MUMBAI: Britain’s largest asset management company Schroders has acquired a 25% stake in Axis Bank-promoted Axis Mutual Fund for an undisclosed amount. The deal will help the Indian fund house access Schroders’ global distribution network and advise overseas funds invested in Indian securities.
The Economic Times had written on March 14 that Schroders Investment Management was in talks with Axis Bank to acquiring stake in its mutual fund arm. As part of the deal, Schroders will have one board member each on the AMC’s board and Axis Mutual Fund trustee company.
Schroders Investment Management is a UK-based firm managing $291 billion worldwide. Schroders had applied to the Securities and Exchange Board of India (Sebi) in April 2008 to start a mutual fund business in India, but did not secure a licence till last year. Axis Mutual, which started operations in 2009, has equity assets worth Rs 640 crore. Axis Mutual Fund’s total assets under management (AUM) stood at Rs 8,815 crore as on March 31.
Said Rajiv Anand, managing director & CEO of Axis Mutual Fund, the deal valuation is in line with other deals struck during the year.
“The deal will help us promote our fund products globally through Schroders’ distribution network. Schroders will also bring their products to India,” said Rajiv Anand, managing director and CEO, Axis Mutual Fund.
According to industry sources, the Schroders deal will help Axis Mutual rebrand itself as an investment manager. “Till now, they (Axis MF) were regarded only as a minor offshoot of a large bank; the deal with Schroders will help the fund house to rebrand itself as an investment manager,” said the chief executive of a large asset management company.
Tough business conditions are prompting Indian fund houses to strike partnership deals with stronger foreign institutions that can bring in advisory and investment mandates. In January, Japan’s Nippon Life Insurance bought a 26% stake in Anil Ambani-controlled Reliance Capital Asset Management, India’s second-largest mutual fund in assets, for roughly Rs 1,450 crore.
In December 2010, Paris-based Natixis Global Asset Management bought a 25% stake in IDFC Mutual Fund at 5.5% of its total assets. Earlier that year, US-based investment management firm T Rowe Price acquired a 26% strategic stake in UTI Asset Management Company for about 3.6% of its assets under management. In June 2010, Japan’s Nomura bought a stake in LIC Mutual Fund for about 2.5% of fund’s assets.
Cash-rich corporate promoted Indian fund houses are also scouting for acquisition targets among asset management companies. Last month, L&T Mutual bought out Fidelity’s India fund business for an undisclosed amount.
EMIRATES, SPICEJET IN STAKE SALE TALKS
MUMBAI: Emirates, the world’s largest airline by passengers carried, has held preliminary talks with India’s fourth-largest low-cost passenger carrier SpiceJet to purchase a significant stake in it, but will go ahead only if the Indian government allows foreign carriers to control majority ownership in Indian carriers, two people familiar with the development said. “A number of Indian carriers approached Emirates late last year,” said one of the two persons. “SpiceJet’s domestic network and its presence in the smaller Indian cities made it a perfect fit, but our chairman and chief executive Sheikh Ahmed bin Saeed Al Maktoum wants majority control of the airline or not invest at all.” “Emirates has had bad experiences by being minority stakeholders, and they do not want a repeat of that.” (For details log on to : http://www.financialexpress.com/news/emirates-spicejet-in-stake-sale-talks/942672/)
MAHINDRAS TO BUILD AFFORDABLE HOUSES IN MAHARASHTRA, TAMIL NADU
MUMBAI: The Rs 80,000-crore Mahindra Group is to foray into affordable housing this year to tap demand for such homes. Currently, Mahindra Lifespaces, its property development arm and known for its WorldCityprojects in Chennai and Jaipur, is finalising land parcels in Maharashtraand Tamil Nadu. “We have got a go-ahead from the management and appointed architects. We are in the process of getting the land within the company by next month,” said Anita Arjundas, managing director and chief executive officer. Each project will have 1,000 to 2,000 units spread over 10 acres. A home is to be priced between Rs 7 lakh and Rs 15 lakh. When the company launches such a project, it would join the ranks of Tata Housing, Usha Martin Group and Jerry Rao’s Value and Budget Housing Corporation, all of which have launched similarly priced ones. (For details log on to : http://www.business-standard.com/india/news/mahindras-to-build-affordable-houses-in-maharashtra-tn/472849/)
