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IN FOCUS October 01 2010 IN FOCUS Weekly Indicators Each man

VIEWS: 30 PAGES: 17

									                   October 01, 2010                                  IN FOCUS
                       Weekly Indicators
                                                                     Each man must reach his own verdict, by weighing all the relevant evidence. (Leonard
      Indicators                Current          Last Week
                                                                     Peikoff)
      Sensex                    20,445             20,045
                                                                     Ayodhya verdict delivered peacefully; Aadhaar started… CWG to begin
      Nifty                      6,143              6,018
                                                                     In landmark development, the painfully-long wait over the Ayodhya dispute has
      Forex Reserves         US$291.59 bn      US$287.73 bn
      Food Inflation           16.44%             15.46%
                                                                     ended with the Allahabad High Court giving a split, but pragmatic verdict, while
                                                                     the nation has shown maturity and restraint in reacting to the verdict.
                         Exchange Rates                              Meanwhile, in what is aptly termed as the world's largest electronic ID program,
      Currency                Current           Last Week            the Government has launched Aadhaar initiative nationally at Tembhali village in
       US$1                  Rs. 44.68          Rs. 45.54            Maharashtra. For the Unique Identification Authority of India (UIDAI), the launch
       €1                    Rs. 60.96          Rs. 60.75            of Aadhaar represents the culmination of a year-long effort, in building the
       £1                   Rs. 70.2079        Rs. 71.3976           project’s infrastructure and systems. Meanwhile, the Commonwealth Games
       JP¥ 100               Rs. 53.53          Rs. 53.79            (CWG) – the biggest sporting event India is hosting after 1982 Asian Games – is
                                                                     going to be inaugurated with much fanfare on a day after the Gandhi Jayanti in
                                                                     India’s capital. Nearly 7,000 athletes from 70 countries that were part of the
                                                                     former British Empire are expected to take part in the Games. Despite the
                                                                     charges of corruption, construction delays, and shoddy infrastructure, the nation
                                                                     looks forward to the very success of this prestigious national event.
                                                                     ADB raises GDP forecast for India
                                                                     Despite of expressing concerns over high inflation and rising value of rupee, the
                                                                     Asian Development Bank (ADB) has raised India’s growth forecast for FY11 to
                                                                     8.5% from the earlier estimate of 8.2% growth in Arp’10. According to the ADB
                    Global Economic News
            Dodd-Frank Act crucial to preventing another             outlook update, “Growth is being supported by robust investment, increased
            financial meltdown: Bernanke                             capital inflows and stronger industrial output, buoyed by rising consumer
            US economy is showing some signs that it is on the
            mend, although the pace of recovery is not robust        demand”. For FY12, the ADB has retained its earlier projection of 8.7%.
            enough to bring down unemployment: Sandra                However, the ADB expects the average inflation to be 7.5% in FY11, as against
            Pianalto
            China has warned that the US Congress proposal to
                                                                     its earlier projection of 5.5%. High inflation and rupee’s sharp appreciation could
            impose punitive tariffs on Chinese imports on the        erode India’s export competitiveness, the ADB added.
            grounds of exchange rate will damage bilateral
            trade relations                                          Financial sector repair is unfinished… growth rate to fall in H2: IMF
            Russia and China have signed several key                 Global growth may come in weaker than expected in H2CY10 and this
            agreements on the strengthening of partnership
            with focus on enhanced cooperation in the energy
                                                                     sluggishness will persist into early 2011, said John Lipsky, the First Deputy
            sector                                                   Managing Director of the IMF. He said that the global expansion will likely fall
            The second quarter GDP of the US increased at an         somewhat short of the 3¾% annual rate that the IMF had anticipated previously
            annual rate of 1.7% compared to the 1.6% growth
            estimated last month                                     for H2CY10. Pointing out that the process of financial sector repair is
            Moody's Investor Service has downgraded Spain's          “unfinished,” he said a successful repair will be critical for stronger and sustained
            rating to “Aa1” from “Aaa”, citing weak economic
            prospects                                                growth, which is essential to make a meaningful dent in the current high rates of
            South Korea posted a merchandise trade surplus of        unemployment in many advanced economies, including the US.
            $5.01 in Sept’10
            IATA – along with three governmental aviation            Core infrastructure industries grow by 3.7% in August
            safety organizations – has signed an agreement to        The index of six core industries – having a combined weight of 26.7% in the
            launch the Global Safety Information Exchange
                                                                     Index of Industrial Production (IIP) – stood at 262.9 in Aug’10 and registered a
                    Global Corporate News                            growth of 3.7% in Aug’10, as against 4% growth in Jul’10. The production of
            Nestlé SA is creating two organizations to pioneer a
            new industry between food and pharma                     crude oil grew by 15% in Aug’10, as against 15.8% in Jul’10, while the
            Research In Motion has launched BlackBerry               production of finished steel rose 7.7% in Aug’10, as against 0.9% decline in
            PlayBook – its first tablet computer
            Accenture has posted $445.5 mn profit in Q4, as          Jul’10. The production of petroleum refinery declined 2.3% in Aug’10, as against
            against $254.7 mn profit in Q4 last year                 13.7% growth in Jul’10, while the coal production rose by 1% in Aug’10, as
            BP has reportedly agreed to pay a record $15 mn
            fine to resolve environmental violations at its Texas
                                                                     against 4.5% in Jul’10. The electricity generation grew by 1% in Aug’10, as
            City refinery                                            against 4.1% in Jul’10, while the cement production grew 1.6% in Aug’10, as
            Walgreen Co has posted $470 mn profit in Q4, as
            against $436 mn profit in Q4 last year
                                                                     against 0.2% fall in Jul’10. The six core industries registered a growth of 4.1% in
            Hyundai Group has filed a Letter of Intent to buy a      Apr-Aug’10 period, as against 4.8% growth in Apr-Aug’09 period.
            controlling stake in Hyundai Engineering &
            Construction
                                                                     Exports up 22.5% to $16.64 bn in August
            Unilever has entered into a definitive deal to           India’s exports valued at US$16.64 bn (Rs. 775.09 bn) in Aug’10, as against
            acquire Illinois, US-based Alberto-Culver for US$3.7
            bn in cash
                                                                     US$13.58 bn (Rs. 656.7 bn) in Aug’09, registering a 22.5% YoY rise in Dollar
            Steel Dynamics       has agreed to acquire certain       terms and 18% YoY rise in Rupee terms. India’s imports valued at US$29.67 bn
            facilities and assets of CMC's former steel joist        (Rs. 1,382.11 bn) in Aug’10, as against imports worth US$22.44 bn (Rs.
            manufacturing operations
            Endo Pharmaceuticals has entered into a definitive       1,085.06 bn) in Aug’09, registering a growth of 32.2% YoY in Dollar terms and
            deal to acquire Qualitest Pharmaceuticals for about      27.4% YoY in Rupee terms. Oil imports rose 12.4% YoY to at US$7.79 bn in
            $1.2 bn in cash
                                                                     Aug’10, as against oil imports worth US$6.93 bn in Aug’09. Non-oil imports
                                                                     increased 41.1% YoY to US$21.88 bn in Aug’10, as against US$15.51 bn in
                                 Asim Mohapatra
                                                    Editor
                                                                     Aug’09. The country’s trade deficit is estimated at US$56.62 bn in Apr-Aug’10
              asim.mohapatra@sushilfinance.com                       period, as against deficit of US$40279 mn in Apr-Aug’09.
         Please refer to important disclosures at the end of the report 
              p                                                                                                                            For Private Circulation Only. 

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        Office : 12, Homji Street, Fort, Mumbai 400 001.                                   Phone: +91 22 40936000 Fax: +91 22 22665758 Email : info@sushilfinance.com
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INDEX

          1. Economy                                                                 03-04


          2. Infrastructure                                                               05

          3. Sectors                                                                 06-11


                    A. IT & ITeS                                                          06
                    B. Pharma & Healthcare                                                07
                    C. Banking & Financial Services                                       08
                    D. Steel, Metals & Minerals / Telecom                                 09
                    E. Auto & Auto Ancillaries                                            10
                    F. Miscellaneous                                                      11


          4. Ratings                                                                      12


          5. M&As                                                                         13

          6. Global                                                                  14-17

              •     Global Economy                                                   14-15
              •     Global Business                                                  16-17




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                                                         ECONOMY
ADB up developing Asia growth forecast to 8.2%
According to the Asian Development Bank (ADB), Asia's developing economies are likely to grow at a faster
pace than previously thought. The ADB cited the region's strong export-based recovery, robust private
demand, and the sustained effects of stimulus policies for its upward revision. The 45 economies of
developing Asia – spanning countries from the Pacific to Central Asia – are now forecast to expand an
impressive 8.2%, well above the 5.4% growth recorded in 2009 and also above the ADB's earlier forecast of
7.5% in April. The ADB has maintained its forecast for China to grow 9.6% this year and 9.1% in the next.
The growth projection for India was raised to 8.5% this fiscal year from 8.2% in April. Growth is expected to
pick up further to 8.7% in 2011. In its Asian Development Outlook report, the development bank said
despite Asia's strong rebound, inflationary pressures remain “manageable.” The ADB forecast inflation to be
generally within the central banks' comfort zones, at 4.1% for 2010 and 3.9% for 2011. One big risk facing
developing Asia is the prospect of a double-dip in advanced economies, although it said the likelihood of
industrialized countries falling back into a recession is small, ADB added. The Manila-based lender expects
growth in developing Asia to slow to 7.3% in 2011 due to the lingering risk of a double-dip in the advanced
economies.
Exports up 22.5% to $16.64 bn in Aug; trade deficit rises to $56.62 bn in Apr-Aug’10 period
India’s exports valued at US$16.64 bn (Rs. 775.09 bn) in Aug’10, as against US$13.58 bn (Rs. 656.7 bn) in
Aug’09, registering a 22.5% YoY rise in Dollar terms and 18% YoY rise in Rupee terms. India’s imports
valued at US$29.67 bn (Rs. 1,382.11 bn) in Aug’10, as against imports worth US$22.44 bn (Rs. 1,085.06
bn) in Aug’09, registering a growth of 32.2% YoY in Dollar terms and 27.4% YoY in Rupee terms. Oil imports
rose 12.4% YoY to at US$7.79 bn in Aug’10, as against oil imports worth US$6.93 bn in Aug’09. Non-oil
imports increased 41.1% YoY to US$21.88 bn in Aug’10, as against US$15.51 bn in Aug’09. The cumulative
value of exports stood at US$85.27 bn (Rs. 3,928.11 bn) in Apr-Aug’10 period, as against US$66.32 bn (Rs.
3,224.24 bn) in Apr-Aug’09 period, registering 28.6% YoY growth in Dollar terms and 21.8% YoY growth in
Rupee terms. The cumulative value of imports recorded at US$141.89 bn (Rs. 6,538.28 bn) in Apr-Aug’10
period, as against US$106.6 bn (Rs. 5,180.24 bn) in Apr-Aug’09 period, registering 33.1% YoY growth in
Dollar terms and 26.2% YoY growth in Rupee terms. The country’s oil imports rose 31.7% YoY to US$40.73
bn in Apr-Aug’10 period, as against oil imports worth US$30.92 bn in Apr-Aug’09 period, while the non-oil
imports increased 33.7% YoY to US$101.15 bn in Apr-Aug’10 period, as against non-oil imports worth
US$75.67 bn in Apr-Aug’09 period. The country’s trade deficit is estimated at US$56.62 bn in Apr-Aug’10
period, as against deficit of US$40.27 bn in Apr-Aug’09.
India's manufacturing sector continues to expand: HSBC-Markit
India's manufacturing sector continued to expand although at a considerably slower pace than in preceding
months, predominantly weighed down by a fall in new orders and output. The HSBC Markit Purchasing
Managers' Index, based on a survey of 500 companies, slid to 55.1 in Sept’10, which marks the lowest
reading since Nov’09, from 57.2 in the Aug’10 survey. Though the key index for manufacturing in Asia's
third largest economy has slipped, this was the 18th consecutive month it has remained above the 50 mark
that divides growth from contraction. While indexes for both new orders and output signaled a sustained
expansion in new business and improvement in economic conditions, they were also amongst the biggest
losers with each falling to below 60 for the first time since late last year. According to the PMI survey, input
cost inflation accelerated to its strongest in four months as raw material prices rose, while output costs,
though on an upward trend, remained tempered due to strong competition for new business. Despite
sustained sharp rises in both new orders and output, the employment index remained muted with the index
reflecting a small contraction for the third successive month.
Food inflation climbs; Fuel inflation dips
The annual inflation in both food and non-food categories increased in the third week of Sept’10, even as
inflation in the Fuel group moderated. The YoY inflation in the food articles group rose to 16.44% in the
week ended September 18, 2010, as against 15.46% in the previous week, and 13.52% in the year-ago
week. The index for food articles group rose by 0.8% to 179.9, as against 178.5 in the preceding week. The
inflation in the primary articles group rose to 18.31% in the reporting week, as against 16.80% in the
previous week and 10.48% in the year-ago week. The index for the primary articles group rose by 1.2% to
180.9, as against 178.70 in the previous week. The annual inflation in the fuel & power group declined to
10.73% in the reporting week, as against 11.48% in the previous week and (-) 7.81% in the year-ago
week. The inflation in the non-food articles group jumped to 20.21% in the week under review, as against
16.09% in the previous week and (-) 0.45% in the year-ago week. The index for non-food articles group
rose by 3.6% to 160 as against 154.4 for the previous week.
   The Union Finance Minister, Pranab Mukherjee has released the first Budget Manual of the Union Government. Releasing the Manual,
   the Finance Minister said that the Union Budget has evolved over the past six decades to reflect the strength of India’s democratic
   processes in shaping its economy, and has emerged as a crucial tool for Public Finance Management.



