25 Business Capsules

Date : 14th May, 2008

1. 1.6 billion People across the world have no access to electricity.

2. 2.5 billion People across the world still rely on traditional biomass for cooking.

3. Maruti Swift sales crosses 2 lakh in just 36 months in India.

4. Swift was launched by Maruti Suzuki on May 25, 2005 in India

5. Initially Swift’s petrol variant was launched, the diesel variant was launched in January 2007.

6. Reliance Retail and Citibank to form an alliance for consumer finance in India.

7. At present Reliance Retail has more than 1000 store all over India.

8. Bharti Airtel of India is planning to enter into an alliance with Cisco for services.

9. Reliance and Alcatel-Lucent have formed a Joint Venture (JV) to offer managed network services to both the national as well as international telecom operators.

10. Alcatel-Lucent is a French-US equipment firm.

11. According to Gartner network IT services will be worth $ 7 billion by 2011in India.

12. To lower cost Japan Airlines Corp (JAL) is planning to cut its employees salary by 5 percent.

13. Cutting of salary by 5 percent will help JAL to save $96.4 million.

14. By revenue JAL is Asia’s biggest airline company.

15. Money assigned for IPO will now remain in investor’s bank account in India.

16. Thus the investors will no longer have to wait for the refund of their IPO money.

17. Finance Ministry of India will be issuing bonds to cover the 50 percent losses suffered by the Public Sector oil marketing companies (OMCs).

18. OMCs of India are: Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation.

19. The losses suffered by OMCs in India are:

· Rs 14 per litre on petrol

· Rs 21 per litre on diesel

· Rs 306 per cylinder on cooking gas

· Rs 28.72 per litre on kerosene.


20. Mahindra & Mahindra is planning to purchase Kinetic Motors.

21. Kinetic Motors is a Pune (India) based two wheeler manufacturer.

22. Kinetic Motors has been valued at Rs 150 crore; however both the companies declined to confirm the news.

23. India is world’s second biggest two-wheeler industry; the first being China.

24. Tata’s Nano which is priced at $ 2500 is expected to be a threat for the auto manufacturers of North America.

25. ICICI bank of India is planning to set up a branch in Canada.


Website: http://www.ebiz16c.blogspot.com

Decrease Dependance on OPEC

Increase in the price of crude oil has beaten all expectations. In September 1999 crude oil was below $ 20 per barrel; in March 2004 it was around $30 per barrel; in April 2007 it reached to $60 per barrel; at present the price is somewhere around $125 per barrel and it is expected to cross $ 200 per barrel in near future.

Demand for crude oil has increased considerably in recent years. Rapid urbanization of developing countries and increase in the use of vehicles (public and private both) are considered to be the major cause of the increase in demand of crude oil. Supply has not increased as compared to increase in demand so the price of crude oil is increasing rapidly. Besides, weakening of dollar too has resulted in rise in price of crude oil.

World’s energy demand is growing at an annual average rate of 1.7 percent. Organization of Petroleum Exporting Countries (OPEC) has agreed to invest over $150 billion to increase the production of crude oil by 5 mb/d by 2012. Although the OPEC member countries are giving some signal of increasing the supply of crude oil but they are apprehensive to do it on large scale. Certain uncertainties which haunt the OPEC member countries are:

Future economic growth of the world.

Performance of non-OPEC countries

Policies of individual countries regarding the consumption of oil.

Technological development.

More than three-quarters of recoverable crude oil reserves of the world is with OPEC. OPEC which at present has 13 member countries is world’s one of the most successful cartels.

For OPEC member counties crude oil is the major contributor in their economic development. In the year 2006 crude oil accounted for 75 percent of total export revenues for OPEC member countries; however for majority of the member countries the contribution exceeded 90 percent. This is why these countries look for secure oil market and predictable demand and supply to ward off any uncertainty. And whenever they get an opportunity to maximize their profit they do it at any cost.