HIRANANDANI SAYS HAS BIG PLANS FOR BANGALORE
BANGALORE: Mumbai-based real estate developer House of Hiranandani is planning to develop 23 million sq ft in Bangaloreand Chennai over the next five years. It was planning to develop eight million sq ft here at an investment of Rs 3,000 crore, a top company executive said. “We have a land parcel of 140 acres in Bangaloreand 110 acres in Chennai. We wish to go systematically in these cities by understanding the customer’s preferences and develop the property as per their demand. We have launched two projects in Bangalorein two phases, which will have about two million sq ft,” Neha Hiranandani, director at House of Hiranandani, told reporters here. The company has also launched Seagull, a project designed by Hafeez Contractor, in Chennai. The two projects in Bangaloreare Signature Villas and Horizon at Devanahalli near the international airport and Bannerghatta road, respectively. The Signature Villas has 11 villas, priced upwards of Rs 9,000 per sq ft, while Horizon has 900 flats in the first phase, priced above Rs 5,000 per sq ft. (For details log on to : http://www.business-standard.com/india/news/hiranandani-says-has-big-plans-for-bangalore/472850/)
INDIA CEMENTS TO INVEST RS 750 CR IN ARIYALUR PLANT
CHENNAI: Chennai-based India Cements Limited is planning to invest around Rs 750 crore in one of its plants located at Thalavai in Ariyalur district of Tamil Nadu. The proposed investment is aimed at expanding the existing capacity of the plant to two million tonne, from the present 1.8 million tonne a year. “The proposed expansion requires anywhere between Rs 700 crore and Rs 750 crore. The mode of funding will be decided in due course,” VM Mohan, joint president (corporate finance), India Cements, told Business Standard. The company has approached the ministry of environment to obtain clearances for the proposed expansion. Besides the capacity expansion at Ariyalur, one more proposal has been placed before the ministry, which is related to the expansion of its Salemplant. Details about this expansion, however, were not disclosed. (For details log on to : http://www.business-standard.com/india/news/india-cements-to-invest-rs-750-cr-in-ariyalur-plant/472799/)
EBAY SHIFTS GEARS IN INDIA
eBay Inc is stepping up investment in Indiato boost its share of a market dominated by domestic players such as Flipkart and fend off encroachment from arch-rival Amazon.com. The e-commerce company dipped a toe into the Indian market seven years ago and stuck with a cautious approach, even as local upstarts made splashy grabs for business in a tiny but growing market. “The talks of us having missed the bus are exaggerated,” Muralikrishnan B, country manager for Silicon Valley-based eBay told Reuters in an interview in Mumbai. “Most of the new business models are just waiting to implode. We have chosen the cautious route, unlike a lot of Indian businesses who are blindly investing money without having an eye on sustainability or profitability,” he said. (For details log on to : http://www.business-standard.com/india/news/ebay-shifts-gears-in-india/472856/)
TATA GROUP COMPANIES SHARPEN INNOVATIVE EDGE
MUMBAI: An engine ‘start-stop’ technology developed by Jaguar Land Rover that stops an engine when the vehicle isn’t moving, thus saving on fuel; high performance rail steel that saved £150,000 over five years was developed by Tata Steel Europe; a re-designing of process equipment at Tata Chemicals’ Haldia plant that cut process downtime by 40% — These are among the seven winning ‘promising innovations’ showcased at the just-concluded Tata Innovista 2012, a Group-wide programme to encourage, recognise and showcase outstanding innovations done by Tata companies across the globe. This year, the event had 2,852 entries from 71 Tata companies, as Group companies sharpen their innovative edge in times of slowdown and intense competition. “There are no specific targets for innovation, neither