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                                                           ECONOMY
Current account deficit climbs 3-fold to $13.7 bn in Q1
India' current account deficit, representing net flow of income out of the country barring capital movements,
surged three-fold to $13.7 bn in the April-June quarter over the same period last year. The increase in
current account deficit (CAD) during April-June this fiscal is due to higher imports because of economic
recovery and larger payments overseas for certain services, according to the data on Balance of Payments
(BoP) released by the Reserve Bank of India (RBI). In the corresponding period last year, CAD stood at $4.5
bn. The current account deficit – which includes deficit in external trade of goods, services, besides net
investment income – stood at 2.9% of GDP last fiscal, and experts believe that it will increase a bit to 3% of
GDP this fiscal. However, the net outflow of money on current account was more than offset by inflow on
capital account due to higher external commercial borrowings by India Inc and external assistance. India
received $17.5 bn of foreign capital on net basis against $4.6 bn during the period, despite significant
moderation in inflows by both foreign institutional investors because of the Eurozone crisis and foreign direct
investment. As external commercial borrowings among other overseas debts rose, India's external debt rose
by 4.1% to $273.1 bn from $230 bn. The country received $4.6 bn in its capital markets from FIIs on net
basis against $8.3 bn. Net FDI inflow almost halved to $3.2 bn from $6.1 bn. With the country receiving
more capital inflows than its deficit on current account, there was net accretion of $3.7 bn to foreign
exchange reserves of the country.



   The high powered Cabinet Ministerial Committee has decided to allow cotton exports from India from November 01, 2010.
   India's food price index rose 16.44%, while the fuel price index climbed 10.73% in the week ended September 18, 2010, as against
   15.46% and 11.48%, respectively in the previous week. The primary articles index rose 18.31% in the week under review, as
   against an annual rise of 16.8% in the previous week.
   The Central Government has decided to make available 19.98 lakh tonne of sugar (levy sugar 2.48 lakh tonne and non-levy sugar
   17.50 lakh tonne) for the month of October, 2010
   The coffee exports surged by 52.7% YoY to 2,71,859 tonne in the 2009-10 crop year ended September 30, 2010, as against
   1,78,000 tonne in the previous crop year.
   Goldman Sachs expects India’s economy to expand 8.5% FY11 and inflation to touch 6.5% by March 31, 2011.
   Fiscal deficit fell by around 17% YoY to Rs. 1,514.25 bn during the first five months of FY11. The budget estimated fiscal deficit is at
   Rs. 3,814.08 bn for FY11 and the Apr-Aug’10 figure is 39.7% of the total budget estimate.
   India's fiscal deficit from April to August was Rs. 1.51 lakh crore ($33.65 bn), or 39.7% of the full-year target. Tax receipts were Rs.
   1.39 lakh crore and total expenditure was Rs. 4.48 lakh crore for the first five months of FY11.
   India s polished diamond exports rose 65% to $2.3 bn in Aug’10 according to data published by the Gem Jewellery Export Promotion
   Council (GJEPC). By volume the exports grew 31% to 6 mn carats as the average price on the diamonds increased 26% YoY to
   $383.56 per carat. Polished imports to the country grew 43% to $1.36 bn despite a 20% decline in volumes brought in.




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                                                       INFRASTRUCTURE
Core infrastructure industries grow by 3.7% in August
The index of six core industries – having a combined weight of 26.7% in the Index of Industrial Production (IIP)
with base 1993-94 – stood at 262.9 in Aug’10 and registered a growth of 3.7%, as against 6.4% registered in
Aug’09. The six core industries registered a growth of 4.1% in Apr-Aug’10 period, as against 4.8% growth in Apr-
Aug’09 period. The production of crude oil registered a growth of 15% in Aug’10, as against (-) 2.5% growth in
Aug’09. The crude oil production grew 6.5% in Apr-Aug’10 period, as against 1.6% growth in Apr-Aug’09 period.
The petroleum refinery production registered a growth of (-) 2.3% in Aug’10, as against 3% growth in Aug’09. The
petroleum refinery production grew 5.3% in Apr-Aug’10 period, as against (-) 4.9% in Apr-Aug’09 period. The
production coal grew 1% in Aug’10, as against 13.3% growth in Aug’09. The coal production grew 0.9% in Apr-
Aug’10 period, as against 12.6% growth in Apr-Aug’09 period. Electricity generation registered a growth of 1% in
Aug’10, as against 10.2% growth in Aug’09. The electricity generation grew 4.4% in Apr-Aug’10 period, as against
6.2% growth in Apr-Aug’09 period. The production of cement registered a growth of 1.6% in Aug’10, compared to
17.5% growth in Aug’09. The cement production grew 4.6% in Apr-Aug’10 period, as against 13.4% growth in
Apr-Aug’09 period. The production of finished (carbon) steel registered a growth of 7.7% in Aug’10, as against to
0.3% in Aug’09.
ADB gives India US$250 mn to help boost tourism; another $250 mn for coastal areas protection
The Asian Development Bank (ADB) is extending up to $250 mn to help India develop its tourism sector into a
driver of sustainable and inclusive economic growth. Its Board of Directors has approved a multi-tranche financing
facility for the infrastructure development investment program for tourism, which will upgrade tourist
infrastructure and services, and support policy reforms in the states of Himachal Pradesh, Punjab, Tamil Nadu, and
Uttarakhand. The ADB is helping India protect its coastline affected by severe erosion. Its Board of Directors has
approved a multi-tranche financing facility of up to $250 mn for the Sustainable Coastal Protection and
Management Investment Program which aims to reduce coastal erosion and instability in the western coastal
states of Goa, Karnataka, and Maharashtra. It will focus on solutions that protect the coastal environment, as well
as support private sector and community involvement in the protection and management activities. State agencies
in Goa, Karnataka and Maharashtra will execute project activities which are expected to be completed by Dec’19.
   BPCL is reportedly plans to invest Rs. 500 bn in the next five years for expansion of refinery capacity, overseas acquisitions of oil and gas
   assets and setting up power projects.
   PGCIL has reportedly called for fresh offers from short-listed bidders BHEL-ABB and Siemens for its Rs. 70 bn High Voltage Direct Current
   sub-stations project. Separately, the Company is reportedly planning to float its follow-on public offer (FPO), which aims to raise about Rs. 86
   bn, would hit the market in the second week of Nov’10.
   India and UK have signed a Memorandum of Understanding (MoU) on cooperation in the road transport and highways Sector.
   Reliance Power is reportedly plans to spend about Rs. 90 bn (US$2 bn) to set up 600-MW of solar capacity in Rajasthan and Maharashtra.
   Punj Lloyd has announced that it will form a Joint Venture (JV) with French firm Nuvia for providing engineering and support services to the
   country's emerging nuclear sector. The JV will be incorporated between PL Engineering, a group company of Punj Llyod, and Nuvia India the
   Indian arm of the French company.
   Suzlon Energy is reportedly in talks to acquire remaining 9% stake in German unit REpower Systems.
   NTPC aims to more than double its installed generating capacity to 75,000 MW by Mar’17 from 32,194 MW currently.
   Diamond Power Infrastructure has announced the commencement of trial production at its state-of-the-art transmission tower facility at
   Vadadala in Vadodara district of Gujarat. The plant has been set up at a cost of Rs. 40 crore is capable of manufacturing all types of towers
   with a capacity of 48,000 MTPA.
   The shareholders of Aban Offshore have approved the proposal to raise long-term funds to the tune of Rs. 43 bn from foreign as well as
   domestic markets through Qualified Institutional Placement and issuing foreign currency convertible bonds.
   PL Engineering – a Punj Lloyd Group Company – has entered into a partnering agreement with Nuvia India – part of Nuvia, a French major
   providing engineering and technical support for the nuclear power sector. The partnering agreement will lead to the creation of a new joint
   venture company to deliver quality nuclear engineering and operational support services to the global market. The JV will focus initially on
   providing services to the growing Indian nuclear sector and will later look at the global market.
   Power Grid Corporation of India (PGCIL) is planning to invite bids in the next 3-4 months and after evaluating would be able to lease its
   the telecom towers by the end of FY11. PGCIL would allow telecom companies to use our towers. One tower can be used by two telecom
   companies. About Rs. 3.5-4 bn is the revenue potential from the telecom business in 4-5 years.
   SRF has announced that project for polyester polymerization for a capacity of 61,000 MTPA at packaging film business SEZ (Indore) has been
   commissioned and capitalized.
   IVRCL Assets & Holdings – formerly IVR Prime Urban Developers – has raised Rs. 2.5 bn from IFCI for funding its units' operations.
   L&T Infrastructure Finance has filed the draft prospectus with SEBI for its proposed public issue of infra bonds, through which it expects to
   garner up to Rs. 4.5 bn.
   The ADAG will invest nearly Rs. 1,250 bn and raise funds to the tune of over Rs. 650 bn for expansion and new businesses like banking and
   exchange space over the next few years.
   Reliance Power aims to become the country’s largest private sector power generating company by 2015, said its Chairman Anil Ambani at
   the Company’s AGM. The Company will also have an operational capacity of 5,000-MW by 2012 and will commission another 20,000-MW over
   the next three years.
   KSK Energy Ventures is in the process of setting up 540-MW Wardha Warora power plant, comprising of 4 units of 135-MW each at Warora,
   Maharashtra.
   L&T has bagged orders worth Rs. 23.1 bn, while Sembawang Engineers & Constructors – a subsidiary of Punj Lloyd Group – has secured a
   contract worth Rs. 6.14 bn (S$ 180.6 mn), Ahluwalia Contracts has bagged award of new projects worth Rs. 4.76 bn, Areva T&D India
   has secured a contract worth Rs. 1.5 bn, Tantia Constructions in JV with Senbo has received an order worth Rs. 179.93 crore, GEI
   Industrial Systems has bagged contracts worth Rs. 1.35 bn, Aqua Logistics and its subsidiaries have won multiple orders of Rs. 1.1 bn
   approximately, and Omaxe Infrastructure & Construction – a wholly owned subsidiary of Omaxe – has got its first contract worth Rs. 70.4
   crore.
   Jaihind Projects has secured orders worth Rs. 337 mn, while MIC Electronics has bagged orders worth Rs. 48.9 mn, Western India
   Shipyard has secured a new order worth Rs. 56.3 mn, SPX Heat Transfer – the wholly-owned subsidiary SPX Corporation – has secured a
   contract of approximately US$18 mn, Marsons has bagged order worth US$20 mn, ARSS Infrastructure has received a new work order
   worth Rs. 237.5 mn and Man Infraconstruction has bagged three orders from new clients in Mumbai.



