LIFE IS BEST FOR THOSE WHO WANT TO LIVE IT, TO HAVE A SPECIAL FRIENDSHIP SOME PEOPLE WON'T BELIEVE IN YOU; SOME PEOPLE WILL BE JEALOUS OF YOU; I'LL ALWAYS BELIEVE IN YOU I'LL ALWAYS CHEER FOR YOU; NO SHADOW TO DEPRESS YOU ONLY JOY TO SURROUND YOU MANY FRIENDS TO LOVE YOU GOD HIMSELF TO BLESS YOU THESE ARE MY WISHES FOR YOU TODAY, TOMARROW , AND EVERY DAY TO YOU SWEET THINGS ARE EASY 2 BUY,
LIFE IS DIFFICULT FOR THOSE WHO WANT TO ANALYZE IT,
LIFE IS WORST FOR THOSE WHO WANT TO CRITICIZE IT,
OUR ATTITUDE DEFINES LIFE...
ENJOY YOUR LIFE,
LAUGH SO HARD THAT EVEN SORROW SMILES AT YOU,
LIVE LIFE SO WELL THAT EVEN DEATH LOVES TO SEE YOU ALIVE,
FIGHT SO HARD THAT EVEN FATE ACCEPTS ITS DEFEAT...
IS SUCH A WONDERFUL THING,
JOY, HAPPINESS AND LAUGHTER
AREN'T ALL THAT IT WILL BRING.
ALONG WITH IT WILL COME SADNESS,
SORROW AND PAIN,
BUT HAVING SPECIAL FRIENDS
CAN MAKE YOU SMILE AGAIN.
SPECIAL FRIENDS WILL HUG AND COMFORT YOU
IN YOUR HOUR OF NEED,
THEY TAKE YOU BY THE HAND AND GUIDE YOU,
SOMETIMES TAKE THE LEAD.
THEY WON'T ENCOURAGE YOU
TO FOLLOW YOUR DREAMS,
BUT YOU MUST ALWAYS BELIEVE IN YOU,
NO MATTER HOW LONG THE JOURNEY
AHEAD SEEMS.
THEIR WORDS WILL BE SHARP AND UNKIND,
BUT YOU MUST CLOSE YOUR EARS
TO SUCH WORDS,
AND NEVER ALLOW THEM TO CHANGE
YOUR DIRECTION OR YOUR MIND.
AND ENCOURAGE YOU
TO FOLLOW YOUR DREAMS,
AND I'LL TRY MY BEST TO SHOW YOU
THAT THE ROAD IS NEVER
AS LONG AS IT SEEMS.
MY WORDS WILL BE WARM AND KIND,
BECAUSE I TRULY TREASURE YOU.
YOU OWN A PART OF MY HEART,
AND YOU'RE ALWAYS ON MY MIND.
BUT SWEET PEOPLE ARE DIFFICULT TO FIND.
LIFE ENDS WHEN U STOP DREAMING, HOPE ENDS WHEN U STOP BELIEVING,
LOVE ENDS WHEN U STOP CARING,
FRIENDSHIP ENDS WHEN U STOP SHARING.
SO SHARE THIS WITH WHOM EVER U CONSIDER A FRIEND.
TO LOVE WITHOUT CONDITION... ......... .........
TO TALK WITHOUT INTENTION... ......
TO GIVE WITHOUT REASON...... ......
AND TO CARE WITHOUT EXPECTATION. ......IS THE HEART OF A TRUE
FRIEND.......
We recommend
-
SMART WAYS TO SAVE TAX - Choose the tax-saving instrument that best suits your needs and financial goals Do-it-yourself tax planning can be rewarding and challenging. Rewardin...8 years ago
-
Sugar prices ease by Rs. 10 in a year, Rs 30 in a week - The retail price of sugar has dropped by Rs 2-3 per kg during the past week, bringing sweet relief to households burdened by the rising cost of living...8 years ago
-
Lok Sabha clears land bill, govt braces for battle in RS - Shiv Sena Refuses To Vote With Govt Lok Sabha on Tuesday passed the land acquisition bill after a marathon debate, with the government managing to keep...9 years ago
-
Alarm in K'taka, TN as Naidu 2.0 goes on biz hunt - Uses New State's Tax Breaks To Woo Tech, Mfg Investment For many years after he lost office in 2004, Chandrababu Naidu would flinch when complimented o...9 years ago
-
Rupee at over 2-mth low, IT stocks rally - Mumbai: Demand for dollars by oil companies, muted foreign fund activity as the year-end nears and the continuing political logjam in New Delhi combined to...11 years ago
Thursday, December 31, 2009
WISH YOU ALL HAPPY AND PROPEROUS NEW YEAR
Posted by Unknown at 11:32 PM 0 comments
Tuesday, December 29, 2009
Steel cos to raise prices by 3-4%, 2nd hike in a mth
TOP Indian steelmakers, including SAIL, Essar and Ispat, are likely to increase prices by 3-4% or Rs 1,000-1,500 per tonne in January in line with rising global prices. International steel prices have risen more than 5% over the past month due to growth in demand.