are employees’ appraisals linked to their contribution to innovation,” said R Gopalakrishnan, director, Tata Sons, addressing the media a day after the Innovista awards were given away. “However, this exercise, kicked off in 2006, has instilled an urge to innovate and has made Group companies more patent-conscious.” The world’s cheapest car, Nano, an innovation from Group company Tata Motors, launched in April 2009, has 37 patents, while Swatch, the cheapest water filter from Tata Chemicals, has 14. Tata Steel, which acquired British company Corus in 2007, meanwhile, files around 50 patents each year. (For details log on to : http://www.financialexpress.com/news/tata-group-companies-sharpen-innovative-edge/942683/)
STAR INDIA TO LAUNCH ‘MOVIES OK’
MUMBAI: India’s largest television broadcaster by market share, Star India, owned by Rupert Murdoch’s News Corp, will soon launch its new movie channel, Movies OK, its second in the Hindi movies space, a person familiar with the development said. “The channel will be a part of the ‘OK’ family without the Star branding,” confirmed a top official from Star TV network. He cannot be named as plans for the channel are still underway. Movies OK will compete in a space which has close to 12 channels including SET Max, Star Gold, Zee Cinema, UTV Movies, UTV Action and Zee Premier. Star TV currently runs Hindi general entertainment channel (GEC) Life OK under its OK brand name. Life OK, which replaced Star’s youth-oriented GEC Star One, was launched in December 2011, and is headed by Ajit Thakur, who is the general manager. (For details log on to : http://www.financialexpress.com/news/star-to-launch-movies-ok/942661/)
INDIA AND BRAZIL TO DRIVE THE GLOBAL WIND ENERGY CAPACITY ADDITION
KOLKATA: The global wind industry will install more than 46 giga watt of new wind energy capacity in 2012 according to a five-year industry forecast published by the Global Wind Energy Council (GWEC). By the end of 2016, total global wind power capacity will be just under 500 GW, with an annual market in that year of about 60 GW, the report said. Overall, GWEC projects average annual market growth rates of about 8% for the next five years, but with a strong 2012 and a substantial dip in 2013. Total installation during 2012-2016 is expected to touch 255 GW, with cumulative market growth averaging just under 16%. According to Steve Sawyer, GWEC Secretary General for the next five years, annual market growth will be driven primarily by Indiaand Brazil, with significant contributions from new markets in Latin America, Africa and Asia.” (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/india-and-brazil-to-drive-the-global-wind-energy-capacity-addition/articleshow/12897144.cms)
TRAI’S SPECTRUM AUCTION PROPOSAL CAN RAISE TARIFF BY 30 PER CENT, WARN TELECOM COMPANIES
NEW DELHI: India’s five mobile phone companies including Bharti Airtel on Friday accused the telecom regulator of issuing a ‘highly retrograde set of recommendations on spectrum auctions’ and demanded that communications minister Kapil Sibal reject all key proposals suggested by the Telecom Regulatory Authority of India (Trai). Using unusually harsh language, the chief executives of Bharti Airtel, Vodafone, Idea, Uninor and Videocon warned Sibal that accepting the regulator’s ‘flawed, retrograde, regressive and uncertain recommendations would irretrievably harm consumer interests, ring the death knell for the sector and lead to prolonged disputes and litigation.’ In their joint communication, Bharti Airtel CEO for India and South Asia, Sanjay Kapoor, Vodafone India MD and CEO Marten Pieters, Idea Cellular managing director Himanshu Kapania, Uninor chief executive Sigve Brekke and Videcon Telecommunications’ director and CEO Arvind Ball, demanded that all airwaves in the 1800 MHz band be put up for auctions, and the reserve price be slashed by 80% to allow the market to discover the ‘true’ price. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/telecom/trais-spectrum-auction-proposal-can-raise-tariff-by-30-per-cent-warn-telcos/articleshow/12903665.cms)
NMDC AWARDS PMC JOB FOR CHHATTISGARH PLANT TO MECON