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                                                                IT & ITeS
Wipro, Oracle co-develop solutions on next generation oracle fusion applications
Wipro Technologies – the global consulting, system integration and outsourcing business of Wipro – and Oracle
have announced the launch of joint development initiative on next generation Oracle Fusion Applications. Wipro is
one of the select partners handpicked by Oracle Product Development to be involved in this joint development
program. Wipro has made significant investments around Oracle Fusion Applications which include: embedded
product development and strategy initiatives and in-depth structured product training. The investments go a long
way in extending Wipro’s leadership on the Oracle Applications stack. It uniquely positions Wipro to engage and
deliver successful Oracle Fusion Applications implementations, be it standalone, upgrade, or co-existence with
Oracle Applications Unlimited solutions. This solution will benefit customers on diverse set of applications portfolio,
including Oracle Applications Unlimited products (e.g. Oracle E-Business Suite, Oracle PeopleSoft, and Oracle
CRM), with an automated data migration and synchronization with Oracle Fusion Applications and hence be able to
execute end to end business processes with embedded Industry best practices.
TCS in pact with BA to develop IT solution for aviation; secures twin contracts
Tata Consultancy Services (TCS) has entered into a pact with British Airways (BA) to develop IT software solution
for maintenance, repair and overhaul (MRO) for aviation. The Company along with British Airways will develop IT
software, maintenance, repair and overhaul (MRO), the overhaul, repair, inspection or modification of an aircraft
or aircraft component (Aviation). This partnership brings to the market a tried and tested solution that addresses
key MRO industry requirements, including compliance control, inventory management and maintenance
operations. Separately, the Company has bagged an infrastructure management contract worth AU$$50 mn from
AGL Energy – Australia's leading energy company. The Company has also secured a contract for establishing and
managing State Data Centre (SDC) from Karnataka Government.
HCL Technologies launches AeroPASS solution; HCL Infosystems launches 'Own a PC' program
HCL Technologies, a leading global IT services provider, has announced the launch of AeroPASS, the future-
proofed, flexible and secure biometric solution for expediting passage of pilots and flight attendants through
security checkpoints and into sterile airport areas. AeroPASS is currently available for deployment in US airports.
The unique AeroPASS solution was developed by the global airline IT services company, HCL Technologies,
biometrics specialist Daon Trusted Identity Services, and airline communications experts AvFinity. AeroPASS
complies with rapid-access biometric systems regulations as defined by the Transportation Security Agency.
Separately, HCL Infosystems and ICT System Integration Company have announced an initiative to provide HCL
desktops and laptops at special discounted prices exclusively for the paramilitary forces of India. This is a project
undertaken by HCL Infosystems to salute the hardship and solidarity of the Para Military soldiers.
    Mahindra Satyam has announced audited financial results for the financial year ended March 2009 and March 2010. The Company has
    posted a consolidated net loss of Rs. 1.24 bn in FY10 on consolidated net sales of Rs. 54.81 bn. Its consolidated net loss in FY09 stood at Rs.
    81.77 bn, on consolidated net sales of Rs. 88.13 bn. In FY09, its headcount stood at 45,000, while the same stood at 27,000 in FY10. The
    Company's net worth stood at Rs. 46.3 bn in FY10, while its present net worth stands at Rs. 18 bn. The Company added 44 new clients in
    FY10. It will start the process of merging with Tech Mahindra post November 15, 2010. The merger may take 9-12 months to complete.
    Zicom Electronic Security Systems has announced strategic restructuring in its business model post the Zicom Schneider deal. Zicoms new
    business model is targeted towards moving into high growth telecom infrastructure security having recurring service revenue.
    Subex has been selected by a leading communication service provider in Peru to deploy its industry leading ROC Fraud Management solution.
    The service provider was keen to replace the existing fraud management solution that it had implemented earlier on an ad-hoc basis and the
    company found that Subex's next-generation offering met their requirements.
    Firstobject Technologies has entered into an agreement with Moser Baer India to launch the e-leaning / e-education content of Firstobject
    through content storage devices DVD / USB drives of Moser Baer.
    KPIT Cummins Infosystems has entered into a definitive agreement to acquire US-based CPG Solutions, a provider of premium Oracle
    Consulting services to manufacturing and supply chain companies. The agreement is for a total consideration of Rs. 600 mn which includes a
    guaranteed consideration of Rs. 270 mn and a milestone based consideration of Rs. 330 mn, the payment would be made over a period of 3
    years.
    Allied Digital Services has announced receiving funds from Intel Capital by way of warrants for equity shares. The players expect the
    warrants to take place later this year subsequent to receiving regulatory approvals and satisfaction of other conditions.
    The Board of Directors of Nouveau Multimedia has decided to start business of manufacturing and dealing in the electronic equipment like
    PC (laptop and desktop), computer accessories, mobile phones, etc. and to create a separate division for the same. Its Board has also decided
    to start educational activities, and to expand the business of software and to look for more business projects for the Company in the field of
    software.
    The shareholders of Financial Technologies (India) have approved the proposal to raise Rs. 15 bn by issuing shares in the global market
    and by private placement of shares with buyers.
    MindTree is reportedly looking to launch its 3G smart-phone based on Google's Android platform in the US in the second half of this fiscal
    year, and expects fiscal 2011 revenue to top the industry average.
    Subex has been short-listed for the Best Vendor of the Year category for the Telecoms World Awards – Middle East. The winners will be
    announced at the gala dinner in Dubai on 5th October 2010.
    The Board of Directors of Cranes Software International has approved in principle the potential divestment in the training and related
    business of the Company and authorized the Managing Director to initiate and finalize matters with a prospective buyer for conclusion after
    obtaining approval of stakeholders, lenders and statutory authorities as necessary.
    Firstsource Solutions has bagged a five-year outsourcing contract, worth up to $100 mn from the UK-based banking major Barclay Plc's
    unit Barclayscard. The Company has signed a five-year outsourcing partnership agreement and the deal size is between $80-100 mn. The deal
    involves management of Barclay card's credit card and consumer lending business.
    Facebook has started its operations in India by opening an office in Hyderabad. The office is already humming with an initial landing team
    from its headquarters in Palo Alto, California, and a team of recent hires from India. The office is headed by a dynamic leadership team,
    including Kirthiga Reddy, Director of Online Operations and Head of Office India and Manoj Varghese, Director of User Operations.
    Valuemart Info Technologies has bagged a contract for Legal Document Processing from a leading US law firm. The contract worth
    US$4.1mn (Approx Rs. 190mn) will be for an initial period of 12 months and can be extended.



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                                                PHARMA & HEALTHCARE
Opportunity for cloud solutions in Indian hospitals industry pegged at $600 mn by 2020: Zinnov
Zinnov Management consulting, a leading management consulting firm, has launched its study titled “Cloud
                    Computing: An enabler of IT in Indian Healthcare Sector”, according to which, the total
                    addressable opportunity for cloud solutions in the Indian healthcare industry (hospitals)
is estimated at US$600 mn by 2020. The study highlights that Cloud can potentially address close to 40% of
the total annual healthcare IT spending in India. The study further reveals that the current healthcare
spending stands at US$54 bn and is expected to reach US$164 bn by 2019-20. Also, the estimated annual
IT spending within existing hospitals in India is approximately US$191 mn currently and is expected to reach
a mark of US$1.5 bn by 2020. The study brings to light some intriguing trends that are currently taking
place in the healthcare industry across the three service models of Cloud, i.e. Software-as-a-Service (SaaS),
Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS). According to the findings of the study,
the SaaS aspect of Cloud Computing will create opportunities in software for the sector, while the
opportunity for hardware and services will come from IaaS and PaaS respectively.
Fresenius Kabi to turn India into its research hub
Germany-based drug and nutrition company, Fresenius Kabi AG – which entered the global cancer speciality
market after making three strategic acquisitions including Dabur Pharma in 2008 – plans to turn India into
its hub for cancer drug research. The Company is setting up a facility in Gurgaon to spearhead the effort. It
runs its critical care and nutrition and oncology businesses in India through two separate Pune-based
entities –Fresenius Kabi India and Fresenius Kabi Oncology. The new campus will house an R&D facility,
besides the local administration and marketing offices, and the Indian units of the German firm will shift
from Pune to Gurgaon shortly. Fresenius Kabi Oncology – formerly Dabur Pharma – is one of the leading
companies in cancer research and therapy in India. The Gurgaon research centre – built to European and US
quality standards – will have around 200 scientists, who have come as part of the Dabur deal, with a few
more joining from the parent's facilities.
Sun Pharma gets tentative US FDA nod for generic Rilutek, Crestor tablets
Sun Pharmaceutical Industries has received tentative approval from the US FDA to sell a generic version of
Rilutek tablets in 50 mg strength – used in treating central nervous system diseases – in the US market.
Rilutek tablets – a Sanofi Aventis product – has annual sales of nearly $50 min in the US. Riluzole
Hydrochloride tablets are indicated in the treatment of Amyotrophic Lateral Sclerosis, which is a disease of
the central nervous system that affects a person's ability to move certain muscles. Separately, the Company
has also received a tentative approval from the US FDA to sell a generic version of Crestor tablets – used in
the treatment of various heart diseases, in the US market. Its US subsidiary has bagged a tentative US FDA
approval for its ANDA to market a generic version of IPR Pharmaceutical's Crestor tablets in strengths of 5
mg, 10 mg, 20 mg and 40 mg. Crestor has annual sales of nearly $3.4 bn in the US market. The generic
Rosuvastatin tablets contain Rosuvastatin Calcium in strengths of 5 mg, 10 mg, 20 mg and 40 mg.
   Zydus Nycomed – a 50:50 JV Company of Cadila Healthcare (Zydus Cadila) Zydus Cadila and Nycomed formed in 1998 – has commissioned
   its newly expanded API manufacturing facility in Navi Mumbai. The Company is expected to start commercial production of APIs by Dec’10.
   Socrus Bio Sciences has acquired Anti Obesity Brand "Full Fit". The brand is getting positioned by Socrus Bio to generate sales to the tune of
   Rs. 6 crore in FY11.
   Lupin Holdings BV Netherlands (LHBV) – a wholly owned Dutch subsidiary of Lupin – has acquired a majority stake in the Generic Health
   on account of subscription to the right issue of shares. Accordingly, Generic Health has become a subsidiary of the Company.
   Semler Research Centre (SRC) – a contract research organization – has opened a $10-mn centre for scientific study of drug and their
   evaluation. The Company aims to double its investment in the centre in next three years.
   Socrus Bio Sciences has obtained global marketing rights for anti-histamine formulation under brand name ZCT – a formulation of Cetirizine
   Hydrochloride in tablet form and syrup for easy oral administration.
   Venus Remedies has received a contract for supply of their anti cancer product – Docetaxel – to Thailand by the Government Pharmaceutical
   Organization or GPO under the Ministry of Health, Thailand.
   Lyka Labs has received “Silver Patent Award” by the Department of Pharmaceuticals, Ministry of Chemical & Fertilizers, and Pharmaceutical
   Export Promotion Council for the year 2009-10 in recognition of commendable contribution in Formulation Patents Category.
   Opto Circuits India is reportedly planning to spend Rs. 7.5 bn over three years to set up two factories in India and Malaysia.
   The Board of Directors of Transgene Biotek has decided to raise funds to the extent of Rs. 5 bn either from the global/domestic markets
   through issue of suitable securities.
   Cipla’s Lamivudine (HIV drug) has been added to the World Health Organization’s list of pre-qualified medicines. Lamivudine is the generic
   name for GlaxoSmithKline’s Epivir drug.
   Strides Arcolab has raised Rs. 4.55 bn through issue of shares to the Qualified Institutional Buyers on a private placement basis. The
   Company will be issuing 10.7 mn shares of Rs. 10 each at a price of Rs. 423.55 per share aggregating to Rs. 4.55 bn.
   Nectar Lifesciences has secured the Certificate of Suitability from the European drug regulator for Cefuroxime Axetil.
   The Board of Directors of Transgene Biotek will meet on September 30, to consider the proposal for raising funds through FCCBs / GDRs /
   ADRs / FPO / Preferential Issue / Right Issue of Equity Shares. Its Board will also consider increasing the authorized capital of the Company.
   Ayurvedagram Heritage Wellness Centre – one of the subsidiary companies of Kerala Ayurveda – has won the award of “Integrated Wellness
   Service Provider Company of the year 2010.”
   Dr. Reddy's Labs – previously part of NSE's CNX Nifty Junior Index – has found place in Nifty, the 50-share benchmark index, in place of
   Unitech. REC has found place in CNX Nifty Junior Index in place of Dr. Reddy's Labs.
   Jubilant Life Sciences Holdings – a unit of Jubilant Organosys has made a tender offer for US-based Cadista Holdings. Jubilant Life is
   offering US$0.30 per share for Cadista, and the total price to be paid for all outstanding shares of the firm is approximately US$6.2mn.
   Biocon and Centre of Modular Immunology (CIM) have strengthened their existing research partnership by joining forces for an integrated
   antibody program in immunology.



