THE DERRICK: 19th Edition (23-29 August 2011)

Good ideas are not adopted automatically. They must be driven into practice with courageous patience

Lagarde Urges Recapitalization of Europes Banks

Christine Lagarde, the new managing director of the International Monetary Fund chief, warned that the world economy is in a dangerous new phase and that officials must take new steps to strengthen growth. Lagarde, speaking to international finance officials and economists in Jackson Hole, Wyoming, said the U.S. should arrest slide in house prices and European banks must be required to boost capital to prevent the continents debt crisis from infecting more countries. The U.S. and European Union should enforce long-term budget discipline to free up cash for short- term stimulus, she said. Lagarde spoke near the end of a month when the value of global equities dropped by $5.7 trillion on concern global growth is slowing and governments will be unable to tackle sovereign debt burdens. UBS AG and Citigroup Inc. cut their forecasts for expansion of the world economy and predicted major central banks will leave interest rates on hold through 2012. The slowdown provided the impetus for three days of debate at the conference, with Federal Reserve Chairman Ben S. Bernanke saying the U.S. central bank still has tools to boost its economy, without specifying what they were or whether they would be deployed. The stakes for the world economy are high, said Allen Sinai, president of Decision Economics in New York, who put the odds of another global recession at 30 percent. Stress Tests Europe is struggling to contain a sovereign debt crisis that is nearing its third year and has left many banks from Spain to Greece in or close to insolvency. Stress tests on 90 European banks published on July 15 showed eight lenders had a combined 2.5 billion-euro ($3.6 billion) capital shortfall, failing to ease concern that many of them remain vulnerable to a potential sovereign default. Without an urgent recapitalization, we could easily see the further spread of economic weakness to core countries, or even a debilitating liquidity crisis, Lagarde said. Bolstering banks balance sheets is key to cutting the chains of contagion. The former French finance minister, who took the helm at the Washington-based IMF in July, said recapitalization should be substantial and called a mandatory move the most efficient solution. Banks should seek funds in financial markets first and later public money if necessary, including from the 440-billion euro European bailout fund, she said. Plain Wrong European Central Bank President Jean-Claude Trichet echoed Lagardes call for banks to strengthen their balance sheets, while saying any talk of a liquidity crisis is plain wrong because his institution has taken steps to aid banks, offering them unlimited cash for up to six months. Attending his final Jackson Hole conference before retiring in October, Trichet, 68, avoided mentioning the debt crisis at length, preferring instead to defend the euro against critics who say its members are too diverse to unite under a single currency. He used new research to show how the U.S. has regional divergences similar to the

INSIDE THIS ISSUE:

CORPORATE watch ECONOMY watch INDUSTRY watch FACT OF WEEK INTERVIEW ZARGONOMICS JOB watch ENTREPRENEUR

euro areas and noted how Europe has grown almost as quickly and generated more jobs as the U.S. in the past decade. While Lagarde urged lawmakers to shrink budget deficits over time, she said they could still take steps now to stimulate expansion. Making European budgets more sustainable does not necessarily mean drastic upfront belt-tightening because by addressing long-term risks such as rising pension costs, governments will have more leeway in the short term to fund policies that support job creation, she said. Housing Policies Thats also true in the U.S, where Lagarde called for decisions on future consolidation involving both revenue and expenditure. She also called for more aggressive policies on housing to halt the downward spiral of foreclosures, falling house prices and deteriorating household spending. These could include reducing principal payments for homeowners or helping them refinance mortgages at lower interest rates, she said. Central bankers should also keep monetary policy highly accommodative, as the risk of recession outweighs the risk of inflation and should stand ready to dive back into unconventional waters. The Fed this month pledged to keep its key interest rate near zero until at least mid-2013. Emerging economies have a part to play too, Lagarde said, adding that some key nations are curbing domestic demand and preventing their currencies from strengthening. Such steps prevent emerging markets from making a bigger contribution to global growth. Everyone should recognize that decoupling is a myth, she said. If the advanced countries succumb to recession, the emerging markets will not escape.

THE DERRICK

CORPORATE WATCH
Kingfisher okays Rs 2000crores rights issue to pare debt
The board of Kingfisher Airlines on Thursday approved raising Rs 2,000crore through a rights issue. The decision came after the airline's attempts to raise $350 million by selling global depository receipts failed to attract investors. The financially-strapped airline, which is in the midst of a debt restructuring, is seeking to raise Rs 2,000crore, substantially higher than its current market cap of Rs 1,172crore, leading some equity analysts to believe the promoters may not subscribe in proportion to their current holding in the company. If that were to happen, there would be a drastic dilution in the 59% stake held by the promoters - liquor baron Vijay Mallya and companies belonging to the United Breweries (UB) Group. United Spirits Ltd, India's largest liquor company, is Mallya's flagship. Kingfisher Airlines had raised Rs 709crore by issuing OCDs to Star Investments, Margosa Consultancy and Redect Consultancy. These entities are acting in 'consent' with the promoters and will have to redeem the OCDs before the right issue in one or more tranches. The board also allowed the three entities that hold OCDs to pick up the unsubscribed portion of the rights issue.

Larsen & Toubro to unveil new management structure in April

Larsen and Toubro shareholders will have to wait till the first week of April 2012 for the announcement of a new Chairman and Managing Director, said Mr A.M. Naik, the current CMD, at the company's 66 Annual General Meeting on Friday. A number of senior directors will also be retiring soon and this is a matter of concern, therefore, company is looking to bringing new talent faster and getting them trained at best global universities like Harvard. Getting the right talent is one of the biggest challenges, which the company is now facing. L&T Group has 64 businesses, which is getting very difficult to manage. Therefore, they are being split into nine verticals, each with own internal board and independent directors. The verticals will continue to function as divisions of the company, until they are listed. Shares of L&T ended at Rs 1,531.35 per share on the BSE, down 0.99 per cent over the previous close.

TITAN Industries to enter new verticals

Titan Industries, maker of watches and fashion accessories, plans to enter new verticals every other year and gain leadership in that market. Titan is planning to enter into two new categories this year -- silver watches and helmets. The company is working to perfect a technology that will ensure that silver does not get tarnished, without which entering this sector could be disastrous. Titan has already moved into eye-wear products and is experimenting with non-leather bags, belts and other accessories. Company is eyeing segments like pens, steel and even silver jewellery. The Rs 6,000-crore plus Titan Industries has presence in watches, jewellery and eye-wear segments, besides precision engineering for aerospace and automobile sectors. They want a lifestyle retail chain controlling the entire life cycle of their brands from watches and ready-to-wear to leather accessories and footwear. Titan also plans to open 100 new exclusive Fastrack stores across the country during the current fiscal year. They reach target of achieving annual turnover of Rs 1,500crore from Fastrack stores in the next three years. The company is planning to open two more stores in Ahmedabad and one each at Surat and Rajkot this year.

