NDDB posts turnover of Rs 809 cr during 2001-02

NEW DELHI, Oct 27: National Dairy Development Board (NDDB) has posted a turnover of Rs 809 crore during 2001-02 registering a 43 per cent increase over previous year’s turnover of Rs 565.5 crore.

The excess of income over expenditure stood at Rs 235 crore compared to Rs 99.70 crore during the preceding year, according to NDDB’s annual report released here.

The balance sheet shows absence of any sales since NDDB siphoned off its commercial units, Mother Dairy and Dhara vegetable oil, into separate companies in April, 2000. The preceding year’s income through sales was an impressive Rs 294.33 crore.

The siphoning was done to separate the developmental and commercial activities of the board so that each could emerge as a focused area.

NDDB has also created a common umbrella cooperative brand identity for all liquid milk marketed by milk cooperatives throughout the country, it said, adding this is meant to differentiate cooperative milk marketing from private ones.

The "milk drop" symbol has been adopted as the common logo and uniformed colours have been used to distinguish different types of milk — blue for toned, green for standardised, orange for full cream, yellow for double toned and purple for skimmed milk.

There are more than one lakh milk cooperatives across the country with over eleven million members, collecting around 17.6 million kg of milk and selling 13.4 million litres as liquid milk every day.

Aiming at expansion and consolidation of business in an increasingly competitive environment, nddb has created a common brand identity of the milk cooperatives.

Only those cooperatives, which agree to meet the quality parameters and other guidelines laid down by the NDDB, will be permitted to use the "milk drop" symbol, the report said.

In all, 13 major brands representing 41 district milk unions and dairies in 13 states are already participating in the network and many other cooperatives are in the process of joining, it said.

Under a two-fold strategy, NDDB has provided technical and financial assistance for upgrading processes including systems and cold chains infrastructure.

Through its subsidiary Mother Dairy foods, NDDB has been offering its services to state-level cooperatives to improve and strengthen their marketing efforts and form joint-venture marketing companies.

The board has also taken steps to strengthen the basic competencies and systems of cooperative through its cooperative development programmes. An added feature of these programmes is the unique concept of the village resource woman introduced during the year.

To enhance women’s involvement in dairy cooperatives, the dairy board has adopted a strategy of positioning a trained local woman as a resource person in the village. These resource women have made significant contribution in motivating rural women to join village cooperatives and in empowering them through awareness programmes, formation of self-help groups and conducting literacy training. (PTI)

Fundamental lacuna may undo ‘expected’ cut in rates

MUMBAI, Oct 27: Even as bankers expect a cut in the bank rate, Cash Reserve Ratio (CRR) and interest rate on saving deposits in the second half credit policy on Tuesday by the RBI, majority of them doubt these would bring any cheer to the financial market.

Bankers expect a cut in the range of 0.25 to 0.50 percent but are apprehensive of their positive impact on the growth and expansion of the economy due to various inherent factors.

Senior executives from commercial banks told UNI that tinkering with the interest rates would not bring any desired goals in respect of growth and expansion of the economy unless the authorities bring certain fundamental changes in the policy framework which were stuck at the Parliament for enactment as a law to deepen the reform measures further.

We expect a cut in the bank rate, CRR as well as interest on the saving deposites..But that would not solve the problem of low credit offtake by the industrial sector, said Mr K Cherian Varghese, CMD of the Corporation Bank.

Contrary to it, Mr P Gupta of private sector bank Indusind Bank said there was little scope for RBI to reduce the interest rate in the banking sector because such action would lead to disincentives for the household sector which still contribute a sizable amount of bank finances (33 per cent) through savings.

Unless you provide an alternative to saving deposits in banks, the investors would continue to park their funds with banks, leading further glut of liquidity , he observed. Banks have been facing liquidity glut in the recent years because of virtual no pick up in the credit demands from corporates which preferred to raise resources at a comparable cheaper rate from debt market through issuance of bonds and commercial papers.

Being pressed harder under ‘obnoxious situation’, banks diverted their credit portfolio towards consumer lending mainly in housing and car financing. About 20 to 30 per cent of the total bank credit are now being deploying towards consumer lending where the level of Non-Performing Assets (NPAs) is considerably low as compared to the industrial sector.

Corporate leaders said that there were increasing pressure on their operating margins because of growing competition from foreign firms and imported goods which are found to be much cheaper and of good quality. Domestic industry is mainly suffering from high cost of commercial transactions.

