Daily Excelsior...Business

Hyundai domestic sales up 18 pc in Dec.....

Relief to sectors under "stress": Chidambaram...........

ASCI pulls up top FMCG companies for misleading advertisements.........

Maruti Dec sales up 6.88 pc ..............

Excelsior Correspondent

Srinagar, Jan 2: The Jammu and Kashmir Bank stock today scaled new heights on the bourses when it crossed the 1000 mark on the National Stock Exchange.

Opening at the previous close of Rs 870.10, the stock witnessed a strong buyer interest all through the day taking the stock to a record 1005 mark before closing at Rs.934.35.

Analysts tracking the stock relate this phenomenal performance to the strong fundamentals of the bank and to the fact that the bank has been able to position itself uniquely in the Indian Banking sector.

Since last couple of years when the bank stock was trading between Rs 250-300, the bank has changed its business strategy by way, of refocusing its J&K operations and developing a slew of financial products to cater to grossly under-serviced local economy.

This strategy has proved very successful and the bank has considerably increased its lending portfolio in the state. The hallmark of this strategy has not only been an increase in the advances of the bank but also a noticeable improvement in its margins and yield on advances. Apart from that, the bank has increased its NPA coverage ratio from just 48% three years back to 65% at the end of FY07.

It is also among many firsts in the banks history that it has come out with auditor's qualification free balance sheets for two consecutive years depicting thereby a transparent and much stronger balance sheet management.

The bank stock which was fairly undervalued in the stock markets has now a PE ratio of 15.28 and the investment consultants are expecting it to increase further in medium term time horizon.

Meanwhile Dr. Haseeb A Drabu, Chairman and Chief Executive of the Bank, said, "Our mission is to empower the people of J&K. In the past we have tried to maximize profits without directly linking it to the impact on the welfare of the society as a whole. What we have now embarked upon now is the combination of the sensibility of the social enterprise with the form of a for-profit business."

Referring to the overwhelming interest that FIIs are showing in the Bank Dr. Drabu said, "Some of the biggest names in the world figure in the seventy plus funds that have invested in the Bank. The list is truly international, with funds from USA, Europe, Singapore, Japan, Sweden, Mexico and Spain on long term."

Meanwhile, Chief Minister Ghulam Nabi Azad has expressed happiness over the value of J&K Bank share crossing Rs. 1000 mark.

Azad said that the important milestone achieved by the Bank was indicative of sound health of the prestigious financial institution of the State and appreciated the strategy and leadership taking the bank to lofty heights. He said the achievement was a matter of joy and pride for the entire Jammu and Kashmir and its people.

Finance Minister, Tariq Hameed Qarra has also felicitated the management, staff and shareholders of the Jammu & Kashmir Bank on the remarkable performance of the bank share.

Hailing the Bank's outstanding performance, especially over the past few years, the Finance Minister said that the Bank is not only emerging as one of the top financial institution in the country but is also playing a crucial role in the socio-economic development of the State. He said the business turnover of the Bank has already crossed $10 billion mark.

Almond prices down on poor demand

NEW DELHI, Jan 2: Almond prices slipped by Rs 100 per 40 kg bag in the wholesale dry fruits market today on poor demand amid weak overseas advices.

Almond (California) dipped to Rs 8,600 from previous closing of Rs 8,700 a 40 kg on weak overseas advices. Its kernel followed suit and traded lower at Rs 302-303 a kg.

Marketmen said considerable fall in demand influenced by weak advices from producing region attributed to the fall in almond prices.

Following were today's quotations per 40 kg bag: Almond (California) new 8,600 Almond (gurbandi) 5,200 Almond (girdhi) 3,100, Almond kernel (California) 302-303 Almond kernel (gurbandi) (kg) 300-360 and Abjosh Afghani 5,500-12,000.