DLF Plans to Reduce Debt by Rs 2,500-3,000 crore this Fiscal

Indias largest real estate developer, DLF, plans to reduce its debt by Rs 2,500-3,000 crore by the end of this financial year. The company aims to cut debt through the divestment of non-core assets, including hotels and plots of land that cannot be developed in the next five years. DLF, which has been trying to bring down its debt for some time, reported an increase of Rs 100 crore in net debt in the first quarter of financial

year 2012. Net debt touched Rs 21,524 crore in the first quarter of FY12, from Rs 21,424 crore as on March 31, 2011. While the group has a divestment target of Rs 6,000-7,000 crore over two to three years from sale of noncore assets, it had raised only Rs 165 crore by June 30. DLF would offload its stake in the hotel chain Aman Resorts, while keeping the Aman Hotel in Delhi with itself. Apart from Aman Hotel, earlier Lodhi Hotel, the chain has two other hospitality properties in India Aman-i-Khas and Amanbagh both in Rajasthan. Aman Resorts, founded in 1988 by Adrian Zecha, owns and operates a number of hotels across the world.

Apollo unveils new technology

A breakthrough MRI-guided and non-invasive, high intensity ultrasound procedure was unveiled for the first time in the country at Apollo Hospitals, Hyderabad for treatment of uterine fibroids in women. The uterine fibroids are non-cancerous growths of the uterus with symptoms like heavy menstrual bleeding, prolonged menstrual periods, pain etc. Conventional treatment options included medication or surgical removal of fibroids. The uterine fibroids were leading cause for hysterectomies and among the top five surgical procedures world-wide. The MRI-guided High Intensity focused Ultrasound (HIFU) solution from Philips would soon be available in other Apollo hospitals across the country in the next few days, said Dr. Prathap C. Reddy at a media conference here on Friday. The procedure will cost about Rs.70,000 to Rs.80,000 including follow-up.

Ford, Toyota Plan Collaboration for Hybrids

Ford Motor Co. (F) and Toyota Motor Corp. (7203), the worlds biggest seller of gasoline-electric autos, will collaborate to develop a hybrid system for pickup trucks and sport-utility vehicles. The companies want to have a final agreement on collaboration by next year, Kuzak said at a press conference. The two automakers working together on in car communications systems and Internet-based services. Ford is joining forces with the Toyota City, Japan-based automaker, maker of the best-selling Prius gasoline-electric car, as the U.S. automaker plans to triple North American output of electric vehicles and hybrids to more than 100,000 by 2013.

Motorolas Value to Google Found in 18 Patents

Motorola Mobility, which created the consumer market for mobile phones with the DynaTAC 8000X brick in 1983, and Apple, which reinvented the industry with the smart iPhone in 2007, are among the larger companies that have been battling over ownership of mobile technology. Among Motorola Mobility Holdings Inc.s more than 17,000 patents, a group of 18 may prove most useful in Google Inc. (GOOG)s effort to fend off litigation targeting the Android mobile platform. They cover technology essential to the mobiledevice industry, including location services, antenna designs, e-mail transmission, touch- screen motions, software-application management and third- generation wireless. Any patent owner, before they consider litigation is going to carefully evaluate their patents to withstand an attack, Mixon said in a telephone interview. You dont want to hold any back. You want to pick your strongest patents. Google is counting on its $12.5 billion acquisition of Libertyville, Illinois-based Motorola Mobility to strengthen its patent lineup as Apple and Microsoft Corp. challenge Android, the best-selling smart phone operating system in the second quarter. Google had been issued fewer than 1,000 patents as of the start of this year. Motorola Mobility would add another 17,000, as well as about 7,500 pending applications.

Google Plans to Start Web TV in Europe Early Next Year, Schmidt Says
Google Inc. (GOOG) plans to start its online television service in Europe early next year as the worlds largest Internet-search company seeks to expand its TV customer base. The company, based in Mountain View, California, also will continue to help fund broadcasting content, though will stop short at producing any itself, Schmidt told television executives in Edinburgh. Google TV started in the U.S. last year with partners Sony Corp. and Logitech International SA. Just as smart-phones sparked a whole new era of innovation for the Internet, we hope Google TV can help do the same for television, creating more value for all, according to a transcript before his lecture at the annual Edinburgh International Television Festival in the Scottish capital.

Google TV works with an Internet television or a set-top box, according to the companys website. Logitech said in April it would cut the price of its Revue device by 17 percent to attract buyers after a slow start. Logitech began selling Revue in the U.S. in the final quarter of 2010. Schmidt told the audience today he wanted the U.K. television industry to work with Google on developing content for broadcast. He rejected what he called an accusation that Google aimed to make all content free for users.

Tata Motors resumes production at Pune, Sanand facilities

Tata Motors on Saturday said it had resumed production of passenger vehicles at facilities in Pune and Sanand, following temporary suspension in the face of a slowdown in demand in the domestic market. Production at Tata Motors' Sanand plant has resumed after a temporary suspension for about a fortnight. This was done for maintenance and to rationalise and align inventory. When contacted, a Tata Motors spokesperson said the company had undertaken a similar halt of productions for seven days at its Pune facility. Production of commercial vehicles at the Pune, Pantnagar, Jamshedpur and Lucknow facilities was normal. According to the Society of Indian Automobile Manufacturers (SIAM), Tata Motors' production of passenger vehicles in July declined by 21.63 per cent to 28,344 units compared to the year-ago period. Domestic sales of passenger vehicles during the month also fell by 32.64 per cent to 22,011 units. The Sanand facility produces small car Nano, while the Pune plant rolls out vehicles such as passenger cars eIndica and Indigo.

Birla Corp suspends mining in Rajasthan

Birla Corporation on Saturday said the company had suspended limestone mining in Rajasthan following a court order. The High Court of Judicature for Rajasthan at Jodhpur has directed that no mining should take place in the mining leases within the area of 10 km from the Chittorgarh fort. The company said that it is taking necessary legal measures for revocation of the above stay order of the high court.

Tata Global Beverage to focus on U.S., Russia

Tata Global Beverages will focus on achieving a stronger footing in the U.S. and Russian markets while expanding across beverage categories in South Asia and other regions. This is part of the group's strategy to grow in core tea and coffee markets while pursuing disruptive-innovation' in the good-for-you beverage segment. Equally important with this strategy will be to leverage scale and operations capability to improve efficiencies. The company which will be meeting its minority shareholders next week said that Nourish Co Beverages, the equal joint venture between the company and PepsiCo Inc U.S., proposes to develop the bib carbonated ready to drink beverage segment in India and also international focussing on the health and wellness beverage products. It said that interim transition of sales and distribution of Himalayan water to Pepsico India Holdings en route Nourish Co was in its nascent stage but was expected to drive market reach and volumes of Himalayan water riding on the wider distribution network of PepsiCo India. Percy Siganporia, Managing Director, said he expected a clear move into fortified beverages after the launch of mew beverages such as Tata Gluco Plus in 2010-11.

THE DERRICK

ECONOMY WATCH
Chinas Industrial Profits Rise 28.3%
Chinese industrial companies profits rose 28.3 percent in the first seven months from a year earlier, helping to support the expansion of the worlds fastest-growing major economy. Net income climbed to 2.8 trillion yuan ($438 billion), the National Bureau of Statistics said on its website today. That compares with a 28.7 percent gain from January through June. Profit for the nations industrial companies was 2.4 trillion yuan in the first half. Demand for Chinas exports is under threat as the U.S. recovery weakens and European officials grapple with a sovereign-debt crisis. Higher profits may help to sustain investment, preventing a deeper slowdown in an economy that grew 9.5 percent in the second quarter. Commodity Prices Declines in some commodity prices since April may ease cost pressures that have pared some companies profits. Crude in New York has fallen more than 25 percent since reaching a 31-month high above $114 a barrel in late April. Angang Steel Co., the largest Hong Kong-traded Chinese steelmaker by market value, and Li Ning Co., Chinas largest maker and retailer of sportswear, are among companies to have reported rising costs and weaker profits.

