MUMBAI (Reuters) - State-run explorer Oil & Natural Gas Corp reported a 24.5 percent fall in first-quarter net profit, lagging estimates, as a rise in crude oil prices meant it had to make higher subsidy payouts.
ONGC (ONGC.NS : 1246.55 -13), which is looking to buy BP's assets in Vietnam, posted April-June net profit of 36.61 billion rupees ($785.6 million), down from 48.48 billion rupees a year earlier.
A Reuters poll had forecast net profit of 42.6 billion rupees.
ONGC is required to partially subsidise the sale of fuel to state-run retailers, who sell fuel at government-set, below-market prices, which affects its profit.
The government recently deregulated gasoline prices and has said it would free diesel prices as well, but clarity on the subsidy-sharing mechanism for other fuels has still not emerged.
ONGC and state-backed PetroVietnam are expected to submit a joint formal offer within weeks to buy BP's stake in the Nam Con Son gas project, Oil Secretary S. Sundareshan said on Tuesday.
ONGC shares fell 1.1 percent to 1,242.50 rupees ahead of the results, while the broader Mumbai market gained 0.2 percent
Success in my Habit
Thursday, July 29, 2010
Reliance, Essar eye BP's Africa retail ops - sources
NEW DELHI/MUMBAI (Reuters) - BP Plc is in talks with Reliance Industries (RELIANCE.NS : 1010.15 -11.1) and Essar Group to sell its African retail assets that could be worth as much as $500 million, four sources with direct knowledge of the matter told Reuters on Wednesday.
It was not immediately known whether BP was showing the African assets to other potential buyers.
BP plans to sell $30 billion of assets over the next 18 months to cover costs related to the worst oil spill in U.S. history.
Reliance Industries, India's largest listed conglomerate, declined to comment, while a spokesman for steel-to-shipping conglomerate Essar said "We don't comment on speculations."
BP intends to sell its marketing business in Namibia, Malawi, Tanzania and Botswana and focus on South Africa and Mozambique.
Billionaire Mukesh Ambani-controlled Reliance, whose interests include petrochemicals, refining, oil and gas exploration, and retail, is expanding its presence overseas by investing in new areas such as shale gas.
The Essar Group, controlled by billionaire brothers Shashi and Ravi Ruia, is also nursing ambitious expansion plans and recently raised $1.95 billion through an initial public offering of its energy and power businesses in London.
In September 2007, Reliance acquired Gulf Africa Petroleum Corp (GAPCO), an east African oil retailer, to gain access to the rapidly growing economies of the region and a growing demand for petroleum products.
"Reliance is looking into this opportunity as it has a presence in the African continent through GAPCO," one of the sources said.
All the sources declined to be named as they were not authorised to speak to the media.
BP's planned asset sales are aimed at helping it pay for its liabilities and create a leaner company with the potential for higher growth. The company agreed to a $7 billion sale of oil and gas fields to Apache Corp last week.
State-run explorer Oil and Natural Gas Corp and state-backed Petrovietnam are expected to submit a joint formal offer within weeks to buy BP's stake in the Nam Con Son gas project in Vietnam, India's oil secretary, S. Sundareshan said on Tuesday.
It was not immediately known whether BP was showing the African assets to other potential buyers.
BP plans to sell $30 billion of assets over the next 18 months to cover costs related to the worst oil spill in U.S. history.
Reliance Industries, India's largest listed conglomerate, declined to comment, while a spokesman for steel-to-shipping conglomerate Essar said "We don't comment on speculations."
BP intends to sell its marketing business in Namibia, Malawi, Tanzania and Botswana and focus on South Africa and Mozambique.
Billionaire Mukesh Ambani-controlled Reliance, whose interests include petrochemicals, refining, oil and gas exploration, and retail, is expanding its presence overseas by investing in new areas such as shale gas.
The Essar Group, controlled by billionaire brothers Shashi and Ravi Ruia, is also nursing ambitious expansion plans and recently raised $1.95 billion through an initial public offering of its energy and power businesses in London.
In September 2007, Reliance acquired Gulf Africa Petroleum Corp (GAPCO), an east African oil retailer, to gain access to the rapidly growing economies of the region and a growing demand for petroleum products.
"Reliance is looking into this opportunity as it has a presence in the African continent through GAPCO," one of the sources said.
All the sources declined to be named as they were not authorised to speak to the media.
BP's planned asset sales are aimed at helping it pay for its liabilities and create a leaner company with the potential for higher growth. The company agreed to a $7 billion sale of oil and gas fields to Apache Corp last week.
State-run explorer Oil and Natural Gas Corp and state-backed Petrovietnam are expected to submit a joint formal offer within weeks to buy BP's stake in the Nam Con Son gas project in Vietnam, India's oil secretary, S. Sundareshan said on Tuesday.
Wednesday, July 28, 2010
BHEL, GE unit sign pact for oil, gas compressors
New Delhi: Bharat Heavy Electricals Ltd (BHEL) and a unit of GE have signed a 10-year licensing pact to manufacture oil and gas compressors. GE's range of centrifugal compressors will be manufactured under license at BHEL's production site in Hyderabad, for sale in India and South Asia, GE said in a statement. It did not disclose financial details of the transaction.
The agreement for the compressor units was signed through GE Oil & Gas' Italian entity Nuovo Pignone. The units are vital to infrastructure development projects, including oil and gas production and transportation, refinery and petrochemical industry applications, and fuel gas boosting.
The technical scope of the licensing agreement provides for the licensing of GE's advanced range of centrifugal compressors, specifically several models of horizontally- and vertically-split, pipeline and integrally gear compressors.
Based on a previous licensing agreement in place with GE Energy since 1986, BHEL is already successfully partnering on the manufacture and sale of GE gas turbines for power and water applications. Wednesday's agreement also builds on a successful licensing arrangement for similar units held between Nuovo Pignone and BHEL from 1971 to 1992, the statement said.
The agreement for the compressor units was signed through GE Oil & Gas' Italian entity Nuovo Pignone. The units are vital to infrastructure development projects, including oil and gas production and transportation, refinery and petrochemical industry applications, and fuel gas boosting.
The technical scope of the licensing agreement provides for the licensing of GE's advanced range of centrifugal compressors, specifically several models of horizontally- and vertically-split, pipeline and integrally gear compressors.
Based on a previous licensing agreement in place with GE Energy since 1986, BHEL is already successfully partnering on the manufacture and sale of GE gas turbines for power and water applications. Wednesday's agreement also builds on a successful licensing arrangement for similar units held between Nuovo Pignone and BHEL from 1971 to 1992, the statement said.
French investments in India to touch Rs 60,000 cr by 2012
Chennai: Investments by French companies in India are expected to touch Euro 10 billion (around Rs 60,000 crore) by 2012, and would be focused on automobile, energy and environment sectors among others.
Speaking to Business Standard, Jean Leviol, minister counsellor for economic, trade and financial affairs at the French Embassy in India, said that there were about 750 permanent French establishments in India, employing nearly 2,00,000 Indians, a fifth of them as engineers in French IT companies. The number was around 50,000 in 2005.
He said, “between 2008 and 2012, we expected French companies to invest Euro 10 billion. It is very much on track.”
On the other hand, Indian companies in France had invested around Euro 500 million (around Rs 2,975 crore) between 2005 and 2010, he said. Currently 90 Indian companies are operating in France.