Efforts are being made to reduce cost by offering early retirement opportunities to the surplus workforce while curtailing the expansion of their manufacturing facilities and inventories due to restricted growth in consumer demands.

Industrialist Jamshed Godrej said that the growth of manufacturing sector would largely depend on the Government’s ability to quickly create the right policy framework for physical and social infrastructure development. The current environment of uncertainties has resulted into stagnation of economic growth rate.

Recently, the Planning Commission member N K Singh in Mumbai said that the cost of financing the commercial sector can be reduced only through reform measures and this can never take place in near future because a series of financial sector bills are stuck in the Parliament for approval for the past 12 to 18 months.

The Indian banking sector can never be competitive at global level unless the Government’s ownership in major commercial banks are brought down to 33 per cent through amendment in the banking act, Mr Singh observed. Executives from the research firms said the RBI’s mid-term credit policy this time had generated more interest among the finance ministry officials rather than the bankers because the ministry has reportedly provided lot of inputs in preparation of the report which was so far considered to be "exclusive" from RBI.

In fact, the Union Finance Minister Jaswant Singh came down to Mumbai on Saturday last and held an half-an-hour meeting with the top officials of RBI including one-to-one meet with Governor Bimal Jalan.

Mr Singh seems to have outlined the Government’s intended policy measures to the RBI in view of the fact that he would be making a mid-term assessment of the fiscal position and economic condition on the floor of the Parliament on November 18.

Analysts said that while a large section of middle class population in India had suffered severely in their income earnings from savings due to fall in interest rates, bankers would find it difficult to deploy their funds in productive sector of the economy unless big infrastructure projects mainly in power, telecom and road sectors are really start-off for implementation.

The take-off of infrastructure projects initially with the public sector fundings would certainly boost the consumption demands for cement, steel and petroleum products thereby enhancing the growth in the core sector of the economy.

Such developments would also improve the purchasing power as more people would get involved in employment of various projects. They felt that the RBI, within the present constrains, would make efforts to deepen the long term debt markets as well as money markets in order to provide easy access to long term financing.

Further, a cut in interest rate would allow the Government to borrow funds at a cheaper rate for financing its growing expenditures.

In the given situation of lowering interest, RBI would use the opportunity to cut saving rate considering the excess liquidity in the system , said Mr Rajeev Varma from Merril Lynch. Rbi had revised the saving rate last time in April 2000 from 4.5 per cent to 4 per cent. Since then, long term fixed deposit rate declined by 3 to 4 per cent, but saving account interest remained unchanged due to the control of RBI.

A cut in the bank rate should help the banks sustaining their bond earnings and also widening of credit spreads for gaining higher operating margins, he added. (UNI)

Call seen around repo level

MUMBAI, Oct 27: The secondary market for Government bonds was likely to witness dull tradings initially during the week but may swing in either direction after the announcement of the credit and monetary policy on Tuesday.

According to Ms Pushpa Rai, a market analyst at the Mata Securities Ltd, the market had already priced in a bank rate cut to some extent but if the Central Bank decided to maintain a status quo, it would definitely result in a sharp fall in bond prices.

Moreover, a mere 25 basis-point cut will cut no ice with the market which was eagerly hoping for a 50 basis-point cut, she said.

A reduction in the Cash Reserve Ratio (CRR) and repo rate in the credit policy may further boost liquidity and the call rate would then hover around new repo rate, she added.

Meanwhile, the interbank call rate was expected to stay easy below the repo rate during the week on ample liquidity and subdued demand for funds in the second week of the reporting fortnight.

During the last week ended October 25, abundant liquidity in the banking system and partial rejection of the amount received in repo bids by the Reserve Bank of India (RBI), confined the interbank call rate in a narrow range at sub-repo levels. The call rate opened flat at 5.65-75 per cent and remained stuck in a tight band of 5.65-5.75 per cent throughout the week on abundant liquidity in the system despite the higher demand for funds which is routine in the first week of the reporting cycle.

The call rate closed the week at 5.70-75 per cent, the same level it finished in the previous week.

RBI repos continued to get huge subscriptions as banks, awash with liquidity, parked heavily in repos. The Central Bank accepted total bids worth Rs 71,130 crore during the week, translating into an average daily subscription of over Rs 14,246 crore, of which it accepted Rs 58,617 crore (daily average of Rs 11,723 crore) at a cut-off price of 5.75 per cent.