During 1980’s demand for crude oil had decreased to half which had adversely affected the OPEC member countries. Proper and reliable demand forecasting will help both the supplier and the consumers. Joint Oil Data Initiative is a new concept which is now being practiced wherein both the producers as well as the consumers equally participate in forecasting demand.

Although enough crude oil reserves are there to meet our demand for oil for decades to come, it is important that effort should be made to find an alternative means. The world should not be completely dependent on OPEC member countries for crude oil. Alternative fuels should be developed which will decrease our dependence on crude oil. Political initiative should be there so that OPEC does not take undue advantage of consumers.

Website: http://www.ebiz16c.blogspot.com

25 Business Capsules

Date: 13th May, 2008

1. Essar Global Ltd, an India based company, to invest $ 2 billion in power projects in India.

2. Essar is planning to build 6000 megawatts power plant in India.

3. Nissan will launch 8 new models in Indian market by 2012.

4. Nissan which is the third largest automaker of Japan is planning to sell 100,000 vehicles in India annually.

5. Besides government pressure to cut prices, cement companies in India has been hit by sharp increase in raw material costs according to Assocham.

6. Fuel cost and power cost, which constitutes 60 percent of the operating expenditure of cement firms, has increased by 24 percent according to Assocham.

7. Venugopal Dhoot is the president of Assocham.

8. Arvind Mills Ltd of India will now be known as Arvind Ltd.

9. Arvind Mills which belongs to Lalbhai Group is Ahmedbad based.

10. The company was established in 1931.

11. Domestic Brands of Arvind Mills are:

· Flying Machine
· Newport
· Excalibur
· Ruf & Tuf

12. It has also got license for international brands like:

· Lee
· Wrangler
· Arrow
· Tommy Hilfiger


13. At present about 6.5 lakh people travel by Delhi metro daily.

14. The number of people traveling by metro will increase to 20 lakh by 2010.

15. Tokens have been provided to the commuters by Delhi Metro Rail Corporation (DMRC).

16. Initially tokens were brought from France at the cost of Rs 98 each; now the tokens are produced in India at the cost of just Rs 20.50 each.

17. ICICI, an Indian bank, has decreased EMI (Equated monthly installment) on home loan and has increased the tenor for the payment of the loan.

18. The new EMI will be applicable from April 2008 according to the bank.

19. Ashok Leyland of India has entered into an agreement with JBM Auto, a component maker firm.

20. Both the companies will be investing Rs 100 crore to set up a manufacturing unit in Uttrakhand.

21. JBM will have 74 5 stake while Ashok Leyland will have 26 % stake.

22. SpiceJet of India has decided to start cargo operations.

23. Initially the operation will begin in 8 cities which will be later increased to 18.

24. 118 flights are daily operated by SpiceJet covering 18 destinations.

25. Government of India has decided to allocate Rs 40,000 crore for the implementation of e-governance in the country, Union IT and Communication Minister A Raja said on Monday.

Website: http://www.ebiz16c.blogspot.com

25 Business Capsules

Date: 12 th May, 2008

1. The fourth quarter net income of Reliance Energy Ltd. rose by 31 per cent.

2. Reliance energy Ltd has orders worth Rs 78.5 billion for this financial year.

3. Reliance Energy Ltd will now be known as Reliance Infrastructure Ltd.

4. Reliance infrastructure will be engaged in projects like:

· Power generation
· Transmission and Distribution
· Highways
· Bridges
· Metro Rail
· Airports
· Real Estate

5. Government of India has decided to impose export duties on steel.

6. Shocked by the move steel companies decided to hold back the reduction in price of steel which they had announced.

7. Bajaj-Nissan-Renault has formed a JV for the production of 1 lakh rupees car in India.

8. Bajaj will have 50% stake while Nissan and Renault each will have 25% stake.

9. The production of the 1 lakh rupee car will begin by 2011.

10. The plant will be set up at Chakan which is near Pune (India).

11. P Chidambaram, India’s finance Minister, to persuade the coalition allies to allow the foreign investments in insurance, pension and banking.