These investments were mainly driven by IT majors and pharmaceutical companies, “but now Indian companies are showing interest in mechanical engineering, plastic, medical devices and forging”, he added.
Willing to help UID project
The French government is willing to share its experience and expertise for India’s Unique Identification Number (UID) project. Jerome Bonnafont, Ambassador of France, said that “we would be very happy to be partners in this [UID] project, since we have the experience of implementing a similar project in France”.
In France, he said, it had begun as a Personal Identity Number system began in 1941 to organise recruitment of men in the army and subsequently evolved as an important tool for the social security among other uses.
Speaking to Business Standard, Jean Leviol, minister counsellor for economic, trade and financial affairs at the French Embassy in India, said that there were about 750 permanent French establishments in India, employing nearly 2,00,000 Indians, a fifth of them as engineers in French IT companies. The number was around 50,000 in 2005.
He said, “between 2008 and 2012, we expected French companies to invest Euro 10 billion. It is very much on track.”
On the other hand, Indian companies in France had invested around Euro 500 million (around Rs 2,975 crore) between 2005 and 2010, he said. Currently 90 Indian companies are operating in France.
These investments were mainly driven by IT majors and pharmaceutical companies, “but now Indian companies are showing interest in mechanical engineering, plastic, medical devices and forging”, he added.
Willing to help UID project
The French government is willing to share its experience and expertise for India’s Unique Identification Number (UID) project. Jerome Bonnafont, Ambassador of France, said that “we would be very happy to be partners in this [UID] project, since we have the experience of implementing a similar project in France”.
In France, he said, it had begun as a Personal Identity Number system began in 1941 to organise recruitment of men in the army and subsequently evolved as an important tool for the social security among other uses.
Q1 numbers show revenues, profits growing faster
Raw material costs seen easing as global demand for commodities weakens.
Raw material costs for India Inc are beginning to ease, if the initial set of earnings numbers for the first quarter of the current financial year is any indication.
The pace of growth in revenues and profits appears to be picking up, going by the numbers reported by over 300 companies.
Banks and financial institutions have been excluded while drawing up this picture.
Raw material costs for companies had been on an upswing from late 2009 on the back of rising commodity prices. However, with China intent on cooling its economy and the European crisis unfolding, the global demand scenario for commodities has weakened. This has resulted in the prices of key inputs such as steel and base metals either flattening out or correcting.
The quarter under review saw a 13 per cent decline in raw material spends of the 300 companies over the March ‘10 quarter. Raw material costs took away 30 per cent of sales in the June quarter compared with 34 per cent in the March quarter.
The base effect showed up with input costs still 28 per cent higher than last year levels. However, taking into account the movement of raw material quarter over quarter, cost pressure appears to be easing.
Other components such as staff costs, administration expenses and power costs also saw sizable increases this quarter. Costs of power and fuel, for instance, increased 23 per cent, having declined 15 per cent in the June 2009 quarter.
While such increases may seem rather hefty, as a percentage of sales, these costs have remained the same. Operating margins, therefore, are unlikely to come under pressure as a result of overhead increases. The same goes for interest costs.
While increasing 22 per cent in the June quarter, interest costs have remained at 1.6 per cent of sales, allowing for stable net margins.
Revenue growth
The biggest good news from the initial numbers comes from sales. Net profits (adjusted) clocked a 19 per cent growth in the June ‘10 quarter against the 17 per cent growth in the June ‘09 quarter.
This time around, though, profit growth appears to be spurred by a growth in sales rather than a drop in costs, as was the case in June ‘09. Revenues registered a healthy 20 per cent growth (9.5 per cent).
Operating and net margins have remained more or less the same at 21 per cent and 14 per cent respectively.
Raw material costs for India Inc are beginning to ease, if the initial set of earnings numbers for the first quarter of the current financial year is any indication.
The pace of growth in revenues and profits appears to be picking up, going by the numbers reported by over 300 companies.
Banks and financial institutions have been excluded while drawing up this picture.
Raw material costs for companies had been on an upswing from late 2009 on the back of rising commodity prices. However, with China intent on cooling its economy and the European crisis unfolding, the global demand scenario for commodities has weakened. This has resulted in the prices of key inputs such as steel and base metals either flattening out or correcting.
The quarter under review saw a 13 per cent decline in raw material spends of the 300 companies over the March ‘10 quarter. Raw material costs took away 30 per cent of sales in the June quarter compared with 34 per cent in the March quarter.
The base effect showed up with input costs still 28 per cent higher than last year levels. However, taking into account the movement of raw material quarter over quarter, cost pressure appears to be easing.
Other components such as staff costs, administration expenses and power costs also saw sizable increases this quarter. Costs of power and fuel, for instance, increased 23 per cent, having declined 15 per cent in the June 2009 quarter.
While such increases may seem rather hefty, as a percentage of sales, these costs have remained the same. Operating margins, therefore, are unlikely to come under pressure as a result of overhead increases. The same goes for interest costs.
While increasing 22 per cent in the June quarter, interest costs have remained at 1.6 per cent of sales, allowing for stable net margins.
Revenue growth
The biggest good news from the initial numbers comes from sales. Net profits (adjusted) clocked a 19 per cent growth in the June ‘10 quarter against the 17 per cent growth in the June ‘09 quarter.
This time around, though, profit growth appears to be spurred by a growth in sales rather than a drop in costs, as was the case in June ‘09. Revenues registered a healthy 20 per cent growth (9.5 per cent).
Operating and net margins have remained more or less the same at 21 per cent and 14 per cent respectively.
Indian telecom user base up 17.98 mn in June
New Delhi: Telecom operators have added 17.98 million new users in June, taking the total telephone subscriber base in the country to 671.69 million.
The wireless subscriber base (GSM, CDMA and fixed wireless phones) reached 635.51 million by the end of June, from 617.53 million in May, registering a growth of 2.91 per cent, according to figures released by telecom regulator TRAI.
The overall teledensity reached 56.83 per cent.
The growth in the wireless category was led by Bharti Airtel, which added three million users, taking its subscriber base to 136.6 million. Vodafone added 2.71 million subscribers in June, taking its user-base to 109 million. Idea Cellular and Aircel added 2.15 million and 1.60 million new users, respectively, during the month. Reliance Communications added 2.83 million new users, while Tata Teleservices added 2.32 million subscribers.
State-run telcos BSNL and MTNL added 1.01 million and 43,881 new users, respectively.
The wireline subscriber base continued to decline and stood at 36.18 million in June from 36.39 million in the previous month. BSNL and MTNL hold 84.09 per cent of the wireline market share. The total broadband subscriber base increased 2.27 per cent to 9.45 million from 9.24 million in May, the report said.
The wireless subscriber base (GSM, CDMA and fixed wireless phones) reached 635.51 million by the end of June, from 617.53 million in May, registering a growth of 2.91 per cent, according to figures released by telecom regulator TRAI.
The overall teledensity reached 56.83 per cent.
The growth in the wireless category was led by Bharti Airtel, which added three million users, taking its subscriber base to 136.6 million. Vodafone added 2.71 million subscribers in June, taking its user-base to 109 million. Idea Cellular and Aircel added 2.15 million and 1.60 million new users, respectively, during the month. Reliance Communications added 2.83 million new users, while Tata Teleservices added 2.32 million subscribers.
State-run telcos BSNL and MTNL added 1.01 million and 43,881 new users, respectively.