NEW DELHI: Iron ore miner NMDC today said it has awarded the project and construction management contract for its Rs 15,525-crore Chhattisgarh steel plant to state-run consultancy firm Mecon. “The contract agreement for rendering project and construction management (PMC) services for the upcoming three mtpa integrated steel plant of NMDC has been signed between NMDC and Mecon,” NMDC said in a statement. NMDC Chairman N K Nanda and Mecon’s commercial director A K Tyagi signed the contract in Hyderabad. Though NMDC did not divulge the amount of the contract, sources close to the development pegged it around Rs 240 crore. (For details log on to: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/nmdc-awards-pmc-job-for-chhattisgarh-plant-to-mecon/articleshow/12901835.cms)
GOVT APPROVES MINES MINISTRY’S PLEA TO BID FOR HOSTING IGC 2020
NEW DELHI: The government has approved mines ministry’s proposal to bid for hosting the 2020 edition of the International Geological Congress (IGC). “The Cabinet in its meeting approved the proposal of the ministry of mines along with the ministry of earth sciences to bid for hosting the 36th International Geological Congress (IGC) in 2020 in Delhi,” the statement said. The mega event, which takes place every four years, would be held this year in Brisbane, Australia. The next edition will be held in Cape Town, South Africa, in 2016. The 22nd edition of the congress was hosted by Indiain the year 1964 in New Delhi, wherein about 1500 Geo-scientists from 109 countries had participated. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/govt-approves-mines-ministrys-plea-to-bid-for-hosting-igc-2020/articleshow/12901326.cms)
R K SINHA APPOINTED NEXT CHAIRMAN OF ATOMIC ENERGY COMMISSION
NEW DELHI: Ratan Kumar Sinha, director of the Bhabha Atomic Research Centre, was today appointed as the next chairman of the Atomic Energy Commission (AEC). 60-year-old Sinha is expected to assume charge of the country’s nuclear programme from AEC Chairman Srikumar Banerjee on Monday. Banerjee superannuates on April 30. Sinha will also be the secretary, Department of Atomic Energy. His appointment comes at a time when Indiaplans to expand its nuclear power generation capacities exponentially and has set an ambitious target generating 63,000 MW of atomic power by 2032. A Mechanical Engineer from Patna University, Sinha joined the 16th batch of the BARC Training School in 1973 and has been guiding the next generation Advanced Heavy Water Reactor (AHWR). (For details log on to : http://economictimes.indiatimes.com/news/news-by-company/corporate-announcement/r-k-sinha-appointed-next-chairman-of-atomic-energy-commission/articleshow/12899079.cms)
EIGHT CORE SECTORS’ GROWTH DOWN TO 4.4% IN APR-FEB: GOVERNMENT
NEW DELHI: Following lower growth in the crude petroleum, natural gas and steel sectors, growth in eight core sectors declined to 4.4 per cent during the April-February period of last fiscal, Parliament was informed today. These sectors had recorded a growth of 5.8 per cent in the same period of 2010-11. “In 2011-12 (April-February), eight core sectors recorded a growth of 4.4 per cent compared to a growth of 5.8 per cent in the corresponding period of 2010-11,” Minister of State for Finance Namo Narain Meena said in a written reply to the Lok Sabha. Meena said lower growth rate during 2011-12 has mainly been due to a lower growth in crude petroleum, natural gas and steel sectors. (For details log on to : http://economictimes.indiatimes.com/news/economy/indicators/eight-core-sectors-growth-down-to-4-4-in-apr-feb-government/articleshow/12901689.cms)
INDIA MISSES CRUDE OIL PRODUCTION TARGET AGAIN
Crude oil prices are shooting through the roof, but Indiamay have to continue to rely significantly on imports. India’s oil exploration firms have missed their targets yet again. After committing to produce 206.8 million tonnes of crude oil in 2007-12, the 11 {+t} {+h} Plan period, they actually produced only 176.9 million tonnes. This is an achievement of about 85.6 per cent vis-à-vis the target. The output figures for the latest year are provisional. Producers however, did up their output by 6.3 per cent compared to the previous Plan period. Indian exploration and production firms also produced more crude oil in 2011-12 than the previous fiscal. However, this will be little consolation to the nation, which had to resort to more costly crude imports to meet its energy needs. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-economy/article3361852.ece)
