G services across all its telecom circles by the end of the fiscal year ending March.

RCom has faced tough times as some officials were quizzed by authorities recently, amongst several others from India's telecom companies, as part of the probe of alleged irregularities in awarding mobile pone licences in 2008.

The probe came after the national auditor said irregularities in mobile licence and spectrum allocation cost the exchequer up to $40 billion in lost revenues.

The Central Bureau of Investigation (CBI) is looking into companies which may have benefited from suspected rigging of licence bidding rules under then telecom minister A. Raja, who is now arrested.

RCom has denied any wrongdoing and the police agency has not said any of the Reliance ADA Group firms benefited from the alleged corruption.
 

Pintu

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http://economictimes.indiatimes.com...hes-gold-savings-fund/articleshow/7459913.cms

9 Feb, 2011, 02.05PM IST,PTI
Reliance MF launches Gold Savings Fund

MUMBAI: Anil Ambani group firm Reliance Mutual Fund today launched a new Gold Savings Fund, a first-of -its-kind investment scheme focused on gold, to tap a market that it expects to become bigger than even equity mutual funds.

The new fund, which is different from gold ETFs (Exchange Traded Funds) that require subscribers to have a demat account, will also offer investors the option to invest as little as Rs 100 per month, the company said here.

The company said that its Reliance Gold Savings Fund will enable investments in gold without any locker or demat account -- a first in the country.

Announcing the launch of the New Fund Offer -- which will be open from February 14-28 -- Reliance Capital Asset Management CEO Sundeep Sikka said: "We expect this gold investment industry to surpass equity MFs in the next three years."

Sikka said the gold investment opportunity in India was not optimally tapped and the new product will offer a simple, affordable and investor-friendly solution for investing in gold to the masses.

"Indians are known for their love for gold. However, with low demat penetration in India, a lot of investors have not been able to participate in this safe mode of investment.

"This product will create a new avenue for pure gold investments for the retail investor without the need of having a demat account or a locker," he added.

The scheme's performance will be benchmarked against the price of physical gold.

The company said the new fund will enable investors to avail long-term taxation benefits from the first year itself, unlike physical gold, wherein long-term taxation can only be availed after three years.

The investors will not be charged any entry load on the fund, though there would be a 2 per cent exit load if redeemed before completion of the first year.

A part of Anil Ambani group's financial services arm Reliance Capital, Reliance Capital Asset Management is the country's largest fund house and manages assets worth USD 24 billion across mutual funds, pension funds, managed accounts and hedge funds.
 

Pintu

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http://economictimes.indiatimes.com...ng-on-silver-platinum/articleshow/7508578.cms

16 Feb, 2011, 04.10PM IST,REUTERS
After gold, Reliance MF open to silver, platinum funds

CHENNAI: Anil Dhirubhai Ambani Group- promoted Reliance Mutual Fund (RMF), which launched its maiden Gold Savings Fund in Chennai on Wednesday, is open to setting up investment schemes focused on silver and platinum if market regulator SEBI permits it, a top company official said.

"As of today, SEBI does not allow (to launch such investment schemes on silver and platinum). But when there is an opportunity, we will definitely try to explore," Reliance Capital Asset Management Ltd CEO Sundeep Sikka said.

He said they would focus on launching such investment schemes "step-by-step" and added that initially, they wanted to focus on the Gold Savings Fund.

Explaining that the fund allows customers to invest as little as Rs 100 per month, Sikka said that unlike a normal Gold Exchange Traded Fund that requires a demat account, their new scheme does not require one.

"This is a first-of-a-kind scheme. The objective is to give investors an option to invest in gold and to get away from storage and demat issues. It is going to be a game changer for the mutual fund industry," he said.

Citing a report, Sikka said as of October, 2010, there were about 1.8 crore demat accounts and only 40 per cent were "active" in it.

The new fund offer, which began on February 14, concludes on February 28, he said, adding that investment in gold has not been tapped in India, though it has huge potential.

The new fund will enable investors to avail long-term taxation benefits from the first year itself, Sikka said. The scheme's performance will be benchmarked against the price of physical gold, he added.
 

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Air India estimates total loss of Rs 26.5 crore due to pilot strike

Air India estimates total loss of Rs 26.5 crore due to pilot strike
India - 29 april 2011

NEW DELHI: Air India has incurred an approximate loss of Rs 26.5 crore in the past three days due to the pilots' strike which forced it to cancel at least 280 flights.

The airline, which normally operates 320 flights on a daily basis, cancelled 57 flights on April 27, 96 yesterday and at least 126 today, an official said here.