12. 80 percent of Indians do not have insurance cover according to Lehman Brothers LLC.

13. 88 percent of Indian workforce does not get involved in pension schemes according to Lehman Brothers LLC.

14. Foreign investors can have a maximum of 26% stake in Indian insurance market.

15. The Indian government is planning to increase the limit for foreign investors in Indian insurance to 49%.

16. The Indian government is planning to divest its remaining 26% stake in VSNL, now known as Tata Communications.

17. The Indian government will get Rs. 3,650 crore by divesting its stake in Tata Communications at present market price.

18. 67 million children in India (about 53%) aged below 5 years do not get basic health care according to the report published by the organization ‘Save the Children’.

19. About 1 million Indian children die during their first month annually according to the report.

20. Industrial production in India during the month of March (2007-08) was just 3 percent.

21. The growth was bad if we compare it with the Industrial production during March (2006-07) which was14.8 percent.

22. Industrial production during the year 2007-08 was 8.1 percent whereas it was 11.6 percent during 2006-07.

23. According to Cyber Media Publication for the outsourcing industry, the mid-sized IT and BPO companies in India are likely to suffer more because of US slowdown than the bigger IT or BPO companies.

24. The weakening of rupee against the US dollar has boosted the confidence of Indian IT sector which was fighting against the US recession and stronger rupee.

25. Indiabulls is planning to invest about Rs 10 billion in retail in India in the coming 2-3 years.

25 Business Capsules

Date: 11th May, 2008

1. Merck, a US based firm, has got patent rights for two of its drug from Indian patent office; however approval from Drug Controller General of India is awaited.

2. The two drugs which have got approval are: obesity and dyslipidemia.

3. Merck is a $24.2 billion company and in India its drug Januvia, an anti-diabetic drug, is patented.

4. Ranbaxy and Merck to form a strategic alliance for research and development of drugs.

5. TRAI do not want the participation of foreign telecom companies to bid for 3G.

6. India has surpassed US to become the second largest wireless market of the world after China.

7. India’s tele-density was 26.22 percent in March 2008.

8. Mahindra and Mahindra to increase the price of its vehicle by 1.5 % to 2.5%; it will come into effect from 19th May, 2008.

9. Government of India is planning to launch a de-hoarding campaign to control price rise.

10. Government of India mounts pressure on the cement industries to cut prices.

11. Kamal Nath, India’s Commerce and Industry Minister, and Susan Schwab, Trade Representative of United States, have decided to resolve contentious issues to facilitate the early conclusion of trade negotiations at Doha.

12. Bharat Heavy Electricals Ltd (BHEL) has acquired Bharat Heavy Plate and Vessels Ltd in order to establish a power plant.

13. Bangladesh informed TATA that it would be difficult for them to supply gas to TATA.

14. 35% stake has been taken by MOL Hungarian Oil and Gas Plc, a Budapest based firm, in the onshore exploration block of Oil and Natural Gas Corporation (ONGC) of India which is in the foothills of Himalaya.

15. ArcelorMittal has filed a case against US based Steel maker Esmark for breach of contract and demanded compensation of over Rs 2,000 crore.

16. Bharati Airtel of India is considering increasing its bid to 175 South African rand i.e. $22.63 to acquire MTN of South Africa.

17. India’s mutual fund assets jumps by 7% during April 2008 and touches Rs 565441.03 crore.

18. Aviation turbine fuel to be traded in India’s future market.

19. To distribute financial products Fidelity Fund Management and Federal Bank of Kerala has entered into an agreement. ]

20. Fund transfer on NGPAY, a mobile commerce network, will be possible for the customers of HDFC.

21. The services offered by NGPAY will include shopping, payments, accessing bank accounts and ticketing.

22. The Indian IT firms are targeting Africa and Middle East where spending on technology is growing rapidly.

23. According to research firm Gartner Africa, Middle East, Asia-Pacific, Eastern Europe and Latin America will be investing about $1.1 trillion in information technology during 2008.