Chilgoza raw-new (1 kg) 360

chilgoza (roasted) (1 kg) 700

cashew kernel 1 kg (no 180) 450-460

cashew kernel (no 210) 385-395

cashew kernel no.(240) 330-335

cashew kernel (no 320) 290-295

cashew kernel broken 2 pieces 255-260

cashew kernel broken 4 pieces 245-250

cashew kernel broken 8 pieces 150-220

copra (qtl) 4,250-4,450

coconut powder (25 kg) 1,000-1,800

dry dates red (qtl) 2,500-5,600

fig 3,500-12,000

kishmish kandhari local 5,300-6,000

kishmish kandhari special 11,000-14,000 kiahmish Indian yellow 3000-4000

kishmish Indian green 4,000-8,000

pistachio Irani 450-480

pistachio Hairati 470-510

pistachio Peshawari 500-530

pistachio dodi (roasted) 275-300

walnut new 110-190. (PTI)

Watermelon kernel prices up on increased demand

NEW DELHI, Jan 2: Watermelon kernel prices rose by Rs 200 per quintal in the wholesale kirana market today on emergence of buying by stockists.

Watermelon kernel prices rose by Rs 200 to Rs 7,800-7,900 per quintal on fresh buying support.

However, other prices moved in a limited range on small alternate bouts of trading and settled at last levels.

Marketman said increased demand from local parties amid restricted arrivals mainly pushed up prices.

They said trading activity remained restricted and prices moved in a tight range before ending at last levels.

Following were today's quotations (in Rs per quintal):

Ajwain 5,800-9,000 Black pepper common 14,500-14,600 Betelnut (kg) 105-115, cardamom brown Jhundiwali)16,000-16,100 and cardamom brown (Kanchicut) 18,000-21,000.

Cardamom small (kg): Chitridar 420-490, cardamom (colour robin) 540-550, cardamom bold 560-570, cardamom extra (bold) 595-615 and cloves (kg) 280-300.

Chirounji (new) (kg) 165-200

Dry mango 4,500-20,000

Dhania 4,300-7,000

Dry ginger 7,400-10,000

Kalaunji 7,500-8,000

Mace-Red (kg) 460-480

Mace-Yellow (kg) 460-465

Methiseed 3,500-4,000

Makhana (per kg) 165-210

Nutmeg 265-280

Poppyseed (KG Turkey) 400

Poppseed (KG MP-RAJ) 410-450

Poppyseed (KG U.P.) 360-375

Red chillies 2,700-8,000

Soya bari pariwar (20 kg) 350-400

Saffron (kg) Irani 105000-107000

Saffron (kg) Kashmiri 124000-132000

Soanf 4,300-11,000

Turmeric 3,200-4,500

Tamarind 8,00-1,200

Tamarind without seed 2,000-3,500

Tea (kg) 65-120

Watermelon kernel 7,800-7,900

Jeera common 10,500-10,900 (PTI)

Srinivas Fine Arts eyes Rs 225 crore turnover in 2007-08

TIRUCHIRAPALLI, TN, Jan 2: Srinivas Fine Arts (P) Ltd (SAF), a Sivakasi-based printing and book technology house, is hoping to net Rs 225 crore turnover this fiscal against Rs 190 crore in 2006-07.

Marketing paper and allied products alone accounted for Rs 105 crore in the year 2006-07 and the remaining from printing and publishing, company Managing Director C Rajesh told PTI here yesterday.

The company has got a wide range of products including social stationery and educational stationery, and seasonal products like diaries and calendars with its brand Nightingale.

Out of the total business in printing and publishing segment, forty per cent was realised through exports. SAF has representation almost in every continent with branches or marketing outlets located in major cities.

It has plans to enter the markets in Nigeria, Uganda, Singapore, Malaysia and Canada soon.

The exports of quality books and premium stationery was expected to net a revenue of Rs 36 crore this fiscal against Rs 30 crore last year, he said.

On other future plans, he said the company was foraying into the packaging industry with an investment of Rs 18 crore on machinery and technology imported from Germany.

The unit, to be commissioned by the end of this month, would have an ultra modern printing process with a capacity of printing 18,000 sheets of size 24" X 29" in an hour and offer MNCs and domestic firms packaging products at international standards.

A turnover of Rs 25 crore had been projected for the packaging unit within the first three years, he said. (PTI)_

Trai asks Govt to expedite availability of spectrum for 3G

NEW DELHI, Jan 2: Aiming to increase the growth of broadband in the country, telecom regulator TRAI today asked the Government to expedite the process of availability of spectrum for third generation (3G) and Wimax services.

In its recommendations on ‘Growth of Broadband’ today, the regulator said the government should expedite the decision on TRAI’s recommendations regarding mechanism and pricing of spectrum for 3G and broadband wireless access.