The wireline subscriber base continued to decline and stood at 36.18 million in June from 36.39 million in the previous month. BSNL and MTNL hold 84.09 per cent of the wireline market share. The total broadband subscriber base increased 2.27 per cent to 9.45 million from 9.24 million in May, the report said.
Exports in June 2010 touches US$ 17.75 billion
New Delhi: The exports touched US$ 17.75 billion in June 2010, posting a 30.4 per cent growth as compared to the corresponding period in 2009. The exports witnessed a positive growth for the eighth consecutive month on the back of good results reflected by major sectors such as engineering, oil, iron ore, chemicals, gems and jewellery.
According to the Export Promotion Council for Export Oriented Units and Special Economic Zones (SEZs), the first quarter of 2010-11 witnessed 67.8 per cent higher exports from SEZs than in the corresponding period of the previous year.
As per a statement released by the Export Promotion Council, the first quarter exports from SEZs were US$ 12.48 billion.
According to the Export Promotion Council for Export Oriented Units and Special Economic Zones (SEZs), the first quarter of 2010-11 witnessed 67.8 per cent higher exports from SEZs than in the corresponding period of the previous year.
As per a statement released by the Export Promotion Council, the first quarter exports from SEZs were US$ 12.48 billion.
WASH THEM FIRST
WASH THEM FIRST
Please Don't Erase this message before forwarding on! Same applies to Beer.
This is a Serious Problem!
This incident happened recently in North Texas ..
A woman went boating one Sunday taking with her some cans of coke
which she put into the refrigerator of the boat.
On Monday she was taken to the hospital and placed in the Intensive Care Unit.
She died on Wednesday.
The autopsy concluded she died of Leptospirosis.
This was traced to the can of coke she drank from, not using a glass.
Tests showed that the can was infected by dried rat urine and
hence the disease Leptospirosis.
Rat urine contains toxic and deadly substances.
It is highly recommended to thoroughly wash the upper part
of all soda cans before drinking out of them.
The cans are typically stocked in warehouses and transported straight to the shops without being cleaned..
A study at NYCU showed that the tops of all soda cans are more contaminated than public toilets (i.e.). full of germs and bacteria. So wash them with water before putting them to the mouth to avoid any kind of fatal accident.
Please forward this message to all the people you care about.
Moderator,
tamilnaduconsumerprotection
Please Don't Erase this message before forwarding on! Same applies to Beer.
This is a Serious Problem!
This incident happened recently in North Texas ..
A woman went boating one Sunday taking with her some cans of coke
which she put into the refrigerator of the boat.
On Monday she was taken to the hospital and placed in the Intensive Care Unit.
She died on Wednesday.
The autopsy concluded she died of Leptospirosis.
This was traced to the can of coke she drank from, not using a glass.
Tests showed that the can was infected by dried rat urine and
hence the disease Leptospirosis.
Rat urine contains toxic and deadly substances.
It is highly recommended to thoroughly wash the upper part
of all soda cans before drinking out of them.
The cans are typically stocked in warehouses and transported straight to the shops without being cleaned..
A study at NYCU showed that the tops of all soda cans are more contaminated than public toilets (i.e.). full of germs and bacteria. So wash them with water before putting them to the mouth to avoid any kind of fatal accident.
Please forward this message to all the people you care about.
Moderator,
tamilnaduconsumerprotection
Tuesday, July 27, 2010
Vodafone to launch 3G services by year-end
MUMBAI: Vodafone Essar Limited, the Indian subsidiary of Vodafone Group Plc, aims to launch 3G mobile services by end-2010, a top company official said.
Broader services of 3G will be available by the first quarter of next year, he added.
"We are ready to launch 3G services in nine circles by this year-end. We are waiting for spectrum allocation. As soon as we get the spectrum, we will be able to launch our services," Vodafone Essar Chief Executive Officer and Managing Director Marten Pieters told reporters here today.
Vodafone had secured 3G spectrum in nine circles in the recent 3G auctions for Rs 11,617 crore. The circles included Delhi, Mumbai, Kolkata, Chennai and Tamil Nadu, Maharashtra & Goa, Gujarat, Haryana, Uttar Pradesh (East) and West Bengal, covering over 60 per cent of the company's current customer base.
"Vodafone Essar has secured a critical strategic footprint across the country, particularly in the markets where we expect the main demand for 3G services to be in the next few years. We expect a strong uptake for 3G in these markets, particularly among the higher value customers, which is a growing segment owing to rising affluence and increasing urban population," Pieters said, adding that the customer would have to pay more to get better 3G services.
Commenting on the Indus Tower IPO, Pieters said, "We are in de-merger process and are supporting the initial public offering of Indus Tower. But, it all depends on the financial market and other related issues."
In late 2007, India's top mobile operators -- Bharti Airtel, Vodafone Essar and Idea Cellular -- had decided to pool their resources and hive off their towers into an independent firm, Indus Towers, with over one lakh towers.
Vodafone Essar is also open to mergers and acquisitions, if they provide value to the company as well as shareholders.
"If it (M&A) is able to provide a good proposition to us, we will look into that. However, prices and regulations in the current situation are not favourable for mergers," Pieters added.
SpiceJet announces order for 30 new Boeing aircraft
NEW DELHI: A little over a month after announcing a change of management in favour of Sun TV's Kalanithi Maran, private budget carrier SpiceJet Tuesday said it will order 30 Boeing 737-800 aircraft to take its fleet size to 58 planes.
The deliveries for the new set of Boeing 737-800s will begin from 2014, while it is also expecting another seven to be dispatched till 2012, all adding to the current fleet size of 21 aircraft.
Thew airline also announced its first quarter results for the current financial year and said its net profit was up at Rs.55.2 crore, against Rs.26.3 crore in the like month of the previous year. Net sales were up at Rs.708 crore against Rs.525 crore.
"We are currently seeing a strong resurgence in domestic air traffic on the back of a robust macro-economic growth," said Kishore Gupta, director of SpiceJet aftrer a board meeting at the airline's headquarters in Gurgaon, in the outskirts of the capital.
"We expect domestic demand to grow at 16 percent during the current year and to sustain 12-14 percent annual growth in the medium-term. The growth will necessitate significant capacity induction," Gupta added.
The decision Tuesday follows SpiceJet announcing it was in the process of evaluating a far more aggressive fleet expansion over the next 18-24 months than originally planned in a bid to offer better value for money for customers.
The new aircraft will incorporate the new, spacious interiors with soft blue lighting, curving architecture and larger window that will offer a sense of spaciousness in the cabin and comfort for the passengers.
It will also offer larger stowage bins, where passengers can store their luggage closer to their seats, thereby reducing the anxiety they may have felt in the past, the budget airline said.
"Finally, the combination of noise-dampening material against the air plane's interior skin and the design of the new integrated air grille will make the cabin quieter for a more comfortable flight."
SpiceJet commands a little over 13 percent market share in India, delivering one of the lowest air fares. It operates 141 flights daily to 19 cities with 99.6 of its flights keeping its schedules.
Oracle's Ellison highest paid CEO of the decade: Report
WASHINGTON: Oracle Corporation founder and chief executive Larry Ellison topped the list of best-paid executives of the decade with 1.84 billiondollars, according to a report in the Wall Street Journal.
The 65-year-old software pioneer, who founded Oracle in 1977, beat Internet tycoon Barry Diller into second place on just over one billion dollars.
Ellison has a 23 percent stake in the company, the Journal reported in Monday's editions.