The price hike, which will be for steel products (both long and flat) sold in the spot market, will increase the cost of production for sectors such as automobiles, consumer durables and construction. While automobile and white goods makers use flat steel, long steel products go into construction.
Steel products are currently selling for Rs 32,000-34,000 per tonne in the domestic market, marginally higher than the landed price of imported steel. Anticipating further increase in international prices, steel companies are getting ready for a fresh round of hikes after a few months of slump.
"Steel prices have risen $30-40 per tonne to $580 a tonne internationally in the past month, which is a clear indication of steel uptake. Also, demand for long steel products, which was subdued during the monsoon, is on the rise and leading to price increase," said a senior SAIL executive on condition of anonymity.
India's largest steel producer SAIL plans to hike long product prices by Rs 1,000-1,200 per tonne and flat steel products by Rs 700-1,000 a tonne. This would be the second round of hike by SAIL in as many months. SAIL and Tata Steel hiked prices of long and flat steel products by up to Rs 2,000 per tonne a few days ago on the back of rising demand.
Mumbai-based Ispat, which only produces flat steel products, will increase prices by Rs 1,000-1,500 a tonne depending on the grade. "Rise in prices of key raw materials, iron ore and coking coal, is also putting an upward pressure on metal prices," an Ispat Industries spokesman said.
An Essar Steel spokesman, too, confirmed the company's plan to increase prices next month.
Posted by Unknown at 6:58 PM 0 comments
Indian component cos may power Honda bikes globally
HONDA Motor of Japan plans to buy two-wheeler parts from India for its global operations to capitalise on its pricing and quality advantages in keeping with the trend set by its peers, says a person familiar with the development.
"India's scale, pricing and quality advantages convinced Honda that it made huge business sense," said the person, who did not wish to be named.
Global auto companies such as Hyundai, Suzuki, GM and Toyota buy components worth millions of dollars from Indian companies at lower prices than global ones to remain profitable. Some global auto manufacturers face bankruptcy and many are shutting plants across the globe to remain competitive.
Honda is looking at global sourcing from India to leverage the scale that its Indian subsidiaries Hero Honda and Honda Motorcycle and Scooters India (HMSI) have built up, according to a person with direct knowledge of the development. Between the two subsidiaries, Honda sells more than five million two-wheelers in India, over 40% of the Indian two-wheeler market.
Honda has been using Thailand as a base for low-cost aggregates for two-wheelers as well as cars, as, along with Toyota, it is one of the two big players in the Asean region and has a huge capital investment in that country.
However, the pull of the Indian market is far too strong to resist. After China, India has the world's second largest twowheeler market. It is also the second-fastest in terms of automotive growth.
Hero Honda's top gear performance — the company is all set to cross 4 million units in sales this financial year — seems to have "convinced Honda that sourcing from India is the way ahead," said the person familiar with the matter.
Posted by Unknown at 6:20 PM 0 comments
IDEA CELLULAR TAKING THE RIGHT CALL
EMERGING COMPANY OF THE YEAR
An Idea that's now worth many billions IF VICTOR Hugo were alive today, Idea Cellular may have made him proud. "Nothing is as powerful as an idea whose time has come," is probably the best way to sum up the cellular company's progress. What was once an also-ran mobile phone company, Kumar Mangalam Birla's Idea now rubs shoulders with giants such as Bharti Airtel and Vodafone-Essar. Thanks to the patient, but painful, assembling of many tiny units on its way to realise the idea of a multi-billion dollar mobile phone company.
Starting from a time when two relatively small companies combined, to a failed merger, to some key buyouts, and the exit of a key foreign partner, to a pan-India presence, this company has seen it all.
Idea Cellular is part of the AV Birla Group whose business interests range from aluminium to cement to retail. Idea — ET's Emerging Company Of The Year — now has more than 56 million subscribers, making it the fourth largest in the sector.