Irene Threat Spurs Repo Traders

Rates for borrowing and lending securities in the repurchase-agreement market rose and investors sought to extend maturities on concern power outages and closings of mass transit will keep traders home after Hurricane Irene strikes. Overnight general collateral Treasury repurchase, or repo, rates, opened today at 0.10 percent and traded at 0.13 percent at 10 a.m. New York time, according to data from ICAP Plc, the worlds largest interdealer broker. Securities dealers use repos to finance holdings and increase leverage. The majority of repo transactions take place on an overnight basis, with those current funding positions maturing on Aug. 29. Diminished staffing and computer-related problems following the hurricane may make it difficult to roll over such transactions. Transportation agencies in the New York City metropolitan area plan to begin halting service at noon tomorrow. More than 65 million people from North Carolina to Maine, or about one in five Americans, may be in the storms path. Securities that can be borrowed at interest rates close to the Federal Reserves target rate are called general collateral. Those in highest demand have lower rates and are called special. Repo Average Level The average level of overnight general collateral repo rates traded through 10 a.m. New York time today with ICAP was 0.06 percent today, up from a 0.05 percent average yesterday, and 0.01 percent the day before that. Given there is a chance that on Monday some people cant get into the office due to the hurricane, it is prudent to get some longer-term funding locked up over the weekend? A government-debt economist in New York at Jefferies Group Inc., one of the primary dealers that trade directly with the Fed.

Gold Rises, Narrowing Weekly Loss

Gold rose in New York for a second straight day after Federal Reserve Chairman Ben S. Bernanke offered no plan to provide further stimulus for the economy. While Bernanke said the central bank has the tools to spur

growth, he refrained from outlining a plan for a third round of so-called quantitative easing. The Fed pledged on Aug. 9 to keep the benchmark interest rate between zero percent and 0.25 percent through at least 2013 to help stimulate the economy. The next policy meeting is Sept. 20. Gold futures slumped as much as 11 percent in the three days through yesterday, after touching a record $1,917.90 an ounce on Aug. 23Gold futures for December delivery gained $34.10, or 1.9 percent, to settle at $1,797.30 at 1:58 p.m. on the Comex in New York. Prices are down 3 percent the past five days, the first weekly loss in eight weeks. In after-hours electronic trading, prices jumped as much as 3.7 percent to $1,828.90. Extending Rally Gold is in the 11th year of a bull market, the longest winning streak since at least 1920 in London, as investors seek to diversify away from equities and some currencies. Before this week, gold climbed for seven consecutive weeks, the longest rally since April 2007. Prices are up 26 percent this year.

Coal India: Short-lived reign at the top, margin fears loom

Till a few days back, Coal India was the toast of the town, having knocked Reliance industries off its perch as the company with the highest market capitalization. But the state-owned miner has not been able savour its new-found glory for long. Demands from its labour unions for higher wages, and the directive from the Jharkhand pollution board to close down 22 mines operated by subsidiary Bharat coking coal, have pulled down the stock to the number three slot in the market cap rankings this week. Analysts are divided on how the stock will perform in the coming days. According to analysts calculations, employee costs account for 60% of BCCLs total expenditure. The management and staff will meet on September 23RD to negotiate salary hikes. If the salary is hiked by say 20%, CILs profits could be lower by around 10%. CIL has registered a net profit of Rs.130crore for the April-June quarter, up 63% y-o-y. Its net sales grew 27% to Rs 14,500crore on improved realisations. Another major hurdle for the company is the availability of rakes to transport the coal to its customers. CIL accounts for over 80% of the domestic coal production and faces shortage of rakes for transportation of dry fuel.

Gold rally makes govt richer by $5-bn in August so far

The bullion traders and investors are not alone in reaping rich benefits from the glittering gold prices and the strategy of keeping a substantial holding of the yellow metal seems to be working well for the government too. A sharp increment over 20 per cent in gold prices so far this month has led to a surge of about $ 5 billion (over Rs 22,000 crore) in the value of gold held by RBI, which acts as a custodian of the yellow metal for the government of India. The central bank keeps the yellow metal in the country's international reserves portfolio, where it had gold worth Rs1,11,940crore ($ 25.35 billion) at the end of last month. The gold prices in domestic market have appreciated by 20.4 per cent since the beginning of this month to hit a record high of Rs 28,230 per 10 grams. The prices have also appreciated sharply by over 16 per cent in the international market from $ 1,616 per ounce to $ 1,880 currently. The central bank is currently estimated to hold a total of 557.75 tonnes of gold. The gold reserves have grown by Rs 22,376 crore ($ 6 billion) over the past one year, while it has gone up by Rs 11,254 crore ($ 2.9 billion) so far in the current calendar year 2011. RBI figures among 10 largest central banks across the world in terms of gold holding in foreign reserves portfolio.

Govt readies stake sale process for Nalco, Hind Copper, SAIL

The Centre has begun preparation for disinvestment for National Aluminium Co Ltd (Nalco) and Hindustan Copper Ltd without follow-on offers (FPO). However, for SAIL, the Government has revived the process for a combined exercise stake-sale and an FPO. The Government may time these three disinvestments in the October-December quarter this year. The Government has recently been informed by the Ministry of Mines that Nalco and Hindustan Copper would not require any equity issue now, while the Ministry of Steel has conveyed that SAIL would need funds through a follow-on offer, top officials of the three government-owned companies Both the companies felt that internal generation could take care of their expansion plans for next two to three years. A Steel Ministry source admitted that SAIL preferred to make fresh equity issue to raise money for its ongoing modernisation and expansion plans. The filing of prospectus with the market regulator for the three listed companies has been aimed in September. The Government expects the stock market valuations to improve towards the end of this year. Last year, SAIL had planned a two-tranche FPO of 5 per cent each. The Government stake sale in SAIL was also planned in two takes for another 10 per cent. The Government also had targeted 10 per cent disinvestment each in Nalco and Hindustan Copper.

India plans manufacturing policy to boost job creation

India aims to sharply crank up its manufacturing base to help provide jobs to 100 million young people who will join the workforce by 2025. About 100 million young people will enter the job market and emphasis on manufacturing is the critical part of creating employment for them The "National Manufacturing Policy", to be unveiled in a few weeks, plans to boost the share of manufacturing in the country's economy to 25 percent from a current 15 to 16 percent. The proposals will include a policy aiming for creation of world class manufacturing infrastructure by setting up special manufacturing zones.

Rupee falls by 9 paisa vs. dollar

The Indian rupee fell by 9 paisa to Rs 45.76 per US dollar in early trade today on month-end dollar demand from importers, coupled with a higher dollar overseas amid weak local equity markets. The rupee resumed lower at Rs 45.70/71 per dollar on the Interbank Foreign Exchange as against its previous close of Rs 45.67/68 and hovered in a range between Rs 45.60 and Rs 45.76 before quoting at Rs 45.72/73 per dollar at 1030 hours. Month-end dollar demand, especially from oil refiners, mainly affected the rupee value against the dollar. Persistent capital outflows from foreign funds in view of weak equity markets, coupled with a higher dollar in overseas markets, were the other factors behind the fall in the rupee value. The dollar edged slightly higher against a basket of currency rivals in New York as US stock indices pared gains, forcing currency traders to adjust their estimations of how strongly investors are willing to move into riskier assets.