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                                      BANKING & FINANCIAL SERVICES
SBI revises deposit rates by 25-75 bps, base rate remains
            State Bank of India (SBI) has revised the domestic term deposit rates by 25 to 75 basis points in
            various maturities, effective from October 1, 2010. SBI also has reviewed the base rate to 7.5%
            per annum for the present at existing level. SBI will raise deposit rates by 25 to 75 basis points
            from October 1, 2010, but the Bank has kept minimum rate of interest on loans unchanged at
7.5%. "The bank revises upwards the deposit rates by 25-75 bps in various maturities, effective October 01,
2010. The various deposit rates of SBI are in the range of 4% to 7.75%. The Bank added that it reviewed
the base rate – the minimum lending rate below which bank cannot offer loans – at existing level of 7.5%.
Thus, the base rate will continue to remain at 7.5% per annum for the present. In order to bring in more
transparency, base rate was introduced as a replacement of benchmark prime lending rate (BPLR) from July
01, 2010. Last month, SBI raised its benchmark lending rate by 50 basis points and deposit rates by up to
150 basis points. While the increase in the BPLR to 12.25% made existing home, auto and corporate loans
from the country's biggest lender dearer, the hike in deposit rates ensured better returns for deposit-
holders.
CRISIL assigns “AAA/Stable” rating on Rs. 10 bn bond programme of SIDBI
CRISIL has assigned “AAA/Stable” rating on the Rs. 10 bn bond programme of Small Industries
Development Bank of India (SIDBI), and reaffirmed its rating of “AAA/FAAA/Stable” on SIDBI’s other debt
instruments. The ratings reflect the support that SIDBI receives from the Government of India (GoI)
because of the key public policy role it plays in India’s micro, small and medium enterprises (MSME) sector.
The ratings are supported by SIDBI’s strong capitalization, comfortable resource profile, and healthy
liquidity. The ratings also factor in the bank’s modest core earnings profile, and average asset quality.
CRISIL believes that SIDBI will continue to receive funding and operational support from GoI, and that
SIDBI will maintain its capitalization over the medium term. The outlook may be revised to ‘Negative’ if
there is material reduction in GoI’s support to the bank, or significant deterioration in the bank’s asset
quality, which could adversely affect its earnings and capitalization.
CRISIL upgrades credit rating of M&M Financial
CRISIL has upgraded its credit opinion on the assignment transaction originated by Mahindra & Mahindra
Financial Services (Mahindra Finance) to “AA(so)” equivalent from “AA-(so)” equivalent. The rating action
follows the upgrade in CRISIL’s rating on the long-term debt instruments, bank facilities, and fixed deposit
programme of Mahindra Finance to “AA/FAA+/Positive” from “AA-/FAA/Stable”, as the assignment
transaction is backed by a credit-cum-liquidity enhancement in the form of a corporate guarantee from
Mahindra Finance. The transaction is backed by receivables against loans disbursed for purchase of light
commercial vehicles (46.0%), pick-up vehicles (40.9%), and utility vehicles (13.1%). The pool has exhibited
strong collection performance, as reflected in its cumulative collection ratio of 97.9% at 70.5% amortization
level. Total overdue is around 2.0%, nineteen months after securitization.

   Axis Bank has revised its Base rate to 7.75% with effect from October 1, 2010.
   IDBI Bank has decided to increase the retail term deposit rates by 15-50 bps in different maturity buckets, with effect from October
   1, 2010. With this revision, the highest interest on retail term deposits would be 8%.
   Punjab National Bank (PNB) has decided to raise its Base rate from 8% to 8.50% with effect from October 01, 2010. However,
   the BPLR will remain intact at 11.75%. The rates of interest on domestic term deposit have also been increased by 25 bps 50 bps in
   selected buckets with effect from October 01, 2010. The maximum rate offered by the bank now is 8% for deposits of maturity
   between 8 to 10 years.
   Reliance Capital has acquired 16,08,000 equity shares of Trinethra Infra Ventures, equivalent to 4.98.% of Capital by
   Secondary market purchase.
   L&T Finance Holdings (formerly L&T Capital Holdings) – a 100% subsidiary of Larsen & Toubro Ltd. (L&T) – is set to file a Draft
   Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO) of equity shares for an amount aggregating to Rs. 15
   bn.
   Shriram Transport Finance has found place in CNX Nifty Junior Index in place of Sesa Goa.
   Yes Bank has found place in CNX Nifty Junior Index in place of Tata Teleservices (Maharashtra).
   Kotak Mahindra Bank has revised the base rate upwards from 7.25% per annum to 7.5% per annum. All categories of loans –
   other than the exceptions permitted by RBI – will henceforth be priced with reference to the revised base rate. The Bank has also
   revised its Benchmark Prime Lending Rate upwards by 25 basis points.
   Canara Bank is coming out with an issue of upper Tier-II bonds of Rs. 10 bn for strengthening the capital adequacy and enhancing
   the long term resources of the Bank.
   Canara Bank has raised the full amount of Rs. 10 bn through Upper Tier-II Bonds Issue.
   ICICI Bank has opened its first retail outlet in the banking hub of Singapore's central business district – the branch office is the start
   of ICICI's retail operations in the country under a 25-branch qualified full banking (QFB) licence given by the Monetary Authority of
   Singapore in April. Singapore accounts for $5.8 bn of ICICI Bank's $90 bn annual balance sheet and a significant 25% portion of its
   international business. The Bank would be adding new products to expand its Singapore and regional businesses.




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                                              STEEL, METALS & MINERALS
Tata Steel executes agreements for the refinancing of its debt in Europe
Tata Steel has executed agreements for the refinancing of its European operations. Tata Steel UK Holdings –
a 100% indirect subsidiary of Tata Steel – has signed a senior facility agreement with a syndicate of 13
banks for a £3.53 bn term-loan and revolving credit facility, which is intended to replace in full the current
term loan and revolving credit facilities entered into at the time of the acquisition of Corus Group in 2007.
The new financing structure is in two parts: 5 year loan of around £1.8 bn equivalent and 7-year loan of £1
bn equivalent. The revolving credit facilities for working capital purposes have been increased to £690 mn
and will have a tenor of 5 years. Standard Chartered Bank and SBI India initially led these new financing
arrangements, while 11 more institutions joined the syndicate as book-runners, underwriters & mandated
lead arrangers prior to signing in a reflection of the strong ties between Tata Steel and its core relationship
banks. The new facilities have been designed to achieve certain key financing and business objectives for
the company: the syndicate comprises a smaller, coordinated group of Banks with long term relationships
with Tata Steel; repayment obligations for the next 5 years have been minimized; there is flexibility to incur
higher capital expenditure in Europe and to raise working capital depending on business needs; and the new
financing arrangements carry lighter financial covenant obligations.
   PSL has won contracts worth Rs. 5.65 bn including an order from Indian Oil for supply of pipes to Paradip-Raipur-Ranchi project.
   The JV between SAIL and SCI has made its first move to acquire ships, with SCI issuing three separate international tenders last week.
   The 3-MTPA steel plant proposed to be set up jointly by SAIL and POSCO is likely to be operational in around three years. The JV agreement
   between SAIL and POSCO for the project, which would come up at Bokaro (Jharkhand), is likely to be finalized within a couple of months.
   JSW Steel is reportedly backing out of negotiations to buy out Brahmani Steel, promoted by the controversial Reddy brothers of Karnataka,
   due to concerns over valid mining permits and a hostile state government.
   Tata Steel is reportedly planning to finalize plans to refinance US$5.4 bn loans for its British unit Corus this week.
   Sesa Goa – previously a part of NSE's CNX Nifty Junior Index – has found place in Nifty, the 50-share benchmark index, in place of ABB.
   Uni Abex Alloy Products has entered into an agreement with its French JV partner i.e. Manoir Industries to disinvest its holding of 9,67,800
   equity shares in Manoir Petro India in favour of Manoir Industries for consideration of the equivalent in Indian rupees of €1,70,600.
   Hindustan Copper has secured Prospecting Lease (PL) for Baniwali Ki-Dhani from the Government of Rajasthan.
   Essar Steel has reportedly joined the race to bid for a US unit of Severstal, and as per media reports it is keen only on the Sparrows Point
   unit.
   SAIL said that the agreement for a JV with POSCO to set up a plant of Rs. 150 bn will be ready within two months.
   Hindustan Copper has filed a prospectus with the SEBI to sell 183.9 mn shares.

                                                                TELECOM
Huawei mulls setting up $500 mn facility near Chennai
Chinese telecom equipment maker Huawei is reportedly planning to set up a $500 mn manufacturing facility
near Chennai. The Company assured in this regard to a delegation of Tamil Nadu officials, led by Deputy
Chief Minister MK Stalin, visiting China. Huawei officials met the delegation and after this meeting, Huawei
confirmed that it proposes to invest about $500 mn for establishing a state-of-the-art telecom equipment
manufacturing facility near Chennai. The delegation assured the Chinese firm of the support and cooperation
of the state government. During the visit, Stalin also launched the first piece of equipment manufactured in
the Chinese facility of Coimbatore-based Lakshmi Machine Works at its Chinese subsidiary, LMW (Suzhou)
China, in the Wujian Economic Development Zone near Shanghai.
   Tata Communications has tied up witha Kuwait-based telecommunications and internet services company, FASTtelco to launch first public
   Cisco telepresence service in West Asia. The public telepresence will be hosted by Sheraton Kuwait, a luxury collection hotel, and will provide
   a virtual conference facility to supplement traditional business travel.
   ZTYE has entered into an agreement with Opera Software, as per which ZTE will offer some handsets preloaded with OPera Mini browser. As
   per the agreement, ZTE will preinstall Opera Mini in various handsets that will be distributed globally.
   The MobileStore is reportedly planning to add 700 outlets within the next six months adding to its current figure of 1,200 outlets. The
   Company has started the process of adding 200 stores and has around 100 stores in the pipeline. It plans to adopt franchise model in Tier-II
   and Tier-III cities and towns. The Company is also planning to follow inorganic growth by way of acquisitions in the sector.
   Aircel is reportedly planning to launch its 3G services in the first quarter of next year and will invest $500 mn for the same in the first year of
   launch of the services. The Company will invest $500 mn in the first year of launch of 3G services. For the entire 2G and 3G it will invest a
   little over $1 bn. The Company expects to finalize the equipment manufacturer by next week.
   Etisalat is reportedly in talks with Reliance Communications for a possible strategic tie-up.
   Emirates Telecommunications Corporation (Etisalat) has reportedly offered to buy 46% of Kuwait's Zain. The deal would be worth
   US$11.8 bn.
   One97 Communications announced a new tie-up with digital ad-space network player, Networkplay providing exclusive rights to the latter
   to sell in its own brand name advertising rights for all operator Ad platforms such as Precall, Incomplete Call Announcement, Post Call
   Notification, IVR, SMS, WAP etc and the Enterprise service offerings like IVR, OBD, SMS, WAP, On Device Clients, in India.
   Tata Teleservices (Maharashtra) has been excluded from the Nifty Junior Index.
   Motorola has launched two dual-sim handsets in the price range of Rs. 5,000 to Rs. 6,000. The Motorola EX115 is a new, dual-SIM QWERTY
   keypad phone and the Motorola EX128 is priced at Rs. 5,990 (MRP Rs. 6,990) and the Motorola EX115 is available at Rs. 4,990 (MRP Rs.
   5,990).
   Reliance Globalcom has bagged contracts worth $100 mn (about Rs. 4.49 bn) between late April and early July.
   Zen Mobile is reportedly planning to launch range of 3G mobile handsets in the price range of Rs. 3,500 to Rs. 5,000. The Company is also
   targeting a three fold rise in market share by end of FY11.
   Fitch Ratings has said the new Rs. 13 bn term-loan of telecom operator Sistema Shyam Teleservices (SSTL), which operates in
   12 circles in India, has high credibility on repayment of debt to lenders. Fitch assigned the loan, secured from a consortium led by
   SBI, “A-” rating, which denotes that risk of default by the company is low.