SIX NATIONS BID TO HOST GREEN CLIMATE FUND
NEW DELHI: The green climate fund (GCF), established as a result of the Durban talks last year for easy access to funds for developing countries tackling climate change, has found interest from six countries—Germany, Switzerland, Namibia, Mexico, Korea and Poland. The six countries have expressed interest to host the fund referring to the ability to recognise its legal capacity, privileges and immunities along with administrative and logistical support. The fund was set up to raise $100 billion by 2020 and $30 billion for the period 2010-2012 as part of fasttrack funding to support the adaptation and mitigation activities of developing countries based on thematic funding windows. Initially, the fund will have windows for adaptation and mitigation. Going ahead, an integrated approach to funding mitigation and adaptation will be used to allow for cross-cutting projects and programmes. (For details log on to : http://www.financialexpress.com/news/six-nations-bid-to-host-green-climate-fund/942478/)
TATA POWER BUILDS ITS CASE ON SASAN UMPP
NEW DELHI: After Reliance Power, the company’s arch rival, Tata Power, too, has independently secured a favourable opinion from the country’s top legal brains, including retired Chief Justice of India M N Venkatchaliah and former Solicitor General Dipankar Gupta, over the legality of a government decision allowing Reliance Power to divert surplus coal from the captive mines associated with its Sasan ultra mega power project in Madhya Pradesh. The opinion given to Tata Power runs contrary to what legal experts have told Reliance Power on their private initiative aimed at strengthening the case on coal diversion. The two companies, which are engaged in a legal battle where Tata Power has challenged the government’s decision in the Supreme Court, are likely to use the legal opinion they secured to strengthen their respective cases ahead of the Saturday’s ministerial panel meeting. (For details log on to : http://www.financialexpress.com/news/tata-power-builds-its-case-on-sasan-umpp/942693/)
INDIA’S LONG-TERM GROWTH POTENTIAL 8-9%, SAYS MONTEK
LONDON: Notwithstanding global credit rating agency S&P’s lowering India’s outlook to ‘negative’, the country remains bullish and its long-term economic growth potential is 8-9%, deputy chairman of Planning Commission Montek Singh Ahluwalia has said. “My view of Indiais that it is bullish. India’s long-term growth potential is 8 to 9%. In order to achieve this, we have to get our macro-economics right,” said Ahluwalia, briefing media at the third Clean Energy Ministerial Meeting. He added, “Indiaachieved a growth rate of 6.9% last year. The question is whether India’s growth in 2012-13 will go up or not. Growth is taking place in Asia — Chinaand India.” Standard & Poor’s on Wednesday downgraded India’s credit outlook to ‘negative’ and warned of a downgrade if there is no improvement in the fiscal situation and political climate. (For details log on to : http://www.financialexpress.com/news/indias-longterm-growth-potential-89-says-montek/942695/)
LAND BILL MAY TAKE A NEW SHAPE AS SLEW OF ACTS LIMITS SCOPE
NEW DELHI: The Land Acquisition Bill 2011, which seeks to facilitate industrialisation without hurting farmers’ interests, keeps many important sectors out of its purview and should be made far more inclusive to serve the stated purpose of making available land for development projects, feels majority of the members of the parliamentary standing committee concerned. Their views are likely to reflect in the panel’s report, necessitating major changes in the provisions of the Bill and potentially delaying its passage, sources familiar with the committee’s deliberations told FE. The standing committee on rural development looking into the provisions of the momentous Bill, is likely to table its report in the House by May 11 as scheduled, but its views could lead to a reformulation of the Bill, these sources said. Members’ objections to the Bill in its present form is primarily because of the exemptions sought to be accorded to virtually 90% of projects for which land can be — or need to be — acquired for industrial and urbanisation projects under a uniform set of norms. These include highways, nuclear plants, mines, special economic zones (SEZ), etc, where there are separate laws dealing with land acquisition issues. (For details log on to : http://www.financialexpress.com/news/land-bill-may-take-a-new-shape-as-slew-of-acts-limits-scope/942705/)