The business of mobile phones was probably one of the last ideas of the legendary businessman, Aditya Vikram Birla, before he passed away in 1995. Aditya Birla gave a thumbs up for the joint venture between his nascent telecom company and the iconic AT&T, which traces its roots to the inventor of telephone, Alexander Graham Bell.
The wireless story in India was unknown then and, for most businessmen, it was a sector that gulped hundreds of crores of investments with no returns in sight. The Birlas were among the few who took the plunge with the likes of Tatas, Modis, Nandas and the Goenkas. While many quit the race, Birlas stayed in the marathon.
It was Birla-AT&T then when tariffs were beyond the budget of most Indians. At Rs 16.80 per minute, the mobile handset was ostentatious and there were enough naysayers who scoffed at the story that was refusing to take off. The company's operations were launched in 1997, and this was restricted to Maharashtra (including Goa and excluding Mumbai) and Gujarat.
It was a test of perseverance for four years before the National Telecom Policy, 1999 — referred to as NTP 99 — came along. "This was a watershed event," says Idea Cellular's MD Sanjeev Aga. "When I read NTP today, it is still contemporary and comprehensive."
The policy moved from a fixed-licence regime to one that was revenue sharing. "The business model was going nowhere," said Mr Aga, who is having his second term at the firm after quitting once in 2001. The problem with the fixedlicence fee regime was that the bids for licences were hopelessly optimistic, he said.
Idea had its share of romance too, when two of the biggest industrial houses — Tatas, Birlas — came together, probably for the first time ever, to try their luck in telecom. A strong balance sheet to help Idea's future plans
IN 2000, Tata Cellular was a company providing mobile services in Andhra Pradesh. When Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two entities was a reality. Thus, Birla-Tata-AT&T, popularly known as Batata, was born. "We had the advantage of good promoters. So, we always set high standards," says Mr Aga.
But these relationships did not last long, and Idea was to set on a solo sail. There were many hurdles in its journey. In 2001, the Batata triumvirate agreed to merge its operations with the Rajeev Chandrasekhar-promoted BPL Communications. The merger could have brought in regions like Mumbai, Maharashtra, Kerala and Tamil Nadu, which seemed to be a perfect accompaniment to what it already had. This was critical, with the bid for the fourth operator licence round the corner. However, the engagement with BPL was broken. Then, it set sights on RPG's operations in Madhya Pradesh which was successfully acquired, helping Batata have a million subscribers, and the licence to be the fourth operator in Delhi was clinched. This was the time when Idea looked ten years ahead, when smaller rivals gave up hope.
In 2004, Idea (the company had by then been rechristened) bought over the Escorts group's Escotel gaining Haryana, Uttar Pradesh (West) and Kerala — and licences for three more — UP (East), Rajasthan and Himachal Pradesh. By the end of that year, four million Indians were on the company's network.
This period was critical in more ways than one. "We managed our debt that had accumulated over time. However, we did not have the wherewithal to aggressively expand to other circles," says Mr Aga.
In 2005, AT&T sold its investment in Idea, and the year after Tatas also bid good bye to pursue an independent telecom business. "In many ways, June 2006 was the real turning point for us," says Mr Aga. "Now, there was just one promoter and the
sector was doing well," he added.
When the company's stock listed on the bourses in March 2007, its subscriber base was 13 million with presence in 11 circles. Today, in less than three years, the subscriber numbers have more than quadrupled. The public issue was oversubscribed 50 times and raised Rs 2,450 crore. The company, which sold its shares at Rs 75 each, reached an all-time high of Rs 161 in October 2007. In recent times, the scrip has not exactly outperformed, first because of the general downturn in the market in 2008, and later because of the frenzied tariff-cutting by telecom companies.
Mr Aga and company, on their way, also encountered the psephologists' nightmare called India — the varied tastes and behaviour of different states and regions. "We realised that behind the façade of being a national market, each circle was more like an independent market," says Mr Aga. "The network in each circle was really one large factory. What worked for us was the high quality spectrum in our older circles," he says.
In June last year, Idea Cellular bought out BK Modi's stake in Spice Communications for Rs 2,700 crore, adding Punjab and Karnataka circles. Modi's joint venture partner, Telekom Malaysia, invested Rs 7,000 crore for a 14.99% stake in Idea. Just around then, Idea's subsidiary, Aditya Birla Telecom, sold a 20% stake to US-based Providence Equity Partners for over Rs 2,000 crore. With these two transactions, Idea was debt-free then, a rare feat in telecom.