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                                           AUTO & AUTO ANCILLARIES
Mercedes Benz to set up new unit at Pune by next year
Mercedes Benz India – a part of the Daimler Group – said it will start bus body building by the second half of
next year for which it will set up a new unit at its Pune plant. The Company is building a bus chassis at its
Pune plant. Now, it is setting up a bus body-building unit at the facility, which is expected to be operational
by the second half of next year. The bus body building unit, the foundation stone for which was laid, will
have a capacity of 700 to 900 units per annum. Initially, the Company will be making bodies for low floor
city buses and in future, it may look at other categories. Going forward, the Pune plant will focus on buses
as and when the production of Actros shifts to Chennai. Since Jul’10, Daimler India Commercial Vehicles
(DICV) – which is investing Rs. 44 bn to set up a truck manufacturing plant in Chennai – has taken over the
post production business for Actros.
Mahindra “Stallio” & “Mojo” bikes make their debut in Mumbai
               India’s bikers can look forward to all this and much more as Mahindra 2 Wheelers’ Stallio and
               Mojo motorcycles made their debut in Mumbai. Both bikes incorporate world class R&D and
               design elements from Bologna, Italy-based design house, engines engineering and are best
               suited for Indian biking conditions. The Stallio offers a host of features unheard of in its
segment and is ideal for the avant-garde young executive or businessman who desires a rugged and reliable
yet stylish bike. The Mojo is a performance-oriented, power-packed bike and is the ultimate machine for
motorcycle enthusiasts who are passionate about biking. The Stallio was unveiled by actor, producer and
director, Aamir Khan – the brand ambassador for the brand. The Mahindra Stallio is available in two variants
– Self Start / Cast Alloy wheels / Digital Console and Kick Start / spoke wheels which are available at Rs.
44,699 and Rs. 41,199 (ex showroom Pune), respectively, while the Mahindra Mojo is priced at Rs. 1.75 lakh
(ex showroom Pune).
   Bajaj Auto – previously a part of NSE's CNX Nifty Junior Index – has found place in Nifty, the 50-share benchmark index, in place of
   Idea Cellular. Grasim Industries has found place in CNX Nifty Junior Index in place of Bajaj Auto.
   Apollo Tyres is reportedly planning to pump in another Rs. 30 bn in three years for acquisitions and Greenfield manufacturing
   facilities in East Europe and Asia to meet the growing demand.
   M&M said that it will raise prices of all its products by up to Rs. 8,000 with effect from October 1, 2010 due to higher raw material
   costs and implementation of new emission norms.
   Sundaram Clayton is reportedly planning to invest around Rs. 1 bn in several projects including a Greenfield facility at Oragadam
   with an outlay of Rs. 40 crore. The investment would be spread over for the next two years.
   The equity shareholders of Mahindra & Mahindra (M&M) shall meet on October 29, 2010 – as per the direction of the Bombay
   High Court – to consider the arrangement embodied in the Scheme of Arrangement between Mahindra Shubhlabh Services and M&M
   and their respective shareholders.
   Tata Motors has announced an increase in the prices of some passenger vehicles and all its commercial vehicles with effect from
   October 1, 2010. The price increase in passenger cars is on the Tata Indica and the Tata Indigo family, in the range of Rs. 4,500 to
   Rs. 14,000, depending upon the model. In utility vehicles, the price increase is on Tata Sumo and Tata Grande MK-II, in the range of
   Rs. 7,800 to Rs. 10,300. The price increase in CVs is in the range of Rs. 5,000 to Rs. 40,000.
   Maruti Suzuki India is reportedly planning to ramp up production by about 10% to nearly 1.1 lakh units every month from Oct’10,
   taking its annual output to 13 lakh units in FY12.
   Hindustan Motors is reportedly planning to double its capacity at its Tiruvallur facility to 24,000 units to support its new launches.
   The Company also plans to launch a premium sedan – Lancer Evolution X. It is also in talks with other car companies for contract
   manufacturing, to roll out their models at its plant.
   Tata Motors has announced that “Tata Aria” – the first Indian crossover – will be commercially launched on October 11, 2010. It
   will be made available across all major cities and towns of the country.
   Audi has launched a petrol variant of its sports utility vehicle Q7 in India, priced at Rs. 59.29 lakh (ex-showroom, Delhi). The
   deliveries of this new 3.0 litre variant of the SUV will start in Jan’11.
                                             SEPTEMBER SALES PERFORMANCE
   Mahindra & Mahindra (M&M) has announced that its sales rose 24% YoY to 35,177 vehicles in Sept’10.
   Tata Motors has sold 64,668 vehicles (including exports) in Sept’10, as against 52,513 vehicles sold in Sept’09. The domestic sales
   of Tata commercial and passenger vehicles stood at 59,611 units in Sept’10, as against 49,650 units in Sept’09.
   M&M’s Farm Equipment Sector (FES) has sold 17,481 tractors (domestic + exports) in Sept’10, as against 16,986 units in
   Sept’09. Its exports stood at 1,181 units in Sept’10, as against 627 units in Sept’09, while its domestic sales stood at 16,300 units in
   Sept’10, as against 16,359 units in Sept’09.
   Hyundai Motor India has sold 51,441 units in Sept’10, as against 53,802 units in Sept’09. Its domestic sales stood at 31,751 units
   in Sept’10, as against 27,803 units in Sept’09, while its exports dipped by 24.3% YoY to 19,690 units in Sept’10, as against 25,999
   units in Sept’09.
   General Motors India has sold 8,617 units in Sept’10, as against 7,654 units in Sept’09. The Sept’10 sales comprise of: 2,753
   units of Chevrolet Beat, 2,24 units of the Chevrolet Spark, 1,578 units of the Chevrolet Tavera, 847 units of the Chevrolet Cruze,
   325 Units of Chevrolet Aveo, 287 units of Chevrolet Aveo U-VA, 236 units of Chevrolet Optra and 167 units of the Chevrolet Captiva.
   TVS Motor has sold 188,005 units in Sept’10, as against 143,753 units in Sept’09. Its domestic sales grew 25% to 165,418 units in
   Sept’10.
   Suzuki Motorcycle India has sold to 22,534 units in Sept’10, as against 15,542 units in Sept’09.
   Maruti Suzuki India has sold 1,08,006 units in Sept’10, as against 83,306 units in Sept’09, translating into a 29.65% YoY increase.
   The Company has posted its best-ever sales of 95,148 units in the domestic market in Sept’10, as against 71,594 units in Sept’09.
   Its exports rose to 12,858 units in Sept’10, as against 11,712 units in Sept’09. Its total passenger car sales rose by 32.95% to
   94,882 in Sept’10, as against 71,368 units in Sept’09. Its sales stood at 5,96,978 units in H1FY11, as against 4,72,917 units in
   H1FY10.