In the 10 years ended May 31, 2009, the most recent fiscal year for which Oracle has disclosed pay data, its market capitalization nearly tripled, to 98 billion dollars, up from 36 billion, and has risen even more since, it said.
In second place on the compensation list was Diller, who received some 1.14 billion dollars from IAC/Interactive and Expedia Inc, the online travel site IAC spun off in 2005, where he remains chairman.
Occidental Petroleum Corp. CEO Ray Irani came in third place, with 857 million dollars.
Apple's Steve Jobs was fourth with 749 million dollars.
Jobs took a one dollar annual salary throughout the decade, but ranked fourth primarily because of a 647 million dollar gain on restricted stock that was granted in 2003 and vested in 2006. He still holds the shares.
Reliance Industries Q1 net up 32%, beats forecast
MUMBAI: Reliance Industries posted a 32 percent rise in quarterly profit, beating estimates, helped by higher gas output from its fields off India's east coast. ( Watch )
India's largest listed conglomerate with interests in petrochemicals, refining, oil and gas exploration, and retail, posted April-June net profit of Rs 4,851 crore ($1.04 billion) versus Rs 3,666 crore a year earlier.
During the quarter, the country's largest company saw its total income soaring by 85 per cent to Rs 58,950 crore from Rs 31,896 crore in the year-ago period.
Reliance, controlled by billionaire Mukesh Ambani, said the year-ago result had been restated to include figures from Reliance Petroleum, which it absorbed last year.
Shares of Reliance Industries today closed at Rs 1,053.50 on the BSE, up 0.14 per cent from the previous close.
Reliance shares valued at around $74 billion, have fallen 3.4 percent in 2010, while the Mumbai market has gained 3.5 percent.
BP's CEO Tony Hayward quits as oil spill cost put at $32 bn
LONDON: BP Plc chief executive Tony Hayward will step down as head of the oil giant on Oct. 1 and be replaced by fellow executive Robert Dudley News of Hayward's departure came as the company announced on Tuesday it would take a charge as a result of the Gulf of Mexico oil spill amounting to $32.2 billion, driving BP to a second quarter loss of $16.97 billion.
"The tragedy of the Macondo well explosion and subsequent environmental damage has been a watershed," chairman Carl-Henric Svanberg said, announcing Hayward's departure. "BP remains a strong business ... but it will be a different company going forward."
BP said Dudley, currently head of BP's U.S. operations, would be based in London and hand over his present duties to Lamar McKay. Hayward will receive a year's salary amounting to 1.045 million pounds ($1.6 million). Excluding oil spill and other non-operating costs, BP's replacement cost profit was $4.98 billion, in line with the average forecast from a Reuters poll of 11 analysts.
Replacement cost profit strips out gains or losses related to changes in the value of fuel inventories and as such is comparable with net income under U.S. accounting rules.
In a third statement BP said it planned to sell assets worth up to $30 billion over the next 18 months and cut its net debt level down to between $10 billion and $15 billion over the next 18 months. The company said it would consider its position on future dividend payments at the time of its fourth-quarter results
"The tragedy of the Macondo well explosion and subsequent environmental damage has been a watershed," chairman Carl-Henric Svanberg said, announcing Hayward's departure. "BP remains a strong business ... but it will be a different company going forward."
BP said Dudley, currently head of BP's U.S. operations, would be based in London and hand over his present duties to Lamar McKay. Hayward will receive a year's salary amounting to 1.045 million pounds ($1.6 million). Excluding oil spill and other non-operating costs, BP's replacement cost profit was $4.98 billion, in line with the average forecast from a Reuters poll of 11 analysts.
Replacement cost profit strips out gains or losses related to changes in the value of fuel inventories and as such is comparable with net income under U.S. accounting rules.
In a third statement BP said it planned to sell assets worth up to $30 billion over the next 18 months and cut its net debt level down to between $10 billion and $15 billion over the next 18 months. The company said it would consider its position on future dividend payments at the time of its fourth-quarter results
Monday, July 12, 2010
SBI, RIL in Fortune 500 global list
Eight Indian companies, including oil major Indian Oil Corporation and Mukesh Ambani-led Reliance Industries, have made the cut in the list of the world's 500 largest companies compiled by Fortune.
The league of 500 elite companies for 2010 is topped by US retailer Wal-Mart Stores, followed by oil giant Royal Dutch Shell and another oil major, Exxon Mobil, in that order.
Besides IOC and RIL, the other Indian companies in the list are steel-maker Tata Steel, auto company Tata Motors, oil entities Bharat Petroleum, Hindustan Petroleum and Oil & Natural Gas and public sector bank SBI.
Tata Motors has made an entry into the list for the first time this year, while seven other Indian entities, which were part of the list in the previous year as well, are also featured in this list.
The list also features Citigroup, ArcelorMittal, Pepsico and Motorola, four companies led by people with Indian roots.
IOC has the highest rank of 125 among the featured Indian companies, followed by RIL at the 175th spot, SBI (282), BPCL (307), HPCL (354), Tata Steel (410), ONGC (413) and Tata Motors (442).
According to the magazine, IOC had revenues to the tune of USD 54.28 billion, RIL USD 41.08 billion, SBI USD 28.21 billion, BPCL USD 26.59 billion, HPCL USD 23.88 billion, Tata Steel USD 21.58 billion, ONGC USD 21.44 billion and Tata Motors USD 19.5 billion.
Vikram Pandit-led Citigroup is at 33rd place, with revenues of USD 108.78 billion, while NRI billionaire L N Mittal's ArcelorMittal bagged the 99th position with revenues worth USD 65.11 billion.
Pepsico, run by Indira Nooyi, was ranked at 171st place with revenues of USD 43.23 billion and Sanjay Jha's Motorola is at the 391st place, with USD 22.06 billion in revenues.
Interestingly, American companies have cornered 139 seats in the list, followed by Japan with 71, and then China, with 46 seats. This year, there are 12 Fortune Global 500 companies run by women, compared to 13 last year.
The magazine said that Wal-Mart Stores had revenues to the tune of USD 408. 21 billion, while Royal Dutch Shell and ExxonMobil raked in revenues worth USD 285.12 billion and USD 284.65 billion, respectively.
Others on the list include BP at fourth place, followed by Toyota Motor (5th), Japan Post Holdings (6th), Sinopec (7th), State Grid (8th), AXA (9th) and China National Petroleum (10th.)
The league of 500 elite companies for 2010 is topped by US retailer Wal-Mart Stores, followed by oil giant Royal Dutch Shell and another oil major, Exxon Mobil, in that order.
Besides IOC and RIL, the other Indian companies in the list are steel-maker Tata Steel, auto company Tata Motors, oil entities Bharat Petroleum, Hindustan Petroleum and Oil & Natural Gas and public sector bank SBI.
Tata Motors has made an entry into the list for the first time this year, while seven other Indian entities, which were part of the list in the previous year as well, are also featured in this list.
The list also features Citigroup, ArcelorMittal, Pepsico and Motorola, four companies led by people with Indian roots.
IOC has the highest rank of 125 among the featured Indian companies, followed by RIL at the 175th spot, SBI (282), BPCL (307), HPCL (354), Tata Steel (410), ONGC (413) and Tata Motors (442).
According to the magazine, IOC had revenues to the tune of USD 54.28 billion, RIL USD 41.08 billion, SBI USD 28.21 billion, BPCL USD 26.59 billion, HPCL USD 23.88 billion, Tata Steel USD 21.58 billion, ONGC USD 21.44 billion and Tata Motors USD 19.5 billion.