CIL TO SET DEADLINE FOR SIGNING FSAs
KOLKATA: Coal Indiaplans to take an aggressive stand against power producers and set a deadline after which it will not sign fuel supply agreements (FSAs) with the companies, as the state monopoly fights back after being arm-twisted to commit long-term fuel supply. Coal India’s board has already decided to impose negligible penalties if it defaults on FSAs and has asked companies to accept its price if CIL needs to import coal. CIL is concerned about slow growth in output and blames delays in environmental clearances for the coal shortage. However power companies accuse the state-run firm of abusing its monopoly and offering FSAs from which it can easily back out. Most power producers have not come forward to sign the FSAs, making Coal Indiaofficials impatient. “Depending on the final response (from power companies) we will take a decision next week. We also intend to ask for the ministry’s view on the same,” Coal Indiachairman S Narsing Rao told ET. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals-mining/cil-to-set-deadline-for-signing-fsas/articleshow/12904066.cms)
SAMSUNG ENDS NOKIA’S 14-YEAR RUN AS LARGEST PHONE HANDSET MAKER
HONG KONG: Samsung Electronics overtook Nokia as the world’s biggest vendor of mobile phones for the first time, ending the Finnish company’s 14-year run as the global leader, according to an industry study. Samsung shipped 93.5 million handsets in the first quarter, 36 per cent more than a year earlier, compared with 82.7 million for second-ranked Nokia, researcher Strategy Analytics said in a statement on Friday. Demand for Galaxy smartphones helped the South Korea-based Samsung post first-quarter net income today of 5.05 trillion won ($4.5 billion), beating analysts’ estimates. Nokia had been the biggest mobile-phone maker by shipments since 1998, when the Finland-based company took over the spot from Motorola Inc. Nokia reported a euro 1.34 billion ($1.8 billion) first-quarter operating loss after handset sales slumped. Both smartphones and low-end handsets declined as Nokia’s aging portfolio was outpaced by handsets running Google Inc’s Android. Its handset shipments in Chinafell 62 per cent. (For details log on to : http://www.business-standard.com/india/news/samsung-ends-nokias-14-year-run-as-largest-phone-handset-maker/472845/)
IGL, MGL MAY LOSE EXCLUSIVE SUPPLY RIGHTS
NEW DELHI: After the adverse tariff and compression charges order, the capital’s monopoly compressed natural gas (CNG) and piped natural gas (PNG) player Indraprastha Gas Ltd (IGL) may lose its marketing exclusivity to new players. Downstream petroleum regulator, the Petroleum and Natural Gas Regulatory Board (PNGRB) is finalising an access code that will throw Delhiand Mumbai open to other city gas entities that can use IGL’s and Mahanagar Gas Ltd’s (MGL) spare pipeline capacity to market gas. Marketing exclusivity, the condition under which only IGL and MGL could market CNG and PNG in their respective cities, ended in January 2012. IGL could be the first city to see entry of a new player. “A separate access code is being developed that will lay down the guidelines for allowing new companies to use spare pipeline capacity available with the existing monopoly entity like IGL and MGL,” said a PNGRB official, adding the access code would take two-three months. (For details log on to : http://www.business-standard.com/india/news/igl-mgl-may-lose-exclusivesupply-rights/472852/)
INDIA INC PUTS ITS MIGHT BEHIND INNOVATIONS