The municipal committees should also be encouraged to include a clause for making Multiple Dwelling Units/ buildings broadband ready by adopting suitable internal wiring while giving clearance for the construction of all such buildings in future, it said.

The Government had announced Broadband Policy in 2004 and fixed a target of 9 million broadband subscribers by the end of 2007 and 20 million by 2010.

However, the growth of broadband in the country is very slow and below expected level. India had only 2.67 million broadband users by the end of September 2007.

With an objective to identify various impediments affecting the growth of broadband and to adopt forward looking approach to address all such problems, TRAI had issued its draft recommendations on ‘Growth of Broadband’ in September 2007 and sought the comments of stakeholders.

In its final recommendations, TRAI also said that BSNL and MTNL should be encouraged to appoint franchisees for providing broadband services to supplement their efforts and any procedural restrictions/ limitations should be addressed immediately.

It said that the Government should ensure availability of more number of KU band transponders to roll out broadband services through Direct to Home (DTH) platform. Besides this, cable TV operators should be encouraged to provide broadband over their network.

In order to increase the competition to provide broadband in rural areas, more than two service providers seeking minimum subsidy should be identified with a rollout obligation to ensure the establishment of network.

The service provider, identified for USO Fund subsidy to provide broadband, should have spectrum for suitable technology.

The Universal Service Obligation (USO) fund should be utilised to provide subsidy for providing broadband services through satellite in remote and hilly areas.

Yesterday, TRAI had asked service providers to specify minimum speed of broadband plan, which must be at least 256 Kbps and has already written to all the service providers not to use words like "up to" while specifying minimum speed of the plan.

It also said the incumbents may declare future plans for providing broadband using Digital Subscriber Line (DSL) technology to encourage manufacturing of Customer Premises Equipment within country.

Telecom Engineering Center should undertake certification of different CPEs model for interoperability for provisioning of the broadband. All CPEs conforming to specifications for interoperability should be displayed on TEC website for the information of customers.

TRAI said the Government in association with State Government may take up with the State Governments to adopt uniform Right of Way (RoW) procedures.

A district-level committee may be formed to study RoW requirement and to take measures to encourage service providers to share ducts. (PTI)

Centre clears 34 SEZs

NEW DELHI, Jan 2: The Centre today approved 34 fresh proposals for Special Economic Zones taking the total number of clearances to over 600 tax-free zones.

The Board of Approvals, chaired by Commerce Secretary G K Pillai, gave in-principle clearance to four SEZs, while 30 proposals were granted ‘formal’ green signal.

Those given approval included proposal of the state-owned Steel Authority of India Ltd at Salem in Tamil Nadu.

"An investment of Rs 56,000 crore has already been made in the 187 notified SEZs, which will create 100,000 jobs in 2008 itself," Pillai told reporters after the BoA meeting. (PTI)

Retail investors may get 5 pc discount in Reliance Power IPO

MUMBAI, Jan 2: Anil Ambani Group firm Reliance Power will give the retail investors a five per cent price discount in its forthcoming IPO, through which the company will raise up to Rs 11,700 crore, merchant bankers said.

The Initial Public Offer (IPO) is expected to hit the capital market between January 15-18 with a price band of Rs 405-450 per share, the bankers close to the development said.

Based on the upper limit of the price band, the company would raise Rs 11,700 crore with the sale of 26 crore shares in the public offer. This would be the biggest ever IPO in India, surpassing the public issue of realty giant DLF that raised about Rs 9,000 crore last year.

This is believed to be the first to offer a discount in the IPO price for retail investors.

Rating agency Crisil assigned an above average 4-on-5 rating to the proposed initial public offer of Reliance Power.

Reliance Power filed the draft prospectus for its IPO in the first week of October 2007 and received the go-ahead from the market regulator SEBI last week on December 28. (PTI)

Hyundai domestic sales up 18 pc in Dec.....

NEW DELHI, Jan 2: Carmaker Hyundai Motor India Ltd (HMIL) today reported a 18-per cent increase in domestic passenger car sales during December at 13,078 units against 11,067 units in the corresponding month of 2006.

The company’s cumulative sales (including exports) during December were up 5.6 per cent at 24,664 units compared to 23,355 units in the same month a year ago, HMIL said in a statement.