"Today, we have a tremendously strong balance sheet. Our net debt is only Rs 4,000 crore and we have approvals to raise another over Rs 11,000 crore. In fact, we can raise much more than what we will ever need," adds Mr Aga. In the past three-and-a-half years, infrastructure growth for the company has been impressive. From 5,000 cell sites in March 2006, Idea boasts of 62,000 today and is mentioned in the same breath as other large players like Bharti Airtel and Vodafone-Essar. "Just a few years ago, there was an apprehension that we would struggle as an independent operation. We can now say that Idea can take on the best in the world's most competitive market," Mr Aga said proudly. A mighty idea.
rashmi.pratap@timesgroup.com
Posted by Unknown at 6:15 PM 0 comments
GLOBAL RALLY SENSEX ENDS AT 19-MTH HIGH
Markets in the mood for year-end party
Rising above the din of scepticism, Sensex made merry on Tuesday, setting its sights on climbing new peaks
INDIAN shares rose to a new 19-month high sailing with global markets which are enjoying the liquidity high tide even as fundamental and technical factors point to a modest 2010. Conventional wisdom that the peak may be closer when penny stocks are the toast of the traders and shoe-shine boys give out stock tips are also beginning to play out. "Markets are trading at the higher end of their fair value at the moment," said Nilesh Shah, deputy MD and CIO, ICICI Prudential Asset Management. "Investors will now wait to see how the government translates its promises on economic growth and reforms into real actions."
BSE's Sensex closed at its highest level since May 16, 2008 at 17,401.56, up 40.95 points, or 0.24%, off the day's high of 17,486.05. The S&P CNX Nifty index ended up 9.55 points, or 0.18%, at 5,187.95, after touching the day's high of 5,214.60, its highest since May 5, 2008. A close above 5,200 is required to indicate the continuation of bull run.
Benchmark indices have more than doubled from their March lows, as global investors poured in more than $17 billion, expecting a sharp economic growth in India, which has kept its interest rates at record low and doled out fiscal stimulus. The rally in stocks makes many investors feel that they might have overshot their fair value based on their potential earnings.
The Sensex is trading at nearly 17 times its expected earnings for the year ending March 2011, according to some analysts. These prices are in expectations of companies delivering strong earnings in the next few quarters, which may become difficult, if the government rolls back fiscal stimulus and the interest rates starts climbing prematurely. Their profitability may also be at risk as commodity prices of copper and steel zoom expecting a sharp global economic recovery.
"The Nifty is in the overbought region with the daily RSI (relative strength index) at 75," said Alex Mathews, head (derivatives and technical research), Geojit BNP Paribas Financial Services. "The Nifty is trading above the daily and weekly upper Bollinger band and so, a correction is due," he added. Bollinger band is a technical trading tool used by analysts to study whether a security, or an index, is relatively low priced, or high priced within a band established by a trading pattern.
FESTIVE CHEER
What's driving the rally in India?
Possibility of higher allocation from foreign investors in 2010, better-than-expected growth in the economy, and hopes that there may be no sentiment shattering development in global markets.
With concerns that shares are fairly valued, should investors still buy?
Liquidity is expected to stay for the next few months. In addition to foreign inflows, local insurance companies, too, are expected to be big buyers, as they receive maximum premium income around this time of the year. In the short term, liquidity could be the deciding factor, not fundamentals.
What could possibly upset the momentum?
Withdrawal of stimulus by central banks across the world and a likely rise in interest rates could undermine sentiment briefly. Penny stocks make a comeback
THE broader market saw gainers and losers at 1,859 to 964, which has brought to the fore many penny stocks which are mainly ignored by fund managers, but favoured by traders. Some of the stocks that rose 20% on Tuesday are: Foundry Fuel Products at Rs 12.84, Mukat Pipes at Rs 13.58, Rathi Ispat at Rs 7.83 and Gufic Biosciences at Rs 8.68. These are also the times when one gets unsolicited investment advice through SMSes in cell phones screaming "earn Rs 10,000 a day investing in stock markets." It is time to sell when the shoe-shine boy tries to give you stock tips, said Joseph Kennedy, a legendary stock broker and father of US president John Kennedy.