Government securities, which shot up to their record higher levels in the previous week, retreated as cautious traders reduced their positions in the run up to the credit policy announcement.

Trading volumes remained dull as players became cautious as doubts surfaced whether the rate cut would take place at all, dealers said.

The 7.40 per cent, 2012, and the 7.55 per cent, 2010 securities lost 20 and 27 paise at Rs 102.33 and Rs 104.46 respectively as compared to their previous week’s close.

The 11.50 per cent, 2011 bond and the 11.03 per cent, 2012 bonds also fell by 34 and 26 paise at Rs 129.49 and Rs 127.14. (UNI)

KP entities paid Rs 3191 cr to CSE brokers
for transactions

NEW DELHI, Oct 27: Entities of Ketan Parekh, the prime accused in last year’s stock scam, paid Rs 3191 crore over a period to three broker groups for share purchases and payment of margins, among other things, at the Calcutta Stock Exchange, the joint parliamentary group inquiring into the scam said.

"The pay-in problem at CSE revealed that large positions were built up by these brokers in few scrips and they had close linkages with Ketan Parekh", the JPC looking into the stock scam and temporary freeze on UTI’s flagship scheme US 64 said in its draft report to be finalised soon.

"Ketan Parekh entities had paid a sum of Rs 3,191 crore over a period to Dinesh Singhania group, Ashok Poddar group and Sanjay Khemani group for purchase of share, payment of margins etc", the report said.

The SEBI, which undertook investigations in the wake of disturbing developments in the CSE, found huge pay-in liabilities from these groups.

While the net amount of outstanding due to CSE on account of pay-in-liabilities from the Singhania group stood at Rs 34.43 crore, the liabilities from Poddar and Biyani groups stood at Rs 26.84 crore and Rs 30.10 crore, SEBI’s investigations revealed.

It said CSE completed the payout of these settlements by meeting the shortfall on account of the pay-in default by these brokers out of the settlement guarantee fund and other reserves of the exchange.

The CSE then declared all the ten entities of these three groups as defaulters and initiated recovery proceedings including civil and criminal proceedings against them.

Taking note that D K Singhania was a former president of CSE and a responsible broker, the committee enquired whether it was not his responsibility to report to the exchange about under statement of margin by the computer system in CSE.

Singhania replied that there was nothing in his knowledge that there was a bug in the margin system due to which margin was charged less.

He further stated "our fault was that we did not use to do any calculation at our level. We did our margin payment on the basis of download which used to come from the side of the stock exchange".

However, when the figures regarding violation of exposure limit and outstanding positions of his group was read out to him from the SEBI report, Singhania confirmed those figures, says the report. (PTI)

BIL Ltd launches new herbal products in J&K

Excelsior Correspondent

JAMMU, Oct 27: Botanical Indian Laboratories Pvt Limited, manufacturers of herbal products has launched its new products in the Jammu and Kashmir State.

Addressing a press conference here today, Mr Vinod Bhat, Manager North of the Company said that the organisation with the annual turn over of around Rs 4 crores is in the market for the last 8 years with the prime object of manufacturing herbal and Ayurvedic products, natural herbs, food items in all forms such a tablets, capsuls, syrup, ointments and cosmetics.

The new products which were launched today included—Pancreas Tonic, Female Kesary Syrup, Female Kesary Capsules and Tulsi cough syrup. The OTC products launched are—Vita-B-Forte capsules, Pain reliever capsule, slim age capsule, Aloe age capsule, Memoriza capsule, Sahib capsule, Memsahib capsule and Kesh age capsule. Among the above mentioned products, the main strength of the company is Pancreas Tonic which reduces blood sugar level.

Mr Bhat further disclosed that the company has established a good reputation in the market for quality herbal and Ayurvedic products. The quality assurance is one of the most important priority of the company, aims at effectively improving the quality of life of all people by supplementing medical treatment with world’s one of the best herbal dietary supplement.

It also strives to maintain and improve excellence in distributing herbal remedies all over the world. The Company’s mission is to take itself to new heights by providing excellent customer service and to serve the society and needy people for whom the health care is still a dream.

The Company has arranged a joint venture with the US Botanicals (USA) and the prime object of introduction of ‘e-age’ marketing plan is to give healthy services. The E-Group is the first step to provide its services to all the sections of the society. Mr Mahesh Harjai, BDM also spoke in the conference.