Vikram Pandit-led Citigroup is at 33rd place, with revenues of USD 108.78 billion, while NRI billionaire L N Mittal's ArcelorMittal bagged the 99th position with revenues worth USD 65.11 billion.
Pepsico, run by Indira Nooyi, was ranked at 171st place with revenues of USD 43.23 billion and Sanjay Jha's Motorola is at the 391st place, with USD 22.06 billion in revenues.
Interestingly, American companies have cornered 139 seats in the list, followed by Japan with 71, and then China, with 46 seats. This year, there are 12 Fortune Global 500 companies run by women, compared to 13 last year.
The magazine said that Wal-Mart Stores had revenues to the tune of USD 408. 21 billion, while Royal Dutch Shell and ExxonMobil raked in revenues worth USD 285.12 billion and USD 284.65 billion, respectively.
Others on the list include BP at fourth place, followed by Toyota Motor (5th), Japan Post Holdings (6th), Sinopec (7th), State Grid (8th), AXA (9th) and China National Petroleum (10th.)
TKM to invest Rs 500 crore to make Etios engines
New Delhi: Toyota Kirloskar Motor (TKM) will invest Rs 500 crore to make engines and gearboxes for Toyota’s new small car, Etios, that is expected to be launched by year-end.
TKM subsidiary, Toyota Kirloskar Auto Parts (TKAP), would set up the plant with an annual capacity to produce 52,000 engines and 1.7 lakh gearboxes, which would also be exported to Thailand and Argentina.
The auto component arm will also invest an additional Rs 500 crore, to increase the capacity to make transmission boxes by 2013 and also set up a third plant with a capacity of 1 lakh engines per year. The company will hire 500 employees for the new unit.
TKM, a joint venture between Japanese automaker Toyota and local business group of Kirloskar, operates two manufacturing plants at Bengaluru in Karnataka.
The first plant, set up with an investment of Rs 1,700 crore, makes Innova, Corolla and the Fortuner SUV, while the second plant that absorbed an investment of Rs 3,200 crore, will churn out its small car, Etios, later this year.
TKM subsidiary, Toyota Kirloskar Auto Parts (TKAP), would set up the plant with an annual capacity to produce 52,000 engines and 1.7 lakh gearboxes, which would also be exported to Thailand and Argentina.
The auto component arm will also invest an additional Rs 500 crore, to increase the capacity to make transmission boxes by 2013 and also set up a third plant with a capacity of 1 lakh engines per year. The company will hire 500 employees for the new unit.
TKM, a joint venture between Japanese automaker Toyota and local business group of Kirloskar, operates two manufacturing plants at Bengaluru in Karnataka.
The first plant, set up with an investment of Rs 1,700 crore, makes Innova, Corolla and the Fortuner SUV, while the second plant that absorbed an investment of Rs 3,200 crore, will churn out its small car, Etios, later this year.
Prestigious mathematics prize to be awarded to Indian professor
New Delhi: Radha Charan Gupta has been chosen to be awarded the Kenneth O. May Prize for the History of Mathematics for his work on the history of development of trigonometry in India.
A retired mathematics professor, Gupta, is the first Indian to receive the award, which will be conferred at the International Congress of Mathematicians (ICM) in Hyderabad during August 19-27, being held in India for the first time.
Named after mathematician and historian Kenneth O. May, founder of the International Commission for the History of Mathematics and instituted in 1989, the award consists of a bronze medal and is given once in four years in recognition of a mathematician's scholarly work in the field.
The nine-day ICM meet will be attended by around 3,000 delegates from across the globe and will be inaugurated by President Pratibha Patil.
A retired mathematics professor, Gupta, is the first Indian to receive the award, which will be conferred at the International Congress of Mathematicians (ICM) in Hyderabad during August 19-27, being held in India for the first time.
Named after mathematician and historian Kenneth O. May, founder of the International Commission for the History of Mathematics and instituted in 1989, the award consists of a bronze medal and is given once in four years in recognition of a mathematician's scholarly work in the field.
The nine-day ICM meet will be attended by around 3,000 delegates from across the globe and will be inaugurated by President Pratibha Patil.
Ford India begins export of compact car Figo
Flags off first consignment to South Africa; looks at other markets.
Chennai: Ford Figo, the compact car from Ford India, is going international.
The first consignment of 1,200 Figos was flagged off to Durban, South Africa, from the Chennai port by Ford India's President and Managing Director, Mr Michael Boneham, in the presence of the Chairman of Chennai Port Trust, Capt Subhash Kumar.
There is an order for 5,000 Figos from South Africa. “We are also looking at other emerging markets for Figo and will soon announce the new destinations other than the US and Europe,” he told newspersons at the Chennai port.
Export hub
The Indian plant will be the only Ford unit to export Figos. “We want to make India the export hub for Figo,” he said.
Ford India will export the 1.4-litre petrol and diesel Figo variants to Ford Motor Company of South Africa.
“Just as the Figo has taken the Indian market by storm, we are confident that it will have a similar impact in South Africa,” said Mr Boneham, who will be in South Africa shortly to receive the consignment.
It will take two weeks for the vehicles to reach Durban through the ro-ro ship operated by K-Line, the Japanese shipping line.
Since its debut in March, the Ford Figo has generated over 24,000 purchase orders for Ford India. In June, Ford India sold 7,269 units compared with 1,982 units in June 2009, a 267 per cent rise. Mr Boneham said Ford India had been exporting the ‘Fiesta' in the last four years.
It also exports nearly 2,500 engines a month to Thailand, where the Ford unit in the country will soon launch the Fiesta.
Mr Boneham said Ford India today commenced its second shift at the company's plant in Maraimalai Nagar near Chennai to meet the increasing demand for Figo. This will increase the production capacity of the small car by 30-40 per cent.
The company plans to hire 600-700 personnel at the plant and most of them would be diploma holders and fresh pass-outs.
Ford India manufactures Ikon, Endeavour, Fiesta and Figo. It employs around 4,000 people.
Chennai: Ford Figo, the compact car from Ford India, is going international.
The first consignment of 1,200 Figos was flagged off to Durban, South Africa, from the Chennai port by Ford India's President and Managing Director, Mr Michael Boneham, in the presence of the Chairman of Chennai Port Trust, Capt Subhash Kumar.
There is an order for 5,000 Figos from South Africa. “We are also looking at other emerging markets for Figo and will soon announce the new destinations other than the US and Europe,” he told newspersons at the Chennai port.
Export hub
The Indian plant will be the only Ford unit to export Figos. “We want to make India the export hub for Figo,” he said.
Ford India will export the 1.4-litre petrol and diesel Figo variants to Ford Motor Company of South Africa.
“Just as the Figo has taken the Indian market by storm, we are confident that it will have a similar impact in South Africa,” said Mr Boneham, who will be in South Africa shortly to receive the consignment.
It will take two weeks for the vehicles to reach Durban through the ro-ro ship operated by K-Line, the Japanese shipping line.
Since its debut in March, the Ford Figo has generated over 24,000 purchase orders for Ford India. In June, Ford India sold 7,269 units compared with 1,982 units in June 2009, a 267 per cent rise. Mr Boneham said Ford India had been exporting the ‘Fiesta' in the last four years.
It also exports nearly 2,500 engines a month to Thailand, where the Ford unit in the country will soon launch the Fiesta.