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                                                            MISCELLANEOUS
BSE introduces Smart Order Routing for members
After receiving necessary approvals and guidelines from Securities & Exchange Board of India (SEBI), the Bombay
Stock Exchange has introduced Smart Order Routing (SOR) for its members. As per the SEBI circular, SOR allows
brokers' trading engines to systematically choose the execution destination based on the factors like price, cost,
speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of
the order. SOR is well-established in all developed markets with multiple exchanges. The introduction of SOR in
India by SEBI is an important step in the evolution of our market infrastructure, and should result in a significant
improvement in the liquidity, integrity and overall quality of our markets. BSE is excited with this development and
will be working closely with firms and their clients to facilitate its roll-out. Some key attributes for SOR include,
best price, lowest cost, probability of execution.
Lenovo India embarks on retail expansion across the country
Lenovo India has embarked on a retail expansion across the country to tap into India’s key Tier-III, Tier-IV and
Tier-V cities/towns and plans to connect deeper with its customers. To kick start this nationwide expansion,
Lenovo inaugurated its first set of LES ‘Lite’ stores in the city to increase penetration in Bihar’s PC market. LES Lite
is a smaller version of Lenovo Exclusive stores (LES), typically around 150-250 square feet in size and will enable
the company to penetrate deeper into Tier-III, Tier-IV and Tier-V markets. LES Lite stores will showcase the entire
range of Lenovo’s consumer products - namely Notebooks, Netbooks, Desktops and All-in-Ones, to address the
growing computing needs of consumers in the state. New consumer products available in the store include the
Lenovo IdeaPad Z series Notebooks - which offer super entertainment features at an affordable price; Lenovo
IdeaPad Y460 and Y560 - which are the premium multimedia Notebooks; the value for money G series Notebooks;
the stunningly beautiful all-in-one Lenovo IdeaCenter A300 and the All in One Lenovo IdeaCentre B300, which is a
nice blend of performance, style and features.
    Whirlpool of India – a subsidiary of Whirlpool Corporation – has launched a whole new range of innovative products across categories and a special
    consumer promotion that includes exciting gifts on every purchase.
    Oberoi Hotels & Resorts has entered into a long term strategic partnership with Lufthansa as its endeavour to offer guests additional benefits and
    enhanced value.
    The Singapore Mercantile Exchange (SMX) is planning to launch iron ore futures contracts in 2011 hoping to tap a growing market seeking more
    transparent pricing of the raw material.
    Singapore Mercantile Exchange (SMX) has signed a Memorandum of Understanding (MoU) with leading international physical Black Pepper trader and
    Vietnam s largest Black Pepper exporter Phuc Sinh Corporation in an exclusive partnership to explore advancement strategies for the global Black Pepper
    trading markets.
    The Board of Directors of Mercator Lines has approved the proposal to raise funds by issuing over 27.7 mn convertible warrants to promoters and non-
    promoters on preferential basis.
    Forward Markets Commission (FMC) has reportedly lifted the Futures ban on Sugar on the grounds of reduced prices of the sweetener from its peak
    levels of Jan’10 and better crop outlook. The commodity market regulator in the country lifted the ban and said that as the prices of the sweetener have
    dropped by 40% since January and also bumper output is expected in the year 2010-11.
    Commodity markets regulator, Forward Markets Commission (FMC) has given approval to the Anil Ambani Group to acquire 26% stake in Indian
    Commodity Exchange (ICEX) from one of its promoters i.e. Indiabulls group. Presently, Indiabulls holds 40% in ICEX, of which it wants to sell 26% stake
    in the bourse to ADAG. MMTC has 26% stake in ICEX, which is the country's fourth national commodity exchange launched late last year.
    Nelcast has entered into an agreement to sell its investment held in Nelcast Energy Corporation. The transaction and other formalities are expected to
    be completed by end of third quarter.
    Shipping Corporation of India has given physical delivery of one crude oil carrier “Colonel Ardeshir Burzorji Tarapore, PVC” to its buyer.
    Hindustan Unilever has reportedly forayed into the retail cafes segment to promote its beverages and food brands.
    Vascon Engineers has signed an agreement to develop a 105 acre township with Bhalakh Realtors Private Limited located at Oragadam, a rapidly
    developing suburb of Chennai.
    Abu Dhabi-based Etihad Airways is reportedly planning to will launch flights to Bangalore – its eighth Indian destination and world' 66th. On January 1,
    2011, the Airline will commence a four flight per week service to Bangalore and daily flights at the commencement of the summer scheduling season
    effective March 27, 2011.
    DQ Entertainment (International) has signed licensing and merchandising agreements for 'The Jungle Book' in Israel.
    Kilpest India has entered into MoU with Spain-based BioTools B&M Labs SA for establishing a Joint Venture Company in India.
    The Board of Directors of Shree Om Trades has approved the acquisition of the 100% equity shares of Indo Education to make it a WOS of the
    Company. Indo Education is a service Company for providing higher education in tie-up with the International Universities.
    The Board of Directors of Nimbus Foods Industries has decided to establish new manufacturing facilities at Jodhpur (Rajasthan), Pune and Nagpur
    (Maharashtra) and New Delhi. Its Board has also decided to establish 30 most modern bakery outlets, acquire stake in the already established units, and
    develop own and long-term leased agriculture farms with latest horticulture techniques. The total cost outlay envisaged for the above expansion project
    is about Rs. 50 crore, which will be financed by tie-up of term loan and Right Issue at appropriate time.
    MSTC has entered into tie ups with several public sector organizations for rendering a variety of services. Thus for NTPC, it will augment the disposal of
    scrap for recycling, for West Bengal Power Development Corporation and other power utilities, it will ensure supply of coal, for MOIL it will auction
    manganese ore and for OMDC, iron ore, limestone and dolomite. For a private tea company, MSTC will also auction tea in Coonoor.
    Aditya Birla PE (4%), Milestone Religare (5%) and Bajaj Finserv (4%) have together picked up a stake of about 13% in Credit Analysis & Research
    (CARE).
    The Board of Directors of Abhishek Industries has approved capital outlay of Rs. 11.7 bn to set up 275,904 spindles and 2,040 rotors. Its Board has
    also approved investing Rs. 55 crore for expanding its terry towel division.
    Nikhil Adhesives has received a plot of land admeasuring about five acres at Dahej-2 Industrial Estate by Gujarat Industrial Development Corporation
    (GIDC) for setting up a new plant. The company proposes to set up its third plant for manufacturing polymeric emulsions, solvent-based adhesives, and
    plasticizers with an installed capacity of 40,000 MTPA.
    Gateway Distriparks (Kerala) – a 60% subsidiary of Gateway Distriparks – has been won a tender floated by Cochin Port Trust for a 2.58 hectare plot
    in Vallarpadam on a 30 year lease.
    Shipping Corporation of India (SCI) has signed the shipbuilding contract with Jiangsu Eastern Heavy Industries for acquisition of 4 units of
    Kamsarmax Bulk Carriers of about 80,000 DWT each.
    Parsvnath Developers is reportedly planning to raise funds through private placement of shares. The Company has fixed the floor price for QIP at Rs.
    141.57 a share, which is lower than the yesterday's closing price of Rs. 147.90 on the BSE. However, the Company did not disclose the amount it plans
    to raise through QIP.
    Kingfisher Airlines is reportedly planning to launch $250-mn GDR issue shortly, and is also in the process of restructuring of its debt with a consortium
    of bankers.
    Arvind is reportedly expanding its denim manufacturing capacity to 140 mn meters by setting up 30 mn meters of denim manufacturing plant in
    Bangladesh with total investment of US$60 mn. For this purpose, Arvind is entering into a JV with Nitol group of Bangladesh.




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                                                         RATINGS
Fitch assigns “A-” rating on Rs. 130 bn term loan of Sistema Shyam Teleservices
Fitch Ratings has said the new Rs. 13 bn term-loan of telecom operator Sistema Shyam Teleservices (SSTL),
which operates in 12 circles in India, has high credibility on repayment of debt to lenders. Fitch assigned the
loan, secured from a consortium led by SBI, “A-” rating, which denotes that risk of default by the company
is low. The rating agency also said this rating on the debt has a stable outlook. SSTL is a joint-venture
between Russia's Sistema and India's Shyam Group and provides mobile services under the brand name of
MTS. The rating is based solely on the unconditional and irrevocable corporate guarantee from SSTL's
parent, Sistema. The telecom operator has 12 operational circles and expects to start services across the
remaining circles by next year. It plans to launch services in UP (east), UP (west) and Gujarat by the end of
this calendar year. SSTL has license and the required spectrum to roll out services in 22 telecom circles in
the country, and is in the process of commencing its pan-India telecom services network. Sistema has a
73.71% stake in the joint venture, while Shyam Group holds 23.79% in the company and the remaining
2.5% is held by the public. Fitch said it has taken into account weak stand-alone credit profile of SSTL ended
last fiscal with a net loss of Rs. 14.6 bn.
Fitch assigns “A-” rating on Rs. 130 bn term loan of Sistema Shyam Teleservices
Fitch Ratings has said the new Rs. 13 bn term-loan of telecom operator Sistema Shyam Teleservices (SSTL),
which operates in 12 circles in India, has high credibility on repayment of debt to lenders. Fitch assigned the
loan, secured from a consortium led by SBI, “A-” rating, which denotes that risk of default by the company
is low. The rating agency also said this rating on the debt has a stable outlook. SSTL is a joint-venture
between Russia's Sistema and India's Shyam Group and provides mobile services under the brand name of
MTS. The rating is based solely on the unconditional and irrevocable corporate guarantee from SSTL's
parent, Sistema. The telecom operator has 12 operational circles and expects to start services across the
remaining circles by next year. It plans to launch services in UP (east), UP (west) and Gujarat by the end of
this calendar year. SSTL has license and the required spectrum to roll out services in 22 telecom circles in
the country, and is in the process of commencing its pan-India telecom services network. Sistema has a
73.71% stake in the joint venture, while Shyam Group holds 23.79% in the company and the remaining
2.5% is held by the public. Fitch said it has taken into account weak stand-alone credit profile of SSTL ended
last fiscal with a net loss of Rs. 14.6 bn.
CRISIL revises rating outlook on Ahmedabad Packaging Industries to “Positive”
CRISIL has revised its rating outlook on Ahmedabad Packaging Industries’ long-term bank facilities to
“Positive” from “Stable”, while reaffirming the rating at “BB”; the rating on the short-term facility has been
reaffirmed at “P4+”. The outlook revision reflects the expected improvement in Ahmedabad Packaging’s
operating margin over the medium term because of the company’s ongoing manufacturing upgrade
programme and also the consequent expected improvement in the company’s debt protection metrics. The
ratings continue to reflect Ahmedabad Packaging’s moderate financial risk profile marked by small net
worth, and exposure to intense competition in the highly fragmented high-density polyethylene (HDPE) and
polypropylene (PP) fabrics industry. These rating weaknesses are partially offset by Ahmedabad Packaging’s
established regional market position and diversified product portfolio.

   CRISIL has upgraded its credit opinion on the assignment transaction originated by Mahindra & Mahindra Financial Services
   (Mahindra Finance) to “AA(so)” equivalent from “AA-(so)” equivalent. The rating action follows the upgrade in CRISIL’s rating on
   the long-term debt instruments, bank facilities, and fixed deposit programme of Mahindra Finance to “AA/FAA+/Positive” from “AA-
   /FAA/Stable”, as the assignment transaction is backed by a credit-cum-liquidity enhancement in the form of a corporate guarantee
   from Mahindra Finance.




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                                                                 M&As
Unilever to buy Alberto-Culver for $3.7 bn cash
        Anglo-Dutch consumer products maker, Unilever has entered into a definitive deal to acquire Illinois,
        US-based Alberto-Culver for US$3.7 bn in cash. Unilever expects the acquisition to be accretive to
        earnings per share in the first full year, excluding restructuring costs, and to deliver significant
synergies. Alberto-Culver – founded by Leonard Lavin in 1955 – went public in 1961 and has been listed on
the New York Stock Exchange since 1965. In Oct’10, Alberto-Culver acquired he worldwide rights and
trademarks of the Noxzema skin care brand from Procter & Gamble, which includes the existing business in
the US, Canada and parts of Latin America. Alberto-Culver employs around 2,700 people and has operations
in nine countries, including the US, Canada, Argentina, Mexico, the UK, South Africa and Australasia.
KPIT Cummins acquires CPG Solutions
KPIT Cummins Infosystems has entered into a definitive agreement to acquire US-based CPG Solutions, a
provider of premium Oracle Consulting services to manufacturing and supply chain companies. The
agreement is for a total consideration of Rs600mn which includes a guaranteed consideration of Rs. 270 mn
and a milestone based consideration of Rs. 330 mn, the payment would be made over a period of 3 years.
KPIT Cummins is highly focused on the Manufacturing and Energy & Utilities industries, which account for
85% of the Company’s revenues. Rendering a full range of services to these industries is our primary
strategic rationale. CPG Solutions, an Oracle Gold Partner, is a focused player in solutions for the companies
in Manufacturing, Supply Chain and Engineering space with over a decade of specialized consulting
experience in this focused area.
Endo Pharma to buy generics maker Qualitest for $1.2 bn cash
                 Chadds Ford, Pennsylvania-based, Endo Pharmaceuticals Holdings has entered into a
                 definitive deal to acquire privately-held generics company Qualitest Pharmaceuticals for
                 about $1.2 bn in cash. Endo expects the transaction to be immediately accretive to adjusted
earnings per share in the first full year after the deal closure. Endo also backed its adjusted earnings and
revenue outlook for fiscal 2010. Qualitest is the sixth largest company in the US generics sector based on
prescriptions filled. Qualitest's generic drugs encompass 175 product families and 32 of its products are
listed among the top 250 generics by total prescription (TRx) volume. Endo is acquiring Qualitest from funds
advised by Apax Partners, one of the world's leading private equity investment groups. Endo plans to
finance the purchase using $500 mn in cash from its balance sheet, an existing revolving credit facility of
$300 mn and securing financing for up to $400 mn.