N K Proteins Ltd launches ‘Tirupati’ refined oil in J&K

Excelsior Correspondent

JAMMU, Oct 27: After Rajasthan, Haryana, Himachal and Maharashtra, N K Proteins Limited has entered into Jammu and Kashmir refined oil market and formally launched its ‘Tirupati’ brand here yesterday.

The company has engaged Vidya Associates, KC Market Ware House, as its carrier and forwarding (C&F) agency and made twenty distributors in the State for the consumer packs. However, the big packs will be delivered here directly from the company.

While announcing the formal launching of ‘Tirupati’ refined oil, prominent businessman and former president of Jammu Chamber of Commerce and Industry Mr Ramesh Gupta wished good prospects for the company. He hoped that ‘ Tirupati’ would come upto the expectations of J&K consumers.

Besides marketing executives of N K Proteins Limited, some prominent businessmen of Jammu, were also present in the launching ceremony.

Later briefing mediapersons about the company’s profile and its ‘Tirupati’ brand, Marketing Advisor of N K Proteins Limited, Mr Manish Mehrishi disclosed that the Tirupati refined oil will be available to consumers in J&K market in packings of different weights. The different weights pack categories include pouches and bottles for one liter and two liters packing, jar packing for 5 and 15 liters, he elaborated.

To compete with existing brands of other companies in the State market, retail price of the ‘Tirupati’ packs have been set almost at par with other refined oils. "However, the quality, taste and purity of ‘Tirupati’ refined oil will lead general consumers to prefer our product," stressed Manish.

The Ahmedabad based N K Proteins Limited, which generally deals in cotton seed oil, has a turnover of Rs 400 crore per annum and the company has 60 per cent oil market share in Gujarat.

Enthusiased over its success in Rajasthan, Haryana, Himachal Pradesh and Maharashtra oil markets, the company is all set to enter Madhya Pradesh, Punjab and Uttar Pradesh markets by the ending of this year.

Crompton Greaves Ltd launches new products

Excelsior Correspondent

JAMMU, Oct 27: Crompton Greaves Limited, famous for its ceiling and exhaust fans and geysers launched its new products at a retailers’ meet held here this evening.

Mr A K Manikanta, Regional Manager of the Company while addressing the dealers and retailers disclosed about the range and qualities of the new products. He also gave brief account of the success of the company and sought cooperation of the dealers regarding sales promotion.

He further disclosed that Company having the annual turn over of around Rs 1600 crores last year has been divided mainly into four divisions and has earned a good reputation in the country and in seventy countries abroad. It has twenty branches in the country and the Jallandhar branch is doing excellent business. The RM also appreciated the efforts of the distributor for Jammu region Mr Ashok Gupta for generating good business especially during last year.

The Branch Manager of Jallandhar Mr Punit disclosed the retailers of Jammu region regarding the special schemes being offered by the Company. While giving briefd history he said the Crompton Greaves Ltd is in the market for the last 65 years and has earned a good reputation in the India and abroad. The Company besides Fans, geysers and other electrical appliances has also entered into IT Technology and telephone industry. It is generating various types of motors for the Industries.

Mr Vipin Agarwal, Marketing Executive for Fans Group disclosed that the Company will be offering special gifts to the retailers and purchasers. He said on 12 fans there will be 10 gm silver coin, on 20 gms and on 48 fans 50 gm silver coin. New Geysers, fans including Hi-Flow Farrata and exhaust fans were launched today in different colours and ranges. A newly manufactured electrical kettle with no risk of shock or burn/ hotness was also launched alongwith other products.

At the concluding occasion, a lucky draw was also held for the dealers through coupons. Mr Suresh Sangri and Mr R S Shan also spoke on the occasion.

Gas based power generation plant ready

RAJKOT, Oct 27: Stating that the 156-mw gas based power generation plant was ready in the state, Gujarat Energy Minister Kaushik Patel, today said the state would be able to generate hydro-electricity after the increase in the height of Sardar Sarovar Narmada Dam.

"The gas based plant was completed in a record time of 17 months", Patel said addressing a meeting of members of Greater Rajkot Chamber, here.

Presently 85 per cent of electricity was generated through thermal energy, he said, adding, the price of coal and transportation charges were the main reason for the high power tariff in the state and Government was trying to provide low cost electricity to consumers.

The minister claimed that "Gujarat has low electricity theft ratio compared to other states like Bihar, Uttar Pradesh and Delhi". (PTI)

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