HMIL sold 22,510 units in the A1 segment comprising hatchbacks Santro, Getz and newly launched i10 2,117 units in A2 segment comprising sedans Verna and Accent, 28 units in the A3 segment (Elantra and Sonata) and 9 units of its SUV.

For the calendar year ended December 2007, the company’s cumulative sales (including exports) stood at 3,27,160 units up 9.2 per cent over CY2006. Sales in the domestic market during the period grew 7.6 per cent at 2,00,412 units.

"The year 2007 has been a significant year for Hyundai Motor India. We achieved a commendable landmark by rolling out the fastest 15^{th lakh car, in
the month of September 2007," HMIL Sr
Vice-President-Marketing and Sales Arvind Saxena
said. (PTI)}

Relief to sectors under "stress": Chidambaram...........

NEW DELHI, Jan 2: Next month’s union budget will focus on maintaining high growth and give "relief" to sectors under "stress" such as those affected by the rupee appreciation, according to Finance Minister P Chidambaram.

In the minister’s book there is no no such thing as an "election budget" although he acknowledges that his next budgetary exercise will be the last "full budget" of the UPA Government. If elections are held on time before May, 2009 then there will be a vote-on-account next year.

As he prepares his fifth consecutive budget, Chidambaram says he has no no worries other than about some sectors under "stress" which he would address.

Chidambaram admits that delivery of promised goods and services has not not been satisfactory. But he is of the view that there is enough time for improvement in this area.

He said 16 months between now now and the scheduled time of Lok sabha elections was a lot of time. "Delivery has not not been satisfactory. 16 months is enough time to improve the delivery of goods and services."

Confident of a 9 per cent economic growth in the current fiscal, Chidambaram said that "the thrust of the budget (2008-09) will be to maintain high growth and ensure that the growth process endorses and includes larger and larger sections of the people."

Growth, he emphasised, is an imperative. "Inclusive growth is what we must work for. It requires hard work. It requires better governance. It requires delivery of goods and services."

Chidambaram said "there is no sector which is worrying me. There are some sectors which are under stress. For example, one reason the rupee appreciation has caused some stress to some sectors. We will address these causes to the extent possible and give them some relief."

His remarks assume significance against the backdrop of the steady rise in the value of the rupee in the last one year touching upto Rs 45 against US dollar in July last year.The Commerce ministry estimates that the appreciation could lead to a loss of Rs.53,000 crore to exporters in 2007-08.

Otherwise, the minister felt, all sectors were doing reasonably well in terms of production. "If there is a slow-down in demand in some sectors like housing and real estate, that is a result of a conscious policy to moderate the demand in these sectors.

Refusing to accept that the next budget will be an election-budget, the minister said he did not not think that budget decide elections.

"What dedcides elections are our capacity to deliver what you say. Budgets only give outlays and budgets don’t ensure outcomes. Between outlays and outcomes there is something called governance and delivery.

"We must deliver on the kilometres we pormised, on the villages that we promised electricity and water, on the invest that we say will be made on the units of electricity will be generated," he said.

Chidambaram said budgets certainly raise expectations and we support these expectations with financial outlays. It is the outcome of the budget that will decided whether we had delivered or not .

Chidambaram said in the last three and half years the government has delivered on a number of fronts. "We had delivered on rural employment, education, rural health care, roads, generation of electricity and transport and communications.

Reviewing the performance of the economy in the year that just ended, he predicted a nine per cent growth of the Indian economy in the current fiscal and dismissed fears that a global depression may affect India.

He said the challenges in the new year were the external financial sector and the food front domestically.

"It has been a good year for the economy despite uncertainty in the external world and some internal difficulties, especially on the food front. The year will return a rate of growth of 9 per cent," Chidambaram said.

In the last four years of the UPA Government, the economy has clocked an average 8.6 per cent growth and maintained that a five-year average of 8.6 per cent "is by all means an impressive record".

However, the Finance Minister emphasised that he was not minimising the challenges ahead.

"The external sector remains uncertain. In fact, the uncertainty may have deepened in the last few months because of unravelling crisis in several segments of the financial sector.

"Domestically on the food front we keep our fingers crossed on rice procurement, wheat production and procurement. If all these turn out to be favourable then I think the pressures will ease. There is no question of relaxing the vigil on the food front because food is the most important driver of prices in India," he said.

