IN FOCUS January 08_ 2010 by hedongchenchen

VIEWS: 40 PAGES: 35

									          January 08, 2010
                                                          IN FOCUS
               Weekly Indicators
Indicators             Current         Last Week
                                                          Close scrutiny will show that most "crisis situations" are opportunities to either advance,
                                                          or stay where you are. (Dr. Maxwell Maltz)
Sensex                 17,540            17,465
Nifty                   5,245             5,201           BRIC nations to become attractive market for world investors: Goldman
Forex Reserves     US$283.52 bn      US$283.49 bn         A new decade started in the year 2010 will witness a radical re-distribution of forces
Food Inflation          18.2%            19.83%           in the world economy. The present-day leader, the financial Group 7 made up of the
                                                          leading Western countries will be replaced by the BRIC group (Brazil, Russia, India
                 Exchange Rates                           and China), says Goldman Sachs in a report. Goldman Sachs believes that by 2020,
Currency           Current            Last Week           the BRIC countries will become the most attractive market for world investors.
US$1              Rs. 45.80           Rs. 46.68           According to the calculations made by Goldman Sachs, the BRIC group has reached
€1                Rs. 65.56           Rs. 67.07           the needed pace already for occupying the leading positions in the world economy.
£1               Rs. 73.0670          Rs. 75.0334         Starting from the autumn of 2001, the growth rate of the share market of the four
JP¥ 100           Rs. 49.07           Rs. 50.51           countries, integrated in the BRIC group, was higher than the overall figure for a
            Global Economic News                          group of countries with new markets and developing economies. During the period
     UK is likely to exit recession in Q2: Alistair
                                                          under review, the MSCI BRIC Index grew by 367%, as against the growth of 134%
     Darling                                              registered in the 22 main developing countries, integrated in the MSCI Emerging
     The BoE leaves key interest rate unchanged; to       Markets Index. At the same time, the growth rate of the share market of 23
     continue asset purchase program
     The BoK has decided to keep interest rates on        industrially developed countries of the West, integrated in the MSCI World Index,
     hold at 2%, while Indonesia's central bank has       was only 17%.
     kept key interest rate unchanged at 6.5%
     US factory orders jump 1.1% in Nov’09; pending       India's manufacturing sector records solid growth in December
     home sales plunge by 16%; Construction
     spending falls to $900.1 bn in Nov’09
                                                          Markit Economics reported that the India HSBC Manufacturing Purchasing
     ISM index of activity (US) in mfg sector jumped      Managers' Index stood at a seasonally adjusted 55.6 in Dec’09. A reading above 50
     to 55.9 in Dec’09 from 53.6 in Nov’09                indicates expansion, while one below 50 suggests contraction. Manufacturing output
     German factory orders up 0.2% MoM in Nov’09;
     Exports down 19% YoY to €200.2 bn in Q3              increased for the ninth straight month in Dec’09, mainly to accommodate a faster
     Economic confidence in Eurozone rose to 91.3 in      inflow of new work. Employment levels in the manufacturing sector were broadly
     Dec’09; Services PMI rises to 53.6 in Dec’09
                                                          unchanged in Dec’09, while levels of outstanding business also held steady. Input
     Singapore's GDP has contracted by 6.8% QoQ in
     Q4CY09; residential prices up 7.3% QoQ in Q4         costs faced by Indian manufacturers rose at their fastest pace since September,
     South Korea's trade surplus stood at $3.30 bn in     while firms raised their output charges for the fourth month running, taking
     Dec’09; Finland's trade surplus stood at €1.35 bn
     in Oct’09
                                                          advantage of favorable demand conditions.
     China's tourism industry reaped CH¥1.26 trillion     Auto industry recovers amidst robust sales, slew of new launches?
     revenue in 2009, up 9% YoY
     CBRC has approved the proposal to set up three       In Indian auto industry seems to have beat the slowdown in the recent times
     consumer financing companies in China                amidst rising sales month after month, and a plethora of new launches at the
     China overtook Germany as the world’s top
     exporter last year: GTI                              ongoing 10th Auto Expo in New Delhi. Indian auto majors have recorded an
     PBoC has edged up the interest rate on its three-    impressive growth in sales in the range of 50-164% in Dec’09, while coming up
     month treasury bills
                                                          with and announcing series of launches. It can be noted that total vehicle sales in
     Australian Performance of Manufacturing Index
     stood at a seasonally adjusted 48.5 in Dec’09        the country rose 67.5% to 10,00,500 units in Dec’09, as against a 5,97,241 units in
     Australian services sector growth stalls in Dec;     Dec’08. The sales of in segments like passenger car, bikes, two-wheelers, CVs,,
     housing approvals rise 5.9% in Nov’09
     OECD area CPI rises 1.3% YoY in Nov’09
                                                          Light CVs, Medium & Heavy CVs recorded at 40.27%, 76.7%, 66.6%, 171.6%,
     Japan Nomura Services PMI stood at 42.7 in           123.5%, 248.4%, respectively on YoY basis in Dec’09. Being bullish over the Indian
     Dec’09, up from 42.3 in Nov’09                       auto industry on account of rising sales and demand, the global auto giants
     Canadian industrial prices increased 1% and raw
     materials prices rose 2.2% in Nov’09                 including the luxury car-makers have also shown similar interests starting from
            Global Corporate News                         increased investments for setting up plants and expansion to sourcing the
     GM expects to be profitable this year; to wind
                                                          accessories from India, besides launching several utility, small, sports as well as
     down Saab: CEO                                       luxury cars in the India market. Meanwhile, according to ICRA, with growth at
     Novartis AG is exercising call option to buy 52%     21.2% during the eight months of FY10, supported by fiscal incentives and a revival
     stake in Alcon from Nestlé; Alcon expressed
     disappointment against a coercive takeover bid       in the underlying economy, the long-term demand drivers’ for the segment remain
     Kraft Foods has agreed to sell assets of its North   robust, indicating healthy long-term growth prospects.
     American pizza business to Nestle for $3.7 bn
     Google unveils new android smartphone ‘Nexus         Consumer confidence remains upbeat despite marginal decline: survey
     One’ for $529                                        Consumer confidence has fallen marginally in India (117 index points), but the
     Time Warner Cable & Fox Networks Group have
     signed a comprehensive distribution agreement        country still retains the second spot behind Hong Kong (93), according to a new
     Accenture has posted $444.82 mn profit in Q1, as     Nielsen Global Consumer Confidence survey conducted for Q4CY09. The survey was
     against $479.87 mn profit in Q1 last year
     AT&T is planning to release seven new smart
                                                          conducted during December 4-18 2009 among over 17,500 internet users in 29
     phones                                               markets. The confidence index is measured inversely – the higher the number, the
     Walter Energy has settled a dispute with Turkey-     lower the country’s ranking. Its value varies from 0 to 200. Hong Kong recorded the
     based Erdemir over 2.8 lakh tonne of coking coal
     Apollo Group has posted $240.1 mn profit in Q1,
                                                          highest consumer confidence increase for 2nd consecutive quarter in Q4CY09 – up
     as against $180.4 mn profit in Q1 last year          7 index points from 93 in Q3CY09 to 100 in Q4 CY09. As per the survey, 58% of
     Ford is prepping for few major introductions at      Indian consumers believe the country will be fully out of economic recession in 12
     North American Int’nal Auto Show in Detroit next
     week                                                 months. India remains the most optimistic country over job prospects in 2010. 17%
                                                          of Indians think job prospects in the country will be ‘excellent’ and 66% think it will
                         Asim Mohapatra                   be ‘good’ in 12 months. As per the survey, the Indian consumers are cautious over
                                 Content Editor           their discretionary spending, while becoming more watchful of investing in the stock
        asim.mohapatra@sushilfinance.com                  market.
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          2. Infrastructure                                                                05-07

          3. Sectors                                                                       08-20

                    A. Auto & Auto Ancillaries                                             08-12
                    B. IT & ITeS                                                                 13
                    C. Telecom                                                                   14
                    D. Banking & Financial Services                                              15
                    E. Pharma & Healthcare                                                 16-17
                    F. Steel, Metals & Minerals                                                  18
                    G. Miscellaneous                                                       19-20


          4. Ratings, Buy-backs, Open Offers & Delistings                                  21-23

          5. M&As                                                                                24

          6. Insurance & Mutual Funds                                                      25-26

          7. Ensuing Events                                                                      27

          8. Global                                                                        28-35

              •     Global Economy                                                         28-31
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INDEX




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                                                            ECONOMY
India to hike capex by 14% to reduce carbon intensity: World Bank
According to the World Bank, India will have to increase its capital expenditure by 14% to reduce its carbon
intensity by 30% by 2020. The country will also have to replace 130GW of coal-based power generation with
clean technologies by 2025, the World Bank said. The World Bank had steered clear of indicating the
possible cost of committing to such cuts in earlier drafts of its study. According to the World Bank’s pre-final
synopsis report, replacing 130GW of coal-based and 2GW of gas-based power generation with carbon-
neutral generation capacity will need higher import of hydropower from neighbouring countries and more
nuclear power generation capacity. It adds India’s CO2 emissions will increase from 1.1 bn tonne in 2007 to
4.5 bn tonne in 2031 if it adheres to plans such as the Integrated Energy Policy, but this can be reduced to
3.7 bn tonne in 2031 if the country invests heavily in clean technology, capacity and institutional
development. As per estimates based on the two scenarios, India could reduce its CO2 intensity by 19-30%
by 2020 and 30-45% by 2031, depending on its efforts.
Net direct tax collections up 8.51% YoY in Apr-Dec’09 period
The net direct tax collections stood at Rs. 2,502.32 bn in Apr-Dec’09 period, as against Rs. 2,305.98 bn in
Apr-Dec’08 period, registering a growth of 8.51% on YoY basis. The collection of corporate taxes rose
13.47% to Rs. 1,665.03 bn in Apr-Dec’09 period, as against Rs. 1,467.37 bn in Apr-Dec’08 period. The
collection of Personal Income Tax (including STT, and residual FBT and BCTT) recorded a negative growth of
-0.41% at Rs. 831.78 bn in Apr-Dec’09 period, as against Rs. 835.24 bn in Apr-Dec’08 period. The collection
of Securities Transaction Tax grew 2.33% to Rs. 45.7 bn in Apr-Dec’09 period, as against Rs. 44.66 bn in
Apr-Dec’08 period, while wealth tax grew by 24.39% to Rs. 3.81 bn in Apr-Dec’09 period, as against Rs.
3.06 bn in Apr-Dec’08 period. In Dec’09, net direct tax collections stood at Rs. 664.1 bn, as against Rs.
533.47 bn in Dec’08, registering a growth of 24.5% on YoY basis. The collection of corporate taxes grew
44.03% to Rs. 532.93 bn in Dec’09, as against Rs. 370.02 bn in Dec’08. The collection of Personal Income
Tax recorded a negative growth of -19.75% at Rs. 131.17 bn in Dec’09, as against Rs. 163.45 bn in Dec’08.
Negative growth in PIT was largely on account of higher PIT refunds at Rs. 89.54 bn, as against Rs. 59.79
bn in Dec’09, a growth of 49.76% compared to Dec’08.
India may beat China in economic growth by 2014
India will overtake China in economic growth earlier than expected...perhaps, by 2014, report media,
quoting the Chief Economic advisor to the Finance Ministry, Kaushik Basu. He said that India growing more
than China was visible and not impossible but would take five years. Ruling out need for either monetary-
tightening or hiking of interest rates, he said that the Government is yet to decide on withdrawing fiscal
incentives. He said that the country would grow above 7.5% this fiscal and 9% in the next fiscal. Basu
expressed optimistic that the large young Indian population would help the country to raise the savings rate
to 40% from the current 38%, thus encouraging growth. This high rate of savings would boost a period of
sustained economic growth. He said that the inflation is a sector-specific feature, and could be controlled
within a few months. The country overcame the impact of last two years' global crisis comparatively easily,
he added.
Indians are biggest spenders on consumer electronic goods: survey
Indians have emerged as the biggest spenders on consumer electronic products, according to an Accenture
survey on the spending habits of consumers from eight countries. It revealed that 18% of the survey
respondents from India spent over $3,000 (around Rs. 1,38,300) on electronics, compared with only 6% of
the respondents spending as much in the US, France, Germany and China. The survey covered current and
future spending and usage patterns for 19 different consumer technologies, including smartphones, high-
definition television sets and computers by covering 16,000 consumers in four “mature” nations (US,
Germany, France and Japan) and four “emerging” nations (China, India, Malaysia, and Singapore). Some
24% of emerging market respondents spent less than $500 and 67% more than $500 on tech products such
as smartphones and computers last year. Spending was the highest in India, where 77% of the respondents
claimed to have spent at least $500 each, including 18% who spent $3,000 or more. Among respondents in
the mature markets, 33% spent less than $500 and 44% spent at least $500 on technology products last
year. The survey vindicated the confidence that many global consumer electronic companies have displayed
in the potential of emerging economies by setting up manufacturing bases in countries such as India, the
world’s fastest growing market for mobile phones.
   The Govt is considering imposing an effective ban on exports of sugar and levying customs duties on imports of raw sugar that have not been
   re-exported.
   India has offered lines of credit totaling $125 mn to Zambia, even as both countries agreed there was need to reinvigorate ties to reflect
   changed times.
   Food inflation will come down next month from a more than a decade's high of around 20%, as apprehensions about adverse effect of drought
   were easing, said Planning Commission Deputy Chairman Montek Singh Ahluwalia.
   The Govt has appointed R Gopalan – a 1976-batch IAS officer – as the Financial Services Secretary in the Finance Ministry. He would look
   after the banking and insurance division in the ministry. Earlier, Finance Secretary Ashok Chawla was holding the additional charge of this
   department.



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                                                ECONOMY
Govt to double investments in R&D to 2% of GDP: Minister
The Government plans to increase its expenditure on R&D from 1% of GDP to 2%, said Dr. Prithviraj
Chavan, Minister for Science & Technology. Speaking at the inaugural session of the Seminar on “Nano-
technology”, he said that that the Government will focus its Research & Development efforts in the current
decade on translating lab research into product and process innovations that benefit the masses. Maintaining
that the challenges of Science & Technology are much tougher in 21st century, Dr. Chavan has outlined the
five key challenges of Science and Technology to include energy security, food security, water availability &
quality, affordable healthcare for all and terrorism and internal security. The Minister, emphasizing the
importance of channelizing young and fresh talent to science & technology, said “If India has to become a
major power, it is the manpower that can make it so. Dr. Chavan urged the Indian diaspora to work with the
governments in their adopted countries and the Indian industry and government to collaboratively find
solutions using science and technology. The recommendations from the day long Seminar on
Nanotechnology will enable the government and industry to engage with the NRIs and PIOs and identify key
areas of interest for investment, research and infrastructure development.
Food inflation eases to 18.2%
Food inflation eased slightly at 18.22% for the week ended December 26 but there was little respite for the
common man, as prices of pulses and cereals were still ruling high. The food inflation rate, as measured by
the Wholesale Price Index (WPI), was 19.85% for the previous week. Food inflation had stood at 10% during
the corresponding period in 2008. Inflation rates for most essential commodities continued to be in double
digits. Cereals and pulses registered annual inflation rates of 13.91% and 42.21%, respectively. During the
week, food prices fell by 1.01%, primarily due to a week-on-week decline in the prices of pulses (0.24%),
vegetables (11.23%) and potatoes (12.01%). The annual inflation rate for primary articles, which include
food and non-food articles, stood at 14.39%for the week under consideration. The fuel index rose by 0.4%
on higher prices of light diesel oil (5%), naphtha (3%) and furnace oil (2%). The inflation rate for fuel
products was 4.85%during the week.
CII suggests certain measures for raising revenue
Presenting the key recommendations to the Finance Minister, Pranab Mukherjee, the CII President, Venu
Srinivasan has said that the focus of the Budget 2010-11 should be to bring growth back to the 9%
trajectory. Srinivasan mentioned that the Finance Minister could consider an exit from the stimulus package
provided it was gradual, calibrated and the end point of the exit coincided with the date of introduction of
GST.
Suggesting some measures for raising revenue, the CII President recommended the following:
    Firstly, disinvestments up to Rs. 400 bn could be targeted by the government, which would ensure that
    the amount is spent on capital creation.
    Secondly, a mechanism needs to be worked out by which a substantial Rs. 500 bn from Rs. 2,000 bn,
    held up in various disputes and litigations for a long time, could be raised if a fourth of the disputes are
    resolved. A special tax court could be announced in the budget.
    Thirdly, all services could be brought under the tax net, with a select list of negative items. Fourth and
    importantly, there is scope for increasing efficiency of funds spent on programmes.
The CII President also highlighted the need for a smooth transition to GST, with the date for introduction
being announced soon.
While on the direct tax front, Srinivasan suggested that no amendment with retrospective effect should be
done. Moreover, he highlighted the need for special ax incentives to enable industry to adhere to the
challenges of climate change and emerging technology needs. Highlighting the special requirements of
SMEs, he requested that higher depreciation be allowed for the sector when investments are made into IT
and other technologies.




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                                                   INFRASTRUCTURE
Defence offsets policy makes encouraging impact: CII Survey
The Confederation of Indian Industry (CII) has found that the major stakeholders in defence procurement
place a lot of importance on offsets the latter viewed increasingly as an important means of increasing the
production of defence equipment in India. In a recent survey conducted by the CII, the key findings included
the fact that with India as one of the largest importers of defence-related products, offsets would leverage
purchasing power and build up the homespun defence industrial base. The Indian defence offsets policy was
formulated in 2005 as part of the Defence Procurement Policy and was revised twice thereafter. It is
estimated that offset contract worth Rs. 400 bn would be signed till the year 2012. According to the latest
estimates, between 2006 and 2008, offsets contracts worth Rs. 80 bn have been signed, of which 94% are
in the aero systems segment and 6% in land systems. The offset clause is applicable for procurement
proposals where indicative cost is Rs. 3 bn or more and the schemes are categorized as, ‘Buy (Global)’
involving outright purchase from foreign/Indian vendors, and “Buy & Make with Transfer of Technology” i.e.
purchase from foreign vendors followed by licensed production. The procurement of defence equipment is
made by the government from various indigenous as well as foreign sources to meet the requirements of
the Armed Forces. The import option is exercised when it is necessary to procure the items within a definite
time-frame to bridge the capability gaps, and when such equipment cannot be sourced indigenously in a
given time. Implementation of the offsets is expected to result in expanding and enhancing the
manufacturing infrastructure and technical knowledge for weapon systems required by the Armed Forces.
The benefits of offsets accrue to both Defence Public Sector Undertakings (DPSUs) as well as to private
Indian industry engaged in the manufacture of defence systems and equipments. The survey reveals that
industry’s participation in the offsets programme has been spread across the DPSUs and OFBs, the private
sector and the medium and small enterprises. The survey also highlights the sector-wise distribution of
offsets contracts. The manufacturing sector accounts for the lion’s share of the offsets with 35%, followed by
infrastructure with 23% share. Further, while the engineering and software sectors have a share of 15%
each, the simulator segment accounts for 12%.
ACC opens 4th cement plant in Karnataka
                ACC has announced that its Greenfield Kudithini Cement Works has been inaugurated by G
                Janardhan Reddy the Minister for Tourism & Infrastructure Development Government of
                Karnataka. Located in Kudithini village which is 25 kms from Bellary, this new plant becomes
the Company’s sixteenth cement plant in its national network and the fourth in the state of Karnataka. This
new generation fully automated cement grinding plant has an annual capacity to produce 1.2 MT of Cement
of superior quality. The project involved an outlay of about Rs. 3.7 bn. Clinker is supplied by ACC’s modern
cement plants at Wadi in Gulbarga district and despatched by rail and road. The Kudithini plant has its own
railhead and siding with sophisticated unloading and handling facilities. The Company will produce Portland
Slag Cement (PSC) using slag from Bellary region which is now an important source of iron and steel. ACC
Kudithini can also supply cement in bulk tankers to large construction projects, concrete product makers and
to ready mixed concrete and batching plants in the local region. ACC Kudithini will generate considerable
opportunities for new ancillary businesses such as road transport, packing and other trades.
JSW Energy to invest Rs. 40 bn for 8,000 MW projects
JSW Energy plans to invest around Rs. 400 bn in developing power projects of 8,000 MW. The
Company is implementing projects worth 3,200 MW in Maharashtra, 1,320 MW in Chhattisgarh
and 1,600 MW in West Bengal. It plans to become an over 11,000 MW company by 2015. The
Company is also setting up a 860 MW plant in Vijaynagar (Karnataka) and 130 MW plant in Barmer
(Rajasthan). The Company has 2,790-MW capacity of projects under construction and implementation stage.
It will commission about 2,100 MW of units by Dec’10, including the 1,200-MW plant in Ratnagiri,
Maharashtra. JSW Energy, which raised about Rs. 27 bn through an IPO, will utilize the issue proceeds to
fund expansion, repay debt and for general corporate purposes. Part of the issue proceeds will be used for
expansion into new projects, part will be used for repaying debt and part of the proceeds is for general
corporate purpose.
   Cargo volumes at the country’s major ports rose 12.8% YoY to 48.2 MT in November, paced by growth in container and iron ore
   traffic. Jawaharlal Nehru Port Trust (JNPT) in Navi Mumbai, which handles 59% of India’s container traffic, posted positive growth of
   8.9% for the first time after 12 months of contraction. JNPT handled 3.95 mn TEU in the last fiscal year, and expects to post modest
   growth by crossing the 4 mn mark in the current fiscal year.
   The Govt plans to set up a shipyard to produce large sized vessels under public private partnership with an investment of Rs. 30-40
   bn in lieu of Hindustan Shipyard going to the defence ministry. The Government will set up another shipyard most likely on the east
   coast of the country in PPP mode to make very large crude carriers and other large vessels; a senior government official has been
   cited as saying. This will be the only facility in the country after Pipavav shipyard to produce huge vessels such as very large crude
   carriers (VLCCs). The Government will hold 26-49% stake in the project. Land will be acquired by the private developer to expedite
   the project. The Government will appoint a consultant to work out the detailed project report and then invite bids. It will take three-
   five years for the shipyard to come up.