MUMBAI: It is a problem that confronts most steel makers, but few have been able to work round it. The one who has is Tata Steel. The Rs 29,396-crore steel major is piloting a technology at Vizag in Andhra Pradesh that will help it reduce wastage when it removes the ash content from coal mines. The issue can be put in perspective when the ash content in Indian coal is noted: it is almost 35 per cent, which makes it unusable as a raw material for steel. To tide over this problem, most steel makers import high-grade coal from countries such as Australia. Tata Steel, which was feted for its technology at the 2012 edition of Tata Innovista (awards that recognise innovations within the Tata Group), is looking to cut imports once it is commercialised in three to four years. The Mumbai-headquartered company, whose largest plant is located at Jamshedpurin Jharkhand, is not the only one to be devoting its attention to break-through technology of late. Information technology company Tata Consultancy Services (TCS) has rolled out a new software for farmers in Maharashtra and Gujaratthat allows them to have easy access to information that counts, whether it is about the arrival of the monsoons, soil quality or pest control. Called Samriddh Krishi, TCS has collaborated with Tata Chemicals for the project, and the rollout, according to R Gopalakrishnan, director, Tata Sons, will be expanded over time. (For details log on to : http://www.business-standard.com/india/news/india-inc-puts-its-might-behind-innovations/472858/)
INDIAN PC MARKET EXPECTED TO GROW 8% IN 2012: STUDY
MUMBAI: Personal computer (both notebook and desktop) sales are expected to grow by eight per cent for the year 2012, said CyberMedia Research. PC sales grew six per cent in 2011. Notebook PCs that made up 44 per cent of the sales in 2011 are expected to grow at 13 per cent while desktop computer sales are expected to grow by four per cent, leading to a marginally better growth projection of eight per cent, said Sumanta Mukherjee, lead analyst, information technology practice, CyberMedia Research in his preview. Some of this growth will also come from ultrabooks and all-in-one-desktops (AIOs). “Ultrabooks were introduced in the Indian PC market in 2011, but shipments remained niche due to high price-points. As prices rationalise, ultrabooks are likely to become mainstream by end of 2012.” (For details log on to : http://www.business-standard.com/india/news/indian-pc-market-expected-to-grow-8-in-2012-study/472839/)
RIL EARNINGS BACK ON TRACK IN FY15
MUMBAI: The earnings of India’s most valuable company, Reliance Industries Ltd (RIL), will likely remain weak over the next two fiscal years, but will gain momentum after that, brokerage firms’ analysts said in research reports written after meeting the company’s management. The company’s operating profit may even double from current levels by 2016-17, according to Credit Suisse. For fiscal 2012 (FY12), RIL reported a 31.4% year-on-year increase in revenue to Rs. 3.38 trillion, but its net profit fell 1.2% to R20,040 crore. Mint has reviewed research reports of 29 domestic and foreign brokerages firms released since 21 April. RIL’s management met the analysts tracking the company on 20 April after announcing its earnings for the three months and fiscal year ended 31 March. The company outlined the challenges it is facing in ramping up gas output from the D6 block in the Krishna-Godavari basin, and how it will deploy the excess cash on its books. (For details log on to : http://www.livemint.com/2012/4/27232618/RIL-earnings-back-on.html?h=A1)
DOMESTIC WHITE GOODS MARKET MAY TOUCH RS 52,000 CRORE BY 2015: STUDY
NEW DELHI: The size of domestic consumer electronics and durables, or white goods, market may touch Rs 52,000 crore by 2015 on account of rising demand for these goods, particularly among youngsters, a study by industry body Assocham has said. At present, the consumer electronics and durables industry is estimated at about Rs 34,000 crore, it said. “The demand for consumer electronics and durables is driven by growing popularity of these goods among young population coupled with rising disposable incomes,” Assocham Secretary General D S Rawat said. Besides, easy availability of finance options, growing consumer electronics’ retail stores and online retail industry are also fuelling the demand for these products, he said. The country’s consumer electronics and durables market is divided into three segments – white goods (ACs and refrigerators), brown goods (microwaves, juicers and iron) and consumer electronics (TV sets, laptops, cellphones and other electronic accessories), the study added. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/domestic-white-goods-market-may-touch-rs-52000-cr-by-2015-study/articleshow/12900544.cms)
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