   Globsyn Infotech (GIL) has announced that a Scheme of Arrangement was made between Globsyn Technologies (GTL) and Globsyn
   Infotech. Pursuant to the scheme, the corporate training division of GTL has been demerged into GIL with effect from April 01, 2008.
   AOL has agreed to acquire TechCrunch, the company that owns and operates TechCrunch and its network of websites dedicated to technology
   news, information and analysis.
   AECOM Technology Corporation has agreed to acquire Montreal, Canada-based international engineering firm RSW.
   HgCapital – the private equity investment arm HgCapital Trust – is selling 63.5% of its stake in Norway-based software services provider
   Visma Holding to buyout firm Kohlberg Kravis Roberts & Company for an enterprise value of £1.2 bn or about $1.9 bn.
   Lupin Holdings BV Netherlands – a wholly owned Dutch subsidiary of Lupin – has acquired a majority stake in the Generic Health on account
   of subscription to the right issue of shares. Accordingly, Generic Health has become a subsidiary of the Company.
   HCC is reportedly planning to acquire the company in overseas as it looks to strengthen capabilities for taking on larger projects. The
   Company is now exploring acquisitions in Europe, West Asia and South East Asia, at an investment of around $100 mn or more.
   The Board of Directors of KDDL has approved the proposal to amalgamate its wholly owned subsidiary company i.e. Himachal Fine Blank
   (HFBL) with the Company.
   Bharati Shipyard is reportedly planning to sell as much as 15% equity to Shipping Corporation of India (SCI) that could fetch Rs. 954 mn.
   United Airlines – a unit of UAL Corporation and Continental Airlines have agreed to merge in an all-stock transaction, which is expected to
   create the world's largest airline measured by traffic. The transaction – which is expected to close by October 1, 2010 – is the first major
   airline merger in the U.S. since Delta Air Lines (DAL) acquired Northwest Airlines in 2008.
   Rajath Finance has agreed to acquire majority stake in Hitraj Developers.
   MasterCard has bought a 12.5% stake in Pune-headquartered electronic payment services provider, ElectraCard Services, for an undisclosed
   consideration. The investment would extend MasterCard's processing footprint and create more value for customers in the Asia-Pacific region,
   the Middle East and Africa.
   AIG has entered into a definitive agreement to sell its Japan-based life insurance subsidiaries – AIG Star Life Insurance & AIG Edison Life
   Insurance – to Prudential Financial for a total purchase price of $4.8 bn, comprising $4.2 bn in cash and $0.6 bn in the assumption of third-
   party debt.
   Steel Dynamics has agreed to acquire from affiliates of Commercial Metals Company (CMC), certain facilities and assets of CMC's former
   steel joist manufacturing operations. These assets will become a part of SDI's wholly owned subsidiary New Millennium Building Systems.
   Wal-Mart Stores has made a preliminary, non-binding proposal which could, if successful, lead to Wal-mart making a cash offer to acquire
   Massmart Holdings for ZAR148 per share.
   TransDigm Group has revealed a definitive agreement to purchase McKechnie Aerospace Holdings – a privately-owned supplier of aerospace
   products, for about $1.27 bn in cash on cash free, debt free basis.
   Southwest Airlines has entered into a definitive agreement to buy AirTran Holdings – the parent of AirTran Airways – in a cash and stock deal
   for $7.69 per share, totaling about $1.37 bn, including AirTran's outstanding convertible notes.
   ADF Foods will enter into an agreement to acquire substantially all of the assets of Elena’s Food Specialties (Elena’s).



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                                                  GLOBAL ECONOMY
International Chamber of Commerce, ADB set up trade finance register
The International Chamber of Commerce (ICC) and the Asian Development Bank (ADB) have created a
database of trade finance transactions that show the low-risk nature of lending and guarantees to support
imports and exports. The ICC-ADB Trade Finance Default Register – the first of its kind – currently contains
data from 5.22 mn trade transactions conducted around the world by nine leading international banks over
the past five years. Reliable and cost-effective finance and guarantees to companies looking to import or
export commodities, consumer goods, and capital equipment are critical to keep trade flowing within and
between countries. World trade is, in turn, key to global economic growth. Banks currently provide the
finance for around 30% of all world trade. The database of $2.5 trillion worth of trade deals showed that
most trade finance transactions were short term in nature, averaging 115 days. The banks participating in
the project reported only 1,140 defaults in the last five years.
Dodd-Frank Act crucial to preventing another financial meltdown: Bernanke
The Dodd-Frank Act is an important step forward for financial regulation in the US, the nation's top central
banker said the lawmakers. Federal Reserve Chairman Ben Bernanke said the central bank is “committed” to
carrying out the reform, saying it addresses significant gaps in regulation and will help prevent another
financial meltdown. “In the years leading up to the recent financial crisis, the global regulatory framework
did not effectively keep pace with the profound changes in the financial system,” Bernanke told the Senate
banking committee. He said the key elements of a global framework on regulation will be finalized by the
end of the year. The plan known as Basel-III will raise capital and liquidity requirement on big banks in
order to reduce the incidence and severity of future financial crises. Bernanke said the Fed is also continuing
its work to strengthen its supervision of the largest, most complex financial firms.
Russia, China sign strategic deals as major oil pipeline set to pump oil
Russia and China have signed several key agreements on the strengthening of partnership with focus on
enhanced cooperation in the energy sector. A joint statement by Medvedev and his Chinese counterpart Hu
Jintao in Beijing on the 65th anniversary of the end of World War II says that “China and Russia agreed to
comprehensively deepen their strategic partnership of coordination.” The countries will maintain
international peace and stability and promote the overall recovery, health and stable development of the
world economy. It has been agreed that 15 mn tonne of oil will flow southward through the oil pipeline
stretching from Skovorodino in eastern Siberia through Mohe on the border to Daqing in north-east China,
making Russia China's third major crude oil supplier after Saudi Arabia and Angola. China is currently
importing Russian oil through rail route. When the pipeline becomes operational next month, approximately
300,000 barrels of oil is expected to flow through it every day. The 4,000-kilometer East Siberia-Pacific
Ocean (VSTO) pipeline is a strategic project that enables Russia to enter new markets in the Asia-Pacific
region. It is designed to pump up to 1.6 mn barrels (220,000 tons) of crude a day from Siberia to Russia's
far east and then on to China and the Asia-Pacific region. The two governments also agreed on cooperation
in the fight against terrorism, separatism and extremism. The two countries – engaged in major joint
military exercises for the last five years – also stepped up bilateral trade that grew to almost $60 bn, 12
times within eight years.
China warns US of damage in bilateral trade relations over fair trade bill
China has warned that the US Congress proposal to impose punitive tariffs on Chinese imports on the
grounds of exchange rate will damage bilateral trade relations. The House of Representatives on Wednesday
approved the controversial Currency Reform for Fair Trade Bill authorizing additional tariffs on imports from
China. The Bill targeting China's policy of refusing to revalue its currency was supported by 348 members in
the House, while 79 voted against. Chinese Foreign Ministry spokeswoman Jiang Yu said it “firmly opposes”
passage of the Bill. She accused the US Government of exploiting the dispute over the Yuan's exchange rate
as a pretext for trade protectionism. Jiang warned that the Bill that allows the US to seek trade sanctions
against its trade partners for allegedly manipulating their currency “seriously damages the trade and
economic relations with the US and will bring serious effects to the development of the world economy.”
   According to the Bank of Finland, the Finnish economy is estimated to grow faster in 2010 than estimated previously, yet pre-
   recession levels of output will not be achieved until the end of the forecast period in 2012. The economy is now projected to grow
   2.6% this year and 3% next year, the Finnish central bank said in its latest economic outlook.
   According to Insee – the French statistical office – the French consumer spending declined more than forecast in Aug’10, after rising
   at the fastest pace in seven years in Jul’10. Spending declined 1.6% MoM in Aug’10 following a 2.7% rise in Jul’10, which is the
   biggest growth since Sept’03, when spending increased 3.3%. On YoY basis, the spending increased 1.2% in Aug’10.
   The Asian Development Bank (ADB) has sold $232.2 mn in Clean Energy Bonds to support its renewable energy and energy
   efficiency projects in Asia and the Pacific.
   The Housing Industry Association - Jeld-Wen New Home Sales Report – a survey of Australia's major residential builders – showed
   that the number of new home sales fell by 2.6% in Aug’10 compared to Jul’10. Sales were down 13% in the three months to Aug’10
   period. Detached house sales fell by 3.4%, while the sales in the multi-unit sector rose 4.3% in Aug’10.
   The International Air Transport Association (IATA), along with three governmental aviation safety organizations, has signed an
   agreement to launch the Global Safety Information Exchange. Creating a comprehensive global information exchange to improve
   safety is the most ambitious private/public safety partnership in aviation history.



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                                                   GLOBAL ECONOMY
Chinese manufacturing picks up in September: Markit
China's manufacturing activity picked up to a five-month high in Sept’10. Markit Economics said the HSBC
manufacturing purchasing managers' index (PMI) was at a seasonally adjusted 52.9, up in Sept’10, as
against 51.9 in Aug’10. Chinese manufacturing output rose in Sep’10 at a pace slightly above the long-run
average. This was mainly due to a rise in the inflow of new orders, which rose for the second month in a
row. New export business received by Chinese manufacturers rose in Sept’10, ending a three-month period
of decline. However, the rate of growth was only marginal. Employment levels in the manufacturing sector
improved for the 16th straight month in Sept’10, although the rate of job creation was only slight.
Meanwhile, output prices charged by manufacturers were raised to protect profit margins. The rate of output
price inflation was sharp, and the fastest in eight months.
Japan remains stuck in deflation; unemployment rate eases in Aug; business sentiment improves
              Nationwide core consumer prices in Japan declined 1% YoY in Aug’10, marking the 18th straight
              month of deflation. Overall nationwide inflation was unchanged at -0.9% YoY, but up 0.3% on
              MoM basis. Among the key components: the prices for education plunged 13% YoY, followed by
              furniture (-4.4%), recreation (-1.5%), clothing (-0.8%) and food (-0.7%), while fuel prices rose
2.8% YoY in Aug’10. Meanwhile, the average household spending in Japan climbed 1.7% YoY in Aug’10,
standing at JP¥293,361, following 1.1% gain in Jul’10. Wage earner household spending jumped 2.7% YoY
to JP¥323,758. Moreover, the unemployment rate in Japan came in at a seasonally adjusted 5.1% in
Aug’10, easing from 5.2% in Jul’10. Separately, sentiment among Japan's big manufacturers improved for a
sixth successive quarter, but they are less sanguine about the prospects of the coming quarter due to a
rising yen and uncertainty over the global economy. The Bank of Japan (BoJ) report showed that the Tankan
sentiment index climbed 7 points to 8 in Sept’10, rising from 1 in the Jun’10 survey.
South Korea trade surplus doubles… mfg falls in Sept, current account surplus falls in Aug
South Korea posted a merchandise trade surplus of $5.01 in Sept’10, following the $2.077 bn surplus in
Aug’10. Imports rose 16.7% YoY to $34.74 bn in Sept’10, as against 29.3% YoY rise in Aug’10. The
country’s exports climbed 17.2% YoY to $39.75 bn in Sept’10, as against 29.6% rise in Aug’10. South
Korea's manufacturing activity fell in Sept’10 for the first time since Feb’09. Markit Economics said the HSBC
manufacturing Purchasing Managers' Index (PMI) came in at a seasonally adjusted 48.8 in Sept’10, as
against 50.9 in Aug’10. South Korean manufacturing output contracted in Sept’10, ending an 18-month
period of growth. Meanwhile, South Korea's overall Consumer Price Index came in higher by 3.6% YoY and
1.1% MoM, while the core CPI was up 1.9% YoY and 0.3% MoM. Meanwhile, according to the Bank of Korea,
South Korea's current account surplus fell to a four-month low in Aug’10 due to lower shipments in the
summer vacation season. The country has now recorded a positive current account balance for seven
straight months. The surplus narrowed to $2.1 bn in Aug’10, as against $5.8 bn in Jul’10, which represents
the smallest surplus recorded since Apr’10.

   The second quarter GDP of the US increased at an annual rate of 1.7% compared to the 1.6% growth estimated last
   month.
   Moody's Investor Service has downgraded Spain's rating to “Aa1” from “Aaa”, citing weak economic prospects, a considerable
   deterioration in government finances and worsening debt affordability.
   The Conference Board said its consumer confidence index fell to 48.5 in Sept’10, as against 53.2 (downwardly revised) in Aug’10.
   Japanese exports rose 15.8% YoY to JP¥5.2 bn (US$62 mn) in Aug’10, which is the slowest growth in exports since Dec’09, while the
   country’s imports rose 17.9% YoY to JPJP¥5.1bn in Aug’10. The country's trade surplus totaled JP¥103.2 bn in Aug’10, as against
   JP¥165.2 bn in Aug’09.
   The consumer price inflation in Germany rose to 1.3% in Sepr’10, as against 1% in Aug’10. On MoM basis, the prices declined 0.1%
   in Sept’10. Annual inflation – as measured by the harmonized index of consumer prices – also increased to 1.3% in Sept’10, as
   against 1% in Aug’10, while on MoM basis, the index dropped 0.2% in Sept’10.
   New Zealand broad money supply declined for the tenth straight month in Aug’10. M3 – the broadest monetary aggregate – fell
   3.3% YoY in Aug’10, following 2.8% drop in July’0. M1 slipped at a faster pace of 3.9% in Aug’10, after recording 1.2% fall in Jul’10.
   The Japanese Government is reportedly considering a supplementary spending bill of up US$55 bn to help pay for fiscal programs to
   offset the stronger yen and help boost the sluggish economy.
   Hong Kong's merchandise exports increased 36% YoY in Aug’10 compared to 23.3% growth in Jul’10. The value of re-exports of
   goods increased 36.3%, while that of domestic exports grew 23.2% in Aug’10.
   Taiwan's manufacturing activity fell for the second straight month in Sept’10, as external demand eased sharply. Markit Economics
   said the HSBC manufacturing purchasing managers' index came in at a seasonally adjusted 49.0 in Sept’10, as against 49.2 in
   Aug’10.
   Manufacturing growth in China picked up in Sept’10, reports said citing a survey by the China Federation of Logistics & Purchasing.
   The official purchasing managers' index (PMI) was at 53.8 in Sept’10, as against 51.7 in Aug’10. This was the 19th successive month
   in which the index was above the no-change level of 50.
   The manufacturing activity in the debt-plagued euro-zone expanded at its slowest pace in eight months in Sept’10, according to the
   final Markit purchasing managers index (PMI) for the month. The PMI fell to an eight-month low of 53.7, as against a provisional
   estimate of 53.6. The PMI stood at 55.1 in Aug’10. The PMI signaled an overall improvement in business conditions for the 12th
   month in a row.