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                                                   INFRASTRUCTURE
DGH takes first step towards new oil exploration policy
Directorate General of Hydrocarbons (DGH) has invited offers to develop a publicly available database on oil
and natural gas that would help explorers bid for potential reserves without having to wait for state
auctions. India plans to switch to a round-the-year mechanism for accepting exploration bids in less than 18
months, graduating from the current regime of periodic auction of government-nominated blocks. A
prerequisite for the transition to the new regime is a national data repository (NDR), Director General Of
Hydrocarbons SK Srivastava said in a statement. The repository will be a public pool of crucial raw
information on geological and geo-chemical characteristics, a key information input for those looking for
potential hydrocarbon reservoirs. There are currently only 20 nations, including Canada and the UK, that
have a similar database and the pool of service providers with such expertise is small. The biddings shall
close on January 18, 2009, and the regulator will select the winning bid between April and June and the
repository will go online six months after that. Under the proposed new regime, any explorer can bid for any
unallocated area at any time, according to an AOGO working paper.
GVK to take up expansion at two power projects
GVK Power & Infrastructure is reportedly planning to take up 400-MW expansion project at Jegurupadu and
800-MW scheme at Gauthami both in Andhra Pradesh. The Company is in the process of finalizing plans for
these two expansion projects and hope to commence work later this year. It can be noted that the gas-
based projects at Jegurupadu and Gauthami are functioning at full capacity from the gas supplied for the KG
Basin fields. The Company could take up these expansion projects, with a capital expenditure of Rs. 50 bn,
as merchant plants. The Company is also implementing a 600-MW coal-based power plant at Goindwal Sahib
in Punjab and few hydel projects in the north. Separately, the Company is planning to secure a controlling
stake in the Bangalore International Airport project, subject to the consortium partners willing to part with
their stake.
Manipur, Tripura get new projects under JNNURM
The Central Sanctioning & Monitoring Committee (CSMC) for sanctioning of projects under Sub Mission of
UIG under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has approved new projects for
Imphal (Manipur) and Agartala (Tripura). The CSMC has approved Storm Water Drainage project for Imphal
city to provide effective storm water disposal system for Imphal by re-sectioning of natural drainage to
ensure quick and smooth drain-off of storm water from the city. For storm water drainage works in Imphal,
the total project cost is estimated at Rs. 102.5 crore, out of which Rs. 92.25 crore shall be borne by the
Central Government. For Sewerage and Sewage Treatment Scheme for North Zone in Agartala, the total
project cost is estimated at Rs. 102.21 crore, out of which Rs. 90 crore shall be borne by the Central
Government. The project will be implemented by National Building Construction Corporation (NBCC) and
completed by Mar’10. The project will benefit 11,458 households who will be connected to the sewerage
systems and disposal of sewage into storm water drains and surface water bodies will be eliminated.
Indian Oil plans $500 mn ECB to fund projects
Indian Oil Corporation is reportedly planning to raise up to $500 mn through external commercial
borrowings and has lined up lead arrangers for the issue. The proceeds would be used to finance projects,
including the upcoming 15 MTPA Paradip refinery in Orissa. The Company plans to raise funds from overseas
to diversify its portfolio and to get better interest rates. Its current debt is estimated at Rs. 480 bn, including
around Rs. 130-140 bn worth of foreign currency loans. The Company plans to invest Rs. 115-120 bn for
ongoing projects and the remaining on new projects. The Company is investing Rs. 154 bn on upgrades to
produce better quality petrol and diesel at refineries at Koyali (Gujarat), Haldia (WB), Mathura (UP), Panipat
(Haryana), and others. Indian Oil is also setting up an export-oriented refinery in Paradip at an estimated
cost of Rs. 297.8 bn. The Company has already tied up Rs.100 bn of domestic loans for the project which is
likely to be completed in 2012.
Gujarat Pipavav Port to raise Rs. 500 cr via IPO
Gujarat Pipavav Port (GPPL) plans to raise nearly Rs. 5 bn through an Initial Public Offering (IPO) and has
filed draft papers with capital market regulator Securities & Exchange Board of India (SEBI). The Company
is also considering a pre-IPO placement with various investors, according to the Draft Red Herring
Prospectus (DRHP) filed with the (SEBI). According to the DRHP, Rs. 3 bn of the IPO proceeds will be utilized
for prepayment of loans, Rs. 88.52 crore for investment in capital expenditure and Rs. 31.08 crore towards
investment in capital equipment among others. The public issue of shares of Rs. 10 each would be based on
100% book building process. GPPL has the exclusive right to develop and operate APM Terminals Pipavav
and related facilities until September 2028.
   The first 600-MW unit of the Rajiv Gandhi Thermal Power Project near Hissar has been synchronized with the grid in a record time of
   35 months. The coal firing of unit will start in third week of January and is likely to attain full load of 600-MW by the month-end.
   REC is reportedly planning to raise at least Rs. 10 bn through three-year and five-year bonds. It will offer three-year bonds at 7.6%
   and 10-year bonds at 8.65%, payable annually. It is likely to raise Rs. 10 bn through three-year and 10-year bonds each.



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                                                  INFRASTRUCTURE
ONGC exits Trinidad and Tobago gas block
Oil & Natural Gas Corporation (ONGC) has been forced to exit from a gas block in Trinidad and Tobago after
its partner LN Mittal walked out of the project. In 2007, ONGC-Mittal Energy (OMEL) – the JV of ONGC
Videsh (OVL) and Mittal Investment (MIS) – had won the offshore block North Coast Marine Area-2 (NCMA-
2) that is estimated to hold in-place reserves of 2 trillion cubic feet, beating Britain's Centrica. But last year,
MIS decided to exit the project possibly because of global economic downturn. OMEL had 65% interest in
the block while Trinidad and Tobago's state-owned oil firm Petrotrin had the remaining. Under the initial
agreement, OMEL was required to carry Petrotrin during the exploration phase. After the exit of MIS, OVL
would have to foot the entire $304 mn exploration expenditure with Petrotrin not willing to share any risk.
NCMA-2 was considered OMEL's second-biggest success after Nigeria where the JV had acquired two
exploration areas.
BGR Energy enters into technical collaboration with US-based Nooter/Eriksen
BGR Energy Systems, an EPC company for power, oil and gas sector projects, has entered into a license and
technology transfer agreement with Nooter/Eriksen, USA for the design, manufacture and sale of Heat
Recovery Steam Generator (HRSG). The Company also plans to set up an additional manufacturing facility in
its existing factory at Panjetty near Chennai. The major raw material for HRSG is High Frequency Welded
Finned Tubes, which is already manufactured by BGR group for the last 20 years. The 15 year agreement
grants license and transfers HRSG technology to BGR Energy by transfer of know-how, technical information
and training. Nooter / Eriksen will provide marketing, sales and technical support to BGR energy on a
continuous basis during the agreement period. The collaboration agreement covers India, Sri Lanka and
Bangladesh. HRSG is used in gas based combined cycle power plants. The exhaust of gas turbine (simple
cycle) has a lot of heat energy. HRSG utilizes the heat energy to produce steam. The steam is used to
produce power in the steam turbine (combined cycle).
Bengal Aerotropolis gets 2nd tranche of land from WBIDC
Bengal Aerotropolis Projects (BAPL), the specialist company engaged in the development of Aerotropolis
projects in the country, has received second tranche of 515.33 acre land for the proposed Aerotropolis
project in Andal. With this, BAPL has received a total of 1,049 acres of land, which includes the requisite 650
acres for the airport, which is an integral part of the Aerotropolis project. The second tranche of land was
recently handed over to BAPL by West Bengal Industrial Development Corporation (WBIDC) through a 99
years lease agreement signed between BAPL and WBIDC. In Oct’09 WBIDC handed over the first tranche of
533.51 acre land required for the project to BAPL. The cumulative lease premium paid so far by BAPL is Rs.
88.48 crore. The integrated Aerotropolis project is spread over approximately 2,300 acre of which the
airport will be built on 650 acre of land. The airport is scheduled to be operational by late 2011. BAPL has
already commenced site preparation work for the country’s first privately owned airport. The airport is
expected to have a passenger volume of approximately 4 lakh passengers.
   Dalmia Cement has witnessed 27% and 37% YoY growth in cement production and dispatches respectively in Dec’09.
   Reliance Industries (RIL) has raised over Rs. 25.87 bn through sale of 25 mn treasury stocks of the company. The Company has
   reportedly sold 25 mn shares in the open market at an average price of Rs. 1,035 a piece to Life Insurance Corporation (LIC).
   BHEL has reportedly entered into talks with global players, including Alstom and Toshiba for manufacturing nuclear reactors to
   provide end-to-end solutions.
   Godrej Properties is reportedly planning to raise around Rs. 30 bn through debt or equity to fund its expansion plans over the next
   two-three years. The Company is looking at various options to raise money, including the QIP route.
   The Board of Directors of Radhe Developers India has decided to raise funds through launching of Fixed Deposits of the Company.
   The Board of Directors of DS Kulkarni Developers shall meet on January 11, 2010 to consider further issue of capital.
   Binani Cement has signed long-term supply agreements with shipping companies in a bid to save on logistical costs. The ships will
   deliver clinker from Singapore to China and Dubai, where Binani has two plants and also coal from Indonesia to India.
   Petrobras wants to offload its 15% stake in KG-DWN-98/2 to ONGC as it wants to concentrate on developing massive oil and gas
   finds back home. Meanwhile, Shell and BP have reportedly expressed interest in taking the stake in the block that sits next to
   Reliance Industries' giant KG-DWN-98/3 or KG-D6 block off the east coast.
   Vijay Shanthi Builders has obtained the planning permission for the project Park Avenue and the project launch is scheduled on
   January 20. The project value of Park Avenue is about Rs. 2 bn.
   KRBL has given a purchase order to Suzlon Energy for setting up 8.1-MW wind turbine generator plant in TN. This project will be
   operative before Mar’10. With this addition, the total capacity of power plant of the Company shall stand increased to 40.6-MW.
   Reliance Industries (RIL), which has proposed to invest $1.5 bn more in developing satellite gas finds in the prolific KG-D6 block,
   will drill six wells this year.
   NHPC has signed Agreement for taking up additional investigations and preparation of updated detailed project reports for 1,200-
   MW Tamanthi hydel project and 642-MW Shwezaya hydel project in Myanmar, as consultancy assignments, with Ministry of External
   Affairs (MEA) for Rs. 20 crore each.
   L&T has bagged new orders worth Rs. 33.12 bn, while Lanco Infratech secured three contracts worth Rs. 21.06 bn, Sadbhav
   Engineering has secured projects worth Rs. 18.4 bn, IVRCL Infra has bagged contracts worth Rs. 9.58 bn, IRB Infra has won a
   project worth Rs. 8 bn, Sunil Hitech has secured BOP contract worth Rs. 4.87 bn, while Suzlon has bagged an order from ITC to
   supply 27 MW of wind power turbines, Tantia-CCTL JV has secured project worth Rs. 91.73 crore, ABG Infra has got a LoA from
   Visakhapatnam Port Trust, Thermax has got an order worth Rs. 2.4 bn, Kalpataru Power has secured two orders worth over Rs.
   2.5 bn, Subhash Projects has received two contracts worth Rs. 62 crore from UP Jal Nigam, and BHEL has received orders worth
   Rs. 9.42 bn from ONGC and Karnataka SEB.



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                                           AUTO & AUTO ANCILLARIES
Long-term demand outlook for Indian passenger vehicle industry remains robust: ICRA
According to ICRA, the domestic demand for passenger vehicles has sharply recovered during the current
year, with growth at 21.2% during the eight months of FY10, supported by fiscal incentives and a revival in
the underlying economy. The demand revival has been sharp in contrast to H2FY09, when the volumes
suffered on weak consumer confidence caused by global economic crisis and cutback on vehicle financing by
banks/NBFCs due to liquidity constraints. While there has been some deferment of investments by global
majors in the Indian market, constrained largely by the weak performance in their home markets, most of
the players are planning significant capacity build-up for the Indian markets. The export segment has also
been growing rapidly, especially during the last couple of years, driven by Maruti Suzuki and Hyundai Motors
India. India’s strong domestic base in the small car segment provides it the ideal platform for capitalizing on
the small car market in other geographies from India. The export growth during the current financial year
has also been supported by the scrapping programme in the European market. With most major markets
facing excess capacity and demand saturation, the Indian market is likely to remain a key destination for
global majors over the medium term. However, this is likely to lead to some overcapacity in the domestic
market over the medium-term, leading to increased competitive pressures. Key challenges facing new
entrants would be establishing a strong service/distribution network, which has become increasingly
prohibitive due to rising real estate costs in many markets. Going forward sharing and cooperation on
distribution network and service facilities could play a significant role in rationalizing cost structures. The
long-term demand drivers’ for the segment remain robust in the Indian economy, indicating healthy long-
term growth prospects.
Total auto sales jump 68% YoY to 1 mn units in Dec
The total vehicle sales in the country rose to 10,00,500 units in Dec’09, as against a 5,97,241 units in
Dec’08, registering an impressive rise of 67.5% on YoY basis. Domestic passenger car sales rose 40.27%
YoY jumped to 1,15,268 units in Dec’09, as against 82,174 units in Dec’08. Motorcycle sales increased by
76.7% at 5,92,596 units in Dec’09, as against 3,35,370 units in Dec’08. Total two-wheeler sales rose 66.6%
YoY to 7,67,796 units in Dec’09, as against 4,60,852 units in Dec’08. The three-wheeler sales rose 83.67%
YoY to 34,993 units in Dec’09, as against 19,052 units in Dec’08. The sale of commercial vehicles jumped by
nearly three-fold to 48,614 units in Dec’09, as against 17,897 units in Dec’08. Light CVs sales increased by
123.5% YoY to 24,577 units in Dec’09, as against 10,997 units in Dec’08. Medium and heavy CVs sales rose
248.4% YoY to 24,037 units in Dec’09, as against 6,900 units in Dec’08.
Tata Motors unveils Aria; launches MPV Venture & Ace Magic too at 10th Auto Expo
               Tata Motors has unveiled three segment-busting, production-ready cars at Auto Expo 2010that
               will garner them more volumes from the India. The Aria is an MPV, though the name was used
               for a roadster concept which Tata Motors showcased in 2000 at the Geneva Motor Show. The
               Aria is a people carrier in the Toyota Innova mould, with three-row seating. In the Aria, the
middle row seats can be slid forward and back. The Aria is a good-looking MPV and comes with very good fit
and finish levels. The Aria is expected to be powered by the 2.2-litre Dicor motor borrowed from the Safari.
The other car that Tata Motors showcased is the Venture, a small MPV. The Venture, dimensionally
speaking, fits between the Ace-based people carrier, the Magic, and the Aria. This entry-level people mover
will have a diesel motor and has got good fit and finish. The Venture is aimed at B- and C-segment towns.
The third Tata vehicle shown is the four-door version of the Ace Magic whose the engine is positioned at the
rear. The Magic Iris is like a four-wheel rickshaw, with windows fasted by velcro - and it looks like another
out-of-the-box product from Tata. It is again a people carrier for smaller Indian towns.
Ashok Leyland signs MoU with Cisco; launches iBUS2 equipment; unveils Hybus at 10th Auto Expo
           Ashok Leyland, flagship brand of the Hinduja Group, has signed a Memorandum of Understanding
           (MoU) with Cisco, as per which the companies intend to develop sector-specific solutions that help
           enable Vehicle-to-Infrastructure (V2I) communication. The companies intend to work together to
deliver solutions that will focus on transportation management, incident and emergency medical response as
well as mobile security targeted initially at Government and Defence sectors. Ashok Leyland and Cisco
hosted a preview of the first solution from this collaboration, the iBUS2, which combines user-friendly
mobility with best-in-class connectivity. iBUS2 offers state-of-the-art digital communication equipment that
wirelessly communicates in real-time with a remote control centre for the exchange of critical information
required for decision making. Separately, Ashok Leyland has unveiled the Hybus – CNG hybrid bus – at 10th
Auto Expo. The Hybus combines conventional CNG engine with electric propulsion system. The engine is
operated at an optimal efficiency to drive the generator for charging on-board battery.
   Maruti Suzuki India has unveiled an array of interesting concepts at Auto Expo 2010. The show-stoppers include: Concept rIII,
   SX4 hybrid Suzuki Kizashi, and Suzuki SX4 hatchback. Concept rIII is a next generation compact Multi Purpose Vehicle (MPV), while
   SX4 hybrid is a full-parallel Hybrid car. Suzuki Kizashi is a super luxury car, while Suzuki SX4 hatchback is a hatchback version of its
   popular sedan SX4 is being showcased for the first time.


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                                            AUTO & AUTO ANCILLARIES
Maxximo… M&M launches world’s first mini-truck powered by CRDe engine
Mahindra & Mahindra (M&M), the leading player in India’s small commercial vehicle
segment, has announced the launch of the Maxximo, the world’s first mini-truck to be
powered by a 2-cylinder CRDe engine with DOHC technology and 4 valves per cylinder. The
Maxximo combines best-in-class technology, unmatched performance and superior style and comfort. The
Maxximo is the first product to roll out from Mahindra’s state-of-the-art Chakan plant. The vehicle has
undergone rigorous test runs and has been validated on all performance, safety and reliability parameters.
The Maxximo is backed by M&M’s service network, which is one of the largest and is spread across the
country. The Maxximo is powered by the world’s first 2-cylinder CRDe engine with DOHC technology and 4
valves per cylinder and is branded as the C2 CRDE engine. The C2 CRDe engine provides an ideal balance
between power and fuel economy. It delivers 18.4 Kw (25 HP) of Power and 55 Nm (5.5 Kgm) of Torque
which means greater pulling power along with superior fuel economy of 20 kmpl.
Mahindra Navistar launches 25 tonne & 31 tonne trucks in India
               Mahindra Navistar Automotives (MNAL) – the commercial vehicle JV between Mahindra &
               Mahindra (M&M) and US-based Navistar – has unveiled its 25 tonne and 31 tonne trucks for
               the Indian market. The trucks have been developed utilizing 175 years of technological and
               truck R&D expertise and know-how of Navistar and over 60 years of experience of Mahindra in
developing successful products based on deep insights of Indian customers and driving conditions. The
Mahindra Navistar range of medium and heavy commercial vehicles is being manufactured at a new
Greenfield plant at Chakan, near Pune. The plant, which spans over 700 acres, has been set up with
investments of over Rs. 4000 crore and will produce other M&M products as well. This will help MNAL
leverage the benefits of synergies of an integrated manufacturing facility. The vehicle offers best-in-class
ride and handling with its four point suspended cabin and optimized steering and suspension.
Dualogic… Fiat launches automatic transmission version of the Linea
Fiat has launched an automatic transmission version of the Linea, called the Linea
Dualogic. Fiat claims that their Dualogic transmission provides 10 per cent better
mileage than traditional auto gearboxes and 3 to 5 per cent better mileage than manual
gearboxes. Also launched is the Linea T-Jet, which comes powered by the latest
generation Fiat petrol engine. This turbocharged engine puts out a power of 108bhp (110PS). Fiat has also
launched three new variants of the Grande Punto, called 'Natural Power', 'Sport' and 'Trendz'. Natural Power
is a new dual fuel variant that runs on both petrol and CNG. The car can run for 1,000 km without a refuel.
The Sport comes powered by the 75bhp, 1.3-litre Multijet engine, but boasts funky styling - a snazzy paint
job, electric sunroof, rear spoiler, sporty decals and dual-coloured interior leather seats. The Trendz is a
limited edition petrol variant that comes powered by the 1.2-litre petrol engine. A special edition Fiat 500
customized by Diesel, the fashion brand, has also been launched. This 500 comes in three colour options -
Diesel Black, Diesel Bronze and Diesel Green. The Diesel 500 sports unique 16 inch Diesel logo alloys, yellow
painted brake calipers, flared rearview mirrors and eye-catching front end whiskers.
Audi to launch A7 Sportback in India by 2011
                     German car manufacturer Audi has announced that the A7 Sportback will be going into
                     production internationally and will be on sale in India by 2011. Powered by a 3.0 litre V6
                     diesel, the Sportback gets to 100 kph from standstill in less than 7 seconds and the top
                     whack comes at about 245 kph. The 4.2 V8-TDI diesel Q7, perhaps the most powerful
diesel SUV, has been launched at the Auto Expo with a price tag of Rs 65 lakh and will be in showrooms by
the April 1st, 2010. Speaking of showrooms, Audi has also planned to expand its dealer network from the
current 12 to 17 in the coming future. Audi has also slashed the price of the A6, with the Limited Edition 2.7
TDI, at Rs 37 lakh ex-showroom Delhi at the Expo. We spoke to Audi management – Benoit Tiers, MD Audi
India and Peter Schwarzenbauer, member of the Board of Management of Audi AG – at the Auto Expo. They
said that Audi sold 1,650 units in India in 2009 and expect to sell 2,300 to 2,500 units in the country this
year. Globally Audi sold 925,000 vehicles and plan to double this figure by 2015. The new A8 is also
expected in the country by the end of 2010. The A8 will get a flagship 12-cylinder version internationally,
and this version will be positioned differently from the other models in the A8 range. The 12-cylinder A8 will
have its European launch by the end of the year.
   Bajaj Auto has sold 2,20,429 two-wheelers in Dec’09, as against 1,19,215 units in Dec’08, registering a rise of 85% on YoY basis. Its
   motorcycle sales rose to 2,19,920 units in Dec’09, as against 1,18,510 units in Dec’08. In Apr-Dec’09 period, its total motorcycle sales
   increased by 17% to 17,94,359 units, as against 15,34,149 units in Apr-Dec’08 period. Its three-wheeler sales also went up by 17% with the
   Company selling 2,44,655 units in Apr-Dec’09 period, as against 2,09,699 units in Apr-Dec’08 period. Export for the company increased 9% to
   676,531 in Apr-Dec’09 period, as against 620,880 units in Apr-Dec’08 period.
   Mahindra Navistar has showcased its range of engines for the first time at the 10th Auto Expo.




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                                          AUTO & AUTO ANCILLARIES
Mercedes Benz launches S 500L & GL 350CDI in India
               Mercedes Benz got off a high-octane start in 2010, by launching two category-
               leading products- the made-in-India most premium limousine S 500L and the GL
               350CDI, the largest and most premium off-roader. While the S 500L flaunts the
               new design ideology of the S-Class range; the GL 350CDI on the other hand
carries the tag of being the biggest and the most exclusive SUV on the Indian roads. The new S 500L
features innovations aimed at enhancing comfort, safety and environmental compatibility, and has become a
role model and a showcase car for the entire automotive industry. Numerous sensors and intelligent
electronic systems set milestones in terms of occupant protection, driving assistance and entertainment; the
S 500L showcases innovative technologies super-efficient fuel systems, ultra modern assistance and
protection systems, state-of-the-art multimedia technology coupled with an even more dynamic design. Like
its forbearers the latest S-Class leaves no doubt: when it comes to mobility it is the one true icon. The
modified design of the S-Class reflects the effortless superiority and power of the S-Class Saloon. The new
GL 350CDI is a seven-seater and demonstrates excellent off-road capabilities and environmental
compatibility is extremely spacious and provides the comfort of a luxury saloon.
Mercedes-Benz launches Intercity Luxury Coach
Mercedes-Benz India has launched its 3-axle Intercity Luxury Coach at 10th Auto Expo.
Incorporating new-age technology to improve safety, comfort and reliability, the coach
is built upon O 500 RSD 2436 Mercedes-Benz chassis by Indian body maker Sutlej
Motors. The 6-cylinder inline Euro-3 engine is located at the rear of the coach is turbo-
charged and inter-cooled. The Merc's engine produces a healthy 122 kgm of torque at
1400-1600 rpm. Features of the coach include a panoramic view of the road from the driver's seat, driver
operated suspension lift for preventing damage to the vehicle on bad roads and ABS that improves over all
safety. A roof mounted AC system cools things down and the two LCD screens should keep the passengers
as happy as punch. For the luggage, a large compartment located between the front and rear axles should
be ample enough to accommodate even the largest of suitcases with ease. The bus is available at a price of
Rs. 85-95 lakh, depending on seating configuration.
Chevrolet Beat… General Motors launches global mini-car in India
             General Motors (GM) has launched its much-awaited global mini-car Chevrolet Beat in India.
             Priced between Rs. 3.34 lakh and Rs. 3.94 lakh, the 1.2 litre petrol car will be available in three
             variants, delivering 80.5 PS power and 18.6 km per litre mileage (under test conditions). Aimed
             at meeting the highest quality and performance standards in the most sophisticated markets in
a competitive environment, the global vehicle was put through over 10-lakh km of intensive durability tests
in extreme weather conditions and crash tests both in India and abroad. Beat is the second car from GM’s
300 series platform following the launch of its utility vehicle Chevrolet Cruze last year. With the Beat, the US
automaker now has three compact cars in its portfolio i.e. Spark, UVa and Beat. GM would be launching the
diesel version of the Beat by the end of this year once the company started producing brand new power-
train. The car will be exported to Korea, the Middle East, Asia Pacific and Latin American nations. GM is also
working on a small car completely designed in India.
Mercedes to launch AMG Desert Gold in India
Mercedes-Benz India has showcased two new cars “SLS AMG Desert Gold” and the hatchback
coupe Concept Fascination at the ongoing 10th Auto Expo. The AMG Desert Gold, priced at
nearly Rs. 20 mn would be launched in India after slight modifications. The right-hand drive
version of this vehicle is not available out here; as soon as it is ready, it will come to India.
The Indian arm of Mercedes-Benz, a unit of Daimler, expects to post double-digit sales growth this year
from a year ago as it launched new models in Asia's fourth-largest auto market. Mercedes-Benz sold 3,220
cars in India last year, as compared to 3,250 in 2008. Mercedes-Benz India Ltd, fully owned by Daimler, had
been making cars and trucks in India since 1994, but initially as a joint venture with the country''s largest
vehicle maker Tata Motors.
   Mercedes-Benz has lost leadership position in the premium segment in India to rival BMW and reported a decline of 10.43% in
   sales in the country for the last year. It sold 3,247 units in 2009 against 3,625 units in 2008 in India.
   Mercedes-Benz India has showcased two new cars i.e. SLS AMG Desert Gold and the hatchback coupe Concept Fascination at the
   ongoing 10th Auto Expo. The Company also displayed the M-Class Luxury edition as well as the E-Coupe.
   Honda Motorcycle & Scooter India has launched latest sport touring VFR1200F, the CB Twister and updated versions of the CBF
   Stunner and the Dio scooter. The Unicorn Sport Concept looks very much production ready and the Company could see an update to
   the ageing Unicorn soon, with Honda coming out with this concept. The CB Twister is an 110cc motorcycle which looks pretty
   stunning for its class and promises to be a fun to ride little motorcycle which is easy on the pocket.
   Honda has carried out the global unveiling of its India-specific small car concept, for now known simply as the Honda 'New Small'.
   The car is slated for a 2011 release in India and Thailand. The car will come powered by a 1.0-litre VTEC engine, while the 1.2-litre
   engine from the Jazz is also a possibility.


