Daily Excelsior...Business

Punjab, Haryana gear up for wheat lifting from April 1

Telco Construction acquires 79% stake in Serviplem

Airtel launches web portal airtellive.Com

IIMC to run training for second batch of armed forces officers

D-Street eyes Q4 earnings, global trends for future cues

MUMBAI, Mar 30: With just one day of trading left in the current fiscal, Dalal Street is waiting anxiously for the global cues to improve and a favourable quarterly earnings to start the new fiscal on a strong note next week.

Despite negative local factors such as soaring inflation, the bullish investors drove the market northward last week on expectations that the turmoil in global financial market was nearing an end and expect positive sentiments to continue.

Marketmen also expect the focus to shift a bit away from the global cues to the quarterly corporate earnings results that would start pouring in from late next week.

Even as the turmoil in global financial markets may reflect negatively in the January-March quarter earnings of some Indian companies, there are expectations that the quarter would show strong profit growth figures, as indicated by robust advance tax payments.

Besides, most of the companies would announce their full year results for the fiscal ending March 31 and the analysts expect that any negative trend in the fourth-quarter figures could be mitigated by the overall full-year positive trends.

Companies from banking, hospitality and software sectors could post robust quarterly results, going by their advance tax figures, the analysts said.

In the week ended March 28, the BSE's 30-share benchmark Senesex rose 0.2 per cent, notching gains during three out of five trading sessions. The week started on a strong note with the Sensex surging 928.09 points on March 25, which was its second biggest one-day gain. Although volatility continued ahead of the expiry of March derivative contracts, the week ended on a positive note with a 356-point gain on Friday.

Traders said market sentiments were supported by renewed buying interest of foreign institutional investors who, they said, are returning to Indian bourses after getting lured by the current attractive valuations. FIIs purchased shares worth over Rs 20,000 crore and sold shares worth about Rs 17,000 crore, resulting into a net purchase of equities worth Rs 3,000 crore during the week.

Mutual funds were, however, net sellers of shares worth over Rs 2,000 crore and could resume their buying trend only after clear signs emerge about a recovery, said a broker.

Despite the gain of 9.2 per cent in the last week, the Sensex is still close to seven per cent down in past one month. Besides, the Sensex is still about 5,000 points away from its life-time high of 21,106.77 points scaled on January 10, after which the Indian bourses began their southward journey on weakening global cues.

However, the Sensex is still close to 4,000 points or about 26 per cent above its year-ago levels.

Most of the analysts expect the investors to remain cautious and the overall trend to remain volatile until a clear sign emerges about improvement in global cues, besides a rise in corporate earnings for the current quarter. (PTI)

New telcom operators get numbering plan; spectrum follows

NEW DELHI, Mar 30: The new telecom licensees have been alloted 5-digit codes (as prefix for 10-digit cellular number) by the Department of Telecom signalling that spectrum will be distributed soon to start services, a move that could bring mobile tariffs down by as much as 50 per cent.

The number, known as Mobile Switching Centre (MSC) Code is necessary for any service provider to start offering services as well as for interconnection with other operators. The new operators would be offering the cellular numbers beginning with 90530 followed by five digits to make it a 10-digit cellular number.

Allotment of MSC codes is a precursor to distribution of spectrum (radio frequency). Once the codes are opened the operators can start offering services as and when they get airwaves.

The MSC codes have been given to eight operators who signed Unified Access Service Licences with the DoT during last two months and the series of first five digits starts from 90530 and goes up 91759.

The operators are Idea Cellular in nine circles, Spice Communications in four, Videocon promoted Datacom Solutions in all 22 circles, Shyam Telelink in partnership with Russian giant Sistema in all states and Swan Telecom among others.

Telecom Minister A Raja had said that local call charges would come down to 50 paise immediately and just 25 paise a minute within a year from a current level of one rupee with five to six new players coming in the field of cellular mobile services.