Posted by Unknown at 6:14 PM 0 comments
Return lost funds to IPO scam victims: Sebi panel
PAYBACK TIME
Mumbai: If you had applied in any of the 21 IPOs that opened between 2003 and 2005, and were not allotted even a single share, you could be in line for some windfall gains. A Sebi committee that was set up to suggest ways to compensate those investors who were affected by the IPO scam which was first detected in December 2005, said that money recovered from the scamsters should be distributed among the affected IPO applicants.
The committee, headed by retired Supreme Court judge DP Wadhwa, also suggested ways to recover the gains from the scamsters and distribute the same among those affected by the scam. The report said that the scamsters gained Rs 95.7 crore by rigging the IPOs. As on October 31, 2007, the value of frozen shares of these scamsters in the depositories worked out to Rs 147.85 crore and the balance in their bank accounts frozen by CBI was at Rs 1.2 crore.
The IPO scam related to 21 IPOs, including in offers like NTPC, TCS, Jet Airways, IDFC, Yes Bank, Suzlon Energy and Shoppers' Stop. Between 2003 and 2005, a group of investors opened thousands of demat accounts, some even in fictitious names, and cornered shares reserved for retail investors. In some cases, they even used photographs of random people, procured from studios.
For calculating how much is to be paid to the affected IPO applicants, the committee has suggested that the amount which is the difference of closing price of shares on the first day of listing/trading on the NSE and the IPO price should be considered. "These applicants will not be entitled for the market price movements subsequent to the listing," the committee, which had five members, noted in the report.
It recommended that applicants who were not allotted any share in the IPO, should get money equally from the amount recovered from the scamsters, till each of them receive the gains from minimum shares allotted to the lowest category in the IPO. Once all the applicants who did not get any share in the IPO are compensated, the money left over should be given to those who got partial allotment. Earlier the government had promised to recover ill-gotten profits from the scamsters and compensate those investors who were affected by the scam.
Posted by Unknown at 6:05 PM 0 comments
Wednesday, December 23, 2009
UK asks Tatas to weigh rolling back its plant closure decision
CORUS ASKED TO LOOK AT ALTERNATIVE USE OF LAND AT TEESSIDE PLANT
THE British government has asked Tata Corus management to look at the possibility of reversing its decision to partially close a plant in Britain's Teesside region next month, which will lead to 1,700 workers losing their jobs. Alternatively, the company could look for other uses of the land, plant and infrastructure so that jobs are saved, a senior minister in the British government has said.
"I hope that it may be possible to reverse the decision if further orders (for steel) can be found," British business secretary Peter Mandelson told ET. Mr Mandelson was on an official visit to India this week and had talks with representatives of Tata Corus and Tata Steel on the issue.
The business secretary pointed out that Corus' decision to close down a part of its Teesside Cast Product (TCP) plant was a great disappointment. "This has come as a great shock to the workforce who have lost their jobs and to the local community," Mr Mandelson said. Steel making is the dominant activity in this part of England (Eastern part) and the Corus plant has been the biggest employer for decades. Tata Corus has also been asked to look at alternative uses of the land, the plant and infrastructure so that jobs are not lost. "I encouraged Corus to think on these lines. I will be passing that message again to Tata Steel," he said.
A statement published by Tata Steel earlier this month said that the decision to partially mothball TCP followed "strenuous" efforts by Corus over the past eight months to secure a long-term future for the plant, after the failure of four international slab buyers to fulfil their obligations under a ten-year contract thatthey signed with Corus in 2004.
Steel plants in Europe have been reducing production as a result of a fall in demand due to the global economic slowdown. TCP lost Rs 800 crore in the second quarter of this financial year. While the incident had resulted in a setback for the local people, Mr Mandelson said that he did not see future investments into the UK through mergers and acquisitions getting affected because of it. We are seeing more Indian investment than ever, he said. "The number of investment projects rivals only that of the United States in Britain. And I welcome it," he added
On Tata's role in the UK, the business secretary said his country valued Tata's investment and it had become an important part of the manufacturing base. "They are responsible employers and we are glad to have them in Great Britain," he added.
BUSINESS UNUSUAL
British biz secy suggested co could look for other uses of land, plant & infrastructure so that jobs are saved
Steel making is dominant activity in Teesside region & Corus plant has been the biggest employer for decades
Teesside Cast Product (TCP) lost Rs 800 crore in the second quarter of this financial year
Posted by Unknown at 7:33 PM 0 comments
Godrej, Paras, Wipro & Himalaya Cashing In On Swine Flu Scare
Cos eye handsome gains with sanitizers
FORdecades, personal hygiene for Indians started and ended with Lifebuoy soaps and Dettol hand wash. Not any more. With swine flu scare sweeping across the country and spreading consciousness about hygiene like never before, a bunch of consumer product makers including Godrej Consumer Products, Paras Pharmaceuticals and Wipro Consumer Care have jumped into this market with hand sanitizers.