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                                        AUTO & AUTO ANCILLARIES
Volkswagen unveils Phaeton & Polo; mulls sourcing components from India
                      Volkswagen has launched its flagship model, the Phaeton, in India at the 2010
                      Auto Expo. The Phaeton will come priced at Rs. 75 lakh, ex-showroom, New
                      Delhi. The Phaeton comes powered by a 3.6-litre V6 FSI petrol engine, which is
the only engine available on sale right now. As of now the Phaeton will only be available in the
metros; however Volkswagen plans to have it in sale at 40 cities in the country soon. The Phaeton is built in
the Volkswagen 'Glass Factory' at Dresden. The car is completely hand built, and customers are allowed to
go watch the process of car building, and even be a part of it, if they so wish. Volkswagen has said that they
will allow such options for Indian customers as well. There are already 10 units of the Phaeton in the Indian
market, having been directly imported into the country. Volkswagen has launched Polo at 10th Auto Expo,
which will be available in both petrol and diesel variants. The petrol variant is equipped with a 1.2-litre
engine that puts out 75 bhp at 5,400 rpm and a torque of 110 Nm at 3,750 rpm. The diesel variant also
comes powered by a 1.2-litre engine that makes 75bhp at 4,200 rpm and torque of 180 Nm at 2,000 rpm.
The Company intends to roll out a sedan on the Polo platform in the second half of 2010. However, before
that racing version of the Polo would be rolled out in June. The Polo-based sedan will go on sale in the latter
half of 2010. Meanwhile, Volkswagen is reportedly exploring possibilities to source components from India
using Maruti Suzuki's base in the country.
Etios… Toyota showcases concept small car at 10th Auto Expo; launches hybrid car Prius
                       Toyota has unveiled concept small car “Etios”, which has been
                       specifically developed for the Indian market. The Etios sedan will be the
                       first to get launched in the country, well before the end of the year,
                       while the hatchback will be ready for Indian roads by Jan’11. By
showcasing it in India first, Toyota wants to make a point as to how important the
country is for their operations. The Etios sedan and hatch signify Toyota's intent to capture big volumes in
the country. So far, Toyota has been selling premium models in India, but with the Etios, Toyota gets into
territory that's dominated by Maruti Suzuki. The sedan will get a 1.5-litre petrol engine, while the hatchback,
as anticipated, will be powered by a 1.2-litre petrol engine so as to benefit from reduced excise duties. The
Company would launch both hatchback and sedan under the Etios series with 1.2 litres and 1.5 litres petrol
engines respectively. Separately, Toyota-Kirloskar has launched its hybrid car Prius in India priced between
Rs. 26.55 lakh and Rs. 27.86 lakh (ex-showroom New Delhi). This is the third generation Prius with 1.8 litre
petrol engine with a battery of 60 kilowatt. Toyota has also launched Altis CNG and also displayed Innova
CNG and Camry hybrid at the expo.
Twizy… Renault unveils city two-seater; mulls launching zero emission Electric Vehicles in India
                 Renault has unveiled its city two-seater 'Twizy' ZE Concept in India. Renault Twizy ZE Concept
                 is a two-seater car for urban mobility. The new chic provides electrical mobility with a turning
                 circle of just three metres and a footprint barely larger than that of a scooter. Twizy ZE
                 Concept is crafted elegantly in a manner that the wheels can no longer be seen rotating.
                 Instead, the only visible movement is that of the hub caps. Twizy ZE sounds with a dimension
of 2.30m in length, 1.47m height, and just 1.13m wide. Twizy ZE Concept is powered by a 15kW (20hp)
electric motor. It roars with a range of 60 miles and rages out with a maximum speed of 46mph.The wheels
are 13-inch with the Kerb weight of 420 kg. Renault is launching zero emission Electric Vehicles (EVs) in
India by the middle of this decade. The Company also plans to produce up to five lakh units of EVs globally
by 2014. The Company will first bring cars to India as completely built units, but may look for local assembly
of manufacturing later. In 2011, the Company plans to start with an initial production of 50,000 units of EVs
at its facilities in France and Israel and hope to reach a figure of five lakh units in the following three years.
Nissan to source components from India by 2012
Nissan plans to source auto components worth $40 mn (around Rs. 1.85 bn) from India by 2012. The
Company is looking to source components worth $20 mn from India, which will go up to $30 mn by 2011.
Nissan is also on track to start the commercial production of its global compact car from the Chennai plant,
where Rs. 45 bn has been invested jointly with Renault. The compact car will be based on V-platform and
the Company expects three models from that platform. While the first one would be a hatchback, the second
model would be a sedan and the third option is being evaluated currently. The first car that is made on this
global compact car platform in Chennai will have its global premiere at the Geneva Motor Show 2010.
   Renault will launch two models in India in 2011 that will be rolled out from the Company's upcoming Chennai plant. The Company
   also plans to resume its investment plans for India that was stopped due to the global economic slowdown. The Company plans to
   roll out its full range of cars in India within two years from now.
   Volkswagen India has won the “Automotive Company of the Year 2010” award at the Inaugural Auto Bild Golden Steering Wheel
   Awards India by the leading automotive magazine, Auto Bild India.




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                                          AUTO & AUTO ANCILLARIES
BMW India ranks at No. 1 in Indian luxury car segment; market share rises to over 40% in 2009
            BMW India is the number one in the luxury car segment in India and portrays a symbol for
            dynamic and forward striving people. BMW India increased its market share in the luxury segment
            of the Indian automotive market to over 40% in 2009 (from 9% at the end of 2006). With 3619
            cars delivered to customers in CY09, BMW India has achieved the highest sales by a manufacturer
in the luxury car segment in a year till date. In 2009 BMW India sold: BMW 3 Series 1,155 units, BMW 5
Series 1,590 units, BMW 6 Series 28 units, BMW 7 Series 350 units, BMW X3 101 units, BMW X5 287 units,
BMW X6 83 units and BMW Z4 25 units. BMW Group took a bold step in its Asia strategy in 2007 by
establishing the BMW India Headquarters in Gurgaon, a Central Parts Warehouse in Mumbai, and the BMW
Plant Chennai in Tamil Nadu. Presently, the BMW Plant Chennai produces the BMW 3 Series and BMW 5
Series Sedans in petrol and diesel variants and has a capacity to produce 3000 units per year on a single
shift basis. In medium term, BMW India has employed around 200 people; up to 600 additional jobs have
been created in the dealer and service network. Presently, BMW India is present at 16 locations in the Indian
market. BMW dealerships presently display the BMW 3 Series and BMW 5 Series that are produced at the
BMW Plant Chennai. BMW dealerships also display the BMW 6 Series, BMW 7 Series, BMW X3, the BMW, the
BMW X6, BMW Z4, and the BMW Gran Turismo which are available in the country as CBU's (completely built-
up units). The BMW M3 Coupé, BMW M3 Convertible, BMW M5, BMW M6 Coupé, BMW M6 Convertible, BMW
X6 M, BMW 6 Series Individual and BMW 7 Series Individual can also be ordered at BMW India dealerships.
BMW India unveils BMW X6 M & BMW 760Li; launches limited edition of Gran Turismo
The new BMW X1 scheduled to be launched in India by end of 2010 was unveiled at the 10th Auto Expo. The
new BMW X1 will be CKD produced at the BMW Plant Chennai by end of the year. The BMW X1 comes with
all the features so typical of a BMW X model and at the same time offers a new interpretation of BMW Sheer
Driving Pleasure. The BMW X1 is the perfect vehicle for customers focusing on areas such as leisure
activities and lifestyle in their choice of car. The new BMW 760Li marks the pinnacle of the fifth-generation
BMW 7 Series. The newly developed V12 power unit with BMW twin power turbo technology, high precision
injection and double-VANOS infinite camshaft adjustment delivers maximum output of 400 kW from engine
capacity of 6.0 litres and develops peak torque of 750 Newton-metres from just 1,500 rpm. BMW India has
also launched the limited edition of the new BMW Gran Turismo in India. The BMW Gran Turismo is a
completely new vehicle concept, adding a unique and distinctive model variant to BMW's product line-up.
The ex-showroom prices of the new cars launched are: Gran Turismo: Rs. 63 lakh, BMW X6 M: Rs. 1.3
crore, and BMW 760Li: Rs. 1.29 crore. The new BMW Gran Turismo, the new BMW 760Li and the new BMW
X6 M can be ordered at BMW India dealerships from January 5, 2010. At 10th Auto Expo, BMW has also
displayed the BMW 3 Series, the BMW 5 Series that are produced at the BMW Plant Chennai, and the BMW
X1. The BMW Gran Turismo, BMW 7 Series, BMW X5, BMW X6 M, BMW Z4, are also displayed at the Auto
Expo 2010, and can be ordered as CBUs.
   BMW Group will invest $50 mn (about Rs. 2.3 bn) to set up a wholly-owned financial services subsidiary to be headquartered in
   Gurgaon by mid-2010. The said subsidiary would do wholesale and retail of car financing as well as provide insurance solution to
   BMW car owners.
   Hero Electric has launched three electric scooters priced between Rs. 17,900 and Rs. 32,796. The Company is also planning to roll
   out three more products during the next financial year.
   Fiat has announced that the Company is keen on India as one of its focus markets and has multiple platforms under different stages
   of development
   M&M has announced a partnership with US-based Navistar to launch heavy commercial vehicles in the country.
   Maruti Suzuki has become the first auto company in India to cross the 1 lakh retail sales in a month milestone, clocking 1,00,874
   units sales in Dec’09. It plans to have an output of 15 lakh units by 2015 to maintain its 50% market share in the Indian car market.
   Bharat Forge has commissioned a fully integrated ring rolling facility at its Centre for Advanced Manufacturing, Baramati in
   Maharashtra. The facility, equipped with 4,000 blanking press, has the capacity to roll out rings up to a maximum diameter of 4.5
   metres, maximum height 500 mm and maximum weight of 3 tonne.
   Bosch Group plans to invest Rs. 20 bn in its India operations by 2012. Over 25% of the new investments will be made to
   strengthen the Group's engineering capacities in India. The Company plans to invest Rs. 400 mn in Chakan ABS making unit by
   2012. It will also make common rail system for Tata Nano diesel.
   Steel Strips Wheels has announced that BMW have nominated the Company for the supply of spare wheel for its prestigious MINI
   model.
   Tata Motors has increased prices of some of its commercial vehicles by around 1% on account of rising input costs and addition of
   new features.
   Ashok Leyland has sold 6,099 units in Dec’09, as against 2,307 units in Dec’08, registering a rise of 164.4% on YoY basis. Its
   domestic sales grew 294% to 5,536 units in Dec’0, as against 1,406 units in Dec’08. However, its exports dipped to 563 units in
   Dec’09. as against 901 units in Dec’08.
   Tata Motors will also launch 15 new models in the commercial vehicle segment over the next 12 months.
   The Board of Directors of Bharat Forge shall meet on January 12, 2010 to issue securities for an amount not exceeding US$150
   mn.
   BSA Motors has announced that the Company will invest Rs. 50 crore in next fiscal, besides launching three new models, as part of
   its strategy to capture over 20% share in the Indian electric scooter market by 2010-11. The new models coming later this year will
   be in the high-speed segment with a range of around 60 kms per hour and a single charge run of around 80 kms. The Company is
   looking to capture at least 20% of the 1.1-lakh units Indian market by 2010-11.



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                                                              IT & ITeS
HCL Technologies enters into strategic partnership with Talisma
HCL Technologies and Talisma Corporation, a
leading provider of Customer Relationship Management (CRM) solutions have
announced an alliance with HCL Technologies Ltd. From the automation of sales and marketing, to customer
portals and support, helpdesk and analytics, Talisma’s CRM application helps organizations integrate multiple
channels of communication to build successful relationships with customers and constituents. Talisma’s wide
expertise in offering customers with robust CRM applications that are flexible, configurable, and more
extensible, along with HCL’s expertise in the BPO segment will help in offering their clients enriched service
centre functionality as part of a fully-managed service to support CRM Business Process Outsourcing (BPO)
propositions. This strategic alliance will aid in addressing the diverse and sophisticated needs of clients both
large and small. Additionally, Talisma’s CRM applications will help in providing a highly personalized
customer experience that will open new avenues for businesses to communicate better with their customers.
Wipro joins Open Handset Alliance: strengthens android eco-system with device R&D expertise
Wipro Technologies, the global IT services business of Wipro, has announced its entry into the Open Handset
Alliance, extending its device development and service Integration expertise around AndroidTM - an open
mobile phone software stack. The Open Handset Alliance (OHA) is a partnership of more than 60 global
mobile industry leaders working together to accelerate innovation and offer consumers an enhanced mobile
experience. Wipro will now enable its customers in conceptualizing and creating devices on the Android
platform along with providing differentiating solutions and applications translating to faster time-to-market
for the clients. Wipro is currently engaged with a number of Handset Original Equipment Manufacturers
(OEMs), Telecom Carriers, Semiconductor companies, Consumer Electronics and Automotive companies on
multiple Android based product developments. Wipro has been focusing on developing differentiated
applications on the Android platform along with testing frameworks.
Oracle Financial announces new release of Flexcube Universal Banking
Oracle Financial Services Software has announced a new release of Oracle Flexcube Universal Banking. This
brings together Oracle's vast experience in supporting banks in more than 125 countries and with a
combined asset base in excess of $30 trillion. Oracle Flexcube Universal Banking release 11 provides
complete support for the lending, leasing and mortgage lifecycle across origination, servicing and collections.
It helps banks improve their reach and generate fee-based income through better intermediary and broker-
aided distribution of products to target segments. The new release enables banks to reduce operational
risks, lower costs, and enhance customer service by taking advantage of centralized, multi-product
origination functionality to provide a uniform customer experience, standardize processes across the
enterprise, and create centers of excellence.
   L&T Infotech has won two major turn key projects for computerizing the maintenance of rolling assets of the Indian Railways.
   Geometric Technologies – a subsidiary of Geometric – will showcase the upcoming release of CAMWorks and DFM Pro at SolidWorks World
   2010, in Anaheim Convention Center, California USA from January 31, - February 3, 2010.
   The Board of Directors of TCS has appointed Vijay Kelkar and Ishaat Hussain as Additional Directors, on the TCS Board with effect from
   January 05, 2010.
   The shareholders of Megasoft have approved the scheme of arrangement between the Company and its equity shareholders.
   Polaris Software Lab has announced the achievement of SEI CMMI Version 1.2 Level 5 Certification, the highest level of quality and process
   maturity appraisal in the industry for software services, intellect global universal banking product spanning all micro verticals within BFSI
   across all business solution centers. The Company was awarded Level-5 (optimizing) with CMMI Version 1.2 using SCAMPISM A Version 1.2 in
   its recent appraisal.
   Thinksoft Global Services has won CII Exim Award for Business Excellence 2009.
   MindTree has been adjudged as the “Best Indian Company in Asia in Corporate Governance” by Asiamoney.
   The Board of Directors of Zylog Systems shall meet on January 09, 2010 to consider an acquisition of a Company in Canada.
   The Board of Directors of FCS Software Solutions shall meet on January 11, 2010 to consider the issue of Bonus Shares.
   Gurgaon-based, iYogi Technical Services – that offers computer support to individuals and small businesses –has raised $15 mn (Rs. 70
   crore) in its third round of funding.
   Maharashtra Electrosmelt – a subsidiary of Steel Authority of India (SAIL) – will invest Rs. 2 bn to set up a furnace with capacity of 42,000
   TPA at its Chandrapur plant. The expansion proposal has been sent to the sub committee of SAIL board for approval.
   The Board of Directors of eClerx Services has approved the proposal for entering into a sub lease agreement for taking on sub-lease a
   premises measuring approximately 44,100 square feet in SEZ for IT $ ITeS at Kalwa (Mumbai) to start a new delivery-center of the Company.
   Prism Informatics has entered into share purchase agreement with the promoters of Thailand-based Nexus System Resources. The effective
   date of the Share Purchase Agreement is January 01, 2010.
   KLG Systel is developing the new version of Connectgaia and SG61 Technology for smart grid, energy management, energy efficiency and
   clean-tech sector on the new Intel Atom processor chip for the international and Indian market. Separately, US-based Intel Capital has
   purchased an undisclosed quantity of FCCBs from Goldman Sachs – which the Company had issued to Goldman Sachs in 2007 – and the
   coupon value of one FCCB is Rs. 350.
   ICRA has reaffirmed the long-term rating of “LBBB” to the fund-based limits of Compuage Infocom for an enhanced amount of Rs. 742 mn.
   The outlook for the long-term rating is stable.
   Four Soft has announced that Mondial Logistics has selected 4S eLog to automate the management of its warehouses throughout its locations
   in the Netherlands. The contract was executed through its Dutch subsidiary i.e. Four Soft Netherlands BV.
   The Board of Directors of AXIS IT&T shall meet on January 12, 2010 to consider and approve the Rights issue of Equity shares.
   Yahoo India R&D has entered into an agreement with the Indian Institute of Technology (IIT), Mumbai to support its faculty and students in
   their research. Yahoo will give the institute access to a cluster of servers running its open source Hadoop software and web data.



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                                                                 TELECOM
Telcos revenue declines in Q2FY10: TRAI
According to Telecom Regulatory Authority of India (TRAI), the telecom industry has added a massive 44.21
mn new subscribers in Q2FY10, while the gross revenue of the operators has slipped marginally by 0.65%
during the same period. The telecom operators have garnered Rs. 388.55 bn gross revenue in Q2FY10,
registering a decline of 0.65% on YoY basis. The subscriber base grew 9.51% to 509.03 mn in Q2FY10, as
against a 464.82 mn in Q2FY09. The combined wireless subscriber base (GSM & CDMA) grew to 471.73 mn
in Q2FY10, as against 427.3 mn in Q2FY09, while the wireline subscriber base slipped to 37.31 mn in
Q2FY10. With this, the overall teledensity reached 43.50 as of Q2FY10. The Adjusted Gross Revenue (AGR)
– which is the revenue after tax deductions – has also declined 2.08% YoY to Rs. 291.16 bn in Q2FY10. The
telecom regulator said that the average percentage of licence fee paid by the operators to AGR is 8.41%.
Overall teledensity improves further to 46.32% in Nov’09
The expansion of the telecom sector was further consolidated with an increase of 175.41 lakh in the number
of telecom subscribers in Nov’09. As a result, the total number of telephones in the country stands at 543.2
mn as on in Nov’09; as compared to 374.12 mn as on Nov’08. The wireless (GSM+CDMA) segment has
registered an increase of 176.39 lakh. The wire-line segment has declined by 0.98 lakh respectively in
Nov’09. The overall teledensity improved further to 46.32% in Nov’09, as against 32.34% as on Nov’08. In
the wireless (GSM+CDMA) segment, only UP (East) telecom circle added more than nineteen lakh
subscribers in Nov’09. In the wire-line segment, only Delhi telecom circles added above ten thousands
subscribers in Nov’09. The growth of broadband connections improved further and at the end of Sept’09,
7.21 lakh broadband connections were provided. Further, the total number of existing ISP licences is 370 at
the end of Oct’09. Under Bharat Nirman Programme, 408 VPTs were provided in the month of Oct’09. Thus,
out of the targeted 62,302 villages, a total of 60,208 villages have been provided with VPTs till Oct’09.
DoT to issue notice inviting bids for 3G on Jan 10; to introduce MNP across India on Mar 31
The Department of Telecommunications (DoT) is set to introduce a new schedule related to 3G and BWA
spectrum auctioning in the country. The new process will begin from January 10, 2009 with DoT inviting
formally inviting applications from interested players. The auction will take place around February 12, 2009
and go on till March 10, 2009 with the successful bidders paying the bid amount by that time. The new
schedule means almost a month long delay when compared to the earlier released itinerary. As per the
earlier schedule, auction was supposed to start by January 14. The DoT will send the 3G spectrum auction
policy to the Law Ministry for a final review. The failure on the part of the mobile operators in upgrading
their networks to support Mobile Number Portability (MNP) by December 31, 2009 has now forced the DoT
to introduce MNP across the country in one go on March 31, 2010. According to DoT, after a series of
meetings with the service providers to assess their readiness for MNP implementation, it was found that
while some have technically upgraded and augmented their networks and some have established physical
links with MNP operators, others are still in the process.
   TRAI is reportedly planning to float a consultation paper over alleged predatory pricing tactics adopted by some operators. The regulator has
   also asked operators to submit details of tariff plans.
   A high level meeting chaired by the Prime Minister, Dr. Manmohan Singh arrived at a consensus to offload 10 % stake in BSNL through
   listing. In the meeting, the Union Communications Minister, A Raja also called for exemption of annual licence fee for BSNL, which will result
   in annual savings of about Rs. 40 bn to the Company. As a first step, licence fee for fixed-line services in rural areas may be considered for
   exemption. This move alone can result in savings of about Rs. 18 bn to the PSU.
   Bangladesh Telecommunication Regulatory Commission (BTRC) has approved the $300 mn investment proposal of Bharti Airtel to acquire
   70% stake in mobile service provider, Warid.
   Aircel will finalize a buyer for its 17,000 telecom towers across the country in the next six weeks. Aircel has about 38,000 towers out of which
   nearly 17,000 towers are owned by the Company.
   Aircel has entered into a partnership with Infosys Technologies to launch the first mobile application store in the country. A mobile application
   store is a service which allows users to browse and download applications either for free or at a cost. Infosys will offer a platform i.e. FLYPP for
   Aircel's mobile application store. The application store will provide consumers greater choice for applications related to health, finance,
   entertainment.
   BSNL has launched its 3G services in Kerala circle with all the district headquarters in Kerala to be covered by this month. The Company has
   a provision for 2.65 lakh 3G lines in the circle including 37,758 lines in Kozhikode city and suburbs and 1,469 lines in Kalpetta. 100 base
   stations are set up in Kozhikode SSA for 3G services. BSNL will invest Rs. 6.5 bn in Kerala for 3G services as well as upgrading 2G network.
   Fly Mobile has launched a new CDMA phone named the C-250 in the Indian market priced at Rs 4,490. The phone makes use of QC1110
   chipset which basically enables enhanced power management. It supports BREW-based applications. It also has a 2” QVGA screen that offers
   65K colours with display resolution of 176x200 pixels and a 2 mega pixel camera with image capture resolution of 1600x1200 pixels, digital
   zoom and self-timer.
   Zen Mobile has launched a dual SIM handset supporting GSM and CDMA platforms for Rs. 3,299. The phone named QWERTY Z 77 is mainly
   targeted towards the youth segment. It has a 2.2 inch screen, a 1.3 mega pixel camera, and FM radio.
   Unitech has announced that Unitech Wireless has received Rs. 14.93 bn (approximately) from Telenor Asia (Telenor) for acquisition of further
   11.1% stake in Unitech Wireless by way of issuance of fresh shares.
   Future Group is reportedly set to launch its mobile services within four to six weeks based on an MVNO model. It will launch the services in
   tie-up with Tata DoCoMo. The Company is reportedly investing close to Rs. 10 bn for this foray.
   MTS has achieved the 3 mn subscriber base mark at an average monthly growth rate of 15% since the launch of its services in Mar’09. The
   operator has over 1.2 mn subscribers in Rajasthan, over 7 lakh in Kolkata and West Bengal, close to 5 lakh in TN and over 1.5 lakh in
   Karnataka & Delhi/NCR.