DoT sent the communication to all telecom players, including cellular STD, ISD (Bharti Airtel, Vodafone-Essar, Idea Cellular, Reliance Communications and Tata Teleservices), BSNL and MTNL to ensure that new players were given interconnection immediately. (PTI)

Lok Capital raises USD 22 million for micro funding

NEW DELHI, Mar 30: Lok Capital LLC, a Mauritius-based venture capital fund, has raised USD 22 million from institutional investors to fund micro-finance institutions in India.

"Lok Capital raised its first round of funds from institutional investors including CDC, FMO, KfW, and IFC. The funds will be utilised to finance micro-finance institutions engaged in rural and urban lending," Lok Advisory Services Managing Director Vishal Mehta said.

He said with a fully functional local venture team in place, the Fund was confident of delivering support to larger number of MFIs and contribute to the overall growth of the sector.

The increased capital base will enable the venture fund to reach out to a few more MFIs than what it originally envisaged, he said.

In an earlier round, he said Lok Capital accessed capital from sector-specific institutions like Accion International and Switzerland-based ResponsAbility.

Mehta further said that raising of funds will enable Lok Capital to tap the international micro-finance expertise of its investors and provide more focused support to its MFI partners in India.

Lok Capital's portfolio currently comprises of Spandana, Janalakshmi and Satin.

Spandana is a leading MFI in the country and has operations across eight states. Janalakshmi is operating out of Bangalore and has a mandate to fulfil credit needs of the low-income urban population. Satin is based out of Delhi with operations panning across north India, he said. (PTI)

World wheat trade may go up 7 mt in 2008-09: IGC

NEW DELHI, Mar 30: The world wheat trade is predicted to increase by seven million tons in 2008-09, with imports from India, Algeria and Iraq likely to be larger, the International Grains Council has said.

"World wheat trade is forecast to increase by seven million tons. Larger imports are expected, in particular, by India, Algeria and Iraq," the IGC grain report said.

The European Union is, however, expected to buy less wheat this year, the council said.

According to the report, the global wheat output is estimated to go up by 6.95 per cent to 646 million tons, mainly on account of increased plantings in US, the European Union and Canada.

"Wheat production should recover strongly but use will also increase, limiting the recovery in stocks," IGC said, adding that the demand for wheat, which was held back by high prices in 2007-08, is likely to grow faster this year as supplies increase.

Total consumption would stand at 630 million tons, up by 18 million tons from previous year. While total carry over stock of wheat would surge by 14.28 per cent to 128 million tons, it added. (PTI)

Havells to invest Rs 400 cr in expansion projects

NEW DELHI, Mar 30: Electrical goods manufacturer Havells India said it will invest Rs 400 crore for increasing its capacities in the country, besides foraying into a new segment.

The company is entering the new segment of manufacturing electrical-motors and is augmenting its capacities in lighting and cables segment. It has earmarked a budget of around Rs 400 crore for the purpose and has already spent Rs 200 crore in current fiscal, Havells India Ltd Joint Managing Director Anil Gupta said.

Havells is setting up a green-field plant in Rajasthan to manufacture electrical motors ranging from .25 horse power to 500 horse power. The company has already spent Rs 150 crore in the plant and will invest Rs 50 crore more in it, he said.

"Manufacturing Industries located in the region provide us excellent opportunity to sell electrical motors here and it also synergies with our products," he said.

The company has also purchased around 17 acres of land near its facility in Alwar to expand the manufacturing capacity of high tension cables and domestic cables. (PTI)

Items in futures mkt show less price rise than others: NCDEX

NEW DELHI, Mar 30: Prices of essential commodities traded in the futures market have increased at a slower pace than of those that remained outside the major commodity exchange NCDEX, a study has shown.

The basket of 15 commodities traded on the National Commodities and Derivatives Exchange, has shown a year-on-year price increase of 5.84 per cent, against 9.04 per cent for nearly 30 items not traded in the futures market, an NCDEX study has found.

However, certain items have shown price increase of as much as 47-48 per cent. But these were both in the traded as also the non-traded baskets.