The number of cancellations were more today because of the management's decision to refuse fresh bookings for the next five days, he said.

The estimated losses on these three days were Rs 4.5 crore, Rs ten crore and Rs 12 crore respectively, he added.



Source: Press Trust of India
 

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10,000 stranded as more pilots join Air India strike
India - 29 april 2011

NEW DELHI: Air India's crisis deepened as another 200-odd executive pilots joined the stir on Thursday, taking the total number of striking pilots to about 830. Over half the 320 daily flights that operate in India and on short haul international routes were cancelled and more than 10,000 passengers left stranded across the country.

AI has now stopped fresh bookings for domestic and nearby international flights operated on its Airbus A-320 fleet till next Tuesday.

AI (domestic) now has only 10 commanders and 25 co-pilots still working after almost 200 management cadre pilots joined ranks with the 650-strong Indian Commercial Pilots' Association (ICPA) on Thursday, 69 of whom called in sick and did not operate their flights. AI sent doctors to the homes of the pilots who called in sick.

A miffed government is now not ruling out a lockout unless pilots return to work immediately. "Let us see. I hope better sense prevails," aviation minister Vayalar Ravi said when asked whether lockout was an option. A day earlier he had ruled this option out completely in his tenure. Earlier in the day, Ravi briefed Prime Minister Manmohan Singh and the Cabinet on the strike.

The AI management, which had sacked six and suspended one pilot on Tuesday, sacked one more (Captain V K Bhalla who had spearheaded the last pilot strike two years back) and suspended two more pilots on Thursday. But the ICPA is unmoved by any of these stern actions and claims to be getting support from more pilots.

"The strike will continue. Pilots of AI and Jet Airways are supporting our cause. We do not have any faith in the CMD Arvind Jadhav. There is no question of talking to the management under him. He must go." Not surprisingly, the conciliation attempted by the central labour commissioner on Thursday between the two warring sides did not yield any result.

The toughening of stand became clear when Ravi lashed out at the pilots. "They are not even graduates. They start at Rs 3.65 lakh (monthly salary) while others earn Rs 50 a day. They should call off the strike and come for talks," he said.

AI officials said the strike is causing an additional daily loss of Rs 4 crore. On non-strike days, the airline's average daily loss is Rs 21 crore. Which means now the loss is Rs 25 crore everyday.



Source: The Times of India
 

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TCS ranked in UK's top 5 employers

TCS ranked in UK's top 5 employers

NEW DELHI: Tata Consultancy Services (TCS) has announced that it has been certified as one of Britain's Top Employers for 2011, by The CRF Institute.

The certification, based on independent research done by the CRF Institute and audited by Grant Thornton, showed that TCS performed exceptionally well across all 11 key areas of HR practice. In particular, the survey recognized that the company has outstanding policies, a "make it happen" culture, is dedicated to the long term development of its staff in the UK and offers excellent working conditions. This performance culminated with TCS being ranked as one of the five highest ranked large organisations in the country along with Thomson Reuters, G4S plc., Centrica Plc. and MacDonald's UK.

Elaborating the rationale of the awards, Steven Veenendaal, CEO of the CRF Institute noted, "The combination of an aging workforce, the economic recovery, and staff shortage in certain industries are making employers increasingly aware of the importance of selecting and retaining the right people and making sure they come into work motivated and engaged," He further added, "CRF certified top employer organisations like TCS have put the welfare of their employees at the top of their list of priorities and are doing exceptionally well in offering their employees the best working conditions.

We believe that its benefits will be translated in the long-term sustainability of these companies."

Previously the company has been certified as a UK 'Investors in people'. TCS' UK workforce has grown by over 120% over five years since 2006 and the company currently employs over 2500 locally hired staff, including its UK subsidiary - Diligenta.

TCS' Vice President & Head of Europe, Mr. Lakshminarayanan is on the board of eSkills Council IT and Telecoms Board, working with UK government to prepare for the challenges of the global marketplace.

"Our employees are our foremost strength. We have always believed that knowledge, skills and talent development are key ingredients for strengthening and growing an economy. In this regard, we have been committed to bridging the knowledge and skill experience gap in the UK through apprenticeship, partnership and entrepreneurship programmes that help young people develop their IT and business skills, achieve recognised qualifications, and help raise the competitiveness of the UK in the global economy." said Mr. A S Lakshminarayanan.

Report : Times of India
 

Pintu

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Foreign funds keep distance from RIL

Foreign funds keep distance from RIL
N Sundaresha Subramanian / Mumbai May 20, 2011, 0:26 IST

Institutional investors, especially foreign funds, are not keen to make fresh allocations to shares of India's largest listed company, Reliance Industries, on concerns over insider trading, say some analysts. Proceedings in this regard are pending with the Securities and Exchange Board of India.