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                                        BANKING & FINANCIAL SERVICES
50% banks will lack innovation programme by 2013: Gartner
                  Half of the banks in the world will lack an innovation programme to improve services by
                  2013, severely restricting growth, as pressure from governments and regulators make
them risk-averse and inflexible, reveals a study by firm Gartner. “By 2013, 50% of banks will still lack a
formal innovation programme and budget, severely restricting growth potential,” Gartner said, while making
IT predictions for banking and investment services. The US-based IT research and advisory firm said non-
banking competitors like retailers, online companies and telecom operators are making inroads into the
banking industry, thereby leading the way with customer-oriented service improvements, which customers
will seek as economies of access improve. Meanwhile, the banks will hike their fees to help offset this
customer attrition. “Pressure from governments, regulators and consumers is making some banks risk-
averse and creating a culture of introversion and inflexibility,” Gartner said. Gartner suggested that banking
and investment services firms should focus on innovation initiatives to improve services as opposed to pure
product development. The banks also need to ensure that personalization remains a critical component in
innovation initiatives, Gartner added.
ICICI Bank enters into merchant acquiring alliance with First Data; signs MoU with UKTI
India’s largest private sector bank, ICICI Bank, and First Data, a global leader in electronic commerce and
payment services, have formed a merchant acquiring alliance named ICICI Merchant Services, which has
acquired ICICI Bank’s merchant acquiring portfolio. The venture brings together one of India’s largest
merchant portfolios, representing approximately 30 percent of the current Indian acquiring market, and a
leading acquirer and payment services provider with global expertise. ICICI Merchant Services, which is
owned 81% by First Data and 19% by ICICI Bank will build on the bank’s existing acquiring portfolio of
approximately 150,000 merchants. Over time, ICICI Merchant Services expects to deliver an enhanced suite
of card acquiring services to these and to new merchants. ICICI Bank will continue to act as a settlement
banker for the merchants. Both ICICI Bank and First Data will be represented on the board of directors of
ICICI Merchant Services. Day-to-day operations will be coordinated by First Data. Separately, the Bank has
signed a Memorandum of Understanding (MoU) with UK Trade & Investment (UKTI) to help Indian firms
capitalize on opportunities in the UK. The move is aimed at organizing training events and providing
additional investment assistance for Indian businesses looking to enhance their ability to expand in the
country. The key benefits of the collaboration would be exchange of resources between the two countries.
Both the entities will also explore on conducting educational events specifically tailored for SMEs, across
India.
Indian Bank revises FCNR(B), NRE deposit rates
Indian Bank has revised its FCNR (B) and NRE deposits interest rates with effect from January 1. For FCNR
(B) deposits, the revised interest rate in US dollars has been fixed at 1.98% for deposits of one year and
above, but less than two years. Similarly, for two years and above but less than three years, it has revised
the interest rates from 2.01% to 2.39%. For three years and above, but less than four years, it has been
revised from 2.56% to 3.04%. For NRE term deposits, the revised rate has been fixed at 2.73% for one year
and above but less than two years. The bank has also revised NRE term deposits at 3.14% (from 2.76%
existing) for two years and above, but less than 3 years and at 3.79% for deposits of 3 years and up to 5
years (3.31% existing).
   Bank of Maharashtra and SBI Funds Management have joined hands to distribute mutual funds of the latter through the bank's branches
   across the country.
   The Government has increased the authorized capital of Bank of Baroda (BoB) from Rs. 15 bn to Rs. 30 bn.
   With a view to aligning the business with the long-term strategy, the Board of Directors of HSBC InvestDirect (India) has approved
   discontinuation of the insurance broking business by IL&FS Investsmart Insurance Brokers Ltd.
   As one of the KPO initiatives, Firstobject Technologies has launched an Equity Research Portal under technical collaboration with Firstcall India
   Equity Advisors.
   Upsurge Investment & Finance has announced that the securities of the Company are delisted from Madhya Pradesh Stock Exchange with
   effect from August 21, 2009.
   Jaisal Securities has cancelled the business transfer agreement with Maldives-based Intek Systems (Intek) for use of the Intellectual
   Property Rights (IPRs) of the Software developed by Intek on a profit sharing basis.
   DCB has signed a bancassurance agreement with ICICI Lombard General Insurance Company for the distribution of general insurance
   products.
   IFCI has posted Rs. 1,363.5 mn net profit (Unaudited) in Q3FY10, as Rs. 1,044.8 mn net profit in Q3FY09. Its total income has increased to
   Rs. 3.92 bn (Unaudited) in Q3FY10, as against Rs. 3.59 bn in Q3FY09.
   Brickwork Ratings has assigned “A” rating with “Stable” outlook to Lakshmi Vilas Bank's lower Tier-II bonds issue of Rs. 1 bn.
   CARE has assigned “AA+” rating to perpetual bonds of Oriental Bank of Commerce (OBC) for Rs. 3 bn.
   PNB has launched banking operations in Dubai and will set up a branch in the Dubai International Financial Centre (DIFC). The branch will
   serve as a base for targeting the entire Middle East and Africa region. From the new office, PNB will offer a range of world-class corporate
   finance services, including trade finance, credit for long medium-term projects and investment related services.
   UCO Bank plans to open full-fledged mobile branch 100 mobile branches across the country to make mobile banking services available to the
   people within a year.
   ICICI Bank has cut its car loan rates by 0.25-0.5%, depending on the category and tenure of loans.
   Axis Bank has reduced car loan rates by 0.5-0.75% for loans having three-five years maturity for new customers.
   SBI plans to introduce 7,000 voice-enabled ATMs across the country for visually challenged customers.



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                                             PHARMA & HEALTHCARE
DCGI recommends price cap on anti-cancer medicines
Drugs Controller General of India (DCGI) has reportedly recommended a price cap for anti-cancer
medicines. The DCGI has written to the Director General Health Services to include anti-cancer drugs in the
list of essential medicines that are under price control. The move is likely to hurt margins of multinational
companies such as GlaxoSmithKline, Eli Lilly, Pfizer and Roche who have major drugs in the category. The
regulator's move comes in the wake of concerns that anti-cancer drugs are priced high and are beyond the
reach of common man. The DCGI has outlined the technical inputs and rationale behind the suggestion for
inclusion of anti-cancer drugs in the list of essential medicines. A final decision on this issue will have to be
taken by the Group of Ministers (GoM) on pharmaceutical policy. Currently, 74 drugs are defined as essential
medicines by the government. The National Pharmaceutical Pricing Authority has a cap on the prices of
these medicines. However, the new pharmaceutical policy, currently pending with the GoM, proposes to
bring as many as 354 drugs under the essential medicines list.
Zydus Cadila to conduct clinical trials of HIN1 vaccine
Ahmedabad-based pharma major, Cadila Healthcare has received an approval from the Drug
Controller General of India (DCGI) to conduct clinical trials for H1N1 (swine flu) vaccine. With
this, Zydus Cadila has become the first Indian pharma company to commence multi-centric
clinical trials of its vaccine. There are two types of H1N1 swine flu vaccines available in the market – the
intra-muscular vaccines and intranasal vaccines. The egg based, inactivated vaccine based on conventional
technology has been developed by the group’s experts at its Vaccine Technology Centre in Ahmedabad. The
vaccine is expected to hit the markets by April 2010. The demand for H1N1 vaccine in India is likely to touch
50 to 60 mn doses in the initial phase. Presently, the H1N1 swine flu vaccine market is expected to be $676
mn with the first lot of doses being commercialized in September 2009. The market is expected to cross $7
bn by 2011. The group had earlier received the WHO pre-qualification accreditation for its rabies vaccine,
Lyssavac N – the Purified Duck Embryo Rabies Vaccine (PDEV). The group has also recently set up a state-
of-the-art Vaccine Technology Centre near its manufacturing facility at Moraiya, Ahmedabad.
Dr. Reddy’s, Rheoscience announce results from Phase-III clinical trial of Balaglitazone
Dr. Reddy’s Laboratories and Rheoscience, a subsidiary of Nordic Bioscience AS, have announced the
headline results from the first Phase-III study for their investigational agent, Balaglitazone. The study
(Study 307) was a Phase-III, randomized, double-blind, parallel-group placebo and active comparator-
controlled clinical study to determine the efficacy and safety of Balaglitazone. The study showed that the
trial met its primary endpoint of reduction in HbA1c. The study explored the impact of adding placebo,
Balaglitazone 10 mg, Balaglitazone 20 mg or Pioglitazone 45 mg to a background treatment regimen of
stable insulin therapy for a period of 26 weeks. The primary endpoint was HbA1c reduction, while several
secondary endpoints including fasting plasma glucose, oedema, weight gain, and body composition were
considered. In all, 409 patients were randomized in roughly equal proportions across the four arms of the
study. All three active arms (Balaglitazone 10 mg, 20m g and Pioglitazone 45 mg) showed similar levels of
efficacy with respect to both HbA1c and fasting plasma glucose. All three active arms showed good
tolerability and adverse event profile, with Balaglitazone 10mg demonstrating less water retention, less fat
accumulation, lower weight/BMI gain and less bone loss when compared to the Pioglitazone arm.
Strides Arcolab to collaborate with Pfizer for generic products
Strides Arcolab has announced a new collaboration with Pfizer, wherein the latter will commercialize off-
patent sterile injectable and oral products in the US through its established products business unit. These
finished dosage form products will be licensed and supplied by Strides and Onco Laboratories and Onco
Therapies, two joint ventures between Strides and Aspen (South Africa), in which each has a 50% ownership
interest. The financial terms of the supply agreement were not disclosed. The companies believe this is a
highly complementary collaboration, which is expected to deliver 40 off-patent products, many of which are
oncology therapeutics, to healthcare providers and patients in the US, by joining Pfizer’s solid commercial
infrastructure with Strides’s high-quality manufacturing capabilities. The first of the products commercialized
under this collaboration is expected to be launched in 2010. Pfizer’s established products business unit
launched its US Injectables team less than 10 months ago and is already marketing products in the US
Through this new collaboration with Strides, Pfizer continues to demonstrate its commitment to become one
of the top players in the injectables market.
   Ranbaxy Laboratories has launched a new dermatological product Lulifin in the Indian market. This follows a strategic in-licensing
   agreement with Summit Pharmaceuticals International Corporation, Japan. Lulifin is a topical Imidazole used for the treatment of
   cutaneous mycoses with disadvantages like long duration of therapy, which leads to poor compliance and high relapse rate.
   TCG Life Sciences, a contract research firm in the area of drug discovery, has signed an agreement with global pharma giant
   Pfizer. The agreement would encompass developing compounds required for drug discovery. The Company is employing 1,100 staff
   and has plans to double it in the next two or three years. Although, the company had filed the DRHP with SEBI in 2008 for an IPO, it
   has now dropped the idea due to poor primary market conditions.



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                                                                                                                        Info-Spectrum
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                                            PHARMA & HEALTHCARE
Wockhardt gets US FDA nod for Alzheimer’s drug
                  Wockhardt has received tentative approval from the US FDA for marketing the 5mg and
                  10mg tablets of Memantine HCl, which is used for treatment of moderate to severe
                  Alzheimer’s disease and dementia. Memantine is the generic name for the brand Namenda,
marketed in the US by Forest Laboratories. The patent covering this product is under litigation in the US
courts. Wockhardt and Forest Laboratories have reached a settlement on their patent litigation, which will
allow Wockhardt to launch its generic version several months ahead of patent expiration or as soon as any
other generic version is launched. According to IMS, the total market for memantine tablets in the US is
about $1.1 bn and is the first in a novel class of Alzheimer’s drugs that block NMDA glutamate receptors.
The Memantine tablets will be manufactured at the US FDA certified formulation plant at Waluj, Aurangabad.
Orchid receives tentative US FDA nod for Memantine Tabs
The Chennai-based global pharmaceutical major, Orchid Chemicals & Pharmaceutical (Orchid) has received
tentative approval from the US Food & Drug Administration (US FDA) for its Abbreviated New Drug
Application (ANDA) for its generic drug Memantine Hydrochloride in 5 mg and 10 mg strengths. Its product
is determined to be the generic equivalent of Forest Laboratories’ Namenda 5mg and 10 mg. Memantine is
prescribed for the treatment of Alzheimer’s disease. Orchid filled its ANDA for this product under the
Paragraph IV, First-to-File (FTF) certification. The product is under patent litigation between Orchid and
Forest. According to IMS, the market for Memantine tablets is pegged at around US$1.1 bn.
Opto Circuits arm receives CE approval for TAXCOR Plus
Eurocor GmbH – the wholly-owned subsidiary of Opto Circuits (India) – has received CE
(Communité European) Mark approval for marketing and sale of its novel Drug Eluting Stent-
Taxcor Plus in world markets (sans US and Japan). Taxcor Plus is on a Cobalt Chromium
platform with Stent struts of 0.0025”, which is one of the thinnest struts available in the
industry. The stent is coated with Paclitaxel (1µg/mm2). Taxcor Plus provides unique
therapeutic benefits to patients requiring Drug Eluting Stents for Coronary Angioplasty. The thinnest stent
struts (low profile) result in superior deliverability to culprit lesions as against the other products available in
the market. Taxcor Plus is backed by years of research and has shown excellent clinical results as seen with
DIOR (Eurocor’s Drug Eluting Balloon). Most Drug Eluting Stents (DES) available in the market have a
polymer coating to keep the drug intact on the stent struts. However, in a certain group of patients, polymer
coatings on DES result in an inflammatory response and a delay in SAT (sub-acute Thrombosis). Taxcor Plus
doesn’t use a polymer.
Sharon Bio-Medicine to inaugurate new CRO division on Jan 09
Sharon Bio-Medicine has announced that its new division i.e. SA-FORD located at V- Taloja in Raigad district
of Maharashtra is going to be inaugurated on January 09, 2010 by Walter Stechel, Consul General of the
Federal Republic of Germany. SA-FORD stands for "Sanctuary for Research & Development". SA-FORD will
be a Contract Research Organization (CRO) specializing in the complete range of toxicology studies for
various segments in multiple industries across many countries. SA-FORD will strictly work according to
international guidelines (OECD GLP, OPPTS, EPA, ECH, ISO 10993 etc). The main focus areas of SA-FORD
will be pharmaceuticals, biocides, pesticides, REACh, food/nutraceuticals, medical devices and beyond. SA-
FORD performs all required toxicological studies for its clients.
   The Board of Directors of Nectar Lifesciences shall meet on January 12, 2010 to consider the proposal to raise funds through issue
   of GDRs/ADRs including preferential issue and QIP issue.
   Orchid Chemicals & Pharmaceuticals has purchased US$19.778 mn aggregate face value of the Bonds.
   Ocimum Biosolutions has announced the launch of its 'Pioneers in Genomics Education - Class of 2010' program. The intention of
   this program is to cement a strong industry-academia-industry relationship and provide cutting-edge genomic tools and technologies
   to the budding world-class researchers of tomorrow from key institutions. The program also aims to build a model for cross-
   academic and cross-industry exchange of knowledge and ideas. This program would be launched for India first.
   Polar Pharma India has further extended temporary closure of factory up to March 31, 2010 owing to non receipt of order from
   the Government of India till date.
   Bafna Pharmaceuticals has announced that the Company's product "Clonidine Hcl 0.25 mg has got approval from MHRA UK on
   December 11, 2009.
   CARE has reaffirmed the “AAA” rating assigned to the long-term bank facilities of Serum Institute of India (SIIL). CARE has also
   reaffirmed “PR1+” rating assigned to the short-term bank facilities of SIIL. These ratings are assigned to short-term and long-term
   bank facilities aggregating Rs. 6.56 bn.
   Dr. Reddy's Laboratories has entered into a licensing and technology transfer agreement with Transgene Biotek (TBL) for the
   out-licensing of a technology for the manufacture of Orlistat. As per the agreement, Dr. Reddy's will gain worldwide rights to a
   unique technology for the manufacture and commercialization of Orlistat API which was developed exclusively by TBL.
   Aarti Drugs is considering proposal for capital expenditure aggregating up to Rs. 40 crore by way of expansion/acquisition. This
   capital expenditure is to be funded by External Commercial Borrowing (ECB).




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                                             STEEL, METALS & MINERALS
Mineral production up 8.13% YoY in Oct’09
The mineral production from mining and quarrying sector in Oct’09 rose by 8.25%, as against the preceding
month. However, the mineral sector has shown a positive growth of 7.92% during Apr-Oct’09 period, in
comparison to the year-ago period. The mineral production rose by 8.13% in Oct’09, in comparison to Oct’08. The
total value of mineral production (excluding atomic & minor minerals) stood at Rs. 88.17 bn Oct’09. The
contribution of coal was the highest at Rs. 33.79 bn (38%). Next in the order of importance were: iron or Rs. 16.5
bn, petroleum (crude) Rs. 15.9 bn, natural gas (utilized) Rs. 12.37 bn, lignite Rs. 2.15 bn and limestone Rs. 2.33
bn. These six minerals together contributed about 94% of the total value of mineral production in Oct’09.
Production level of important minerals in Oct’09 were: coal 425 lakh tonne, lignite 26 lakh tonne, natural gas
(utilized) 3976 mn cu. m., petroleum (crude) 29 lakh tonne, bauxite 860 thousand tonne, chromite 248 thousand
tonne, copper conc. 11 thousand tonne, gold 163 kg., iron ore 160 lakh tonne, lead conc. 12 thousand tonne,
manganese ore 169 thousand tonne, zinc conc. 112 thousand tonne, apatite & phosphorite 110 thousand tonne,
dolomite 432 thousand tonne, limestone 185 lakh tones, magnesite 23 thousand tones and diamond 1390 carats.
In Oct’09, the output of apatite & phosphorite increased by 55.85%, coal 15.14%, lead conc. 9.30%, manganese
ore 8.6% natural gas (utilized) 8.52%, iron ore 7.47%, limestone 6.31%, dolomite 6.04%, lignite 5.91%,
petroleum (crude) 3.03%, copper conc 2.69%, zinc conc. 0.52% and magnesite 0.37%. However, the production
of bauxite decreased by 2.06%, gold 2.98% chromite 7.68% and diamond 9.15%.
Tayo Rolls inaugurates integrated forging plant at Gamharia
Tayo Rolls – a subsidiary of Tata Steel – has put up integrated forging facilities for the manufacture of forged rolls
and engineering forgings. This makes it the only company in the world manufacturing both cast and forged rolls at
a single location through a totally integrated facility, from blast furnace to finish rolls. Apart from producing forged
rolls the new facilities would also enable the company to manufacture engineering forgings to cater to the
requirements of the oil & gas, power, wind mill, sugar, cement and steel sectors. The total outlay for the project is
Rs. 1.68 bn, which has been funded through equity and term loans. This is the first instance that Tayo, in its over
four decades existence, has undertaken such an investment. The integrated forging facility comprises an arc
furnace, ladle furnace & vacuum degassing unit for manufacturing forging quality ingots, including round ingots; A
modern forge shop with 2,500 tonne open die forging press along with other auxiliaries to manufacture
engineering forgings and forged roll blanks; An induction hardening facility, a core requirement for forged rolls
along with other facilities like cryogenic treatment, heat treatment and machining facility to manufacture forged
rolls. The technology for the manufacture of forging quality ingots including round ingots, forged bars, engineering
forgings and forged rolls is being provided by Sheffield Forgemasters International Limited, UK.
    Tata Steel has recorded steel sales to the tune of 1.5 MT in Q3FY10, as against 1.07 MT in Q3FY09, registering a rise of over 40% on YoY
    basis, driven by robust demand from sectors like automobiles and consumer durables. The production of saleable steel surged 37% in Q3FY10
    to 1.6 MT, as against 1.23 MT in Q3FY09. Its crude steel output increased 15% in Q3FY10 to 1.72 MT and sales hot metal rose 11% YoY to
    1.88 MT in Q3FY10. In Dec’09, its sales rose 73% YoY to 6.35 lakh tonne.
    Uttam Galva Steels has hiked prices of its products by Rs. 3,000 a tonne citing increase in its input cost and firming global demand trend.
    The Board of Directors of Welspun-Gujarat Stahl Rohren has decided not to pursue the Scheme of Arrangement in the nature of demerger
    and transfer of plate cum coil mill division of the Company in to a subsidiary Company. Its Board has also decided to invest in equity share
    capital of a Company engaged in marketing activities i.e. Welspun Trading (formerly Seagull Global Trading) to make it a wholly owned
    subsidiary of the Company.
    The Board of Directors of Technocraft Industries India shall meet on January 18, 2010 to consider scheme of amalgamation of its 100%
    subsidiary company i.e. Technocraft Export with the Company.
    PSL has recently bagged orders worth over Rs. 4.25 bn.
    JSW Steel said that its production rose 88% to 14.69 lakh tonne in the third quarter of the current fiscal.
    GMR Ferro Alloys & Industries has announced that the name of the Company has been changed to Cronimet Alloys India from GMR Ferro
    Alloys & Industries
    The Board of Directors of Rohit Ferro Tech shall meet on January 05, 2010 to consider the issue of equity shares to existing shareholders on
    a right basis. Its Board shall also consider the proposal to increase of the authorized share capital of the Company.
    The Board of Directors of Nissan Copper shall meet on January 09, 2010 to consider issue of GDR/FCCB by the Company.
    POSCO has reportedly got final clearance from the ministry of environment and forests for acquiring forest land in Orissa for its US$12 bn
    steel plant project. The Company has already deposited Rs. 1.05 bn with the state government towards compensatory afforestation.
    Jindal Steel & Power is reportedly planning to match the offer of a Chinese energy company for Australian coal firm Rocklands Richfield. If
    JSPL raises its bid, it would be the second such revision to match the Chinese company in its bid for Rocklands.
    Jai Balaji Industries has produced 1.33 lakh tonne of crude steel in Q2FY10, as against 060 lakh tonne in Q2FY09, registering a rise of
    121% on YoY basis. Its metallic production stands at 2.08 lakh tonne in Q2FY10, as against 1.27 lakh tonne Q2FY09. The production of
    finished steel stands at 0.4 lakh tonne in Q2FY10, as against 0.24 lakh tonne in Q2FY09.
    Rashtriya Ispat Nigam has registered sales turnover of Rs. 75.24 bn during the current financial year from April to December as against Rs.
    69.76 bn in the year-ago period.
    SVC Resources has acquired exclusive mining operations at Dhamki in Jabalpur district of Madhya Pradesh admeasuring 17.2 acres through
    a definitive agreement. The mine consists of reserves of iron ore in the form of lumps and blue dust, it also has reserves of manganese ore.
    The Board of Directors of Varun Industries has given an in-principle approval for setting up an integrated, state-of-the-art stainless steel-
    cum-alloy steel complex at Rohat village near Jodhpur in Rajasthan.
    The Board of Directors of Rohit Ferro Tech has approved the proposal for Right Issue. Its Board has also decided to increase the authorized
    capital of the Company from Rs. 45 crore to Rs. 80 crore. Its Board has also decided to increase the borrowing powers of the Company from
    Rs. 5 bn to Rs. 10 bn.
    ArcelorMittal Netherlands BV, which is buying a 29.4% stake in Uttam Galva (UGSL), is reportedly planning to build a 1 MT steel plant at
    Satarda in Maharashtra through a JV with UGSL. While UGSL will contribute land and take care of its development as its share of equity for
    the project, Mittal will put in the hard cash.