24. By 2011 spending on information technology will reach to $1.3 trillion.

25. Government of India is planning to invest Rs 1000 crore in Air India to help it fight the competition from private players.

25 Business Capsules

Date: 10th May, 2008

1. Kotak Mahindra Bank registered 86 % growth in its net profit in Q 4 in the fiscal year 2007-08.

2. Bharti Airtel’s move to acquire South Africa’s MTN has been supported by Makati family.

3. Makati family which has Mr. Najib Makati, Lebanese’s former Prime Minister, as one of its key members has a stake of 9.8 % in MTN.

4. Alpine Trust has a stake of 23 % in MTN.

5. Pension Fund of South African government has a stake of 13.5 % in MTN.

6. Bharti Airtel added 2.4 million new subscribers in India during April 2008.

7. With this Bharti Airtel’s total subscriber base reaches to 64.4 million in India.

8. Total number of new subscribers added by all the GSM players during April, 2008 was 6.14 million.

9. Tata Indicom, India’s telecom service provider has launched Walky Talky.

10. Walky Talky is stylish, is cordless and has been specifically designed for home phone users.

11. During this year Government of India has been able to procure 18 million tonnes of wheat till now.

12. 14.4 million tonnes of wheat have been procured from Haryana and Punjab.

13. British Airways has decided not to serve beef on its airplane as beef hurts Hindu’s religious sentiments.

14. India is the second biggest market for British airways.

15. Mars Inc will be taking over Wm Wrigley Jr Co, one of the world’s largest chewing gum maker companies, for $ 23 billion.

16. Berkshire Hathaway Inc will be investing $6.5 billion in this takeover bid.

17. Berkshire Hathaway is a $197 billion company.

18. Berkshire Hathaway has more than 70 businesses worldwide.

19. Warren Buffet, the founder of Berkshire Hathaway and the world’s richest man, feels that the US recession may be longer and deeper than expected.

20. America’s largest bank Citigroup has decided to shed assets worth $ 400 billion in next 3 years.

21. This will help Citigroup to boost its annual revenue by about 10%.

22. Citigroup has lost over $ 15 billion in the last two quarter of this year.

23. Citigroup has already cut 13,200 jobs this year and is planning to cut more jobs.

24. Citigroup has assets of $ 2.2 trillion and is present in 106 countries.

25. Vikram Pandit is the CEO of Citigroup.

IBM in Pune and Chennai

Pune and Chennai have been identified as the two major cities in India by IBM to provide solutions to the domestic and global players in the automotive sector. Major equipment manufacturers and automotive players have set up their plant in these two cities and many other global giants are planning to do the same.

Leading automobile companies present in Pune like Mahindra and Mahindra, Volkswagen, Fiat, General Motors, Bajaj, Tata Motors and Daimler have decided to launch new projects. Just look at the statistics.

Bajaj auto is planning to invest Rs 2000 crore to establish a three-wheeler and four- wheeler plant in Chakan, Pune.

ZF Friedrichshafen, a German automotive supplier, is investing Euros 20 million to set up a manufacturing plant in Pune which would be commissioned by 2009.

Fiat India Automobile is investing Rs 2,341 crore in Ranjangaon, Pune to scale up its productivity. As part of its strategy Fiat plans to produce three lakh engines, two lakh cars and three lakh accessories and parts. The Ranjangaon facility will employ around 4000 people.

IBM employs around 73,000 people in its six global delivery centers in India. The automotive operation was launched two years back by IBM and at present has a headcount of 2000. IBM has decided to double the headcount for automotive operation in coming two years in its Pune and Chennai center.

Services offered by IBM to the automotive sector will include financial services, solutions to midsize and small scale automotive players, business consulting, technology services, product life cycle management, human capital management and manufacturing productivity.

In coming years Pune is set to become an automobile and software hub of the country.