Hindustan Unilever too has launched its hand sanitizer in select markets under the Lifebuoy brand alright, but it's facing competition from Himalaya Herbal Healthcare, one of the few existing players that had so long restricted its sales mostly to hospitals, and a spate of new regional brands.
"Lifebuoy has launched hand sanitizers in select markets," said a Hindustan Unilever spokesperson.
There is also speculation that Reckitt Benckiser, makers of Dettol antiseptic liquid and soaps, too will bring out its hand sanitizer soon as the category sees brisk sales despite premium pricing compared with liquid soaps. "What we have sold in the last three months is probably equivalent to what we sold in the last three years," Saket Gore, business head, consumer products, at Himalaya Herbal Healthcare, said about the company's hand sanitizer brand Pure Hands.
While the company has widened the distribution network for its hand sanitizer, Himalaya has not started advertising its brand, unlike most of its competition that are very aggressive in marketing their product.
Marketers are using different positioning from convenience (no need for water and towels) and effectiveness (safer than traditional methods) to even emotion for their respective brands.
Godrej Consumer Products, for example, is tapping distribution points like kirana and general stores, and even small chemist outlets for its Protekt hand sanitizer. "Concern about H1N1 influenza (swine flu) specially among schools, offices, shopping and traveling has been increasing rapidly, and it's the risk factor of the disease that's fuelling growth," said Dalip Sehgal, MD of Godrej Consumer Products. Paras Pharmaceuticals is positioning its Dermicool hand sanitizer indirectly against soaps and is mainly targeting women. It was the first in the category to advertise on television.
"When people are outside-the-home in shopping malls or travelling, even water can have germs. Hand sanitizers offer far better protection against germs, and we believe the category will become crowded in times to come," says S Raghunandan, MD and CEO of the company that makes Moov painkiller, Krack cream and D'Cold anti-cold lozenge and cough syrup.
Wipro Consumer Care entered this space about three months ago by extending its Chandrika brand to hand sanitizers. It is mainly focusing on schools to create awareness about its hand sanitizer brand. "We don't expect the category to be too large but it's the need of the hour. For parents of school going children, the HINI flu scare is an emotional issue," said Vineet Agrawal, president of Wipro's consumer care business.
According to a Nielsen study, sales of hand sanitizers in the United States soared 245% on reports of the H1N1 flu strain. In the UK, hand sanitizers has grown three-folds since the HINI scare broke about 10 months ago. This sudden surge in demand around the world has brought alive an almost non-existent market, where the only available hand sanitizers were expensive imported brands.
ratna.bhushan@timesgroup.com
Posted by Unknown at 5:53 PM 1 comments
JINGLE BELLS ON DEAL ST
The rest of the world may be about to go on a holiday, but India Inc isn't ready to head for the beaches. With 7 days to go for the end of the year, companies, enthused by the great India story, are still striking deals. Keeping up with the X'mas spirit, the Sensex surged 539 points
Rashmi Pratap & Rohini Singh MUMBAI| NEW DELHI
GTL to buy Aircel's towers
GTL Infrastructure, a company that leases out towers to cellphone operators, has agreed to buy Aircel's towers for Rs 4,000 crore in an all-cash deal, a valuation lower than similar deals in the past, reflecting waning investor interest in telecom.
GTL has outbid rival Tata-Quippo in the negotiations to buy the 17,500 towers of Aircel that will take its total to 33,000 and will give it access to another 20,000 that are being set up, said two people familiar with the development who did not want to be identified. That will make it the second-largest independent telecom infrastructure provider in the country.
The enterprise value of the deal may be around Rs 8,500 crore, including a debt of Rs 4,500 crore, one of the persons said. Malaysia's Maxis Communications holds 74% in Aircel. The deal may be funded out of internal accruals of the GTL group, said the person, but did not elaborate.
"Along with the towers, GTL will acquire the related broadband infrastructure as well," the person privy to the discussions told ET.
"We have not yet concluded the deal," said Aircel CEO Gurdip Singh. "The process is still underway and we are in talks with three parties." He did not disclose the other two. A GTL spokesperson and Quippo Telecom Infrastructure (QTIL) CEO Probal Ghosal declined to comment for the story.