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                                                   MISCELLANEOUS
Thomas Cook promotes itself as the Holidaywallas
Thomas Cook (India), India's largest integrated travel and travel related financial services Company, in its
3rd consecutive Holiday Summer Sale, is organizing a 3 month long travel road show covering 34 cities
across India. This road show will be kicked off in Cochin on the January 09, 2010. The annual road show has
become a benchmark in the travel industry and amongst the Indian traveler as a one stop shop for the 'most
sought after' travel offers and discounts in the travel space in India. The road show shall commence in
January 2010, and would continue through February and end in March. The 3 month road show has been in
existence for the past two years, aiming at showcasing the viability of Thomas Cook's business and chance
to plan a perfect holiday for all in India. The road show that was the travel companies brain child venture in
2008 with 20 Cities was extended in 2009 to 30 cites, Currently this is being planned to cover a record 34
cities in 2010. This year covering key destinations like Pune, Noida Hyderabad, Mumbai, Goa, adding various
others such as Gurgaon, Noida, Kanpur, Guwahati, Bhopal and Trivandrum. The road show organized by
Thomas Cook (India) Ltd is a holistic travel planning opportunity. The several partners in the road show,
including airlines, state and foreign countries tourism boards, cruise and rail companies, would have their
enclosures where potential tourists could seek information relating to their aspired holiday destinations
availing of the best worked out discounts.
Asian Electronics forms two JVs for retail, home lighting biz
Asian Electronics has formed two Joint Venture Companies (JVCs) with Home Solution Retail India and Idiom
Design and Consulting. The said JVCs – christened as Asian Retail Lighting and Home Lighting India – would
implement retail lighting solutions and home lighting solutions. Under the business assignment agreement,
between Home Lighting India and Asian Retail Lighting, Home Lighting India has been merged with Asian
Retail Lighting. The Company has disposed off its entire investment in Home Lighting India and has invested
further amount in the equity share capital of Asian Retail Lighting. The above arrangement will come in force
with retrospective effect from April 01, 2009, Asian Electronics added.
Eros International files DRHP for IPO
Mumbai-based, Eros International – promoted by Eros International Plc and Eros Worldwide FZ LLC – plans
to raise Rs. 3.5 bn through an Initial Public Offering (IPO) and has filed a Draft Red Herring Prospectus
(DRHP) with market regulator Securities & Exchange Board of India (SEBI) for the same. The Company is
considering pre-IPO placement of shares worth Rs. 20 crore with certain investors, according to the DRHP.
The equity shares offered through IPO are proposed to be listed on the BSE NSE. Enam Securities, Kotak
Mahindra Capital Company, Morgan Stanley India and RBS Equities India are the book running lead
managers for the issue. The public offer would be based on 100% book building process.
Legrand India to showcase 'Arteor' range of wiring devices
Legrand India – a subsidiary of €4.1 bn Legrand Group, the world specialist in products and systems for
electrical installations and data networks – will be showcasing its latest and innovative range of wiring
devices - 'Arteor' at Elecrama 2010 - the largest international exhibition on power, electrical and industrial
electronics in Asia. Legrand India will also focus on its offerings in the lighting management and energy
efficiency space. Its ninth consecutive Elecrama participation, Legrand India will highlight Arteor's striking
new range targeted at architects, interior designers, builders, institutions, hotels, commercial spaces and
industrial sectors across premium and luxury segments. With more than 1000 exhibitors participating from
over 30 countries, Elecrama will be held from 20th to 24th January 2010 in Mumbai.
   Sat Industries has announced that Sah Polymers hitherto a subsidiary Company has ceased to be a consequent upon change in
   shareholding pattern.
   The Board of Directors of Sat Industries shall meet on January 11, 2010 to consider the proposal to restructure the Company and
   to consider the draft scheme of the arrangement.
   Shri Lakshmi Cotsyn has commenced its part commercial production of the new spinning unit with the installed capacity of 10,000
   spindles with effect from January 01, 2010.
   Gloster Jute Mills has announced that workers of jute industry have gone on an indefinite strike called by central trade unions with
   effect from December 14, 2009. As a result of which manufacturing operations are affected at the main unit from Dec 14, 2009.
   The Board of Directors of Suryachakra Power Corporation has approved the proposal to issue FCCBs for an aggregate sum not
   exceeding US$100 mn.
   MIC Electronics has secured orders worth Rs. 14.15 crore.
   Abhishek Industries has completed expansion of manufacturing capacities of Terry Towel under which Company has installed 24
   new looms and upgraded 18 existing loom. With completion of this expansion, the total production capacity of Company's Terry
   Towel division has increased to 374 looms. The commercial production on the new installed facilities has been started with effect
   from January 02, 2010.
   Seamec has announced that the deployment of vessel i.e. Seamec Princess with Dubai-based Dulam International has been
   extended beyond December 29, 2009 for a further period of one Month.
   The Board of Directors of Rainbow Papers has decided to share production of its coating division on payment of job charges basis
   with Arms Papers. Its Board also discussed the matter of long term business tie-up with Arms Paper and Arms would be also selling
   the products of Rainbow to the dealers of Arms which would increase the turnover of the Company and establish new overseas
   market.



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                                                       MISCELLANEOUS
Birla Shloka Edutech announces price band for its FPO
Birla Shloka Edutech (part of the Yash Birla Group), an education company offering IT and IT-enabled
solutions has announced price band for its Further Public Offering (FPO) of Rs. 34.77 crore. The issue is
being made through 100% book building process. The price band for the FPO is set between Rs. 45 and Rs.
50 per equity share of Rs. 10 each. The issue will open on January 11 and close on January 13. The
proceeds from the FPO will be used for capital expenditure for turnkey projects executed by the company
under the BOOT model to the tune of Rs. 1,500 lakh, capital expenditure of Rs. 9.5 crore on upgradation of
infrastructure and content development for XL@School, balance for funding the proposed M&A activities and
meeting the working capital requirements. The equity shares of the company are presently listed on the
BSE, Calcutta Stock Exchange, and Ahmedabad Stock Exchange and the shares issued through the RHP are
proposed to be listed on all of these exchanges. Ashika Capitalis the Sole Book Running Lead Manager to the
issue and Bigshare Services is the Registrar for the issue.
Himadri Chemicals mulls acquiring three overseas cos for $400 mn
Himadri Chemicals & Industries, which has recently agreed to sell a 15.39% stake to Bain Capital India
Investments for Rs. 252.4 crore, is looking to buy three overseas firms for around $400 mn (Rs. 18.48 bn).
The Company plans to fund the acquisitions using borrowed funds secured by the assets of the target
companies. The Company plans to spend an equal amount in the next four years to scale up production in
India and build a coal tar distillation plant in China’s Shandong province. The Company will expand in
phases. In Phase-I, to be completed in 18-20 months, it will spend some $175 mn, while it would spend
$225 mn in Phase-II. By selling 6.31 mn shares to Bain Capital India, the Company has “fully tied-up” funds
for the first phase of expansion in India and China.
   The Board of Directors of Rainbow Papers shall meet on January 07, 2010 consider and finalize the matters pertaining to GDR issue.
   The Board of Directors of Sanraa Media shall meet on January 12, 2010 to consider issue of bonus shares.
   The Board of Directors of Arms Paper has decided to share production with Rainbow Paper on payment of job charges basis and long term
   business tie-up with Rainbow Paper.
   The Board of Directors of Dhampur Sugar Mills shall meet on January 11, 2010 to consider the proposal for raising of capital through
   domestic and/or international offering(s).
   The Board of Directors of Pidilite Industries shall meet on January 28, 2010 to consider the proposal for issue of Bonus Shares.
   The Board of Directors of Neha International shall meet on January 09, 2010 to consider fund raising possibilities.
   Raj TV Network has ventured into movie distribution. The Company has acquired exclusive distribution rights of upcoming Tamil movie
   “Kutty” and is hopeful of better revenue from distribution.
   Chartered Logistics has entered into contract with Shree Digvijay Cement and Ambuja Cement for transport of cement and other product
   with effect from January 01, 2010.
   The Board of Directors of Indo Amines shall meet on January 09, 2010 to consider the proposal of sell, lease, mortgage transfer and / or
   other dispose of the whole or any part of the Company's undertaking.
   The Board of Directors of Ruchi Soya Industries has approved investment in equity share capital of Gemini Edibles & Fats India (Gemini
   Edibles) engaged in the business of refining of edible oil. Post investment, Gemini Edibles will become subsidiary of the Company.
   Mohit Industries has proceeded into forward integration and development in patterns in suiting finished fabrics. It has developed it trade
   mark "NXTFAB" and applied for registration of the trade mark.
   The Board of Directors of KEI Industries has approved a foreign technical collaboration agreement and trademark license agreement with
   Switzerland-based Brugg Kabel AG to manufacture extra high voltage cables ranging from 66kV / 110 kV / 132kV / 220kV at its
   manufacturing facilities located at Bhiwandi and Chopanki in Alwar district of Rajasthan.
   Shri Ganesh Spinners has announced that part of plant & machinery has been disposed at for Rs. 45.42 lakh.
   Bilcare has opened GDR Issue for subscription from January 06, 2010 for seven days. The Company expects to raise up to US$35 mn from
   this offering. Each GDR will represent one underlying share in the Company.
   Harrisons Malayalam has announced that the plantation workers in Kerala who went on strike have started reporting for work from January
   06, 2010 consequent to an amicable solution arrived at with the trade unions.
   The Board For Industrial & Financial Reconstruction (BIFR) has formulated a Draft Rehabilitation Scheme (DRS) for revival of Kumar Wire
   Cloth Manufacturing Company and circulated the same to all concerned on December 15, 2009 for their consent. BIFR will hear objections
   / suggestions with regard to the DRS at the hearing to be held on February 25, 2010.
   Tulsi Extrusions has won 1st Prize for being the best corporate house in Jalgaon Directorate of Industries (DIC) during 2007 from Directorate
   of Industries of Maharashtra Govt.
   The Board of Directors of Rashel Agrotech approved the proposal to purchase agriculture land in Indore.
   Cosboard Industries has procured 200 tonne per month order for news print paper supply from The Samaj, the leading age-old news paper
   published from Orissa. Cosboard is a regular supplier to The Samaj and the supplies to The Samaj have become stable and regular.
   The Board of Directors of Tulive Developers shall meet on January 11, 2010 to consider the proposal to augment the Company's capital
   base by issuing shares on rights basis.
   The Board of Directors of Euro Ceramics shall meet on January 15, 2010 to consider the proposal of demerger of Mumbai realty division with
   the Company. Its Board will also consider the valuation report and draft scheme of demerger.
   West Coast Paper Mills has announced that illegal strike by workers of cable division started from January 06, 2010 has been called off and
   normal operations of the Cable Division at Mysore have started from January 08, 2010.
   The Board of Directors of Elpro International shall meet on January 11, 2010 to re-consider and approve the size of Rights Issue. Its Board
   shall also consider the draft letter of offer for Rights Issue.
   The Board of Directors of Mold-Tek Plastics shall meet on January 12, 2010 to consider the proposal for restructuring the Company. Its
   Board shall consider the proposal to issue of equity shares / fully convertible warrant to promoters / promoter group and others. Its Board
   shall also consider the proposal to change of name of the Company to Moldtek Packaging.
   Kodak has now become a clear number 2 in digital cameras category in India replacing Canon, as per the latest IDC report. The IDC report
   pegs Kodak's market share at 21.6 % in Q3, 2009 in the digital camera category, followed by Canon at 14.6%.



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                     RATINGS, BUY-BACKS, OPEN OFFERS & DELISTING
Brickwork assigns “AAA” rating on Rs. 5 bn NCD Issue of GE Shipping
Brickwork Ratings has assigned “AAA” rating with “Stable” outlook on the proposed Rs. 5 bn issue of
Unsecured Non Convertible Debentures (NCD) of Great Eastern Shipping (GE Shipping), which is in addition
to the Company's two earlier NCD issues amounting to Rs. 4.5 bn rated by Brickwork in Aug’09 & Oct’09
respectively. “AAA” rating stands for an instrument that is considered to offer BEST credit quality in terms of
timely servicing of principal and interest obligations. The rating factors, economies of scale, revenue
characteristics, operating efficiency, return on capital and management quality. BWR has relied on the
Company's audited financial results, projected financial figures, and the published unaudited financial results
declared for Q1 and Q2 of FY10, information and clarification provided by the Company.
CARE assigns “AA” rating on long-term bank facilities of Tata Realty & Infra
CARE has assigned “AA” rating on the long-term bank facilities of Tata Realty & Infrastructure (TRIL) for the
aggregate amount of Rs. 2 bn. This rating is applicable for facilities having tenure of more than one year.
The fcilities with this rating are considered to offer high safety for timely servicing of debt obligations. Such
facilities carry very low credit risk. CARE has also reaffirmed “PR1+” rating to the short-term Debt (STD)
programme of Rs. 2 bn of TRIL. This rating is applicable for instruments having a maturity not exceeding
one year from the date of placement. Instruments with this rating would have strong capacity for timely
payment of short-term debt obligations and carry lowest credit risk. The ratings derive strength from strong
parentage of Tata Sons and experienced management financial closure of its IT SEZ project at Chennai,
retail project at Amritsar and road project at Pune-Solapur highway. The rating also takes into account
TRIL’s alliance with experienced players in various fields.
ICRA assigns LAA+pn to ELD programme of Citicorp Finance (India)
ICRA has assigned “LAA+ pn” rating to the Rs. 2.5 bn Equity Linked Debenture (ELD) Programme of Citicorp
Finance (India) (CFIL). ICRA has an outstanding rating of “LAA+ pn” assigned earlier to the Rs. 2.5 bn ELD
Programme of the Company.. According to the terms of the rated instrument, the amount invested, that is
the principal, is not protected against erosion, while the returns on the instrument could also vary. Payments
on the rated instrument are linked to movements in one or more variables, such as equity indices,
commodity prices, and/or foreign exchange rates. The rating assigned expresses ICRA’s current opinion on
the credit risk associated with the issuer concerned. The rating does not address the risks associated with
variability in returns or erosion of principal resulting from adverse movements in the variable(s) concerned.
CFIL is owned by Citibank NA, which has an rating outstanding of A1 (Stable) assigned by Moody’s Investor
Services. Citibank NA is ultimately owned by Citigroup Inc. which is rated at A3 (Stable) by Moody’s Investor
Services. The rating assigned to CFIL’s ELD programme is primarily based on the strengths CFIL derives
from its parent such as access to management, funding and risk management systems. Access to such
support has enabled the company in the past to maintain profitable operations, albeit at a moderate level.
The rating also factors in ICRA’s expectation of a continued commitment of the parent to CFIL; any dilution
of the same could impact the credit profile of the company, and would warrant a review of the rating.
Brickwork assigns “A-(SO)” rating on NCD Issue of ABK Consultants
Brickwork Ratings (BWR) has assigned “A-(SO)” rating with “Stable” outlook on the Rs. 6 bn secured Non-
Convertible Debt Instruments (NCD) issue up to Rs. 6 bn with a tenor of 60 months for ABK Consultants,
which stands for an instrument that is considered to offer adequate credit quality in terms of timely servicing
of principal and interest obligations. The rating factored the underlying security, structured payment
mechanism, Max India's performance, as also its negative cash flows from operations and the net loss in
FY09. ABK Consultants is a Special Purpose Vehicle (SPV) promoted by the promoters of Max India to raise
an amount up to Rs. 6 bn by issue of NCDs against pledge of their unencumbered fully paid shares of Max
India. The amount raised through the NCD issue is proposed to be used to invest in other promoter group
companies for repayment of earlier debts and for general corporate purposes.
CARE assigns “BBB-” rating on bank facilities of Ballavpur Paper
CARE has assigned “BBB-” rating to the long/medium-term bank facilities of Ballavpur Paper Manufacturing
(BPML). The facilities with ‘Triple B’ rating are considered to offer moderate safety for timely servicing of
debt obligations. CARE has also assigned “PR3” rating to the short-term bank facilities of BPML. The
aforesaid ratings draw strength from the business experience of the promoters & group support, successful
commissioning of the project and stable operation thereafter, competitive pricing due to freight cost
advantage and presence of captive power plant. However, the ratings are constrained by the fact that the
company is in nascent stage of operation, promoters entering into unrelated area, volatility in the prices of
raw materials & finished products, foreign exchange fluctuation risk arising out of raw material import and
cyclical nature of paper industry.
   CARE has revised the rating assigned to the long-term bank facilities of Aditya Birla Telecom’s (ABTL) aggregating Rs. 275 crore
   from “AA- (SO)” to “AA (SO)” This rating is applicable for facilities having tenure of over one year.



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                     RATINGS, BUY-BACKS, OPEN OFFERS & DELISTING
ICRA assigns LAA- and A1+ rating to the bank facilities of Eicher Motors
ICRA has assigned “LAA-” rating to the Rs. 120 mn fund-based and Rs. 55 mn non fund based bank facilities
of Eicher Motors (EML). The outlook assigned to the long-term rating is “Stable”. ICRA has also assigned
“A1+” rating to fund based/non fund based facilities and Rs. 65 mn non fund based bank facilities of EML.
The assigned rating takes into account EML’s favorable financial risk profile given the strong liquidity
position, modest capex plans, low working capital intensity and its status as the holding company for VECV.
On a consolidated basis, VECV contributed around 85% to EML’s consolidated revenues during Jan-Sep’09.
EML’s standalone operations are confined to the Royal Enfield business, a niche player in the domestic
motorcycles market with its products targeted at the high end leisure cruiser motorcycles segment.
However, the Company has registered robust growth in motorcycles during recent quarters and has a
healthy pipeline of new products in the segment. On a standalone basis, the Company’s ability to generate
cash from the operational activities however remains limited given the moderate operating profits in two-
wheeler operations. EML’s net income is supported by interest/ dividend income on its liquid investments.
EML’s financial profile remains strong with large liquid investments.
Brickwork assigns “A” rating on Rs. 1 bn Bonds Issue of Lakshmi Vilas Bank
Brickwork Ratings has assigned “A” rating with “Stable” outlook to Lakshmi Vilas Bank's (LVB) lower Tier-II
bonds issue of Rs. 1 bn, which signifies adequate credit quality in terms of timely servicing of debt
obligations and the Rating Outlook further signifies the direction of the rating being stable in the near term.
Brickwork has relied upon the audited financial statements and information and clarifications provided by the
issuer. The Bank's deposits base have achieved a growth of 31% to reach Rs. 73.6 bn in FY09, as against
Rs. 56.18 bn in FY08. Similarly, its advances grew 36% to Rs. 52.45 bn in FY09, as against Rs. 38.58 bn in
FY08. A major weakness of the bank has been its Non-Performing Assets (NPAs) over the years. However,
the Bank has reduced its gross and net NPAs in FY09. Its gross and net NPAs were 2.71% and 1.24%
respectively in FY09, as against 3.51% and 1.55% respectively in FY08. However, the gross and net NPAs
have again increased to 2.91% and 1.55% respectively in Q2FY10. The bank's capital adequacy under
Basel-I stood at 10.09% in FY09, which is significantly lower than its peers' average of 13.3%. Similarly, the
bank's Tier-I capital was 361 bps lower than its peers' average of 12.24%. Capital adequacy ratio under
Basel-II was 10.29% in FY09, which declined to 9.73% in Q2FY10. The CRAR is expected to improve with
the proposed issue of Lower Tier-II bonds of Rs. 1 bn and also Rights issue of Rs. 2.65 bn. The rating
factored the bank's performance, capital adequacy, lower term loans component in its assets, and
concentration of its branches in semi urban and rural areas.
CARE assigns “BB” rating on long-term bank facilities of GTN Enterprises
CARE has assigned “BB” rating to the long-term bank facilities of GTN Enterprises (GEL). Facilities with this
rating are considered to offer inadequate safety for timely servicing of debt obligations and carry high credit
risk. CARE has also assigned “PR4” rating to the short-term bank facilities of GEL. The facilities with this
rating would have inadequate capacity for timely repayment of short-term debt obligations and carry very
high credit risk. Such facilities are susceptible to default. These ratings are assigned for an aggregate
amount of Rs. 165.14 cr. The above ratings are constrained by the highly-leveraged capital structure of the
Company, tight liquidity position and poor performance in FY09 as a result of an unfavorable textile industry
scenario and poor power supply situation in Tamil Nadu and Kerala where its plants are located. The ratings
also take into account the rescheduling of its term loans. The above ratings also factor in the vast
experience of promoters in the textile industry, presence of well-experienced management team and
established export market presence with niche presence in finer counts of yarn.
ICRA assigns favourable ratings on bank facilities of Compuage Infocom
ICRA has reaffirmed the long-term rating of “LBBB” to the fund-based limits of Compuage Infocom (CIL) for
an enhanced amount of Rs. 742 mn. The outlook for the long-term rating is stable. ICRA has also reaffirmed
the short-term rating of “A2” to the non-fund based limits of CIL for an enhanced amount of 1,500.5 mn.
The ratings factor in the established track record of the promoters in the IT products distribution business,
professional management of the company, strong distribution channel, diversified geographical presence and
well-diversified mix of products and vendors. The ratings also take comfort from the undertaking given by
the promoters to banks that the unsecured loans from promoters will not be withdrawn unless CIL infuses.
The ratings take into consideration that IT products distribution is a highly competitive, low margin and high
working capital-intensive business. Any demand slowdown for IT hardware and components can affect the
profits as volumes play a pivotal role in high absolute net realizations. Also any large debt funded capital
expenditure could materially affect leverage and coverage indicators. The long-term outlook is stable.
   CARE has decided to retain “PR2” rating to short-term facilities and “BBB” rating to long-term facilities of Sanwaria Agro Oils for a
   period of one year.