Housing Demand to Remain Strong despite Global Slowdown

Despite slowdown in the global economy, the demand for housing sector will remain strong in the country. But the sector will not witness the kind of price appreciation it has seen in the last couple of years. The global slowdown of economy will have positive as well as negative impact on the Indian real estate sector. Anshuman Magazine, the managing director of global realty consultant CB Richard Ellis, says that on the whole, because of the domestic demand-driven market, the recent developments in the international front will provide good opportunities to homebuyers to fulfil their aspirations to own a house. Despite marginal slowdown of Indian economy, it is expected to grow at healthy rate of 7.5%, which will not only reduce the impact of the global slowdown but also make it one of the most attractive investment destinations in the world, along with China. .SEBI

allows infra finance firms to float long-term bonds

The Securities and Exchange Board of India on Friday allowed infrastructure finance companies to raise funds overseas through long-term corporate bonds. It has been decided that non-banking financial companies

(NBFCs) categorised as infrastructure finance companies (IFCs) by the Reserve Bank of India (RBI) shall also now be considered eligible issuers for the purposes of FII investment under the corporate debt long-term infra category. This fund raising tool was so far limited to companies in the infrastructure sector. Investments in such bonds shall have a minimum lock-in period of three years. However, during the lock-in period, FIIs will be allowed to trade among themselves. During the lock-in period, the investments cannot, however, be sold to domestic investors. In a bid to facilitate fund flow in the infrastructure sector, the government has recently enhanced the FII limit from $5 billion to $25 billion for corporate bonds issued by companies in the infrastructure sector with a residual maturity of over five years.

India-South Africa CEOs forum to be held on Monday

Commerce and Industry Minister Anand Sharma and his South African counterpart Rob Davies will interact with leading corporate bigwigs of the two countries at the second India-South Africa CEOs Forum being held in New Delhi on Monday. The forum is headed by Tata Sons Chairman Ratan Tata from the Indian side and African Rainbow Minerals Executive Chairman Patrice Motsepe from South Africa. The first meeting of the forum took place in Johannesburg in August, 2010. In an official statement, Mr. Sharma said the two countries occupy similar positions in the global economic order and it was necessary for both of them to strengthen bilateral ties. During the first meeting, the business leaders of both countries discussed in detail the opportunities and challenge that bilateral investment and trade offered and the bottlenecks that were hampering India-South Africa business ties. The forum had also agreed to jointly explore business opportunities in Africa in diverse fields such as pharmaceuticals, healthcare, food processing, automobiles, components, biotechnology, information technology, telecommunications, infrastructure, roads and railways. Apart from Ratan Tata, other prominent Indian corporate leaders that are part of the forum are Mahindra & Mahindra Vice Chairman and Managing Director Anand Mahindra and Marico CMD Harsh C Mariwala, among others.

THE DERRICK

INDUSTRY WATCH

Big Pharma Vies For Indias $12B Drug Market

Two dozen young men and women toting backpacks and brochures mill around cardiologist P.L. Tiwaris office in Bombay Hospital, waiting as long as 90 minutes for an opportunity to see him. They arent there for checkups. They instead want to persuade the Mumbai doctor to prescribe their brands of prescription drugs. Tiwari, who sees about 50 patients a day, said he is so inundated by sales representatives he tries to limit their visits to Friday nights. Pharmaceutical sales in India have increased an average of 14 percent annually since 2005, stoked by rising incomes and surging rates ofheart disease, diabetes and cancer. India bans prescription-drug advertising, so GlaxoSmithKline Plc (GSK), Pfizer Inc. (PFE) and other companies are trying to tap the $12 billion market through a sales force of 100,000 that is predicted to at least triple by 2020. Indias 10 biggest pharmaceutical companies -- including Ranbaxy Laboratories Ltd. (RBXY), Cipla Ltd., Dr. Reddys Laboratories Ltd. and local units of Pfizer and Glaxo -- bolstered their combined sales forces by more than 6,000 in the fiscal year ended March 31, executives said on conference calls this month. Brand Abundance India has 92,000 brand names of registered pharmaceuticals, according to a compendium of medicines sold in the country. The World Health Organization, in contrast, recommends 340 essential drugs.

Quality assurance marking to be mandatory for steel, goods from Jan

Come January, steel-makers will not be able to make or sell their products in the country, unless it carries the quality assurance marking provided by the Bureau of Indian Standards (BIS). Manufacture of steel and steel products will be allowed only after obtaining a valid licence from the Bureau the Union Steel Ministry said in its Steel and Steel Products (Quality Control) Second Order, 2011, making it mandatory for primary and secondary steel makers and dealers to register with the BIS by December .The order, though, could unsettle the cost matrix of small and medium secondary steel manufacturers who command a market share of 50-60 per cent. The move to upgrade the manufacturing facility to produce the quality standard will call for huge investments. The move is expected to bring consistency and quality standards in the industry, which is important sign well for the endusers. Prohibiting manufacture, storage, sale and distribution of steel products without BIS mark, no person shall manufacture or store for sale or distribute any steel and steel products that do not conform to set BIS standards. The order has exempted steel products meant for export that have to conform to the specification of the foreign buyers.

SBI says no plan to launch teaser loans as ICICI Bank

The nation's largest lender State Bank has no plan to relaunch the dual/fixed rate home loan products, popularly known as teaser loans, as was done by rival ICICI Bank last week. On August 19, the second largest lender ICICI Bank had launched two new home loan products with interest rates fixed for one and two years and floating from the third year onwards. Under the new loan scheme of ICICI, a customer could avail of a housing loan at a fixed rate of interest for one or two years, after which the interest rate would become floating. In the one-year fixed rate home loan scheme, the bank is offering loans up to Rs 25 lakh at 10.50 percent, Rs 25-75 lakh at 11 percent and those above Rs 75 lakh at 11.50 percent. How homebuyers can benefit from CCI verdict

The Competition Commission of India (CCI) has imposed a penalty of around 600crore on realty major DLF for abusing its dominant market position. Levied by the anti-monopoly watch dog, the penalty was imposed after DLF was found guilty of violating the Competition Act, 2002. The fine amounts to 7% of the company's average annual turnover in the past three years. Following complaints in May last year by several people who had booked flats in a DLF project, the CCI had referred the matter for probe by the Director General (Investigations). According to one such complaint, DLF had promised to complete Belaire, its residential project in Gurgaon, in 2009, but buyers are yet to get possession of their apartments.

Jobss Departure Puts Pressure on Ive to Become Apples Product Visionary

Steve Jobss departure as chief executive officer this week leavesApple Inc. (AAPL) without the full- time attention of its technology visionary, putting pressure on head product designer Jonathan Ive to fill that gap. While new CEO Tim Cook comes from an operations background, Ive has been Jobss foremost creative partner within Apple, said Eric Chan, who runs Ecco Design Inc., an industrial design firm. Ive, who goes by Jony, oversaw the exacting development that led to devices such as the iMac, iPod, iPhone and iPad. They have trust and they have the kind of quality vision that you need. They push each other. The company aims to prove it can still churn out successful products without as much oversight from Jobs, who is now serving as chairman. Ive drew inspiration from the former CEOs legendary attention to detail and aesthetic sense -- something that Cook hasnt had to demonstrate in his previous roles. The greatness of Apple has a lot to do with Steves commitment to design -- the willingness to spend amounts of money on design that would be crazy to most other companies.