A study of RIL's shareholding over the past 10 years seems to support this. Despite heavy inflows from foreign institutional investors (FII) in 2009 and 2010, FII holding in RIL is well below the peaks touched during the earlier bull run. It is also well below their exposure to peers.

For the quarter ended March, FIIs held 17.7 per cent in the company. In comparison, the average FII holding in companies comrpising the Nifty, the National Stock Exchange benchmark, was 25.97 per cent. Ajay Pandey, vice president — institutional sales, ITI Securities Ltd, says, "The insider trading allegations are a big concern. Beginning 2008, when the allegations surfaced, many funds had not made any fresh allocations."



He says the collapse of Satyam in early 2009 made investors even more cautious. "Fund managers are now answerable on the investment decisions taken at several levels. They are doubly cautious with companies whose promoters have run into troubles with regulators."

Insider trading has been the talk of Wall Street after the recent prosecution of billionaire hedge fund owner Raj Rajaratnam, former McKinsey chief Rajat Gupta and several high profile offenders.

"It is definitely a concern," said S P Tulsian of Premium Investments, adding, "It is a reflection of the company's governance standards." RIL publicly acknowledged the Sebi proceedings recently. "Sebi has issued a showcause notice in connection with the sale of shares of erstwhile Reliance Petroleum Ltd by the company.

The company has submitted its reply to the same," the company said in its annual report for 2011. The showcause pertains to a 2007 transaction in which RIL booked a tax-free profit of Rs 3,800 crore, selling about 4.01 per cent stake in RPL. Reports today suggested the company has moved Sebi for a financial settlement, without accepting or denying guilt.

FII SHIFTS
According to quarterly shareholding data complied by the Business Standard Research Bureau, FII holdings in RIL had crossed 20 per cent in December 2003. It peaked at 22.93 per cent in September. Though they pared marginally, FIIs continued to hold around 20 per cent in the company until September 2007.

Following the Sensex crash in early 2008, FIIs sold a record $13 billion that year. Their stake in RIL began to fall, touching a low of 15.5 per cent in December 2008.

However, when flows reversed, the allocations to RIL, which has the highest weight in the benchmark indices, did not get corresponding allocation. In 2009 and 2010, Indian equities received record foreign flows of $18 billion and $20 billion, respectively.

The Sensex has closed at a new high of 21,000 points, but RIL is trading well below its highs. The FIIs holding in the stock has never crossed 18 per cent after 2007. This is well below their overall India Inc exposure of 20 per cent at the end of March 2011.

But Tulsian feels the Sebi proceeding is not the only reason for FII disinterest. "FIIs are keeping away from the stock because it has been an underperformer," he said. Analysts also say investors might be underweight on the stock due to concerns over the sector and lack of a clear expectation about production from the management. RIL shares ended today's trade with a gain of 1.45 per cent, at Rs 914.9.
 

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Godrej Consumer Products net soars 94% in Q1

Godrej Consumer Products net soars 94% in Q1

23 July 2011
MUMBAI/HYDERABAD, 23 JULY: Godrej Consumer Products Ltd (GCPL) today reported a 94 per cent growth in consolidated net profit to Rs 239 crore for the quarter ended 30 June 2011, following a strong demand in both domestic and international markets. Consolidated net sales of the company for the first quarter went up by 40 per cent to Rs 998 crore.
The figures for the current quarter are not comparable with those of the corresponding quarter of the previous year because of the acquisitions made since then.
"Enhanced penetration and improved volumes have driven our sales growth. Our international operations have also performed strongly during the period under review. We will continue to pursue a prudent but aggressive growth strategy through a blend of organic and inorganic initiatives," GCPL chairman Mr Adi Godrej said here.
GCPL did very well in all product categories, both in domestic as well as the international markets, especially in the household insecticide segment, he said. "After strong Q1 results, we expect a strong performance in the remaining three quarters and also in the next few financial years on the back of innovations backed by investments," he said.

SBH profit rises 41%
Public sector lender State Bank of Hyderabad today reported a net profit of Rs 284 crore for the first quarter ended 30 June 2011, up 41.1 per cent over the same period last fiscal.
The net interest income (NII) grew by 15.23 per cent to Rs 713.49 crore during the quarter as compared to Rs 619.17 crore during the first quarter of 2010-11, SBH said in a statement issued here.
Deposits increased to Rs 92,616 crore in the April-June period, clocking a growth of 16.30 per cent over the same period last year. Advances rose to Rs 66,226 crore during the quarter, up 21.53 per cent.
The bank's branch network increased to 1,324 with the opening of 130 new branches during the last fiscal year. pti
 

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Yamaha expects 40% growth in sales this year - The Economic Times

6 Sep, 2011, 05.37PM IST, PTI
Yamaha expects 40% growth in sales this year

NEW DELHI: Two-wheeler maker Yamaha on Tuesday said it expects sales to grow around 40 per cent to 5.2 lakh units this year as it looks to strengthen its market share in the 150cc segment.