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                      RATINGS, BUY-BACKS, OPEN OFFERS & DELISTING
ICRA ups long-term, short-term ratings of Ponni Sugars (Erode)
ICRA has upgraded the rating from “LBBB” to “LBBB+” to the Rs. 250 mn fund-based limits, Rs. 15 mn non-
fund based limits, Rs. 79.9 mn existing term loan and Rs. 113.5 mn fresh term loan under the Government
of India’s scheme for extending financial assistance to Sugar Undertakings, 2007 of Ponni Sugars (Erode).
ICRA has also upgraded the short-term rating of “A2” to “A2+” to the short-term loan facilities of Rs 150 mn
within the fund based limits of Rs 250 mn. ICRA’s rating action takes into account Ponni Sugars’ healthy
operational and financial performance resulting from long crushing season, sufficient cane availability in its
command area and high recovery rates. The rating draws comfort from Ponni Sugars’ low gearing of around
0.7 times (as on March 31, 2009) and adequate bank limits to fund its operations. The short-term rating up
gradation has factored in the positive outlook on sugar sector in the near term. The rating is however
constrained by Ponni Sugars’ small size of operations with limited forward integration rendering the
company’s profitability more vulnerable to the cyclical trends inherent in the sugar business. Ponni Sugars’
profitability will also remain impacted by agro-climatic variations, government policies relating to cane
pricing, sugar release mechanism, taxation on cane and by- products as well as subsidy support for exports.
CARE reaffirms rating assigned to bank facilities of Serum Institute
CARE has reaffirmed the “AAA” rating assigned to the long-term bank facilities of Serum Institute of India
(SIIL). CARE has also reaffirmed “PR1+” rating assigned to the short-term bank facilities of SIIL. These
ratings are assigned to short-term and long-term bank facilities aggregating Rs. 6.56 bn. The ratings
continue to derive strength from highly experienced promoters and professionally qualified management,
proven track record for past four decades, longstanding affiliations with international agencies and quality
certifications for its manufacturing facilities. The ratings also factor in the continued strong financial position
characterized by growth in turnover & profitability levels, low gearing ratios and healthy investment
portfolio. Ability of the company to sustain competition amidst stringent international regulatory norms and
mitigation of foreign currency risk are the key rating sensitivities.
CARE assigns “AA+” rating on Rs. 3 bn perpetual bonds issue of OBC
CARE has assigned “AA+” rating to perpetual bonds of Oriental Bank of Commerce (OBC) for Rs. 3 bn. The
ratings factor in the long standing operations of the bank spread over 65 years, Government of India’s
majority ownership in the Bank and the support expected from its majority shareholder in case of need,
sustained business growth in the past, high technology orientation characterized by extension of Core
Banking Solution (CBS) to all its branches and adequate capitalization level. The rating also takes into
account the medium asset size of the bank, limited scope for raising fresh equity capital due to 51% GOI
ownership and moderate asset quality. OBC’s ability to maintain increasing capital requirements to support
growth in advances with simultaneous focus on maintaining its asset quality and sustain profitability margins
would remain key rating sensitivities.
   ICRA has withdrawn “LBBB+” rating assigned to the Rs. 2.75 bn of term-loan facilities and Rs. 270 mn fund-based limits of Adani
   Energy (AEL). ICRA has also withdrawn “A2” rating assigned to the Rs. 850 mn non-fund based limits of AEL. The ratings have been
   withdrawn following the approval of scheme of demerger of city gas distribution division of AEL into an Adani Group Company
   namely “Adani Energy (UP) [AEUL], by High Court of Gujarat. As per the demerger scheme, all of the AEL’s current bank borrowings,
   which were rated by ICRA, stand transferred to AEUL.
   CARE has assigned “BBB -” rating to the long-term bank facilities of Moser Baer India. It has also assigned “PR3 -” rating to the
   short term bank facilities of the Company.
   KND Engineering Technologies has announced that Company's securities have been voluntarily delisted from Madras Stock
   Exchange with effect from December 21, 2009.
   CARE has assigned a “BB+” rating to the long-term bank facilities of Welspun Syntex aggregating Rs. 76.74 crore. CARE has also
   assigned “PR4” rating to the short-term bank facilities of WSL aggregating Rs. 39 crore. The ratings are constrained by poor
   operating environment resulting in losses for the past three years, poor liquidity position leading to unsatisfactory track record of
   debt servicing and fragmented nature of the industry imparting low pricing power.
   ICRA has revised the long-term rating assigned to the Rs. 655 mn NCD of Trent from “LAA-” to “LA+”. The outlook on the long-term
   rating is stable.
   The Board of Directors of Asian Films Production & Distribution has decided to delist the equity shares from Ahmedabad Stock
   Exchange.
   Bain Capital India Investments along with Bain Capital Fund X, Bain Capital India Integral Investors, and Bain Capital India Integral
   Mauritius has made an Open Offer to shareholders of Himadri Chemicals & Industries at a price of Rs. 400 apiece payable in
   cash. The Offer shall open on February 25, 2010, while the date of closing of the Offer has been fixed at March 17, 2010. Enam
   Securities has been retained as the Manager to the Open Offer.
   CARE has assigned “A” rating to the long-term bank facilities of HBL Power Systems (HBL) aggregating Rs. 543.85 crore. This rating
   is applicable to facilities having tenure of more than one year. CARE has also assigned “PR 1” rating to the short-term bank facilities
   of HBL aggregating Rs. 564 crore. This rating is applicable to facilities having tenure up to one year.




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                                                             M&As
Marico enters Malaysian hair styling market; buys Code 10 from Colgate-Palmolive
Marico Group has stepped into Malaysian hair styling market by acquiring brand Code 10 from Colgate-
Palmolive for an undisclosed amount. Marico has acquired Code 10 and related Intellectual Property Rights
through Marico Malaysia Sdn Bhd, a wholly owned subsidiary of Marico Middle East FZE. The acquisition
would provide Marico a platform in the South East Asian market, which will enable the Company to grow
faster organically in the region. The companies also entered into a transition services agreement, under
which Colgate-Palmolive will continue to distribute the Code 10 range of products for a period of six months.
Code 10 range consists of hair creams and gels. The Malaysian hair styling market has a size of Rs. 2 bn and
Code 10 is the third largest player in this segment with a market share of over 10%.
Novartis to buy Nestlé's 52% stake in Alcon for $28.1 bn
Swiss pharmaceutical giant, Novartis AG has announced that the Company is exercising its call option to buy
from Nestlé a 52% stake in Alcon, in which it already holds 25% interest. Novartis will pay $180 per share
(about $28.1 bn) for the deal. Novartis had purchased a 25% stake in Alcon from Nestlé in Apr’08 for $143
apiece and as per that agreement, Novartis was entitled to exercise its call option to buy additional 52%
stake. With the latest purchase, Novartis will have a 77% holding in Alcon, which amounts to $168 per share
(about $38.5 bn). The acquisition is expected to be completed in the second half of 2010. Novartis said the
purchase would be funded from available liquidity and up to $16 bn of external short- and long-term debt
funding. In the offer for the remaining stake in Alcon, Novartis proposed a fixed exchange ratio of 2.80
Novartis shares for each remaining Alcon share, which represents a 12% premium to unaffected Alcon share
price of $137. Novartis plans to ask its shareholders to approve the issuance of 98 mn new shares, which
together with 107 mn shares already held in treasury, will be used to finance the acquisition of the Alcon
minority shares. As of November 30, 2009, Novartis had 2,285 mn shares outstanding. Once the merger is
completed, the new Novartis eye care division will include Alcon, CIBA Vision and selected ophthalmic
medicines. Novartis believes that Alcon will strengthen its portfolio focused on healthcare, and provide
greater access to the fast-growing global eye care sector.
Reliance MediaWorks acquires UK-based ilabs
Reliance MediaWorks has expanded and strengthened its international presence with the opening of a
dedicated film and media services facility in London will offer front-end, processing, restoration, 2D to 3D
conversion and post-production services to Broadcasters and Studios. Reliance MediaWorks has acquired the
assets of ilab UK, one of only two film processing facilities operating in London’s SOHO. The highly regarded
ilab has been the lab of choice for high end processing for film, television, commercial and shorts
productions. Reliance MediaWorks UK, can both offer high end services within its own facility, as well as
tapping into the quality and scale of services available through Reliance MediaWorks’ operations in India and
US. To further enhance the synergy between the services offered by Reliance MediaWorks across three
continents, the Company has established an optical fibre network, first of its kind, through Reliance
Globalcom’s Ethernet Private Line. This network has already been used for close to a year for distributing
digital cinema releases of Indian films from Mumbai to the US.
   WireCo WorldGroup has completed the acquisition of Phillystran for an undisclosed term.
   The shareholders of Megasoft have approved the scheme of arrangement between the Company and its equity shareholders.
   The Board of Directors of Welspun-Gujarat Stahl Rohren has decided to invest in equity share capital of a Company engaged in
   marketing activities i.e. Welspun Trading (formerly Seagull Global Trading) to make it a wholly owned subsidiary of the Company.
   The Board of Directors of Zylog Systems shall meet on January 09, 2010 to consider an acquisition of a Company in Canada.
   Varun Industries has acquired the entire equity share capital of Mumbai-based Nagina Hotel, thereby making it a wholly owned
   subsidiary of the Company. The Company has plans to locate the Corporate Office of the Group at the premises owned by that
   Company at Byculla, Mumbai.
   Bangladesh Telecommunication Regulatory Commission (BTRC) has approved the $300 mn investment proposal of Bharti Airtel to
   acquire 70% stake in mobile service provider, Warid.
   GMR Infrastructure has announced that the Board of Directors of its subsidiary company i.e. GMR Hyderabad International Airport
   (GHIAL) has have approved a Scheme of Arrangement to vest the undertaking of the hotel division of GHIAL into its wholly owned
   subsidiary i.e. GMR Hotels & Resorts (GHRL). The Scheme once approved by the High Court of Andhra Pradesh, would be effective
   from April 01, 2009, GMR Infrastructure added.
   Dabur India has announced that a meeting of the equity shareholders and unsecured creditors of the Company will be held on
   February 01, 2010 to consider the amalgamation of Fem Care Pharma with the Company.
   The Board of Directors of Ruchi Soya Industries has approved investment in equity share capital of Gemini Edibles & Fats India
   (Gemini Edibles) engaged in the business of refining of edible oil. Post investment, Gemini Edibles will become subsidiary of the
   Company.
   Saint Paul, Minnesota-based, Lawson Software has announced its intent to acquire privately-held Healthvision Solutions, Inc., a
   Dallas-based company providing integration and application technology to hospitals, through the acquisition of its parent holding
   company Quovadx Holdings. The acquisition was for $160 mn in cash, and the deal is expected to close in Jan’10.
   Telenor Asia (Telenor) for acquisition of further 11.1% stake in Unitech Wireless by way of issuance of fresh shares. Taking into
   account the existing investment of Rs. 26.2 bn (approximately) made by Telenor, its total investment in Unitech Wireless amounts to
   Rs. 41.13 bn and with this, total shareholding of Telenor in total issued and paid-up equity share capital of Unitech Wireless shall
   increase from 49% to 60.1%.



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                                         INSURANCE & MUTUAL FUNDS
Rel Life Insurance launches two new products
Reliance Life Insurance has launched two new products i.e. Jan Samriddhi Plan and Super InvestAssure Plan
and aims to garner Rs. 6 bn premium from them within this fiscal. Jan Samriddhi Plan, which is targeted at
the rural population, will have premium installments of Rs. 50 per month and will offer guaranteed returns
along with accidental cover and maturity benefits. Available to a group of a minimum 5,000 members, its
minimum annualized premium will be Rs. 5,000, while maximum limit will be at Rs. 10,000. Super
InvestAssure is a regular premium scheme, which has been designed to meet regular savings, protection
and income needs of customers with a risk-averse profile. With annual premium of Rs. 5,000, this plan will
reward insured people in terms of guaranteed contributions up to 250% from the Company, in addition to
earning growth. Reliance Life Insurance has collected a renewal premium of Rs. 13 bn till Nov’09 and has
5.5 mn policy-holders.
Max New York Life re-structures its ULIP Portfolio; introduces four new products
Continuing a tradition of delivering products with strong customer value, Max New York Life Insurance
Company, one of India's leading life insurance companies re-structured its ULIP portfolio by announcing the
launch of four new financial solutions. These solutions have been specially designed as a hallmark of
guarantee and safety to address the consumers' need of protection growth as well transparency. All of these
products are compliant to IRDA's regulation of capping of charge to reduce the reduction in net yield and will
positively impact customer benefits. Max New York Life Fortune Builder is a unit linked endowment plan that
provides a unique combination of protection with potentially higher returns to fulfill goals. Max New York Life
Unit Builder Plus, is a limited pay ULIP, which is designed to not only give you guaranteed returns but, also
has an annual income plan for that little extra income to enjoy life to the fullest. Smart Invest Pension Super
is a ULIP pension plan, helps build retirement corpus makes retirement an event to look forward to. SMART
Xpress is a flexible ULIP, with systematic transfer plan option, which offers secured returns even during
market volatility. SMART Xpress has been specially designed to address the consumers' need of capital
preservation and growth.
Kotak MF Unveils Nifty Exchange Traded Fund
Kotak Mutual Fund has launched a new fund named as Kotak Nifty ETF, an open-ended exchange traded
fund. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue will be open for
subscription from 11 January 2010 and closes on 19 January 2010. The investment objective of the scheme
is to provide returns before expenses that closely correspond to the total returns of the S&P CNX Nifty
subject, to tracking errors. The scheme will invest in the stocks that comprise the S&P CNX Nifty and in the
same proportion as in the index. The scheme will allocate 90% to 100% of assets in stocks comprising S&P
CNX Nifty with medium to high risk profile. It will allocate up-to 10% of assets in debt and money market
instruments with low risk profile. The minimum investment amount during the NFO is Rs. 10,000 and in
multiples of Rs. 1,000. The scheme’s performance will be benchmarked against S&P CNX Nifty index. The
units of the scheme will initially be listed on NSE on allotment. Sajit Pisharodi will be the fund manager for
the scheme. Peerless MF files offer documents with SEBI to launch three funds
Peerless Mutual Fund has filed offer documents with Securities & Exchange Board of India (SEBI) to launch
three open-ended debt schemes namely: Savings Fund, Short Term Fund & Peerless Liquid Fund. The New
Fund Offer (NFO) price for all the schemes will be Rs. 10 per unit. The investment objective of Savings
Fund the scheme is to generate income through a portfolio of predominantly high quality fixed income
securities and with a marginal exposure to equity and equity related instruments. The scheme would allocate
80% to 100% of asset in debt & money market instruments with low to medium risk profile. The minimum
application amount will be Rs. 1,000 and in multiples of Re. 1 thereafter. The investment objective of Short
Term Fund is to generate income and capital appreciation by investing in a diversified portfolio of debt and
money market securities. The scheme would allocate 25% to 100% of asset in money market instruments
(including cash, CBLO, repo, CPs, CDs, Treasury Bills and Government securities) with maturity / residual
maturity up-to 1 year with low to medium risk profile. The investment objective of Liquid Fund is to provide
a high level of liquidity with reasonable returns commensurate with low risk through a portfolio of money
market and debt securities. The scheme would offer Super Institutional Plan, Institutional Plan and Retail
Plan. The minimum application amount under Super Institutional Plan will be Rs. 5 crore and in multiples of
Re. 1 thereafter. The application amount for retail plan shall be Rs. 5,000 in multiples of Re. 1 thereafter.
   Reliance Mutual Fund has filed an offer document with SEBI to launch Reliance Hybrid Savings Fund, a close-ended income scheme.
   The NFO price for the scheme will be Rs. 10 per unit. The investment objective of the scheme is to generate returns and reduce
   interest rate volatility, through a portfolio of fixed income securities that are maturing on or before the maturity of the scheme along
   with capital appreciation through equity exposure. The minimum application amount will be Rs. 5,000 and in multiples of Re. 1
   thereafter.
   ICICI Lombard General Insurance Company has signed a bancassurance agreement with Development Credit Bank for the
   distribution of general insurance products through 80 branches of DCB across 10 states and 2 union territories. As per the
   agreement ICICI Lombard GIC will offer its products in the general insurance space, to the customers of DCB.


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                                          INSURANCE & MUTUAL FUNDS
Axis MF files offer document with SEBI to launch open-ended income scheme
Axis Mutual Fund has filed an offer document with Securities & Exchange Board of India (SEBI) to launch
Axis Income Suraksha Fund, an open-ended income scheme. The New Fund Offer (NFO) price for the
scheme is Rs. 10 per unit. The investment objective of the scheme is to generate regular income through
investments in debt & money market instruments, along with capital appreciation through limited exposure
to equity and equity related instruments. It also aims to limit the downside to a maximum of 5 % of NAV in
a calendar year. The scheme would offer growth and dividend option. Dividend option would offer dividend
payout and dividend reinvestment facility. Investors may get facility of monthly, quarterly and half yearly
and annual dividend option. The entry load is not applicable for the scheme. The exit load charge will be 1%
if units are redeemed/switched out within 1 year from the date of allotment. The minimum application
amount will be Rs. 5000 and in multiples of Re 1 thereafter.
JP Morgan MF files offer document with SEBI to launch Short Term Income Fund
JP Morgan Mutual Fund has filed an offer document with Securities & Exchange Board of India (SEBI) to
launch JP Morgan India Short Term Income Fund, an open-ended income scheme. The New Fund Offer
(NFO) price for the scheme will be Rs. 10 per unit. The investment objective is to generate income by
investing primarily in money market and short term debt instruments. The scheme shall offer two plans -
retail and institutional plan. Both the plans under the scheme offer two options - growth and dividend
option. The scheme would allocate 10% to 100% of asset in money market and debt instruments with
maturity / average maturity / interest rate reset not greater than 1 year with low risk profile. It would
further allocate the assets in debt instruments with maturity / average maturity / interest rate reset not
greater than 7 years with low to medium risk profile. The minimum application amount will be Rs. 5,000 and
in multiples of Re. 1 thereafter for retail plan and Rs. 1 crore and in multiples of Re. 1 thereafter for
institutional plan. The scheme’s performance will be benchmarked against CRISIL Short-Term Bond Fund
Index.
Kotak MF files offer document with SEBI to launch Credit Opportunities Fund
Kotak Mutual Fund has filed an offer document with Securities & Exchange Board of India (SEBI) to launch
Kotak Credit Opportunities Fund, an open-ended debt scheme. The New Fund Offer (NFO) price for the
scheme will be Rs. 10 per unit. The investment objective of the scheme is to generate income by investing
in debt/and money market securities across the yield curve and credit spectrum. The scheme would also
seek to maintain reasonable liquidity within the fund. The scheme shall offer growth and dividend option.
Dividend option shall offer sub-options of dividend payout and dividend re-investment. The scheme would
allocate 35% to 100% of asset in debt, money market instruments & government securities with maturity
up-to 1 year with low risk profile. It would allocate up-to 65% of assets in debt, money market instruments
& government securities with maturity greater than 1 year with low to medium risk profile. The minimum
application amount during NFO period will be Rs. 5,000 and in multiples of Re. 1 for purchase. The scheme’s
performance will be benchmarked against CRISIL Short Term Bond Index.
DSP BlackRock MF files offer document with SEBI for Focus 25 Fund
DSP BlackRock Mutual Fund has filed an offer document with SEBI to launch DSP BlackRock Focus 25 Fund,
an open-ended equity growth scheme. The New Fund Offer (NFO) price for the scheme will be Rs. 10 per
unit. The primary investment objective of the scheme is to generate long-term capital growth from a
portfolio of predominantly equity and equity-related securities including equity derivatives. The scheme will
normally hold a core position of between 20 and 30 common stocks. The scheme may hold a limited number
of additional securities at times such as when the Investment Manager is accumulating new positions,
phasing out and replacing existing positions, or responding to exceptional market conditions. The scheme
may also invest in debt and money market securities, for defensive considerations and / or for managing
liquidity requirements. The scheme shall offer growth and dividend option. Dividend option shall offer sub-
options of dividend payout and dividend re-investment. The minimum application amount for first purchase
during NFO and continuous offer will be Rs. 5,000 and in multiples of Re. 1 thereafter. The scheme’s
performance will be benchmarked against BSE Sensex.
   Aditya Birla Minacs has partnered with NorthStar Systems International, a provider of wealth management software solutions, to provide a
   total wealth management package. This new solution combines Aditya Birla Minacs' integrated back and middle office with Northstar's fully
   integrated wealth management platform to create a service offering to seamlessly support wealth front offices in delivering a superior
   customer experience.
   Kotak Mahindra Group has partnered with Overseas Indian Facilitation Centre (OIFC) to offer wealth management advisory and investment
   services for Non Resident Indians (NRIs). The financial solutions and investment product offerings from the Kotak Mahindra Group are
   specifically customized to suit the overseas Indian investors' personal financial needs. OIFC is a non-profit public private initiative of the
   Ministry of Overseas Indian Affairs (MOIA) and Confederation of Indian Industry (CII).
   Shinsei Mutual Fund has filed an offer document with SEBI to launch Shinsei Govt Securities Fund - Long Term Plan, an open- ended gilt
   scheme. The NFO price for the scheme will be Rs. 1,000 per unit. The objective of the scheme is to generate income and capital appreciation
   exclusively through investments in sovereign securities issued by the Central Govt (including Treasury Bills) and/or by State Govts, without
   any restriction on the maturity of the portfolio. The minimum application amount will be Rs. 10,000 and in multiples of Re. 1 thereafter. The
   scheme’s performance will be benchmarked against I-SEC LI-BEX index.