Banks witness rising risks from unsecured portfolios

Reserve Bank of India Deputy Governor Anand Sinha on Wednesday said that though bad loans were rising in the system, the central bank did not see it as a systemic risk yet. Talking to reporters on the sidelines of FICCI-IBA summit here, he said, We don't see any systemic risks from the current trend of rising non-performing assets. But, there could be some sectoral risks going forward. The central bank had jacked up its key lending rate by a steep 425 basis points in the past 15 months to batten down inflation and the banks have passed on the increased cost to borrowers. Banks have been witnessing rising risks from small and medium scale industries and unsecured portfolios, which primarily consist of personal loans and credit cards business, apart from the home loan front. Bankers had told RBI Governor D. Subbarao last month that there was no systemic risk as of now for banks, even as the interest rate got tightened. Meanwhile, Crisil Ratings Director Ramaraj Pai said the 26 public sector banks would need a huge Rs.8 lakh core capital by 2019, when the Basel III norms would be implemented.

MRPL-Shell venture to provide ATF to Delhi and Mumbai airports

A joint venture of Mangalore Refinery and Petrochemicals Limited (MRPL) with Shell will provide aviation turbine fuelling (ATF) services to airports in Mumbai and Delhi. The ATF is produced by MRPL, which currently provides ATF to the airports in Bangalore, Hyderabad, Mangalore, Ahmedabad and Kozhikode. The company's ATF sales have increased by 23 per cent to 67 TMT as against 54 TMT last year. Its total sales turnover of ATF was Rs.2,291 crore. A joint venture of MRPL with Shell B.V. Netherlands, markets the ATF. In 2010-11, the company fuelled 12,674 flights. Mr. Basu said the company's single point mooring (SPM) facility in the sea in the Mangalore port area would not hinder fishing. The SPM is not new in the Indian scenario. It is working all over India. It will be buried in the sea and will not cause a problem to fishing. The facility will enable receiving crude oil in very large crude carriers (VLCCs). The ONGC board approved of it in July this year. The target date for completion of the project is May 2012. The company has plans for establishing a retail network. Its board has approved in principle' the setting up of 122 retail outlets. It is waiting for a level-playing field and will start retail operations if margins are good. Iran crude MRPL is getting 60-65 per cent of its crude oil requirements from Iran. The issue of payment mechanism with Iran has now been resolved. It is one of the best deals. There will be no stoppage of crude from Iran. An alternative arrangement has been found with crude from Kuwait. While 7 million tonnes comes from Iran, one million tonne comes from Kuwait.

Sesa Goa to suspend mining in Karnataka

Vedanta Group firm Sesa Goa on Saturday said it would stop mining in Karnataka's Chitradurga with immediate effect, following the Supreme Court's order banning mining in Chitradurga and Tumkur districts. It will adversely affect to some extent the performance of the company, it said in a filing to the Bombay Stock Exchange, while informing about suspension of its mining activities in Chitradurga. The apex court on Friday had extended the ban on mining to Tumkur and Chitradurga districts, while acting on a recommendation by its expert panel for halting extraction of iron ores in the two districts of the state. Mining in Bellary region had already been banned by the court on July 29. The Central Empowered Committee in its recommendations to the bench on August 19 said that the mining operation was going on recklessly and in an environmentally unsustainable manner with the prime objective to exploit the iron ore mines merely for short-term gains. Sesa Goa, which has produced 18.8 million tonnes of iron ore in the last fiscal, had said earlier that ban on mining in Chitradurga would affect its gross revenues by up to 15 per cent. Company has targeted to expand its iron ore production capacity in the state to 7 million tonnes per annum in the immediate future and was in talks with the government for environmental clearance.

BMW introduces luxury sedan X3

German luxury car maker BMW on Thursday said it had increased the annual output from its Chennai plant to 11,000 units with the start of second shift from June. The company, which is present in India through a wholly owned subsidiary, on Thursday, launched its sports utility vehicle X3, priced between Rs.41.20 lakh and Rs.47.90 lakh (ex-showroom, across India).

CAPACITY INCREASE Company has expanded its production facility by starting the second shift of production. The production has been expanded to 11,000 units annually from 10,000 units. Earlier in March, the company had ramped up production capacity from 8,000 to 10,000 units a year in single shift operations. There was scope for adding another assembly line, could increase the output of the second shift and one more production site, if the need arose. The company was targeting to sell one lakh units every year in India, but declined to share any timeline. In March, BMW India had said it was targeting sales of up to 60,000 units in the next ten years and would invest an additional Rs.70 crore by 2012. Last year, BMW retained its number one position in the Indian luxury car segment with sales of 6,246 units, which was up 73 per cent from the previous year. To expand its product portfolio in the country, BMW India now introduced its SUV X3 in diesel options. The vehicle would be produced at its Chennai plant as a completely knocked down unit. Sales of the car would start from next month. The launch of the new BMW X3 is a significant milestone in companys growth strategy in India.

IT sector to grow by 18 %
The National Association of Software and Service Companies (NASSCOM) on Tuesday said Indian IT companies would continue to grow globally at 16-18 per cent in the current fiscal despite the economic crisis in the U.S. and European markets. Stating that the IT industry was cautious on the developments, Mr. Mittal said Nasscom was encouraging and helping Indian IT industry to find newer markets for their products and no to remain over-dependant on the U.S. and the European markets. Notably, the U.S. and European nations account for over 85 per cent of the revenues of the over $70 billion Indian IT sector. Earlier this year, Nasscom had presented a conservative outlook of 16-18 per cent growth in IT exports in 2011-12 in the wake of the slow economic recovery in the U.S. and uncertainty in the European region. The growth in software and services export is expected to be 16-18 per cent and the sector is slated to bring in revenues of $68-70 billion. The growth in the domestic market is estimated to be 15-17 per cent, with revenues of about $19-20 billion.

Tata Motors launches new Vista

Petrol version price starts from Rs.3.88 lakh, diesel variant from Rs.4.79 lakh Tata Motors on Tuesday launched the new version of its premium hatchback, the Tata Vista. The new Tata Vista delivers a sedan-like experience, with engine options and segment-leading interior space. The new range will be available at Tata Motors dealerships from September 1. Tata Vista will come in four trim levels- LS/ GLS (base version), LX/ GLX, VX/ GVX and ZX/ GZX (top-end version) and will be offered in six colours, Summer Sparkle, Porcelain White, Arctic Silver, Spice Red, Brilliant Blue and Cavern Grey. The premium hatchback has been competitively priced, starting from Rs.3.88 lakh (ex-showroom Delhi) for the Safire petrol range and from Rs.4.79 lakh for the Quadrajet diesel range (ex-showroom, Delhi). The car will be powered by a 1.3-litre common rail direct injection (CRDi) Quadrajet diesel engine and 1.4-litre MPFi Safire petrol engine with variable