Asked about fears of a global depression affecting the Indian economy, Chidambaram said the most pessimistic outlook has projected a growth of 4.5 per cent to 4.7 per cent in 2008 in world output. "We should not not be affected by the slight dip in the output."

About the sub-prime crisis in the US economy, he dismissed any prospects of that hitting the Indian economy. "The sub-prime crisis does not not have a first order impact on India because Indian banks and financial institutions are not not exposed to the sub-prime market."

The Prime Minister had recently only said that the sub-prime crisis could have a slow-down impact on other economies which could have an impact, he said in reply to a question.

On the food front, the minister said the Government needs to address some structural bottlenecks and the inefficiencies in the system.

"There are gross inefficiences in the Public Distribution System in the manner in which we distribute fertiliser subsidies and products such as kerosene and LPG. Some of the inefficiencies are well-known like diversion of items like kerosene in PDS and pilferage. We need to plug the wastages and leakage."

Talking about inflation, he said the issue was really the food prices. "All other prices are under control. There have been occasional flare ups. Onion prices go up one day and come down another day. Edible oil goes up one day and comes down the other.

"I am basically worried about the supply-demand mismatch. We have requested the ministries concerned to do a more rigorous and realistic asssessment of supply and demand met the gaps through import and through adquate supplies in parts of the country where there are inadquate supplies." (PTI)

ASCI pulls up top FMCG companies for misleading advertisements.........

NEW DELHI, Jan 2: Hindustan Unilever, Henkel India and Proctor and Gamble have been pulled up by the advertising Standard Council of India (ASCI) for misleading advertisements during July-September in 2007.

The FMCG majors were among total 11 advertisers against whom complaints were upheld by the Consumer Complaints Council (CCC) of ASCI during the period.

Hindustan Unilever had to modify a TV commercial of its product Vim dish wash liquid which according to the CCC was a misleading advertisement. The commercial against which complaint was made claimed that ‘just one drop enough. New Vim drop has 10 times more lime power than the bar’.

Based on the complaint, the advertiser had to provide proof and substantiate that ‘one drop’ of Vim could produce the cleaning effect as visually depicted and claimed in the voice over of the TV commercial.

Eventually the commercial had to be modified as the claim mentioned in the advertisement was misleading as the ‘cleansing protocol’ provided in the report submitted by the advertiser did not appear in the advertisement.

Similarly, Henkel India claimed that ‘each drop of prill has active ingredients which removes grease better than the bar’ and according to the CCC, claim mentioned in the advertisement was not substantiated adequately.

Subsequently, the advertiser conducted the cleaning efficiency test with an independent lab for which they have provided a copy of the report.

Even Proctor and Gamble had to assure appropriate modification of the TV commercial which claimed that one tablespoon of ‘Tide’ was sufficient for washing a bucket full of clothes.

According to a complaint, the advertiser contradicted its own statement in the advertisement of ‘1 spoon’ being required when actually ‘1 scoop’ is required as mentioned on the pack.

Besides the leading FMCG firms, United Spirits, Coca Cola India, Perfetti Van Melle, Mahindra Renault, KBM Marketing and Rajvansh Clinic were other companies against which complaints were upheld by the CCC during the period. (PTI)

Maruti Dec sales up 6.88 pc ..............

MUMBAI, Jan 2: Car market leader Maruti Suzuki India Ltd (MSIL) today reported a 6.88-per cent increase in its car sales in the domestic market during December at 58,401 units against 54,640 units in the corresponding month last year.

In all, the company sold 62,515 vehicles in December 2007 which includes 4,114 units of exports, MSIL said in a statement.

In the A2 segment comprising hatchbacks Alto, Wagon-R, Zen and Swift, the company reported a marginal increase of 2.89 per cent in sales at 39,575 units compared to 38,461 units in the same month last year.

Sales of flagship Maruti 800 continued to skid, dropping by 1.35 per cent in November at 7,190 units against 7,289 units in the same month a year ago.

In the MUV segment comprising Gypsy and Grand Vitara, the company reported a 29.58-per cent growth in sales during the month at 311 units.

Exports in December grew 75.43 per cent to 4,114 units against 2,345 units a year ago. (PTI)