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                                                   ENSUING EVENTS
Elecrama 2010…exhibition on power, electrical and industrial electronics on Jan 20-24 in Mumbai
Indian Electrical and Electronics Manufacturers Association (IEEMA), which represents the entire Indian
            electrical and industrial electronics industry is organizing Elecrama 2010, largest international
            exhibition on power, electrical and industrial electronics in Asia, will be held at Bombay Exhibition
            Centre in Mumbai from 20th to 24th January 2010. ELECRAMA (an ISO certified event) is a world
            class forum for convergence of trade and users of the Electrical and Electronics Industry. It is a
movement, rather than an event; representative of top quality organizational, technological and
management competencies of the new India. It offers an unparalleled window of access to a bold new future
of immense opportunities to exhibitors, visitors and consumers alike. It endeavours to provide its customers,
through traditional Indian values of hospitality, warmth and sophistication, a world class exhibition
experience to all participants.
TRAFOTECH… IEEMA to organize 8th Global Conference on Transformers on 18-19 Jan in Mumbai
             The Indian Electrical & Electronics Manufacturers' Association (IEEMA) is organizing the 8th
             International Conference on Transformers on 18th & 19th January 2010 at The Leela Hotel (Sahar)
             near Mumbai International Airport, Mumbai Mumbai. TRAFOTECH, held once in four years is a
             prestigious international conference and has gained wide recognition for the state-of-the-art
information and insight it provides over the years. TRAFOTECH-2010 will provide transformer manufacturers
and users, a common platform to review the recent advances and futuristic trends, share operational
experience and discuss requirements of reliable transformers of world class quality. The objective of the
Conference is to exchange knowledge, experience and concerns on the topics mentioned in the theme above
for enhanced availability of transformers through standardization. TRAFOTECH–2010 would dwell upon all
these aspects of transformers viz. basic specifications, operating conditions, guaranteed technical
particulars, design philosophy, materials & components, key manufacturing processes, quality checks, works
testing, transportation, installation, site tests & commissioning, O&M monitoring, asset management, failure
investigation, diagnostic analysis etc. with focus on standardization.
ASSOCHAM to organize 12th Energy Summit on Jan 19 in New Delhi
In order to discuss various prospects and challenges that exist in the Indian Oil and Gas sector, the
Associated Chambers of Commerce & Industry of India (ASSOCHAM) is organizing the 12th Energy Summit –
Indian Oil & Gas Sector on January 19, 2010 in New Delhi. The Summit is designed to provide a balanced
view of the opportunities in upstream, refinery, oil field services, and the prospect of cooperation in joint
R&D in developing cutting edge technologies. This Summit will also provide an excellent networking platform
for local and international oil & gas companies, technology and equipment providers and other industry
players to discuss the latest & future trends in this sector. The objective of the Summit is to provide a
common platform to the representatives from the oil, gas, power, infrastructure, financing, equipment
manufacturing and other related sectors for a meaningful B2B dialogue. The theme of the discussion will be
centered around evolving and exploring business opportunities in oil & gas sector, which lay emphasis on
sustainability and security aspects.
   The Indian Electrical & Electronics Manufacturers' Association (IEEMA) is organizing the 7th International Seminar on Capacitors,
   “CAPACIT-2010” on January 21-22, 2010 at Leela Kempinski (Sahar) near Mumbai International Airport.
   The FICCI is organizing its 13th Conference on Insurance on January 12, 2010 at Hotel Taj Lands End in Mumbai to discuss and
   debate the current issues and challenges faced by the industry and set a roadmap to enable the Indian Insurance Industry become
   globally competitive. The Conference is the most comprehensive forum available for insurance professionals. More than 300 industry
   experts gather to examine trends and strategize for the future of insurance penetration, product development, distribution and
   administration.
   IEEMA is organizing the 2nd International conference on Instrument Transformers: “TECH-IT 2010” on 21-22 January, 2010 at The
   Leela Kempinski (Sahar) near Mumbai International Airport. The main objective of this conference is to discuss various issues related
   to above theme. The conference also expects to receive and discuss views of the Users regarding their expectations of performance
   of instrument transformer and the extent to which these expectations are met by the manufacturers.
   The Indian Stainless Development Organisation (ISDO) and Steel Market Info will jointly host an international stainless steel fair in
   Ahmedabad next month, bringing together Indian and foreign industry players to share their business strategies. Indinox - Stainless
   Steel Fair 2010 will be held on January 16-19, 2010. The fair is expected to have 850 stalls, including 800 domestic exhibitors and
   50 international exhibitors.
   The Ministry of New & Renewable Energy (MNRE) along with Federation of Indian Chambers of Commerce & Industry (FICCI) is
   organizing a Solar Conclave 2010 which will provide a common plat form to share the experience of various stakeholders including
   the NRIs in the promotion of solar energy in India and meeting the national Solar Mission target a reality. The main objective of the
   event is to showcase the opportunities and the potential of solar energy development in the country.
   The ASSOCHAM jointly with Association of Mutual Funds in India (AMFI) is organizing a Mutual Fund Summit on January 20, 2010 at
   Hotel Le-Meridien in New Delhi. The key issues to be discussed include: Protecting & promoting interest of Investors; Enhancing
   awareness of Mutual Fund Industry; Trends and Challenges for the Asset Management Business; International Investing; Emerging
   Market Opportunities; Understanding Risks Associated with Mutual Fund Investment; Globalization of Mutual Funds; Challenges of
   Mutual Fund Industry: Reaching out to retail investors etc.




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                                                  GLOBAL ECONOMY
Bernanke defends role of monetary policy in housing bubble
             The US Federal Reserve Chairman Ben Bernanke has blamed lax financial regulation for the
             financial crisis and defended the role of the central bank's monetary policy in the run up to the
             housing bubble. Bernanke argued that low interest rates in the first few years of the last decade
             were appropriate for the time and had not directly caused the price bubble in the US housing
             market. The Fed has come under criticism from some quarters for keeping interest rates too low
for too long in the early 2000s. Bernanke suggested that regulatory failure, rather than an overly
accommodative monetary policy, was responsible for the housing bubble and the ensuing financial crisis.
Bernanke pointed out that the most important source of lower initial payments that attracted more and
more people to enter the housing market was not the general level of short-term interest rates, but the
increasing use of more "exotic" types of mortgages and the associated decline of underwriting standards.
Bernanke also called for stricter financial regulation to prevent a repeat of the financial crisis that he said
could turn out to be the worst in modern history. Bernanke called for a strengthening of the financial
regulatory system to prevent a repeat of the crisis.
Top Asian officials to discuss lessons of financial crisis, policy responses
Top officials from around Asia will gather at the Asian Development Bank (ADB) headquarters in Manila to
discuss the lessons of the global economic and financial crisis, and the policy adjustments needed to cushion
the region against future shocks. Over 80 participants, including finance ministers, heads of central banks,
leaders from think tanks and the private sector, and development experts, from nearly 20 countries in the
region will take part in a two-day regional forum organized by ADB on 14–15 January 2010 on the Impact of
the Global Economic and Financial Crisis. ADB President Haruhiko Kuroda will open and close the forum and
chair a panel discussion. The forum will examine the broad causes of the crisis and its impacts in Asia, as
well as the lessons learned, with senior officials from East Asia, South Asia, Southeast Asia and Central and
West Asia, detailing the broad array of government policy actions taken in response. The participants will
also examine the social impacts of the crisis ― which left tens of mns of Asians mired in extreme poverty
they might otherwise have escaped ― and what policy actions should be taken to protect poor and
vulnerable communities. The measures to boost regional cooperation and integration are also expected to be
discussed as Asia looks at collective measures to cushion itself against future risks. The forum will conclude
by examining priority actions that individual countries need to take as their economies emerge from the
aftermath of the global slowdown.
US factory orders jump 1.1% in Nov; pending home sales plunge by 16%
The new orders for manufactured goods in the US increased by more than anticipated in Nov’09,
with the strong growth reflecting a notable increase in orders for non-durable goods. The report
showed that factory orders increased by 1.1% in Nov’09 following an upwardly revised 0.8%
increase in Oct’09. Factory orders rose for the seventh time in the past eight months, with the
bigger than expected increase largely due to a 1.8% increase in new orders for non-durable goods, which
followed a 2.2% increase in Oct’09. Orders for durable goods edged up by 0.2% in Nov’09 after falling by
0.7% in Oct’09, reflecting a notable increase in orders for computers and electronic products. Excluding a
5.8% decrease in orders for transportation equipment, factory orders increased by an even more substantial
1.9% in Nov’09, as against 1% rise in Oct’09. The shipments of manufactured goods increased for the fifth
time in the past six months, rising by 1% in Nov’09 following a 1.5% rise in Oct’09. The inventories edged
up by 0.2% in Nov’09 after increasing by 0.6% in Oct’09. With the pace of shipments growth still outpacing
inventories growth, the inventories-to-shipments ratio edged down to 1.32 in Nov’09, as against 1.34 in
Oct’09. Separately, The National Association of Realtors (NAR) has released its report on pending home
sales in the month of Nov’09, showing that pending home sales fell by much more than expected after a
surge of activity in recent months. The NAR said that its pending home sales index fell by 16% to 96.0 in
Nov’09, as against an upwardly revised 114.3 in Oct’09. Pending home sales fell in all four regions of the
country, with pending sales in both the Northeast and the Midwest falling by 25.7%.
   The Bank of England (BoE) has left its key interest rate unchanged as expected for the 10th month in a row and maintained the size
   of its quantitative easing measures at £200 bn in an attempt to help the fragile economy out of a long recession.
   The Bank of Korea has decided to keep interest rates on hold for the 11th consecutive month, maintaining the record low of 2%.
   Indonesia's central bank kept its key interest rate unchanged at a record low of 6.5% for a fifth consecutive month in Jan’09. The
   central bank said the rate decision is consistent with its inflation target and will support the economy.
   Eurozone annual inflation increased to 0.9% in Dec’09 from 0.5% in Nov’09, as per the flash estimate released by the Eurostat.
   The United Kingdom's CIPS/Markit Purchasing Managers' Index (PMI) for the construction sector stood at a seasonally adjusted 47.1
   in Dec’09, extending the current sequence of contraction to 22 months.
   Markit Economics announced that the Netherlands NEVI Manufacturing Purchasing Managers' Index stood at a seasonally adjusted
   53.1 in Dec’09. Manufacturing output increased at a robust pace in Dec’09 reflecting growth in new incoming business.
   Markit Economics reported that the South Korea HSBC Manufacturing Purchasing Managers' Index stood at 52.8 in Dec’09, up from
   52.6 in Nov’09. Manufacturing output continued to rise in Dec’09, with the pace of output growth accelerating to a three-month high.



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                                                   GLOBAL ECONOMY
US mfg growth rises to highest level in over three years; construction spending falls in Nov
Activity in the manufacturing sector expanded for the fifth consecutive month in Dec’09, according to a
report released by the Institute for Supply Management (ISM), with growth coming in at its highest level in
over three years. The ISM said its index of activity in the manufacturing sector jumped to 55.9 in Dec’09
from 53.6 in Nov’09. An acceleration in the pace of new orders growth contributed to the improvement in
the sector, with the new orders index rising to 65.5 in Dec’09 from 60.3 in Nov’09. The increase lifted the
index to its highest level since Dec’04. Production also increased at a faster pace, as the production index
edged up to 61.8 in Dec’09 from 59.9 in Nov’09. The employment index rose to 52.0 in Dec’09, as against
50.8 in Nov’09, indicating a faster pace of employment growth. The inventories index rose to 43.4 in Dec’09
from 41.3 in Nov’09, although it still indicated the 44th consecutive quarter of contraction. On the inflation
front, the prices index jumped to 61.5 in Dec’09 from 55.0 in Nov’09, pointing to acceleration in the pace of
price growth. Separately, the construction spending in the US fell 0.6% to an annual rate of $900.1 bn in
Nov’09, as against revised Oct’09 estimate of $905.6 bn. With the slightly bigger than expected monthly
decrease, the construction spending in Nov’09 declined 13.2% compared to Nov’08. The spending on private
construction fell 0.7% in Nov’09, with the decrease largely due to a 1.6% decline in spending on residential
construction, while the spending on non-residential construction was nearly unchanged. The spending on
public construction fell by 0.4% in Nov’09, as spending on highway construction plunged by 2.9% and
spending on educational construction edged down by 0.1%.
UK economy faces debt challenges: Alistair Darling
            UK's Chancellor of the Exchequer Alistair Darling said that the UK faces huge challenges over its
            debt in coming years. During a debate on the Treasury's Fiscal Responsibility Bill in parliament,
            Darling said that the bill will ensure substantial strengthening of fiscal responsibility and it is
necessary to ensure sustainable borrowing as the economy recovers. The UK is facing a record budget deficit
of 12.6% GDP, the biggest among the developed nations. All political parties agree that this level of deficit is
unsustainable. Moreover, the HM treasury estimates the net debt to GDP ratio to be twice higher in coming
years than its pre-crisis levels. The Fiscal Responsibility Bill, presented to Parliament on December 9,
requires the Treasury to make sure that government borrowing in each financial year between 2010/11 and
2015/16 is lower than the previous year, measured as a percentage of GDP and government debt is lower in
2015/16 than in 2014/15, measured as a percentage of GDP.Moreover, Darling said it is important to reduce
debt in such a way that should not disrupt economic recovery. He warned that quick fiscal tightening would
derail Britain's recovery. On the economy, Darling said UK is expected to exit recession in the fourth quarter.
The statistical office is yet to release fourth quarter GDP figures.
Australian services sector growth stalls in December; housing approvals rise in November
Australia's services sector activity growth stalled in Dec’09 partly as a result of a decline in new
orders, as per data from the Australian Industry Group. The AIG/Commonwealth Bank Australia
Performance of Services Index fell to a no-change level of 50 in Dec’09 from 52.5 in Nov’09.
Sales of services remained in expansionary territory in Dec’09, despite the sub-index falling 3 points to 52.4.
The new orders sub-index plunged 8.6 points to 48.1, the first such contraction recorded since Aug’09. The
firms largely attributed the fall in new business to the early effects of recent interest rate rises. Employment
levels in the services sector increased 2.1 points to 52.6 in Dec’09, while the capacity utilization rate climbed
to 78.7% from 74.7% in Dec’09. Input costs faced by Australian service providers remained high in Dec’09,
despite the sub-index falling 6.3 points to 59.7. Output charges were raised again, with the sub-index
roughly unchanged at 53.6 in Dec’09. Services activity expanded in five sectors in Dec’09, led by
communication services, accommodation, cafes & restaurants and wholesale trade. On the other hand,
activity fell in the retail trade and personal & recreational services sectors following a sustained period of
growth, reflecting the waning impact of government stimulus. Separately, the number of new dwelling units
approved for construction in Australia increased in Nov’09. The dwelling unit approvals rose a seasonally
adjusted 5.9% in Nov’09. The Bureau's Trend Estimate rose 2.7% MoM, the 10th straight month of
increases. Approvals for private sector dwellings jumped a seasonally adjusted 27.5%, following a decline
seen in Sept’09. In terms of value, total building approvals increased a seasonally adjusted 24.6% in
Nov’09.
   The Australian Performance of Manufacturing Index stood at a seasonally adjusted 48.5 in Dec’09, down from 51.2 in Nov’09. Six of
   the twelve sub-sectors contracted in December, with sharp falls recorded in machinery & equipment, wood, wood products &
   furniture and chemicals, petroleum & coal products sectors. The production sub-index slumped to 46.6 in Dec’09, as against 54.0 in
   Nov’09. At the same time, the new orders sub-index fell by 3.3 points to 48.6, indicating a mild fall in the level of new orders.
   The level of new work placed at Japanese service providers fell again in Dec’09, extending the current period of reduction to two
   years. Employment levels in the services sector fell for the seventeenth straight month, although the rate of decline was the slowest
   since Sept’09. Panelists cited cost cutting measures as the major contributory factor for the latest round of job shedding. Meanwhile,
   the Nomura Composite Output Index, which is a weighted average of the Manufacturing Output Index and the Services Business
   Activity Index, stood at 46.5 in Dec’09.



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                                                   GLOBAL ECONOMY
Eurozone services PMI at 25-month high; economic sentiment strengthens further in Dec
Eurozone services PMI increased to a 25-month high in Dec’09, but lower than the flash
estimate, as per the final report from the Markit Economics. The services Purchasing Managers
Index (PMI) increased to 53.6 in Dec’09 from 53 in Nov’09. The PMI reading was the highest
level since Nov’07. The December month reading was revised from 53.7 reported initially. New
businesses increased to 25-month high in Dec’09, while new orders grew for fourth consecutive month.
Employment declined for the eighteenth straight month in Dec’09. Meanwhile, the composite output index
stood at 54.2 in Dec’09, up from 53.7 in Nov’09. This was the highest reading for 26 months. The PMI
reading was in line with the flash estimate. Separately, Eurozone economic sentiment improved for the ninth
consecutive month in Dec’09 after hitting a trough in Mar’09. Economic confidence for the 16-nation bloc
rose to 91.3 in Dec’09 from 88.8 in Nov’09, according to a monthly survey conducted by the European
Commission. The majority of member states reported a general improvement in sentiment. Among the
largest member states, the UK reported a sharp growth of 8.2 points, followed by France. At the same time,
improvements were less marked in Italy, Germany and Spain. The survey found that industrial confidence
came in at minus 16 in Dec’09, up from minus 19 in Nov’09. Consumer confidence and services confidence
rose one point each to minus 16 and minus 3, respectively and matched consensus forecasts. Retailers'
confidence also rose slightly to minus 10 from minus 11. Another business confidence survey from the
European Commission showed that the Business Climate Indicator for the Euroarea improved further in
Dec’09 to minus 1.22 from minus 1.53 in Nov’09.
   China's electricity consumption in 2009 grew 5.96% YoY to 3.643 trillion kilowatt-hours (kWhs). The growth rate was 0.47% higher
   than that in 2008. The consumption in the primary industry sector accounted for 94.7 bn kWh, up 7.86% YoY. Secondary industry
   consumption rose 4.15% to 2.7 trillion kWh and the tertiary sector demand was up 12.11% to 392.1 bn kWh. Residential power use
   rose by 11.87% to 457.1 bn kWh. The investment in power construction projects has increased by CH¥755.84 bn (US$110.7 bn) in
   2009, a rise of almost 20%. But, investment in coal-fired power projects declined by 11%, while the investment in nuclear projects
   rose 75% and in wind power by 44%. By the end of 2009, the country's total installed power generation capacity was 874.07 mn
   kilowatts, an annual rise of 10%.
   Canadians remain divided about the health of the economy, but are growing more optimistic as “job anxiety fell significantly” in
   Dec’09, according to a consumer confidence survey by Royal Bank of Canada (RBC). Canadian industrial prices increased 1% and
   raw materials prices rose 2.2% in Nov’09, mainly as a result of higher prices for petroleum and metals. The Industrial Product Price
   Index (IPPI) rebounded with an increase of 1.0% in Nov’09, following two consecutive months of decline.
   Germany's service sector activity increased for the fifth consecutive month in Dec’09, as per the Markit Economics. The seasonally
   adjusted services PMI increased to 52.7 in Dec’09 from 51.4 in Nov’09. The composite output index stood at 54.3 in Dec’09, up from
   53.6 in Nov’09. The PMI reading in Dec’09 is lower than the 54.9 reported initially. This was the highest reading since May’08.
   Producer prices in the Philippines dropped 4.1% YoY in Nov’09, faster than the downwardly revised 5.1% decrease in Oct’09. Eleven
   major sectors reported price reductions compared to the previous year in Nov’09, led by furniture & fixtures, paper & paper
   products, miscellaneous manufactures, electrical machinery, and basic metals.
   The US has reportedly slapped preliminary anti-dumping duties on imports of more than $300 mn worth of wire decking from China.
   The retail sales in Australia jumped a seasonally adjusted 1.4% MoM to A$20.08 bn in Nov’09. Clothing and other accessories were
   the top gainers, adding 2.5%, followed by household goods at 1.7%, food at 1.6%, restaurants and department stores at 1.1% and
   other retailing at 0.2%. On an annual basis, retail sales surged 7.3%.
   In Germany, the retail sales in real terms declined 1.1% MoM in Nov’09, as against flat reading in Oct’09, revised from 0.5% growth
   estimated initially. On YoY basis, the retail sales decreased 2.8% in Nov’09, faster than the 1.6% fall in Oct’09. Yhe retail sales
   declined 1.8% YoY in Jan-Nov’09 period.
   The Institute for Supply Management revealed that its index of national non-manufacturing activity rose to 50.1 for Dec’09. The
   production growth expanded in the month, with the index climbing to 53.7 in Dec’09, as against 49.6 in Nov’09. However, the new
   orders index slipped to 52.1 I Dec’09, as against 55.1 in Nov’09.
   The Monster Employment Index for the US, which is a monthly gauge of US online job demand, was at 115 in Dec’09, as against 119
   in Nov’09, Monster Worldwide reported. In Dec’09, online job availability rose in three of the index's 20 industry sectors and in six of
   the 23 occupational categories monitored. Online job demand increased in the public administration industry, agriculture, forestry,
   fishing & hunting and healthcare. On the other hand, wholesale trade registered a largest decline.
   The Consumer Price Index (CPI) in the OECD area rose 1.3% YoY in Nov’09, faster than the 0.2% growth in Oct’09. The consumer
   prices for energy increased 2.4% YoY in Nov’09, after falling 9.2% in Oct’09. The food prices fell 1.1% in Nov’09, faster than the 1%
   decline in Oct’09.The consumer price index, excluding food and energy, rose 1.5% in Nov’09, slower than the 1.6% growth in
   Oct’09. On a monthly basis, the CPI increased 0.1% in Nov’09, unchanged from Oct’09.
   German factory orders rose 0.2% MoM in Nov’09 after falling by a revised 1.9% in Oct’09. On an annual basis, orders were up 1.8%
   following a revised 8.2% decline in Oct’09.
   Japan's official reserve assets totaled $1.05 trillion by the end of Dec’09, down $24.32 bn from Nov’09. As of December 31, foreign
   currency reserves amounted to $996.55 bn, while reserves with the IMF stood at $4.31 bn, while the gold reserves totaled $27.16
   bn, while SDRs were worth $20.97 bn.
   Australian Industry Group and Housing Industry Association's Performance of construction Index was up a seasonally adjusted 1.7
   points in Dec’09, for a reading of 49.3. The new orders sub-category was lower while the employment sub-category expanded, as
   did supplier deliveries.
   The auto sales in Japan increased for the fifth consecutive month in Dec’09. Domestic sales of new cars, trucks and buses increased
   36.5% YoY in Dec’09. Automobile sales totaled 250,474 units in Dec’09, larger than 183,549 recorded in Dec’08. However, in CY09,
   automobile sales declined 9.1% YoY to 2.92 mn vehicles.
   Germany's exports decreased 19% YoY to €200.2 bn in Q3CY09, as against €247.2 bn in Q2CY09, while on a price adjusted basis,
   exports declined 16.5%. For the first three quarters of the year, exports declined 21.5% on an annual basis to €591.4 bn, as against
   €752.6 bn in the year-ago period. The jobless rate in Germany stood at 7.6% in 2009, up from 7.2% recorded in 2008.