Investor interest in India's telecom sector, especially mobile phones, is waning, as the intense competition with the advent of Russia's Sistema making look future profitability thin. Tariff war in the sector has led to analyst downgrades of stocks, which have been the worst performers this year, even as the benchmark stock indices are on course for record gains. Mobile phone companies are leasing out infrastructure than set it up themselves to control costs. STANDING TALL GTL, Aircel ink 45-day exclusivity agreement
"GOING by past deals, GTL has bagged Aircel towers at a fair valuation," said a sectoral analyst who did not want to be identified. "It's not a stretched deal compared to the prices at which Bharti and Reliance Communications sold their towers. Plus, GTL will have Aircel as anchor tenant."
Bharti Infratel and Reliance Infratel, the companies that own signal towers of mobile majors Bharti Airtel and Reliance Communications, in the past had sold stakes in those firms at astronomical valuations when the bull market was raging before the credit crisis. There are hardly any companies that are eager to pay such valuations now.
The value per tower for Bharti and Reliance deals were between Rs 100 lakh and Rs 120 lakh, said the analyst, while for GTL, the Aircel purchase works out to an average of Rs 48.5 lakh per tower. When Tatas merged their towers with Quippo Telecom Infrastructure, each tower was valued at Rs 61 lakh. In March, ATC had paid $90,000 (Rs 41 lakh) per tower for Xcel Telecom's 1,700. Both Bharti and Reliance plan IPOs for their tower units. Citibank and Barclays are the bankers advising GTL. Aircel is being advised on the deal by Nomura, Standard Chartered and NM Rothschild. GTL has already signed a 45-day exclusivity agreement for the transaction, implying that Aircel will now not talk to any other party.
"The deal is expected to be signed by January," said the person.
While the mobile phone service providers try to cut cost and be assetlight due to competition, the entry of many players boosts the opportunities for companies such as GTL which lease out infrastructure.
Norway's Telenor, Russia's Sistema and Japan's DoCoMo are the latest entrants into the Indian mobile phone market, which is the second-fastest growing after China. India has more than 500 million mobile phone subscribers, more than four times the total estimated population of Japan.
The renting of towers also lessens the strain on service providers as they need not keep spending on capital expenditure.
"Low-cost model demands service providers to turn capex into opex and remain light on fixed assets," said Ascentius Consulting principal analyst Alok Shende.
Posted by Unknown at 5:51 PM 0 comments
Tuesday, December 22, 2009
Some investors lose out on market surge in ’09
SPIKE AND A MISS
Mumbai: Some investors would remember 2009 as a year of missed opportunities. According to investment experts, many investors were swayed by the global economic turmoil and doomsday predictions from various pundits and missed a chance to pocket handsome returns from the stock market this year.
"It was tough task to convince some investors. They have become such pessimists and so convinced that the market would tank further," says a financial consultant, who has interacted with investors in various educational forums. "The trouble was they have become admirers of some obscure pundits, who were predicting the end of stock market. They just wouldn't listen to you, they were convinced that the sensex would touch 3,000 by the end of the year," he adds.
No wonder, many investors stopped their systematic investment plans or booked profit and chose to wait for a clear direction before entering the market. Poor souls, they must be regretting listening to those predictions. Imagine, the sensex was at 9,903 on January 1. It has soared to 16,601 by December 21. That means, even if these investors have put their money in an index scheme, they would have earned around 67%. If they had invested in diversified schemes, they would have earned a little more in the same period. For example, diversified equity category has given an average return of around 74% in the last one year.
"In the best of times, it is difficult to predict the market. The so-called experts may be able to speak about the broad direction of the market, but it is impossible to predict every minute's move in the market," says Suresh Sadgopan, chief financial planner, Ladder 7 Financial Advisories. "For example, there is a common belief that the market would peak around Diwali, but if you look at the trend in the last five years, sometimes it hasn't happened," he adds.
Gaurav Mashruwala, a certified financial planner, says investors should remember that "time in the market is important to get higher returns, not timing the market."
"The best way to maximise returns is to align your goals with the market. For example, if you have eight or nine years to reach the goal, opt for equity. If you only have a year or two, then go for debt investments,'' he says. "The market can be volatile in the short term. But looking for tips, inside information or news... you can be completely mislead," he adds.