The company, whose market share in the 150cc segment has grown to 15 per cent in January-August period this year, plans to increase it to 20 per cent by the end of 2011.

"We have grown by 42 per cent from the previous year, especially in the 150cc deluxe segment, which is also our focus area. Our aim is to increase the market share in this segment to 20 per cent by the end of this year," India Yamaha Motor CEO and Manging Director Hiroyuki Suzuki told reporters.

The wholly-owned Indian subsidiary of the Japanese giant Yamaha sold 3.8 lakh units in 2010 and is aiming to sell 5.2 lakh units in 2011.

"We are aiming to sell 5.2 lakh units in the current calender year. We plan to to sell 6.5 lakh units in 2012, and touch 1 million sales figure by 2013," Suzuki said.

The company, which has an installed annual capacity of six lakh units at its two manufacturing units at Surajpur (Uttar Pradesh) and Faridabad (Haryana), is looking to further strengthen production to one million units by 2013.

"We will be ramping up the capacity to one million units at our existing plants at an investment of Rs 500 crore," Suzuki said.

The company has already sold 2.1 lakh units in the current year (January-August).

In order to increase sales from rural areas, the company plans to increase its Yamaha Bike Corners (YBCs) from 187 to 400 by the end of this year.

"We plan to have 400 YBCs by the end of this year," Suzuki said.

Meanwhile, the company on Tuesday launched an ungraded version of its YZF-R15 motorcycle -- YZF-R15 2.0, a 150cc bike priced at Rs 1.07 lakh (ex-showroom Delhi).
 

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Honda plans to make safety an option for Brio - The Economic Times

5 Sep, 2011, 07.34AM IST, ET Bureau
Honda plans to make safety an option for Brio

NEW DELHI: Call it market compulsion: Japanese carmaker Honda plans to ease its hallmark safety norms to ensure its Brio small car has a competitive starting price point in the highly pricesensitive Indian market.

Honda Siel Cars India, Honda's Indian subsidiary, may control the price of its first small car in the country by fielding its entry variant without a airbag, deviating from its global policy of 'safety first', industry officials said.

Airbags and other top-notch safety features such as antilock braking system and body cage are standard in all existing Honda cars, across models and variants. This may change with Brio. The airbag increases the cost of a car between Rs 45,000-60,000.

That much difference in the starting variant may make it extremely tough for Brio to take on competition such as Toyota Liva, GM Beat, Skoda Fabia and Maruti Swift, say industry officials.

Without denying the possible loss of specifications, the Honda Siel spokesperson said that the price and variant strategy of Brio will be announced close to the car's launch around the end of this month. The spokesperson said Honda plans to launch the Brio at less than Rs 5 lakh.

"Honda R&D is working closely with our purchase department to increase pure localisation of components for the Brio." Sliding sales in the face of stiff competition from the likes of Volkswagen Vento and Hyundai Verna have already forced Honda to cut prices of its flagship City sedan by up to Rs 1.5 lakh.

It also cut the price of Jazz by that much to make it more the struggling premium hatchback competitive.

Big on safety:

"When it comes to safety of the passengers, we make no compromises. Truly speaking, at Honda, safety is not an option," Honda Siel's former CEO M Takedagawa had said. And so far the carmaker has stayed true to this.

It has been one of the most proactive carmakers in the country on safety issues and has voluntarily recalled Honda Accord, CRV and City on some technical and safety issues, putting its customers concern first.

Honda is known for top-notch safety and technology features in its vehicles. All its cars carry the G-Con body cage that provides more safety in case of a collision, along with standard anti-lock brake systems.

Customers for decades have been paying higher prices for its products on the back of its engineering commitment to quality and safety. But cutthroat competition may force Honda to change its stance in the world's secondfastest growing car market.

Analysts tracking the industry say Honda's compromise on safety stems from the fact of growing stiffer competition and declining sales.

"Honda has maintained a huge brand value. Its cars are leaders in their segments in terms of features and specifications," says PricewaterhouseCoopers India Leader for Automotive Practice Abdul Majeed.

"As competition intensifies, the company may be looking at opportunities to cut prices and compete with aggressive sticker labels."
 

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