Mr Boneham said Ford India today commenced its second shift at the company's plant in Maraimalai Nagar near Chennai to meet the increasing demand for Figo. This will increase the production capacity of the small car by 30-40 per cent.
The company plans to hire 600-700 personnel at the plant and most of them would be diploma holders and fresh pass-outs.
Ford India manufactures Ikon, Endeavour, Fiesta and Figo. It employs around 4,000 people.
Indian services sector witnesses two-year high growth in June 2010
New Delhi: The services sector in India grew at its fastest in two years in June 2010 led by an increase in business expectations and new orders.
According to the HSBC Markit Business Activity Index, based on a survey of 400 firms, the service sector rose to 64.0 in June 2010 from 58.2 in May 2010, pointing to a substantial rate of growth as a figure above 50 indicates expansion.
All the 6 sub-sectors covered by the survey recorded growth in new business ventures since May 2010, with postal services and telecommunications registering the fastest expansion.
The survey also highlighted that the Indian services companies raised their charges for the seventh consecutive month.
According to the HSBC Markit Business Activity Index, based on a survey of 400 firms, the service sector rose to 64.0 in June 2010 from 58.2 in May 2010, pointing to a substantial rate of growth as a figure above 50 indicates expansion.
All the 6 sub-sectors covered by the survey recorded growth in new business ventures since May 2010, with postal services and telecommunications registering the fastest expansion.
The survey also highlighted that the Indian services companies raised their charges for the seventh consecutive month.
India second on the Global Manufacturing Competitiveness Index: Deloitte
New Delhi: India ranks second, in terms of manufacturing competence as per the 2010 Global Manufacturing Competitiveness Index; a result of the collaboration between Deloitte Touche Tohmatsu and the US Council on Competitiveness.
"In less than a decade, a new world order for manufacturing competitiveness has emerged along with a tectonic shift in regional manufacturing competence," the report said. Furthermore, the detailed report highlighted that the rise in the manufacturing competitiveness of three countries in particular—China (10), India (8.15) and the Republic of Korea (6.79)—appears to be parallel to the rapidly expanding and important Asian market.
"Perhaps more surprising is that India is now positioned at number two and gaining an even stronger foothold on that position over the next five years," the report said. In addition, the report brought to light India's rich talent pool of scientists, researchers, and engineers along with its vast, educated English-speaking workforce and the democratic administration; in all making it an attractive destination for the manufacturers.
Noting that since the mid-1990s, India's software industry has increased to new heights and post-economic liberation has also opened a pathway to unprecedented market opportunities for Indian manufacturing, the report said moreover, beyond low-cost, Indian manufacturers gained experience in quality improvement and Japanese principles of quality management, with the largest number of Deming Award winners outside of Japan.
The report further points out that "The country is also rapidly expanding its capabilities in engineering design and development and embedded software development, which forms an integral part of many modern-day manufactured products."
"In less than a decade, a new world order for manufacturing competitiveness has emerged along with a tectonic shift in regional manufacturing competence," the report said. Furthermore, the detailed report highlighted that the rise in the manufacturing competitiveness of three countries in particular—China (10), India (8.15) and the Republic of Korea (6.79)—appears to be parallel to the rapidly expanding and important Asian market.
"Perhaps more surprising is that India is now positioned at number two and gaining an even stronger foothold on that position over the next five years," the report said. In addition, the report brought to light India's rich talent pool of scientists, researchers, and engineers along with its vast, educated English-speaking workforce and the democratic administration; in all making it an attractive destination for the manufacturers.
Noting that since the mid-1990s, India's software industry has increased to new heights and post-economic liberation has also opened a pathway to unprecedented market opportunities for Indian manufacturing, the report said moreover, beyond low-cost, Indian manufacturers gained experience in quality improvement and Japanese principles of quality management, with the largest number of Deming Award winners outside of Japan.
The report further points out that "The country is also rapidly expanding its capabilities in engineering design and development and embedded software development, which forms an integral part of many modern-day manufactured products."
IMF lifts India growth forecast to 9.4% in 2010
New Delhi: The International Monetary Fund (IMF) on Thursday raised its India growth forecast for 2010 to 9.4 per cent from 8.8 per cent estimated in April.
In its July update of the World Economic Outlook (WEO) projections, the Washington-based multilateral agency, however, kept unchanged its 2011 India growth forecast at 8.4 per cent.
In a report released today, the IMF said that India's GDP growth is expected to accelerate to 9.4 per cent in 2010 as robust corporate profits and favourable financing conditions fuel investments.
The Government expects the country's economic growth to be over 8.5 per cent in 2010-11 (April-March). The growth forecast made by IMF and the Indian government are strictly not comparable, as they count different months for arriving at an annual period.
While IMF forecast is for the calendar year 2010, the Government makes its growth projection for fiscal year (April-March).
Reacting to the IMF's India GDP growth forecast upgrade, Mr T.C.A. Anant, Chief Statistician of India, told Business Line that this was a positive signal and reflected their confidence in the economic growth outlook for India in the near term.
“IMF is an independent body monitoring India. It is a positive signal. If there are similar signals and confirmation from other agencies (monitoring the Indian economy), it will give greater confidence to us about the Government's own assessment of the growth prospects for the year,” Mr Anant said.
Meanwhile, in the July update, the IMF has raised its global growth forecast for 2010 to 4.5 per cent from its earlier estimate of 4 per cent in the April 2010 WEO, reflecting stronger activity in the first half of 2010 (January-June).
The IMF said that the higher growth was on expectations of a modest but steady recovery in most advanced economies and strong growth in many developing and emerging economies.
At the same time, IMF has noted that downside risks have risen sharply amid renewed financial turbulence.
IMF expects the Chinese economy to grow by 10.5 per cent in 2010. It also said that the first quarter GDP numbers in Asia were generally stronger than anticipated at the time of the April 2010 WEO and high frequency indicators suggest that economic activity remained brisk during the second quarter.
The GDP growth forecast for Asia has been revised upwards to about 7.5 per cent from about 7 per cent in the April WEO.
Dr Pronab Sen, Principal Advisor, Planning Commission said that he was not surprised by the IMF move to raise India GDP growth forecast to 9.4 per cent.
“It is not a surprise. It was on expected lines given that we had a strong GDP performance in January-March 2010 (Q1 for IMF's calculation) and will also have good one in April-June (Q2 for IMF's calculation) due to base effect,” Dr Sen told Business Line.
He highlighted that the January-March quarter had the highest weightage in GDP calculation. There was also stronger than expected growth performance in that quarter. “The fourth quarter (January-March) is usually the best quarter for us,” Dr Sen said.
When IMF came up with its initial forecast in April, it was unlikely that they would have factored the actual numbers for January-March 2010.
“Since now they are getting a better idea of the performance in the two quarters — January-March and April-June — which are high growth-cum-high weightage periods, they have pushed up the growth forecast,” Dr Sen said.
Dr Sen maintained that there was still a question mark over sustainability of investments even as many positive indications had emerged in the recent months.
In its July update of the World Economic Outlook (WEO) projections, the Washington-based multilateral agency, however, kept unchanged its 2011 India growth forecast at 8.4 per cent.
In a report released today, the IMF said that India's GDP growth is expected to accelerate to 9.4 per cent in 2010 as robust corporate profits and favourable financing conditions fuel investments.
The Government expects the country's economic growth to be over 8.5 per cent in 2010-11 (April-March). The growth forecast made by IMF and the Indian government are strictly not comparable, as they count different months for arriving at an annual period.