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                                                                                                                                 Info-Spectrum
                                                                                                 Bridging the Information Gap in Corporate Landscape


                                                       GLOBAL BUSINESS
Nestlé to form unit focusing on personalized health science nutrition
           Switzerland-based world's largest food maker, Nestlé SA said it is creating two organizations – Nestlé
           Health Science SA and the Nestlé Institute of Health Sciences – to pioneer a new industry between food
           and pharma. The two organizations would allow the company to develop personalized health science
           nutrition to prevent and treat health conditions such as diabetes, obesity, cardiovascular disease and
           Alzheimer's disease. Nestlé Health Science SA – a WOS of Nestlé SA – will become operational on
January 1, 2011. The new company will be run at arm's length from Nestlé's main food, beverages and nutrition
activities. It will include the existing global Nestlé HealthCare Nutrition business, which had a turnover of CHF 1.6
bn in 2009. Nestlé Health Science SA will also have access to external scientific and technological know-how
through Nestlé's innovation network as well as venture capital funds where the group has interests. The Nestlé
Institute of Health Sciences will be part of Nestlé's global R&D network.
RIM unveils BlackBerry PlayBook Tablet, new Tablet OS
Canadian smart-phone maker, Research In Motion (RIM) has launched BlackBerry PlayBook – its
first tablet computer. The Company is the latest entrant to the tablet computer market and is
expected to pose direct competition to Apple's iPad. The device is expected to be available in retail
outlets in the US early 2011 with roll-outs in other international markets beginning the second quarter of the
calendar year. RIM did not indicate the price of PlayBook and said it would begin working with developers and
select corporate customers next month to begin development and early testing efforts. The BlackBerry PlayBook
will be powered by a 1 GHz dual-core processor and the new BlackBerry Tablet OS which supports true symmetric
multiprocessing, and provides a highly-responsive and fluid touch screen experience for apps and content services.
AIG agrees to repay US taxpayers; to sell Japan-based life insurance arms to Prudential Financial
               American International Group has announced a plan for full repayment to US taxpayers, utilizing
               proceeds from asset dispositions. As per the agreement with the regulators, the insurer would fully
               repay to Federal Reserve Bank of New York and the AIG common stock would be exchanged with US
treasury holdings. US Treasury also agreed to exit ownership stake over a period of time. According to the plan,
the $49.1 bn Troubled Asset Relief Program (TARP) shares would be exchanged with 1.655 bn shares of AIG
common stock. In addition, AIG plans to issue 75 mn warrants at $45 per share to common shareholders. Once
the exchange is completed the Treasury would own 92.1% of the common stock of AIG. The Company also noted
that after the exchange is completed, the US Treasury will sell its stake in AIG on the open market. AIG said the
Federal Reserve Bank of New York’s (FRBNY) $26 bn of preferred interests in AIA and ALICO would be purchased
with a $22 bn draw down of TARP funds. Separately, AIG has entered into a definitive agreement to sell its Japan-
based life insurance subsidiaries – AIG Star Life Insurance & AIG Edison Life Insurance – to Prudential Financial for
a total purchase price of $4.8 bn, comprising $4.2 bn in cash and $0.6 bn in the assumption of third-party debt.
Accenture net income surges 75% YoY to $445.5 mn in Q4
Dublin, Ireland-based technology outsourcing and consulting firm, Accenture has posted
$445.5 mn net income in the fourth quarter, as against $254.7 mn net income in the year-
ago fourth quarter – registering a rise of 74.9% on YoY basis – mainly due to the absence of
restructuring charge that impacted prior year results. Its Q4 operating income grew to $714 mn, as against $420
mn in Q4 last year. Its revenues increased to $5.83 bn in the fourth quarter, as against $5.51 bn in the year-ago
quarter. Its consulting net revenues grew 6% YoY to $3.09 bn, and outsourcing net revenues rose 4% YoY to
$2.33 bn from a year earlier, while its net revenues from health & public service dropped 9% YoY to $856 mn in
the quarter under review. Its net revenues from Americas grew 11% YoY to $2.52 bn, and net revenues from Asia
Pacific rose 13% YoY to $688 mn, while its net revenues from Europe, Middle East and Africa decreased 3% YoY to
$2.21 bn in the quarter under review. For the full fiscal year 2010, the Company has posted to $1.8 bn net
income, as against $1.6 bn net income in the previous year. Its annual revenues declined to $23.09 bn, as against
$23.17 bn in the previous year.
    DBS Group Holdings has officially opened the bank’s brand new purpose-built facility, DBS Asia Hub. The new facility occupies over 340,000
    square feet and is one of the largest banking operations facilities at the Changi Business Park. DBS Asia Hub will house more than 3,000, or
    over 40% of DBS’ Singapore-based staff.
    BP has reportedly agreed to pay a record $15 mn fine to resolve environmental violations at its Texas City refinery. The settlement, subject to
    court approval, addresses violations stemming from two fires that occurred at the refinery in March 2004 and July 2005, and a leak that
    occurred in August 2005.
    Rio Tinto Alcan will move forward with its planned US$347 mn modernization project to increase the annual production capacity of its
    aluminum smelter in Straumsvik, Iceland after finalizing the landmark energy supply agreement reached earlier this year with Landsvirkjun
    the Icelandic power utility.
    Florida-based contract electronics manufacturer, Jabil Circuit has posted $168.8 mn net income in the fiscal year 2010, as against $1.2 bn
    net loss in the previous year. It has posted $58.7 mn net income in the fourth quarter, as against $5.5 mn net income in the year-ago fourth
    quarter, as revenue jumped 38% and margin improved amid stabilization in underlying demand trends.
    New York-based payroll and human resource service provider, Paychex has posted $131.9 mn net income in the first quarter, as against
    $123.6 mn net income in the year-ago quarter. Its total Q1 revenue increased 4% YoY to $518.3 mn, as against $500.2 mn in Q1 last year.
    Minnesota-based enterprise software provider, Lawson Software has posted $9.6 mn GAAP net income in the first quarter, as against $6 mn
    GAAP net income in the year-ago first quarter. Its Q1 non-GAAP net income increased 17% YoY to $18 mn, as against $15.4 mn non-GAAP
    net income in Q1 last year. Its Q1 revenues increased to $174.7 mn, as against $169 mn in Q1 last year.




Weekly Newsletter                                                                                                                                16
                                                                                                                                Info-Spectrum
                                                                                                Bridging the Information Gap in Corporate Landscape


                                                       GLOBAL BUSINESS
Walgreen net income rises to $470 mn in Q4
                      Walgreen Company has posted $470 mn net income in the fourth quarter, as against $436
                      mn net income in the year-ago fourth quarter last year, mainly driven by strong growth in
prescription sales. Its Q4 net sales increased 7.4% YoY to $16.87 bn, as against $15.7 bn in the year-ago Q4. Its
total sales in comparable stores, those open more than a year, rose 1.5%, while front-end comparable drugstore
sales increased 1.2% in the quarter under review. In Q4, its gross profit increased to $4.79 bn, as against $4.35
bn in Q4 last year, and gross margin improved 70 bps to 28.4% in Q4 this year, as against 27.7% in Q4 last year.
For the fiscal year 2010, Walgreen's net income rose to $2.09 bn, as against $2.01 bn in the previous year. Its
annual net sales grew 6.4% to $67.42 bn, as against $63.34 bn in the previous year.
Aegon to close two more UK businesses, cut jobs
Dutch insurance company Aegon NV has decided to close two of its businesses and to cut some senior
management jobs in the UK, to reduce costs by 25% and to improve returns. The Company said it will close its
third party pension administration and its employee benefits software businesses by the end of 2011, as it
considers these businesses as not core to its future proposition, in keeping with its aim to sharpen its focus on the
At-Retirement and Workplace Savings markets. Aegon said it will soon begin formal consultation with Aegis and
Unite, the trade unions that represent its staff in the UK, regarding the impact of planned restructuring measures
on employees. Meanwhile, Aegon has decided to retain the closed book of business of Guardian Financial Services,
which continues to provide a steady cash flow to the company, and its life insurance and protection business,
saying that it supports the company's aim to focus on the At-Retirement market. arlier this month, the company
undertook a number of measures to restructure its UK operations, including the closure of its group risk business,
and the reorganization of UK sales division, which it said will result in 106 job cuts.
    Baosteel Group Corporation has reportedly received CN¥80 bn credit line from Bank of China.
    Siemens AG has announced that Siemens VAI Metals Technologies, the steel plant of Qatar Steel Company in Mesaieed will modernize.
    Northrop Grumman Corporation has won a $2.63 bn task order to install a campus-wide information technology infrastructure at the US
    Department of Homeland Security or DHS headquarters in Washington DC.
    Vivendi has sold an initial chunk of its 20% stake in US media group NBC Universal to General Electric for $2 bn as it shifts its acquisition
    strategy.
    Whirlpool Corporation has lowered its annual earnings forecast after including the $91.8 mn antitrust fine to be remitted by its indirect
    subsidiary Embarco for conspiring to fix prices of compressors.
    ZTE Corp has announced the launch of a new 100G end-to-end carrier network solution. The solutions are named ZXWM M920 and ZXONE
    8000 and are offered as part of the Ultra Wide Band (UWB) 100G carrier network solution.
    Ukrainian miner, Ferrexpo has successfully renewed its debt facilities, securing a larger than expected credit line after the initial loan was
    oversubscribed. The initial plan was to secure a US$300 mn facility, which was subsequently increased to US$350 mn to fund its expansion
    projects.
    SI Metals & Supply Company has reportedly acquired Sheboygan Steel Sales.
    Wolseley has posted £340 mn annual net loss, as against £1.17 bn net loss in the previous year. For the year, its revenue declined 9% YoY
    to £13.20 bn, as against £14.44 bn in the previous year.
    Goldman Sachs sold 3.04 bn ICBC shares at HK$5.74 each. The number of shares sold was expanded from 2.75 bn initially offered.
    Hyundai Group has filed a Letter of Intent to buy a controlling stake in Hyundai Engineering & Construction. Hyundai Group has selected
    M+W Group – a German engineering and project management firm – as its strategic partner.
    CHALCO has signed an agreement with the state-owned Assets Supervision and Administration Commission of Jiangxi province to establish a
    rare earth and rare metals production base in Jiangxi province.
    Tenaris has officially inaugurated its first plant in Saudi Arabia, which will be operated by Tenaris Saudi Arabis.The plant.
    GS Infrastructure Partners – a group of funds managed by Goldman Sachs Group – is reportedly planning to get at least €800 mn of loans
    to buy a majority stake in the gas distribution network of Endesa SA.



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                                                                                                                         Asim Mohapatra
                                                                                                                          Content Editor
                                                                                                              asim.mohapatra@sushilfinance.com
                                                                                                                   Tel: + 91 22 4093 5082




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