valve timing technology. The new Vista delivers a mileage of 22.3 km/l for diesel and 16.7 km/l for petrol. The car comes with a new front chrome grill, complemented with a new triple barrelled head lamp, for excellent visibility in low-light conditions. It also sports new alloy wheels and a new signature colour, Summer Sparkle, as also a mirror polished garnishing below the rear windshield. The four-spoke steering wheel now sports audio controls, which controls a fully integrated 2-DIN music system. It offers connectivity through USB, auxiliary input and Bluetooth using the Blue 5 technology that helps pair up to five mobile phones. Outer rear view mirrors can be adjusted electrically using the joystick on the drivers side door pad and electrically operated HVAC controls add style and convenience. Besides, it allows adjustable driving positions with tilt-adjustable steering wheels and height adjustable driver's seat with lumbar support. In the rear, the 60:40 flip and fold rear seat makes room for luggage. Another major addition is the Clutch-to-Start feature which ensures that one cannot crank the engine unless the clutch is fully pressed; hence there is no risk of re-crank if engine is on. Four top of the line safety and security features such as ABS with EBD, dual airbags, crumple zones and side intrusion beams complete safety of the passengers. Features like engine immobiliser and remote keyless entry complete its sedan-like experience.

THE DERRICK

FACTS OF THE WEEK

1. In its ambitious attempts to connect Tier II and Tier III cities of India, the SpiceJet has received a brand new fleet of the latest Q400 NextGen turboprop aircraft from Bombardier. 2. Wipro BPO, the business process outsourcing arm of Wipro Technologies, has opened its first rural centre at Manjakkudi village in Tiruvarur district of Tamil Nadu. It has a population of about 2,500. This location had been selected due to the relatively high level of investment in education in the region. 3. Tim Cook, who replaced Steve Jobs as the chief executive of Apple has told the staff that company will not change. In an e-mail to Apples staff, Mr. Cook said he is confident that the future of the company was safe and the best years were yet to come. 4. Inflation is likely to remain high and moderate only towards the latter part of the year to about 7 per cent by March 2012, the Reserve Bank of India said on Thursday, while warning against accepting the present inflation level as the new normal. 5. Anil Dhirubhai Ambani Group firm Reliance Infrastructure on Friday said it had bought back five lakh equity shares of the company from the open market. Its Rs.1,000-crore buy-back plan is aimed to reduce short-term volatility in its share price and discourage speculative activity in its stocks 6. ICICI Bank now makes its online money transfer tracking service Money2India.com much more convenient to access anytime, anywhere through mobile phones with GPRS connection. Non-resident Indians can now track exchange rates, as well as their money transfer request status and place new requests for tracking from their mobile phones. The website also features the Fixed Rupee' facility that offers confirmed rates at the request initiation stage. 7. Renault Nissan Alliance India has crossed the milestone by producing one lakh 1.2-litre and 1.5-litre HR12DE petrol engines in a record period of 15 months. Earlier, the plant had achieved a milestone by producing one lakh Micra cars in a record period of 13 months. The petrol engine range is part of the project called Nissan Green Project 2010,' which is an initiative taken by the company to reduce the carbon footprint of its cars 8. Mahindra Satyam has announced the successful deployment of OracleR Exadata Database machine to support its immediate business requirements. The machine is used to support the future expansion plans of the company and the integration of Mahindra Satyam and Tech Mahindra in the coming months. Oracle Exadata will help in cutting the capital expenditure while improving database performance. 9. In a bid to trim its huge debt of Rs.6,000 crore, the board of cash-strapped private carrier Kingfisher Airline has approved a rights issue to mobilise up to Rs.2,000 crore, but without setting a time-frame. The debt-laden airline, which had reported a net loss of Rs.263 crore on a revenue of Rs.1,882 crore in the April-June quarter, has been trying to raise funds through a global depository receipts (GDR) issue of $250-350 million, for quite some time now. 10. Buoyed by seafood exports crossing $2.8-billion mark in 2010-11, the Central Government on Friday set an ambitious target of $4 billion for this fiscal. In an official statement here, the Commerce Ministry, citing figures from Marine Products Export Development Authority (MPEDA), said seafood exports grew 33.95 per cent in dollar terms in 2010-11. 11. Indian ADRs ended on a mixed note On Friday with MTNL slumping over 5% to $1.54. Tata Communications slipped 2% to $8.29. Meanwhile, Infosys gained 1.5% at $48.41. Genpact added 1% to $15.88. Sterlite, Wipro and ICICI Bank advanced marginally as well.

12. Tata Global Beverages will focus on achieving a stronger footing in the U.S. and Russian markets while expanding across beverage categories in South Asia and other regions. 13. Vedanta Group firm Sesa Goa on Saturday said it would stop mining in Karnataka's Chitradurga with immediate effect, following the Supreme Court's order banning mining in Chitradurga and Tumkur districts. The ban on mining in Chitradurga and Tumkur districts will affect to some extent the performance of mining companies such as Sesa Goa. 14. Tata Motors on Tuesday launched the new version of its premium hatchback, the Tata Vista. The new Tata Vista delivers a sedan-like experience, with engine options and segment-leading interior space. The new range will be available at Tata Motors dealerships from September 1.

THE DERRICK

INTERVIEW

CITI group trimmed stake to meet Basel III norms: Keki Mistry, HDFC

Citigroup sold 1.5% holding in HDFC on Tuesday. In an interview with ET Now, Keki Mistry, Vice Chairman & CEO, HDFC, gives his views on why Citi has exited the stake of HDFC at this point in time, and talks about other things such as inflation and rising interest rates. Excerpts: Could you give us a possible reason on why Citi exited the stake of HDFC at this point in time? I think you should ask Citi, but from what I understand, they have issued a press release in New York also to that affect that they have come down to below 10% because that was the requirement of Basel III and ahead of Basel III they have reduced the stake by 1.5%. They do not have any further plans to sell shares of HDFC and they said that categorically in a press release.

The deal size is close to about $236.5 million if I am not wrong... I presume it should be around 230 million. Any possibility that there could be other shareholders that could also look to reduce their stake right now? I do not think so. This was an explicit requirement of Basel III and Citi to bring it down to below 10% and that is the reason why they sold the stake. They said in the release that they have reduced their stake in order to reduce risk levels as per the Basel III norms. Could you highlight a little bit more on the same? There is a Basel III norm which is applicable to all banks. Citi bank has to be Basel III compliant by January of 2012. So just ahead of that they have to reduced the investments in a few companies, one of which was HDFC. Basically they have to bring their investment down to below 10%. What would this mean for HDFC and you do think that they will not have further plans to offload stake? They have said that very categorically in their press release. They have no plans to sell any additional shares of HDFC.

Is there any indication on your side of shareholders who are likely to buy that stake? Buy which stake? There is obviously a stake that has been offloaded by Citi. FIIs and domestic funds may be looking to picking that up... That deal would have happened last night where they sold the 1.4%, but there is no further shares to be sold by Citi. What is your own assessment of what the RBI can dole out in this monetary policy? My own assessment is that inflation will inch lower. We have had good monsoon and hopefully food produce will be good. If the food produce is good, then logically one would expect food inflation to be much lower this year and if inflation is lower then that will give RBI confidence not to take too much of a rate hike. That said, I would expect but at least a quarter percent increase over the next three to six months and that quarter could probably become 50 bps. But in my personal view I do not think it can be more than 50 bps over the next six months and by that time inflation will come down. You might see one blip in inflation as the diesel prices have increased, but that may come month or two months later. At this moment in this week's credit policy, I would say either nothing or a quarter percent.