While IMF forecast is for the calendar year 2010, the Government makes its growth projection for fiscal year (April-March).
Reacting to the IMF's India GDP growth forecast upgrade, Mr T.C.A. Anant, Chief Statistician of India, told Business Line that this was a positive signal and reflected their confidence in the economic growth outlook for India in the near term.
“IMF is an independent body monitoring India. It is a positive signal. If there are similar signals and confirmation from other agencies (monitoring the Indian economy), it will give greater confidence to us about the Government's own assessment of the growth prospects for the year,” Mr Anant said.
Meanwhile, in the July update, the IMF has raised its global growth forecast for 2010 to 4.5 per cent from its earlier estimate of 4 per cent in the April 2010 WEO, reflecting stronger activity in the first half of 2010 (January-June).
The IMF said that the higher growth was on expectations of a modest but steady recovery in most advanced economies and strong growth in many developing and emerging economies.
At the same time, IMF has noted that downside risks have risen sharply amid renewed financial turbulence.
IMF expects the Chinese economy to grow by 10.5 per cent in 2010. It also said that the first quarter GDP numbers in Asia were generally stronger than anticipated at the time of the April 2010 WEO and high frequency indicators suggest that economic activity remained brisk during the second quarter.
The GDP growth forecast for Asia has been revised upwards to about 7.5 per cent from about 7 per cent in the April WEO.
Dr Pronab Sen, Principal Advisor, Planning Commission said that he was not surprised by the IMF move to raise India GDP growth forecast to 9.4 per cent.
“It is not a surprise. It was on expected lines given that we had a strong GDP performance in January-March 2010 (Q1 for IMF's calculation) and will also have good one in April-June (Q2 for IMF's calculation) due to base effect,” Dr Sen told Business Line.
He highlighted that the January-March quarter had the highest weightage in GDP calculation. There was also stronger than expected growth performance in that quarter. “The fourth quarter (January-March) is usually the best quarter for us,” Dr Sen said.
When IMF came up with its initial forecast in April, it was unlikely that they would have factored the actual numbers for January-March 2010.
“Since now they are getting a better idea of the performance in the two quarters — January-March and April-June — which are high growth-cum-high weightage periods, they have pushed up the growth forecast,” Dr Sen said.
Dr Sen maintained that there was still a question mark over sustainability of investments even as many positive indications had emerged in the recent months.
Friday, July 2, 2010
Infosys @ 30: The Story so far
It was a middle-class Indian’s dream and today after 30 years, Infosys has changed the way people look at India. Seven Indian men took the risk to think out of the box and it paid off. Thirty years on, Infosys is India’s most reputed company and is one of the best known brands in the global market.
On this day, NR Narayan Murthy and his six colleagues who worked with Patni Computer Systems, started Infosys Technologies in Pune with a meagre capital of Rs 10,000.
Infosys is synonymous with India’s IT growth. The main aim was to provide a world-class work environment and put India on the global map. The entrepreneurial dream of Narayan Murthy saw its first result in 1987, when the company signed a joint venture with Kurt Salmon Associates in US.
Major milestones in their 30-year-old journey:
2010
Infosys voted as the ‘Best Managed Company’ in India by Finance Asia
2009
Employee strength grew to over 1,00,000
2008
Revenues crossed USD 4.18 billion
2007
Reported Q2 revenue of over USD 1 billion. Annual revenues crossed USD 3 billion
2006
N. R. Narayana Murthy retired from the services of the company on turning 60.
Infosys celebrated 25 years. Revenues crossed USD 2 billion
Progeon was re-christened as Infosys BPO Ltd, effective 29 August 2006.
2005
Won the Global – Most Admired Knowledge Enterprises (MAKE) award
2004
Infosys Technologies became the first Indian listed software company to have a net profit of Rs 1,000 crore or more.
2003
Subsidiaries established in China and Australia
2002
Nandan M. Nilekani took over as CEO
2001
Offices opened in UAE and Argentina and a development centre in Japan
2000
Opened offices in France and Hong Kong, a global development center in Canada and UK and three development centers in the US
1999
Infosys was listed on NASDAQ
1993
Infosys got listed on BSE on June 14, 1993
1987
First international office at Boston, US
Infosys wanted to make an impact in the American market. The same year, the company opened its office in Boston. However in 1988, their KSA joint venture collapsed and Murthy and his associates were left in the lurch. During this period, one of their founding partners Ashok Arora, quit the company to join as a consultant in the US. But Murthy didn’t lose hope. His team continued with their struggle.
Their initial foray into US was through their first client Data Basics Corp. Then there was no looking back. The company went public in 1993 and introduced employee stock option. On the opening day itself, it was traded at Rs 115, though it was listed at Rs 95.
By then, it had started expanding its operations in US. Even today Infosys is the largest publicly traded IT services exporter in India, providing services to 315 large corporations, such as GE and Nortel, predominantly in the USA.
By the late 90s, it started expanding its operations in UK, Europe and Canada. In 1999, it became the first Indian company to be listed in Nasdaq. By this time, it started looking at options in the industry. It launched its business consulting services.
The Y2K fear had gripped the world by now. But Infosys was growing strong and its revenues touched $200mn in 2000 as India was now turning to be the IT hub.
Major acquisitions and partnerships
2010
Infosys Technologies chosen to manage Microsoft’s Internal IT Services
2009
Telstra selected Infosys as a key partner to support its five-year $450 million AUD application development and maintenance contracts.
2008
BBVA and Finacle from Infosys signed a Strategic Global Partnership.
2007
The company bought three of the service centers of Netherlands-based Royal Philips Electronics NV for $28 million.
2005
Infosys signed five-year global IT deal with ABN AMRO.
By then, Narayan Murthy had become a renowned entrepreneur and was listed among Time Magazine/CNN’s 25 most influential businessmen in the world.
Infosys became a household name and it was a dream for every youngster to be part of the global software giant. It was the most admired company in India – India’s pride.
In 2002, it was time for Murthy to step down as CEO and hand over the responsibility to Nandan Nilekani (one of the founding members). The team of seven was now reduced to five. But Murthy ensured he continued to be a mentor to his team.
Infosys knew it had to spread its wings and in 2003, it went on with its first major acquisition. It acquired Infosys Export Info services in Australia.
In 2005, it signed a landmark IT deal with ABN AMRO bank, which was considered as a key step to enter and expand its portfolio. It continued to expand its operations and ventured into BPO services and bought US firm McCamish systems. It also signed a major five-year deal with T-Mobile in UK.
In 2006, Nilekani stepped down to pave way to Kris Gopalakrishnan. Under Nilekani, the company aggressively went on acquiring or tying up with firms across the globe.
The government of India noticing his capabilities roped him to head the Unique Identity project. Due to this commitment, Nilekani sold all his shares and resigned from all the responsibilities he was handling in Infosys.
Today, the company stands tall with 1.13 lakh employees. That said, with founders still dominating the top rung, experts say it is time for the company to choose its successor to continue its success story.
HSBC buys RBS's India retail, commercial bank operations
LONDON: HSBC Holdings said it would buy the Indian retail and commercial banking businesses of Royal Bank of Scotland as the part-nationalised UK bank continues its retreat from overseas markets.
HSBC said it would pay a premium of up to $95 million over the tangible net asset value of the businesses when the deal completes, expected in the first half of next year. The price could be reduced if bad debts in the business increase during the next two years.