The point is: you can't do anything about the short term volatility in the market. All you can do is to believe that equity has the potential to deliver superior returns in the long term. Traders can cause envy for a short period, but they wouldn't be able to repeat the act everytime. So, next time don't abandon your financial plan in the face of short-term uncertainties, stick to your plan, say experts.
Posted by Unknown at 5:31 PM 0 comments
THUMBS DOWN TO LONGER DAYS
Rethink change in mkt time: Traders
NSE Chief Narain Says Bourse Won't Extend Closing Hour Beyond 3.30 PM
TNN & AGENCIES
Mumbai: The opposition to the proposal by the two exchanges to extend trading hours is growing by the day. On Tuesday, a trade body of BSE members demanded that both, BSE and NSE, re-consider their decision to start trading at 9am, instead of the current market opening time of 9.55am.
The same day, Ravi Narain, MD, NSE told reporters that there was no proposal to extend market closing time to beyond 3.30pm.
On Tuesday, BSE Brokers' Forum, opposed the move by NSE and BSE to have an extra 50 minutes of trading in the morning. "The BSE Brokers Forum represents both the exchanges to take into consideration the ill-effects of the early opening at 9am on the market participants and investors at large and appeals to reconsider their decision," a release from the forum said.
Following opposition from the broking community and a timely intervention by Sebi, last week both the exchanges had to defer implementation of their decisions on early start of trading to January 4.
Last month, the forum had conducted a survey of its 550 members, and nearly 80% were found to be against extending the current trading hours, which is from 9.55am to 3.30pm.
"There is no clear benefit to any of the market participants and retail investors due to the said move. This will result in a lot of practical problems in our operations," Bhanubhai Fozdar, chairman, BSE Brokers' Forum said. "The Forum encourages the stock exchanges to be conscious of their socio-economic responsibilities as public bodies and keep in mind the interest of the other stakeholders of the capital market and the investing community at large," the release from the forum noted.
The exchanges expect that by extending trading hours, investors would get more time to react to global cues. And NSE in particular expects that part of the derivatives business in Nifty index, its benchmark index, which is done on the Singapore Exchange (SGX), could move back to the Indian market. Brokers however feel given SGX opens 2.30 hours before the Indian market opens, such shift back of business might not be possible.
Sebi is taking a neutral stance. On Monday C B Bhave, chairman, Sebi had said that the bourses were at liberty to take a call on extending trading hours. Speaking about the problems of extending trading hours beyond 3.30pm, NSE chief Narain said, "the challenges in extending beyond 3.30pm are more significant compared to challenges in opening earlier...RTGS, back office operations of brokerage will get stretched."
Posted by Unknown at 5:26 PM 0 comments
Thursday, December 17, 2009
Infy, HCL in race for Westpac’s $500-m outsourcing contract
Cos Bid Against MNC Rivals IBM & HP For Australian Bank Deal
Our Bureau BANGALORE
AUSTRALIA'S second-biggest bank Westpac is seeking outsourcing suppliers for contracts worth up to $500 million, with India's top tech firms Infosys, HCL and others bidding against multinational rivals IBM and HP-EDS.
The bank, which is currently merging its systems with St George Bank, is being advised by a consulting firm on fleshing out an IT transformation programme, aimed at saving over $400 million from operations by 2011.
Australia's top banks including Westpac, National Australia Bank (NAB), Commonwealth Bank of Australia and ANZ will invest almost $4 billion on technology this year, according to experts tracking the industry. The country's IT market is worth around $39 billion, according to research firm Forrester. "HCL, Infosys and Wipro, apart from IBM, are already in discussions with Westpac for these contracts — offshoring being considered as a critical portion of these engagements," said a senior executive at one of the top tech firms exploring this opportunity. He requested anonymity because he is not authorised to comment on any potential business.
For Indian vendors, Westpac contract offers an opportunity to gain business from IBM, which is due to renew its contract with the bank next year. While Infosys declined to offer any comments because of its 'financial silence period', officials at HCL did not respond to an email query sent by ETon Thursday. Westpac officials, too, did not respond to the ET query.
Westpac, which acquired St George Bank last year for $19 billion, wants to have a common general ledger and consolidate other systems, including payroll. The IT integration costs alone will be around $338 million, apart from an additional $168 million being earmarked towards outsourcing and restructuring. "Apart from the integration with St George, Westpac is also seeking suppliers for over $250-million application development and maintenance contract," a consultant said.
Posted by Unknown at 6:23 PM 0 comments