Is there a possibility of a pause considering the growth is getting hampered? That is what I said. Either there will be a pause which means nothing, no increase in interest rate, or a maximum of a quarter percent increase in rate. I think RBI will wait for a couple of months, see how the inflation numbers actually trend and then take any further call on interest rates. Just given the rising interest rate scenario currently could you give us an inside on the outlook for your spreads currently? Outlook for demands for housing loans you are saying? That is right. Yes, it is for people who take loans from us. They are typically end users. People who need a house to say, they are not investors, they are not speculators, they are buying a house because it is a requirement, necessity. If you like a house, if the family likes the house, if it is affordable in the context of your income, usually you are not going to not buy the house just because interest rates are 0.5% or 1% higher. If you think rates are higher at that point of time you go in for a floating rate loans. So whenever interest rates come down, you will get the benefit of lower rate. If you see over the last many many years we have not seen too much of a correlation between interest rate and demand for housing loans. There is a much greater correlation between demand and the state of the economy, the confidence level of the individual, his assurance about the job, his salary, his bonuses and so on so forth. Inflation figures for the month of May have seen a move on the upside, how worrisome is that? You have to look at the two elements of inflation, which is food and fuel. There is not much that you can do about fuel because this is a global phenomenon. We just have to hope that oil production has increases globally, speculation in oil goes down and oil prices come down globally. But as far as food is concerned to some extent food will depend up on monsoons, agricultural produce, we have during the year, the kind of supply management that is something which is within our control. I do not think that monetary is in many ways going to help in reducing food inflation because people are not going to stop eating food because interest rates are higher or lower.

So to my mind it is more a supply side issue and hopefully with the monsoon, that we are seeing now, food prices should come off especially with the base effect now kicking in because over the last one year food prices have gone up a lot. So from those high levels whether they can go up further, it is really the question mark. So you need to see when food prices really started to rise last year which I think was around this time June, July, or something. So by the time we get to June, July, you will start seeing a much larger base and that I think will bring inflation numbers low.

If you look at the manufacturing inflation that is out for the month of May, that has come in at 7.27% versus 6.18%, clearly indicating that demand side factors are also becoming a concern. So when you say that interest rates are not going to tackle the problem, would you say that this is really an isolated case of food or would you say it is a larger issue of inflation? I would personally think it is an isolation case. I mean interest rates have gone up. The last month we have seen 0.5% increase in interest rates, let that settle into the system. Over the last one year RBI has increased interest rates quite significantly with the lag effect. Once you start seeing the effect of that coming back into play what is your own assessment of what could happen then? The effect is already showing in the system because as you said the IIP numbers came in a little lower. I do not think there is too much more to be seen unless we continue to see more and more rate hikes in the period ahead. I agree that we had a fair amount of rate hikes over the last one year. To my mind we are now at the higher end of the or this is pretty much close to the peak of the interest rate cycle, may be a 0.25%, as I said earlier may be a 0.5% I do not see too much more than that. While the rates will keep rising for your customer per se loans will start getting more dearer. In that light how do you see business shaping up for HDFC in terms of the off take? No. As mentioned earlier not that for someone who is buying a house because he needs the house to stay in. Our borrowers are all salaried employees, middle class individuals buying a house because it is a requirement, it is a necessity. The most important thing from their perspective is the cost of the house, number one. Number two, their income and the affordability as we see.

Now today when we look at affordability on a pan-India basis the cost of our house is the multiple of the annual income of a borrowers which is about 4.8 times. And I am repeating this that we have not seen over the last many years, last probably 15 or 20 years, too much of a correlation between interest rates and demand for housing loans. So even in higher interest rate environment, the actual demand from housing loans from end users, from customers, from middle class individuals has not changed much. At the higher end of the market where people are looking at second homes and third homes, of course there will be a slowdown, but that is not the market for us. Our average loan size on a pan-India basis is about Rs 18 lakh. So these are really middle income customers who take 68% loan. We are looking at a profit cost of around Rs 30 lakh and Rs 30 lakh is not a big amount. Also given that we are India is at the higher end of the rate cycle and interest rate differentials among BRIC economies versus OECD markets is highest in India, how much of a threat do you believe hot money is on the debt side for India? Frankly I am not an expert on that. I do not think there is too much of hot money in the debt market. If there is hot money, then it would have been in equity markets which probably are not the case now. I do not think there is too much of hot money in the debt market, but yes you are right, the interest rate differential is large. Interest rates in India are so much higher than the interest rates elsewhere.

THE DERRICK

ZARGONOMY
1) Reciprocity - Exchange of equal or identical advantages or privileges, such as removal of travelling restriction between two countries. 2) Muni fund- A mutual fund which invests in municipal bonds. These bond funds are popular among investors in high income tax brackets because they are exempt from federal taxes and, in some cases, from state taxes as well. As with U.S. government bond funds, the underlying securities in muni funds are backed by the government and thus are considered to have a high credit rating. However, municipalities have been known to declare bankruptcy on occasion, making these funds more risky than U.S. government bonds. Also called municipal bond fund. 3) Sovereign risk - Probability that the government of a country (or an agency backed by the government) will refuse to comply with the terms of a loan agreement during economically difficult or politically volatile times. Although sovereign nations don't "go broke," they can assert their independence in any manner they choose, and cannot be sued without their assent. 4) Mean reversion -The theory that a given value will continue to return to an average value over time, despite fluctuations above and below the average value. This theory can be applied to any measurable value, including interest rates and the return on a certain investment.

5) SIMPLE- Savings Incentive Match Plan for Employees. A retirement plan sponsored by companies with fewer than 100 employees which is attractive for employers because it avoids some of the administrative fees and paperwork of plans such as a 401(k) plan

6) Seed capital- Comparatively small amount of capital contributed in the very beginning by a firm's founder(s). It is rarely provided by lenders or institutional investors because startup is the riskiest stage in a firm's life cycle with the highest chance of failure. Also called front end money, front money, or startup capital.

7) Money market- Network of banks, discount houses, institutional investors, and money dealers who borrow and lend among themselves for the short-term (typically 90 days). Money markets also trade in highly liquid financial instruments with maturities less than 90 days to one year (such as bankers' acceptance, certificates of deposit, and commercial paper), and government securities with maturities less than three years (such as treasury bills), foreign exchange, and bullion. Unlike organized markets (such as stock exchanges) money markets are largely unregulated and informal where most transactions are conducted over phone, fax, or online. Long-term borrowing and lending markets are called capital markets.