Sources have previously said HSBC would buy the businesses, which have 1.1 million customers, over 1,800 staff and 31 branches.
The portfolios had a gross asset value of $1.8 billion at the end of March. HSBC currently has about 2 million customers and 50 branches across 29 cities in the hard-to-enter Indian market.
RBS, 83 percent owned by the UK government, has sold a string of small non-core business in recent weeks as it refocuses on its key strengths. It is reversing a decade-long international expansion drive and has raised over $2.5 billion from exiting or selling over 20 businesses in the last 14 months
RBI hikes repo & reverse repo rates by 25 bps
MUMBAI: Reserve Bank of India on Friday raised its key short-term interest rates by 25 basis points each, citing worries over inflation, nearly Wholesale price index (WPI) inflation rose to 10.2 percent in May, from 9.6 percent in April, exceeding expectations. The Reserve Bank of India raised its main lending rate, or repo rate, to 5.50 percent from 5.25 percent, and the reverse repo rate, at which it absorbs excess cash from the banking system, to 4 percent, from 3.75 percent, it said in a statement.
"There has been some moderation in food price inflation, but the price index of food articles continues to increase," the central bank said. "More importantly, the prices of non-food manufactured goods and fuel items have accelerated in recent months," it said.
The rate hike comes soon after the Indian government raised fuel prices that it said would lift inflation by nearly one percentage point.
The central bank said that while inflation and GDP growth data had been available by mid-June, it had been inadvisable to raise policy rates then as the financial system was dealing with liquidity pressures resulting from higher than expected payments for wireless spectrum in government auctions.
"It's a welcome move but probably RBI should have moved a little more aggressively -- not now, but earlier in April or May," said Jay Shankar, economist at Religare capital. "The rate hike quantum is okay as we have a liquidity crunch scene right now. But it has come too late," he said.
Thursday, July 1, 2010
Airport body scanners may cause cancer: Scientist
LONDON: At a time when airports around the globe are planning to install full body scanners to maximise security, the US Congress has been warned that the X-ray imaging could increase the risk of skin cancer in air passengers.
The body scanners emit radiation up to 20 times more powerful than previously thought and could be particularly risky for children, said Dr David Brenner, head of Columbia University's centre for radiological research.
Although the "individual risks" associated with X-ray backscatter scanners are probably extremely small, it could multiply with the number of scanning, he said.
"If all 800 million people who use airports every year were screened with X-rays then the very small individual risk multiplied by the large number of screened people might imply a potential public health or societal risk. The population risk has the potential to be significant," Dr Brenner was quoted as saying by the Daily Mail.
There should be more research on the device to look at the way it affects specific groups who could be more sensitive to radiation, he said.
According to him, children and passengers with gene mutations -- around one in 20 of the population -- are more at risk as they are less able to repair X-ray damage to their DNA. The most likely risk from the airport scanners is a common type of skin cancer called basal cell carcinoma, he said.
The cancer is usually curable and often occurs in the head and neck of people aged between 50 and 70. Dr Brenner pointed out that it would be difficult to hide a weapon on the head or neck so proposes missing out that part of the body from the scanning process.
"If there are increases in cancers as a result of irradiation of children, they would most likely appear some decades in the future. It would be prudent not to scan the head and neck," he added.
Dr Brenner, who is originally from Liverpool but now works at the New York university, recently aired his concerns to the Congressional Biomedical Caucus in the US -- members of Congress who meet to exchange ideas on medical research.
He urged them to look at his concerns but said it was important to balance any health issues against passengers' safety when flying.
The body scanners emit radiation up to 20 times more powerful than previously thought and could be particularly risky for children, said Dr David Brenner, head of Columbia University's centre for radiological research.
Although the "individual risks" associated with X-ray backscatter scanners are probably extremely small, it could multiply with the number of scanning, he said.
"If all 800 million people who use airports every year were screened with X-rays then the very small individual risk multiplied by the large number of screened people might imply a potential public health or societal risk. The population risk has the potential to be significant," Dr Brenner was quoted as saying by the Daily Mail.
There should be more research on the device to look at the way it affects specific groups who could be more sensitive to radiation, he said.
According to him, children and passengers with gene mutations -- around one in 20 of the population -- are more at risk as they are less able to repair X-ray damage to their DNA. The most likely risk from the airport scanners is a common type of skin cancer called basal cell carcinoma, he said.
The cancer is usually curable and often occurs in the head and neck of people aged between 50 and 70. Dr Brenner pointed out that it would be difficult to hide a weapon on the head or neck so proposes missing out that part of the body from the scanning process.
"If there are increases in cancers as a result of irradiation of children, they would most likely appear some decades in the future. It would be prudent not to scan the head and neck," he added.
Dr Brenner, who is originally from Liverpool but now works at the New York university, recently aired his concerns to the Congressional Biomedical Caucus in the US -- members of Congress who meet to exchange ideas on medical research.
He urged them to look at his concerns but said it was important to balance any health issues against passengers' safety when flying.
Nano: Celebrating one year of being on the road
There has been great hype about the Tata Nano, the least expensive production car in the world, right from the time plans were announced till today - over a year after it hit the streets.
Whether you believe it's the people's car of the 21st century or a threat of over congestion on our already crowded city streets, the Nano is highly capable mode of transport for urban commuting.
While it may not be the ideal car for long distance highway driving, Tata Motors' latest endeavour really put the Nano's touring ability to the test.
To celebrate the inauguration of the company's new plant at Sanand in Gujarat, the Tata Nano Superdrive set off from there on June 2 on a 26 day voyage that saw the Nano caravans visit 36 cities around the country.
A total of 9 Nanos, split in three groups of three cars, traveled across India on three different routes christened after the colours of the Indian flag.
The 'Saffron Route' had the cars visiting Udaipur, Jaipur, Hisar, Amritsar, Chandigarh, Delhi, Meerut, Agra, Lucknow, Kanpur, Gwalior and Kota, while the 'White Route' passed through Indore, Bhopal, Nagpur, Raipur, Ranchi, Patna, Kolkata, Bhubneshwar, Vishakhapatnam, Hyderabad and Aurangabad. The 'Green Route' visited cities like Surat, Mumbai, Pune, Goa, Mangalore, Kochi, Coimbatore, Chennai, Bangalore, Kolhapur, Solapur, Nashik and Ahmedabad.The Superdrive branded Nanos also visited prominent landmarks in every city and prospective customers were given an opportunity to drive them as well.
We here at ZigWheels got a chance to be part of this epic drive on the leg on the 'Green Route' which took the cars from Bangalore to Kolhapur. Now while we've have always enjoyed driving the Nano around town, it was difficult to imagine how it would hold up while covering 600km in a day.
While a straight highway like NH4 isn't a challenge for most modern cars, one couldn't help wonder how comfortably the three Nanos would make it to journey's end. But just a few kilometers in, the cars had settled into a rhythm and were maintaining a steady speed of 80-90 km/h heading northward towards Kolhapur, eventually completing the distance in 10 hours.
All three of the Nanos managed an average driving speed of 60km/h without putting a single foot wrong at any time - not bad for a car which has just two cylinders and all of 623cc of cubic capacity.
From Kolhapur, the Nanos continued their epic journey with another set of drivers, finally culminating in Mumbai on June 28 where they were flagged in by Ratan Tata, Chairman, Tata Sons & Tata Motors. Now, a year since its launch, the Nano continues to grow strong and without a doubt, is here to stay!
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