The traded items included in the analysis for the week ended March 3, have a weightage of 7.78 per cent in the wholesale price index. On the other hand, the basket of nearly 30 non-traded items have a bearing of 17.6 per cent in the WPI.

In the traded group, the items showing slow price rise included gur, chana, groundnut, seed and soyabean oil. However, prices of soyabean, masur, rapeseed and mustard oil showed higher increase.

While in the non-traded category, prices of vegetables, egg, meat and fish, vanaspati and milk rose marginally. However, prices of edible oil, arhar, jowar and sunflower oil witnessed a significant rise.

NCDEX Chief Executive P H Ravikumar said: "The analysis rules out that futures trading is contributing any food inflationary pressure".

Rise in crude as well as food prices in the global market has a larger impact on domestic price movement. Still, it is largely due to the domestic supply mismanagement against the increasing demand creating food inflation, he said. (PTI)

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Black pepper rises on short supply

NEW DELHI, Mar 30: World's leading luxury goods maker Gucci is looking to multiply its presence in the country by 2010, as it plans to develop India as a key global market.

The company had forayed into India late last year and now has two stores in the country. Gucci will end the year with four stores and in three years it may double the number, a top official of the company said.

"We are quiet interested in India, which is an emerging market with a gifting culture and lot of awareness among the customers who are sophisticated. Step by step we intend to build India as a key market. By 2008-end, Gucci will have four stores in India," Gucci CEO Mark Lee said.

He said besides the two existing outlets - one each in Mumbai and Delhi - the company in partnership with the Mumbai-based Murjani Group will open a third store in Delhi and the fourth one in Bangalore this year.

Murjani Group, the master franchisee of Gucci in India, will be opening the other two stores here. "The plan is to double the number of stores that we will be having in 2008," Murjani Group Chairman Mohun Murjani said.

Asked about the investments, Murjani said, without giving specific details, that "there is a substantial amount of investment which has already gone and will be made in future, but will be less than a hundred million dollar."

He said by 2010, there will be at least 8 Gucci outlets housing men's and women's collections of ready-to-wear, handbags, shoes, watches, sunglasses, jewellery, small leather goods, gifting items and other accessories in major metros.

"Also we will look to expand in cities like Kolkata, Chennai and Hyderabad," he said. (PTI)

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Punjab, Haryana gear up for wheat lifting from April 1

CHANDIGARH, Mar 30: Punjab and Haryana are all set to start the next procurement season for wheat from April 1, with central agency FCI and state agencies expecting to lift a total 125 lakh metric tons of the grain during the rabi marketing season 2008-09.

The minimum support price (MSP) for wheat is now Rs 1,000 per quintal. The Reserve Bank (RBI) has sanctioned the credit limit of Rs 8,013 crore for Punjab this season, while Haryana has sent a proposal for Rs 2,696 crore in order to pay the growers, official said.

Punjab and Haryana are expecting increase in arrival of wheat in mandis this year at 105 lakh MT and 45 lakh MT respectively.

However, FCI last month, had expressed concern over the dwindling arrival of wheat in both states. It is perceived that farmers might sell crop directly to other states after 'avoiding' conventional route of bringing their crop in the markets.

The Punjab government has notified 1,600 mandis for the procurement, while Haryana has approved 362 markets sheds in the entire state for lifting wheat, which will commence from April 1, an official of Food and Supplies Department said.

Punjab is expecting to procure 85 lakh MT of wheat during this season, the state has set different targets for various procurement agencies.

According to a senior official of Punjab Food and Supplies Department, Pungrain, Markfed and Punsup would procure 22 per cent each while Punjab Warehousing, Punjab Agro and Food Corporation of India (FCI) would buy 13, 10 and 11 per cent respectively of total expected procurement.

Haryana is also hoping to lift over 40 lakh MT of wheat from the state with procurement agencies such as Hafed, Confed, Haryana Warehousing, Haryana Agro, Food and Supplies and FCI targeting to lift 35, 9, 9, 9, 28 and 10 per cent of total procurement respectively in the season. (PTI)

Telco Construction acquires 79% stake in Serviplem

NEW DELHI, Mar 30: Telco Construction Equipment Company Ltd (Telcon), a leading operator in the Construction Equipment Sector in India, has said it had acquired 79 per cent stake in Serviplem S.A, Spain.