THE DERRICK

JOB WATCH
RECRUITMENT OF MANAGER, DEPUTY MANAGER, ASSISTANT MANAGER & JUNIOR MANAGER IN BROADCAST ENGINEERING CONSULTANTS INDIA LIMITED
Manager,Deputy Manager,Assistant Manager,Junior Manager, Jobs & Vacancy in Management at Broadcast Engineering Consultants India Limited, Dehradun Aug 2011 Job or Vacancy Description: Application invited for the post of: GM DGM AGM Manager (Project/ Legal) Deputy Manager Assistant Manager (Finance) Junior Manager (Legal) Junior Manager (Administration) Junior Manager (Finance) How to apply : The applications are to be addressed to Manager (GA), Broadcast Engineering Consultants India Ltd., 14-B, Ring Road, I.P. Estate, New Delhi 110002 along with Demand Draft for Rs.200/- (Rupees Two Hundred Only) drawn in favour of BECIL New Delhi. Alternatively, the applications can also be deposited in BECIL Head Office through Cash payment of Rs.200/-. No other mode of payment is acceptable. The application fee of Rs.200/- shall be for General and OBC categories. No fee is payable by candidate belonging to SC , ST and PC categories. General Instructions: 1. The candidates are required to send applications in the prescribed format alongwith Self- Attested copies of their certificates towards Educational Qualifications and Professional Experience with one Passport Size Photograph. The candidates are also required to enclose No Objection Certificate (NOC) from their present employer and candidates working in Govt. organizations, Central and State Public Sector Units and autonomous bodies are required to send their application through their head of office, however advance copies of their application may be directly sent to BECIL. Candidates who are applying for more than one post are required to submit separate applications. The candidates are also required to submit a brief resume highlighting their qualifications, skills, professional work experience, exceptional work done with the past employers. 2. The applications are to be addressed to Manager (GA), Broadcast Engineering Consultants India Ltd., 14-B, Ring Road, I.P. Estate, New Delhi 110002 alongwith Demand Draft for Rs.200/- (Rupees Two Hundred Only) drawn in favour of BECIL New Delhi. Alternatively, the applications can also be deposited in BECIL Head Office through Cash payment of Rs.200/-. No other mode of payment is acceptable. The application fee of Rs.200/- shall be for General and OBC categories. No fee is payable by candidate belonging to SC, ST and PC categories. Age relaxation for candidates belong to SC, ST, OBC, Ex-Servicemen and PC categories shall be admissible as per Govt. of India guidelines. Relaxation in Educational Qualifications may be allowed for exceptionally experienced candidates. 3. Candidates are warned not to give any false information and at any later date during the recruitment process or after appointment it is found that false information has been given by the candidate legal action in addition to disciplinary action shall be taken against the candidate found guilty of misconduct. 4. Last date of receipt of application is September 16, 2011. In-complete, unsigned and late applications shall be summarily rejected without any reference to the applicant. 5. Deputy General Manager shall have thorough knowledge of financial records management & transactions as required in a Public Sector Undertaking. For more details: http://www.govtjobs.co.in/government-jobs/management/recruitment-of-managerdeputy-managerassistant-manager-juniormanager-in-broadcast-engineering-consultants-india-limited/

THE DERRICK

ENTREPRENEUR
RATAN NAVAL TATA

Ratan Naval Tata (born 28 December 1937) is the present chairman of Tata Sons and therefore, Tata Group.[2] He is also the chairman of major Tata companies such as Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, The Indian Hotels Company and Tata Teleservices.

Early life education Ratan Tata was adopted by Naval Tata and Soonoo Commisariat in the Tata family, a prominent family belonging to the Parsi community. He is the great-grandson of Tata group founder Jamsedji Tata. After his parents separated in 1944, he was brought up by his grandmother Lady Navajbai and did his schooling in Mumbai from Campion School. Later, he enrolled in Cornell University, where he earned a B.S in architecture with structural engineering in 1962, and has also completed the Advanced Management Program at Harvard Business School (Class of 1975). Career at TATA Sons When he returned to India in 1962 after turning down a job with IBM on the advice of JRD, he was sent to Jamshedpur to work on the shop floor at Tata Steel with other blue-collar employees, shovelling limestone and handling the blast furnace.[3] In 1971, he was appointed the Director of National Radio and Electronics (Nelco), which was in dire straits when he came on board: with losses of 40% and barely 2% share of the consumer electronics market. However, just when he turned it around (from 2% to 25% market share), the Emergency was declared. A weak economy and labour issues compounded the problem and Nelco was quickly near collapse again.

For his next assignment, in 1977 he was asked to turn around the sick Empress Mills, which he did. However, he was refused a Rs 50 lakh investment required to make the textile unit competitive. Empress Mills floundered and

was finally closed in 1986. In 1981, JRD Tata stepped down as Tata Industries chairman, naming Ratan as his successor. He was heavily criticized for lacking experience in running a company of the scale of Tata Industries. In 1991, he was appointed group chairman of the Tata group. As group chairman, he has been responsible for converting "the corporate commonwealth" of different Tata-affiliated companies into a cohesive company. He has been responsible for the acquisition of Tetley, Jaguar Land Rover and Corus, which have turned Tata from a largely India-centric company into a global business, with 65% revenues coming from abroad. He also pushed the development of Indica and the Nano. He is widely credited for the success of the Tata Group of companies, especially after the liberalization of controls after the 1990s. In August 2007, Ratan Tata leads Tata Group's acquisition of British steel maker Corus. At that time, this was the largest takeover of a foreign company by an Indian company, and resulted in Tata Group becoming the fifth largest steel producer in the world. According to the BBC, however, some analysts criticized the move, saying that Tata Group had overpaid for Corus and had prioritized national pride before its shareholders.

Networth As of 2011, Ratan Tata has an income whose net worth is US $ 970 million. He does not figure in the Forbes' list of Indian millionaires because a large number of the shares (around 65.8%) of Tata Sons, the holding company of the Tata Group, is held by charitable trusts.

Honours, Awards and International recognition Ratan Tata serves in senior capacities in various organisations in India and he is a member of the Prime Minister's Council on Trade and Industry. Tata is on the board of governors of the East-West Center, the advisory board of RAND's Center for Asia Pacific Policy and serves on the program board of the Bill & Melinda Gates Foundation's India AIDS initiative. Ratan Tata's foreign affiliations include membership of the international advisory boards of the Mitsubishi Corporation, the American International Group, JP Morgan Chase and Booz. Allen Hamilton. He is also a member of the board of trustees of the RAND Corporation, University of Southern California and Cornell University. He also serves as a board member on the Republic of South Africa'sInternational Investment Council and is a member of the Asia-Pacific advisory committee for the New York Stock Exchange. In 2010, he joined BMB Group as an advisory board member. Year 2010 Name Honorary Doctor of Laws Awarding organization Pepperdine University.

2010

Legend in Leadership Award

Yale University.

2010 2008

Businessman of the Decade Honorary Doctor of Science

Federation of Indo-Israel Chambers of Commerce. Indian Institute of Technology Kharagpur.

2008

Honorary Doctor of Law

University of Cambridge.

2007

Honorary Fellow

London School of Economics.

2007

Honorary Citizen of Singapore

Singapore government.

2007 2005

Carnegie Medal of Philanthropy Honorary Doctor of Science

Carnegie Endowment for International Peace. University of Warwick.

2004

Honorary Degree of Doctor of Technology

Asian Institute of Technology.

2004

Honorary Economic Advisor Hangzhou, China.

2004

Honorary Doctor of Business Administration

Ohio State University.

FIRST Award for Responsible Capitalism. 26th Robert S. Hatfield Fellow in Economic Education, awarded by Cornell University. Recipient of the NASSCOM Global Leadership Awards (2008)

THE DERRICK

UPCOMING EVENTS

OPEN HOUSE DISCUSSION ON THURSDAY (1 SEPTEMBER 2011), TOPIC: ARE INDIAN COMPANIES BETTER THAN FOREIGN MNCs?

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