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                                                   GLOBAL ECONOMY
China overtakes Germany as world’s top exporter: GTI
China overtook Germany as the world’s top exporter last year, as per the data compiled by Columbia-based
Global Trade Information Services (GTI). China shipped products worth $957.7 bn in the first 10 months of
2009, while Germany sold goods worth $917.7 bn to customers abroad, according to an Internet database
operated by GTI. Exports from China exceeded German shipments every month since April last year. China
has already slipped past Germany to become the world’s third-largest economy and is forecast to overtake
Japan this year, assuming the No. 2 spot behind the US. Exports have driven a 15-fold increase in China’s
economy to more than $3.8 trillion since the nation opened its doors to foreign trade and investment in
1978. Chinese exporters weathered the worst global recession since World War II better than their German
counterparts, GTI’s figures suggest. Exports from China fell 20% in the first 10 months of 2009, according to
the GTI database, while shipments from Germany tumbled more than 27%. That’s almost double the 2.6%
projected for the US and four times the 1.1% growth predicted for the euro region. Germany’s central bank
forecasts growth of just 1.6% for Europe’s largest economy this year.
   For the first time in nearly five months, China’s central bank has edged up the interest rate on its three-month treasury bills by
   about 0.04 point, to 1.3684% from the 1.3280% yield that has prevailed since August. The decision by the People's Bank of China to
   slightly raise the cost of borrowing in the inter-bank market will have less effect than an increase in official interest rates on bank
   loans, which many analysts don't expect until later in the year.
   China's banking regulator, China Banking Regulatory Commission (CBRC) has approved the establishment of the country's first three
   consumer financing companies, which are scheduled to be started in Shanghai, Beijing and Chengdu. The Bank of China, Bank of
   Beijing, and Bank of Chengdu are the promoters of the three pilot consumer financing companies, which are expected to offer
   personal loans to finance purchases of durables without taking deposits. The CBRC has issued a draft rule on the establishment of
   consumer financing firms, in an attempt to further spur the country's domestic consumption.
   China's tourism industry reaped an revenue of CH¥1.26 trillion (US$185 bn) in 2009, up 9% YoY. Domestic tourists made 1.9 bn
   trips last year, a rise of 11%, which generated CH¥1 trillion of revenue for the industry, up 15% from a year ago, while the number
   of inbound trips shrank 3% to 126 mn.
   South Korea's trade surplus stood at $3.30 bn in Dec’09. Exports surged 33.7% YoY in Dec’09 compared to the 17.9% gain a year
   ago. In CY09, exports declined 13.8% compared to 2008, with the cumulative trade surplus coming in at $40.98 bn.
   Markit Economics reported that the Taiwan HSBC Manufacturing Purchasing Managers' Index stood at a seasonally adjusted 58.7 in
   Dec’09, up from 58.4 in Non’09. A reading above 50 indicates expansion, while one below 50 suggests contraction. Manufacturing
   output continued to rise in Dec’09 led by a sharp increase in new order volumes. Incoming new business levels rose for the ninth
   successive month, reflecting the ongoing recovery in global economic conditions. Employment in the manufacturing sector increased
   at its fastest pace in twenty-three months, as manufacturers aimed to boost production capacity.
   Singapore's residential property prices rose 7.3% QoQ in Q4CY09, as against 15.8% increase in Q3CY09, while for CY09 as a whole
   the price index has climbed 1.7%. The prices of non-landed private residential properties moved up 7.1% in core central region,
   9.5% in rest of central region and 5.8% in outside central region in Q4CY09. The prices in core central region dropped 2%, while
   those in rest of central region and outside central region increased 3.1% and 11.2% respectively in CY09
   Poland's manufacturing sector remained unchanged in Dec’09, the Markit Economics said. The HSBC Manufacturing Purchasing
   Managers' Index stood at a seasonally adjusted 52.4 in Dec’09, unchanged from Nov’09. A reading above 50 indicates expansion,
   while one below 50 suggests contraction. This is the highest PMI reading since Mar’08. Manufacturing output grew for the fifth
   consecutive month in Dec’09, but the rate of growth eased slightly. New order growth was broadly unchanged from Nov’09, while
   input price inflation in the manufacturing sector climbed to a 17-month high in December.
   The average first-time property buyer in the UK can afford properties in 39% of local authority districts in 2009, British press reports
   said citing recent research from the Halifax Bank. In 2007, houses in only 6% of areas were affordable for average earners. Around
   27% of potential first time buyers' disposable income was devoted to mortgage payments in November 2009 compared to a peak of
   50% in Jun’07. Affordability improved mainly due to lower interest rates and decreases in house prices. But, many first time buyers
   failed to take advantage of the situation as banks tightened their lending criteria following the credit crunch.
   Finland's trade surplus stood at €1.35 bn in Oct’09, up from €432 mn surplus a year ago. The trade surplus in Oct’09 has been
   revised from €1.38 bn reported initially. Exports value decreased 14% YoY to €4.98 bn in Oct’09, revised slightly from €5 bn
   estimated earlier, while imports fell 32% to €3.6 bn. In the Jan-Oct’09 period, the trade surplus stood at 1.82 bn, down from €2.96
   bn surplus a year earlier, while the exports and imports decreased by 34% each.
   Thailand's consumer price annual inflation stood at 3.5% in Dec’09, up from November's 1.9%. Headline inflation in Southeast Asia's
   second-largest economy turned positive in Nov’09 after nine months of deflation. Core annual inflation stood at 0.2% in Dec’09, as
   against an expected rate of 0.3%.
   Singapore's Gross Domestic Product (GDP) has contracted by a seasonally adjusted 6.8% QoQ in Q4CY09, while on an annual basis
   GDP rose 3.5%. The manufacturing sector contracted by 38.4% on a seasonally-adjusted QoQ annualized basis in Q4CY09, a
   reversal from the 29.6% expansion in Q3CY09. The construction sector expanded by 4.3% on a seasonally-adjusted QoQ annualized
   basis in Q4CY09, as against 0.9% in Q3CY09. The services sector eased to 7.2% in Q4CY09, as against 10.9% in Q3CY09. For the
   year, Singapore's GDP declined 2.1%, both on quarter and on year.
   Taiwan's Consumer Price Index (CPI) declined 0.21% YoY in Dec’09, after falling 1.61% in Nov’09, which is the eleventh consecutive
   month of decline in CPI. On a monthly basis, the CPI decreased 0.45% in Dec’09. For the whole year of 2009, the CPI declined by
   0.87% compared to 2008. Meanwhile, the Wholesale Price Index (WPI) increased 5.55% YoY in Dec’09, faster than the revised
   1.06% growth in Nov’09. The WPI decreased 8.74% in 2009.




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                                               GLOBAL BUSINESS
Burj Khalifa… world's tallest skyscraper ready for occupation
Burj Khalifa – world's tallest building has everything starting from offices, shops, swimming pools,
and apartments to hotel, nightclub, and a mosque – has been open since Monday. There was a
last-minute name change from Burj Dubai to Burj Khalifa in honor of the ruler of neighboring Abu
Dhabi, who came through with a $25 bn bailout for the struggling Persian Gulf banking center.
The Burj Khalifa is more than half a mile high, and, at 2,727 feet, more than 1,000 feet higher
than the world's previous tallest building, in Taipei, Taiwan. The Times of London observed that it
is the first time the Arab world has claimed the title of the world's tallest building since 1311,
when Lincoln Cathedral exceeded the height of the Great Pyramid of Giza. The building in Dubai – it is
commonly described as looking like a giant hypodermic needle – is so tall that it is 10 degrees cooler at the
top than at the desert below, and the building is engineered to sway as much as 6 feet in high winds. With
regard to tall buildings, the fate of the twin towers at the World Trade Center is never far from anyone's
mind, and the Khalifa has reportedly been built to withstand the impact of an airliner. Every 20 to 25 stories
there are specially reinforced “refuge floors” with independent air supplies. Evacuating the building would be
an arduous and time-consuming task since there are 3,000 steps from the top floor to the street.
Kraft to sell North American Pizza biz to Nestle for $3.7 bn
                     Kraft Foods, which is trying to acquire British chocolate maker, has agreed to sell the
                     assets of its North American pizza business to Nestle for a total consideration of $3.7 bn.
                     The Company would use an amount equivalent to the net proceeds from the sale to
increase the cash portion of its offer for Cadbury. Further, Kraft said in a statement that it would extend the
acceptance period for Cadbury security-holders to tender their shares to February 2 from January 5.
Separately, Nestle confirmed that it does not intend to make, or participate in, a formal offer for Cadbury.
Kraft's sale of the pizza business includes the DiGiorno, Tombstone and Jack's brands in the U.S., the
Delissio brand in Canada and the California Pizza Kitchen trademark license. It also includes two Wisconsin
manufacturing facilities and the right to take on the leases for the pizza depots and delivery trucks. The
transaction is expected to close in 2010. Kraft estimates that its pizza business generated GAAP net
revenues of $1.6 bn in 2009.
Nexus One… Google unveils new android smartphone for $529
Mountain View, Califirnia-based search engine behemoth, Google has announced the launch of a
new model mobile phone, Nexus One that combines the latest in hardware from HTC Corporation,
with the newest Android software. The new smartphone is priced at $529 without service, or
starting at $179 with a two-year contract from T-Mobile USA. Nexus One has a 3.7 inch Amoled
480x800 WVGA display with a width of 11.5 mm and weighs 130g. The phone has a 5 mega-pixel
auto focus camera with flash and geo tagging, and has an inbuilt memory of 512 MB Flash and 512 MB RAM,
with an extendable 4GB removable SD Card. The phone contains Qualcomm Snapdragon 3G QSD8250
chipset processor that delivers speeds up to 1GHz. Other special features of the phone include, Dynamic
noise suppression, 3.5mm stereo headphone jack with four contacts for inline voice and remote control and
personalized laser engraving of up to 50 characters on the back of the phone. Nexus One runs on Android
2.1, a version of the platform's Eclair software, which offers advanced applications and features, including
Google Maps Navigation, multiple Gmail accounts, a Phone book that can aggregate contacts from multiple
sources including Facebook and access to more than 18,000 applications. The Company plans to launch
more phones with Android handset partners in the near future, expand the web store to more countries. It
has started receiving orders for Nexus One through its web store, and the company initially taking orders
from consumers in the US, the UK, Singapore and Hong Kong.
GM expects to be profitable this year; to wind down Saab: CEO
Detroit-based automaker, General Motors expects to be profitable this year, said its chief executive Edward
Whitacre. Further, he said he is not hopeful of a deal to sell Saab and added that the newly appointed
financial chief of GM Christopher Liddell could be considered for the permanent CEO role. Talking to
reporters from the company's headquarters, Whitacre, who recently assumed the CEO role from Fritz
Henderson, said in addition to becoming profitable, the Company would also repay its loans from the
government in 2010 and improve its market share. GM is now focusing on Buick, Cadillac, Chevrolet and
GMC and decided to discontinue Pontiac and Saturn. The Company has been trying to sell off its Hummer
and Saab divisions, but Whitacre said GM might have to close down the Swedish brand, as none of the
bidders for Saab has shown sufficient financing to restructure the brand. GM reached a deal with Tengzhong
Heavy Industrial Machinery of China last year to sell Hummer, which is expected to be finalized later this
month.
   Dublin, Ireland-based, Accenture has posted $444.82 mn net income in first quarter, as against $479.87 mn net income in the
   year-ago quarter.



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                                                 GLOBAL BUSINESS
GM Preps to unveil new cars for all four brands at NAIAS
           General Motors (GM) is reportedly planning for a large presence at the upcoming 2010 North
           American International Auto Show at Cobo Hall in Detroit, where the auto giant will unveil new
           cars for each of its four brands. Chevrolet will introduce its newest Aveo as its showcase,
           continuing a line of introductions of smaller cars including the Cruze, which was unveiled at the Los
Angeles auto show in December, the Volt and the Beat, which has already been introduced in India.
Chevrolet may unveil its Camaro convertible, as well as an updated version of its Orlando MPV concept.
Cadillac will unveil a 2011 CTS-V Coupe, and a new concept car they are keeping under wraps until the
show. GM will also unveil a new variation of the Buick Regal. Speculation suggests that the Regal GS, a
sportier version of the standard car, will be unveiled. General Motors Truck Company (GMC) will also
introduce its newest concept car, the Granite, which has been described as an “urban utility vehicle” and will
be the smallest car ever produced by GMC. GMC will also reveal a Denali edition of the Acadia which was the
brand's first crossover vehicle when it was introduced in 2006. The 2010 North American International Auto
Show will run from January 11-24, and will be open to the public starting on January 16.
Lockheed Martin to axe 1,200 Jobs; unveils new MS2 business unit
Defense contractor Lockheed Martin Corporation has formed a new Mission Systems & Sensors Business
(MS2) unit, realigning two of its prior standalone businesses in electronic systems, the former maritime
systems & sensors and systems integration - Owego. As a result of integration, the Company expects to
eliminate about 1,200 US positions from the business. The new MS2 will serve as one of three primary
operating companies within the Electronic Systems Business Area. The new business unit is better equipped
with significantly expanded portfolio of capabilities in products, processors and integration expertise to
support maritime forces. Along with the new MS2 organization design, the Company also realigned the
ground vehicles line of business from the former Systems Integration - Owego, which includes the Joint
Light Tactical Vehicle program (JLTV) under Lockheed Martin Missiles and Fire Control. The Company said its
JLTV solution would be further strengthened with the new arrangement as the solution is helped by resident
expertise and experience in ground vehicles associated with Army and Marine Corps missile launcher
programs along with high volume manufacturing.
Mosaic net income plunges 88.7% YoY to $107.8 mn in Q2
             Plumouth, Minnesota-based fertilizer producer, Mosaic Company has posted $107.8 mn net
             income in the second quarter, as against $959.8 mn net income in the year-ago quarter,
registering a decline of 88.7% on YoY basis, as phosphate and potash selling prices fell from year-ago levels
while last year's results were also boosted by a hefty gain on the sale of its interest in Saskferco. The gross
margin for the second quarter fell to 18% from 26% a year ago. The Q2 operating earnings dropped to
$200.1 mn from $682.0 mn last year, hurt by lower potash and phosphate selling prices combined with
lower potash sales volumes. The Q2 net sales fell 43% to $1.71 bn from $3.01 bn in the same quarter last
year. For the first six months of its fiscal year, the Company has posted $208.4 mn net income, as against
$2.1 bn net income in the same period last year. Its YTD net sales fell 57% to $3.17 bn from $7.33 bn in
the prior year period. In Nov’09, Mosaic announced a realignment of its business segments to more clearly
reflect its evolving business model. The realignment includes moving from three to two business segments
by combining the offshore segment with the Phosphates segment.
Alcon responds to Novartis’ takeover bid
                Huenenberg, Switzerland-based, Alcon said the independent director committee of its board
                was disappointed with Novartis’ attempts to destroy certain important protections for the
                benefit of Alcon's minority shareholders against a coercive takeover bid. The committee's
                opinion is in response to Novartis' announcement to buy a 52% stake in Alcon from Nestlé. It
can be reminded that Novartis said that it is exercising its call option to buy the 52% stake in Alcon from
Nestlé, in which it already holds 25% interest. Novartis will pay $180 per share or about $28.1 bn for the
deal. The pharmaceutical giant proposed a $153 per Alcon share offer for the remaining 23% of Alcon, for
$11.2 bn. The Alcon noted that it has established certain protections for the benefit of minority shareholders'
value. Under those protections, any company with a merger proposal requires to obtain approval from a
committee of independent directors. In addition, the company noted that Swiss corporate law requires any
merger proposal to be approved by a majority of the Alcon board members with interested directors
abstaining.
   Walter Energy has settled a dispute with Turkish steel-maker Erdemir over 2.8 lakh tonne of premium coking coal that the steel-
   maker had contracted to purchase during the 2008-2009 contract year at US$319 per tonne. Under the settlement, Erdemir will
   accept delivery of all remaining carryover tons of coal between April 1st 2010 and March 31st 2011.
   AT&T is planning to release seven new smart phones. The communication giant announced it would sell seven new smart phones in
   the first half of 2010, including two using the Palm technology and five using the Google's Android technology. AT&T has also begun
   to make its first venture with Google by carrying its Android operating system.



Weekly Newsletter                                                                                                                       33
                                                                                                                            Info-Spectrum
                                                                                            Bridging the Information Gap in Corporate Landscape


                                                    GLOBAL BUSINESS
Ford to unveil new mustangs at NAIAS
                  Ford Motor Company is prepping for a few major introductions at the North American
                  International Auto Show in Detroit next week. One new vehicle that Ford will introduce is its
                  2011 Mustang GT, which is expected to go on sale mid year. The car will feature a 5.0 liter
V-8 engine which will average 25 miles per gallon of fuel on the highway. The Company will also introduce a
Mustang BOSS 302R in celebration of the 40th anniversary of Pernelli Jones' 1970 Trans-Am championship
while racing a Mustang BOSS 302. The 302s were originally only produced in 1969 and 1970. Ford will also
introduce a new Focus at the show. Another big introduction for Ford will be the Volvo brand's new Volvo
C30 electric vehicle. The new car will expand on the prototype introduced at the 2009 show in Detroit and
include a full interior and instrumentation.
Chesapeake Energy signs $2.25 bn gas deal with Total
              Chesapeake Energy Corporation has reached a deal to form a $2.25 bn Joint Venture (JV) with
              Total E&P USA, a unit of French oil major Total SA. As part of the deal, Total will enter the US
shale gas business by acquiring a 25% interest in Chesapeake's upstream Barnett Shale assets. The
transaction is expected to close by the end of January, subject to regulatory approval. Total will pay US$800
mn in cash and provide an additional US$1.45 bn by funding 60% of Chesapeake's share of drilling and
completion expenditures for a period of time. Chesapeake noted that the transaction will help reduce its
financial leverage and future capital expenditures and will further position the company to deliver industry-
leading finding and development costs as well as returns on capital for years to come. Further, Chesapeake
intends to continue acquiring leasehold in the Barnett and Total will acquire its 25% share of the new
acreage on promoted terms until December 31, 2015, after which Total's right to buy its 25% proportionate
share of Chesapeake's leasehold will be on an un-promoted basis. Total will also start paying 25% of
Chesapeake's support costs related to the corporate development activities of the JV, Chesapeake added.
Global Payments net income rises to $60.84 mn in Q2
Atlanta, Georgia-based electronic payment and money transfer service provider, Global Payments has
posted $60.84 mn net income in the second quarter, as against $48.91 mn net income in the year-ago
quarter, helped mainly by strong performance in its North American and International businesses. Income
from continuing operations rose to $57.97 mn from $45.87 mn in the similar quarter of previous year. Its
Q2 revenues increased 12% to $408.95 mn from $365.88 mn in the prior-year quarter. Segment wise,
revenue from Global Payments' North America Merchant Services improved 10% to $299.17 mn from
$270.78 mn, while that from International Merchant Services rose 15% to $109.78 mn from the year-earlier
quarter. Geographically, revenues from the US stood at $220.93 mn, up from $192.15 mn in the same
quarter last year. Revenues from Europe amounted to $84.14 mn, an increase from $71.17 mn in the year-
earlier quarter. Its Q2 operating income improved to $88.7 mn from $77.88 mn in the comparable quarter
last year. For the six-month period, the Company has posted $120.67 mn net income, as against $106.43
mn net income in the same period last year. Its revenue for the first half of fiscal 2010 totaled $818.88 mn,
up 11% from $734.84 mn in the similar period of 2009. Looking ahead, the Company expects annual
revenue for 2010 in the range of $1.58-1.62 bn, representing 8% to 10% growth over fiscal year 2009
revenues.
Synnex Corp net income rises 15% YoY to $30.3 mn in Q4
Business process service provider, Synnex Corporation has posted $30.3 mn net income in the
fourth quarter, as against $26.4 mn net income in the year-ago quarter, registering a rise of
14.8% on YoY basis, helped by higher revenues and lower expenses. Its Q4 revenues increased 5.3% to
$2.2 bn from $2.09 bn in the same quarter last year. Its distribution segment revenues grew 5.2% to $2.18
bn, while Global Business Services segment revenues advanced 14.8% to $26.3 mn from the year-ago
quarter. Its operating margin from continuing operations was 2.17% in the fourth quarter, down from
2.23% a year earlier. For fiscal year 2009, Synnex has posted $92.1 mn net income, as against $83.8 mn
net income in the previous year. Its annual revenues declined slightly to $7.72 bn from $7.74 bn a year-
ago. In Dec’09, Synnex completed the sale of its controlling interest in China Civilink (Cayman), which
operates in China as HiChina Web Solutions to Alibaba.com. Looking forward, the Company anticipates net
income in the range of $29.2 mn to $31.2 mn, and revenues in the range of $1.88 bn to $1.98 bn.
   ABB has secured a contract to provide electrical and automation equipment, plus related services, for a seamless tube mill and pipe
   production plant at Jubail in Saudi Arabia. The value of the deal has not been disclosed. The firm will deliver electrical infrastructure
   and equipment, including a 115 kilovolt gas insulated switchgear substation, medium- and low-voltage switchgear, motors and
   variable-speed drives.
   Phoenix, Arizona-based, Apollo Group has posted $240.1 mn net income in the first quarter, as against $180.4 mn net income in
   the year-ago quarter, registering a rise of 33% on YoY basis, helped by strong growth in degreed enrollment, contribution from
   recently acquired BPP Holdings and a tax benefit. The Q1 net revenues rose 31% to $1.27 bn from $970.97 mn in the same quarter
   last year, driven by a 18.4% growth in University of Phoenix total degreed enrollment to 455,600 as well as contribution from BPP.




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                                                                                                                                 Info-Spectrum
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                                                      GLOBAL BUSINESS
Bed Bath & Beyond net income jumps 72% to $151.3 mn in Q3
                New Jersey-based home goods retailer, Bed Bath & Beyond has posted $151.3 mn net
                income in the third quarter, as against $87.7 mn net income in the year-ago quarter,
                registering a rise of 72.5% on YoY basis, boosted by higher comparable store sales amid the
favorable economic recovery. Its operating profit for the quarter grew to $245.6 mn from $136.4 mn a year
earlier. Its Q3 net sales increased 10.8% to $1.975 bn from $1.783 bn in the same quarter last year.
Comparable store sales increased about 7.3%, compared with a 5.6% drop in the previous year quarter. For
the nine-month period of 2009, Bed Bath & Beyond posted net earnings of $374 mn, an increase from
$283.7 mn reported in the previous year period. Net sales for the period increased 5.7% to $5.585 bn from
$5.285 bn in the prior year period. Comparable store sales grew about 1.7%, compared with a decrease of
1.7% in the year-ago period.
    Irvine, California-based professional service provider, Resources Connection has posted $1.91 mn net loss in the second quarter,
    as against $9.48 mn net income in the year-ago quarter, hurt by a 36.1% decline in revenues and lower gross margin. Its Q2
    revenues decreased 36.1% to $121.53 mn from $190.23 mn in the prior-year quarter.
    Englewood, Colorado-based information service company, IHS has posted $41.2 mn net income in the fourth quarter, as against
    $33.3 mn net income in the year-ago quarter, registering a rise of 23.7% on YoY basis. Its Q4 operating income grew 18% to $53.8
    mn from $45.7 mn in the previous year quarter. Its Q4 revenue increased 11% to $257 mn from $231 mn in the same quarter last
    year. For the full year 2009, the Company has posted $135 mn net income, as against $99 mn net income in the previous year. Its
    annual revenue increased 15% to $967 mn from $844 mn in the year-ago.
    Time Warner Cable and the Fox Networks Group, an operating unit of News Corporation have agreed in principle to a
    comprehensive distribution agreement, which will allow 13 mn households to continue to access programs from Fox Networks. The
    companies did not reveal the terms of the deal. As per the deal, Fox Networks will offer programs from Fox Television Stations, Fox
    Broadcasting, or FOX, Fox Cable Networks and Fox's regional sports networks.
    Saint Paul, Minnesota-based, Lawson Software has posted $2.75 mn net income in the second quarter, as against $3.03 mn
    adjusted net income in the year-ago quarter, as its revenues slid 11%, hit by a weak dollar. Its Q2 non-GAAP net income decreased
    to $15.6 mn from $16.7 mn in the prior-year quarter. The total Q2 revenues stood at $184.4 mn, as against $206.4 mn adjusted
    total revenue in the comparable quarter last year. On a reported basis, revenue decreased 11% from the prior-year period.
    Henderson Morley has reported £528,965 loss from continuing operations in the six months ended 31 Oct’09, as against £490,142
    loss from continuing operations in the year ago period. Its revenue for the first half stood at £1,821, as against £41,128 in the year-
    ago period.
    Hutchison Telecommunications International said that its majority shareholder owner (60.4%), Hutchison Whampoa has
    approved a move to pull off the company from stock exchanges and make it private.
    American Software has posted $1.35 mn net income in the second quarter, as against $0.65 mn net income in the year-ago
    quarter.
    African Minerals has signed an agreement to supply iron ore from its Tonkolili project and sell 12.5% of the company to China
    Railway Materials Commercial Corporation. The two expect to complete a final agreement on about March 31st 2010. China Railway,
    subject to due diligence, will buy 5 to 8 MT of hematite iron ore a year from Tonkolili for at least 20 years from 2011 and 10 MT of
    magnetite ore from 2013. They also agreed options to extend supply by 5 years. China Railway will subscribe to about 30.5 mn new
    shares of African Minerals at 5 pounds each for 152.6 mn pounds, providing most of the funds for the first phase of ore output at the
    Sierra Leone project. The Chinese company will also buy equipment and services.
    Smartlinx VOIP Networks – the wholly owned subsidiary of Smartlinx Inc, – has entered into an agreement with Polsani Group,
    which operates six educational institutions in India. Under the Agreement, Smartlinx has agreed to provide the Live Tutor Virtual
    Learning Environment which includes Live Tutor LMS and Live Tutor Connect to Polsani Group for implementation across their
    different educational institutions. In consideration of providing these services, Polsani Group has agreed to pay subscription fee for
    three years of the Live Tutor Virtual Learning Environment, by June 1, 2010. Polsani Group will also pay connect fee per user/per
    hour of Live Tutor Connect.

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                                                                                                                            Asim Mohapatra
                                                                                                                             Content Editor
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