The existing owners of Serviplem will continue to be associated with the venture and own the remaining 21 per cent, said a statement.

Company Managing Director Ranaveer Sinha said ''This acquisition is of great strategic importance. Serviplem focuses on manufacturing and sale of transit mixers, dry bulk tanks and pumps, and the technology will help TELCON to enter the concrete value chain with a number of offerings. We will work together to identify opportunities and leverage their presence in the global market.''

Serviplem also has presence in China through a joint venture, facilitating Telcon to leverage growth opportunities in China as well.

(UNI)

Airtel launches web portal airtellive.Com

NEW DELHI, Mar 30: Airtel Telemedia Services, Indias largest private broadband and telephone service provider today announced the launch of ‘airtellive.Com’, its new all-in-one internet portal for the customers.

The portal ‘airtellive.Com’ would be the first portal launched by a telecom company in India, the company said in a statement.

"Airtellive.Com is a milestone in Airtels broadband strategy and it builds upon the current broadband ecosystem infrastructure to establish an internet destination for web applications," Airtel Telemedia Services President Atul Bindal said.

On airtellive.Com, the customers will receive free access to the popular Google Applications messaging and collaboration suite, which includes email services, Google documents, spreadsheets and presentations, Airtel said.

The services will be co-branded and powered by Google and Airtel broadband. Airtel has also partnered with popular content leaders like shaadi.Com, 24x7guru, naukri.Com amongst others to offer exclusive deals and discounts on the portal, the company added.

The collaboration would give customers easy access to Google’s simple and powerful web applications over Airtels fast, secure and reliable broadband network.

Bharti Airtel Limited, a company of Bharti Enterprises group, is India’s leading integrated telecom services provider with an aggregate of 61.91 million customers. (PTI)

IIMC to run training for second batch of armed forces officers

KOLKATA, Mar 30: Aimed at providing employment to retired armed forces officers, the Indian Institute of Management here has launched a six months management programme for them from April one.

The IIM-C and the Directorate General of Resettlement of the Ministry of Defence have entered into an agreement to launch the second batch of the Certificate in Business Management course for the officers who are about to retire.

Defence sources said the batch of 54 servicemen comprised 45 from the Army, seven from the Navy and two from the Air Force. They range from the rank of Captain to Brigadier from the Army and of equivalent ranks from the other two services.

IIMC Dean Prof Anindya Sen said that the programme aimed at delivering the required inputs on the managerial theories and practices and develop necessary skill sets to manage the corporate world.

Asked whether the IIMC has done any entrance-level screenings for the participants, Sen replied in the negative, but said that most of them had some level of management skills in the services. "We will teach them to channelise those skills in civilian life."

Stating that the course would be intensive, he said that the participating officers would be intensively trained in all functional areas of management to help them combat the ‘corporate warfare’.

The programme is divided into three modules of seven weeks each and one of three weeks, Sen said.

During the 24 weeks course, the participants will study 22 courses made up of three-hour sessions and will work on a project.

The course includes functional area subjects like Marketing Management, Financial Accounting, Manufacturing and Materials Management, Human Resources Management.

Besides, general management inputs such as Organisational Behaviour, Legal Aspects of Management, Project Management and Strategic Management have also been included.

The programme will follow a interactive learning methodology. "Case studies, interactive lectures in the form of discussions and assignments would be extensively used to facilitate learning," Sen said.

According to IIM-C sources, the cost for the programme would be shared by the DGR and the participants on a 60:40 basis. "As of now, the courses are non-residential because we do not have the infrastructure. But we have tried to put up the participants as near to the institute as possible."

Claiming that participants of the first batch have all been placed in companies within the country and abroad, they said that with the course gaining fast popularity, the IIM-C plans to run two such courses every year once the necessary infrastructure was ready. (PTI)