Professional Documents
Culture Documents
Towards 4th Issue
Towards 4th Issue
www.stockyard.infinites.net
Content
Argumentative Indians
Indian Premier League
Sector Report: Oil&Gas
Corporate Radar
Macro economy
Frying Oil
Guest Column
Kalaripayattu
From Editor’s desk
T
“ owards…?” has finally crossed its 4th step.
We believe ,day by day, issue by issue, magazine is getting appreciated and accepted by
intellectual readers and our corporate partners.
Towards…? ,is not just meant to be served to only our corporate and business friends…rather
it is meant to spread a bigger massage of inclusiveness and bringing focus of India Inc towards
a larger issue of nation building. For it is if nation prospers, we prosper……
We believe, that India as a nation, as a society and as a cult is fast transforming….As I always
say…this is a nation in the making….up into chapters of History…We have never been evolved
as a nation….that reckons right from Kashmir to Kanyakumari…Assam to Gujarat…
But now….with people in business ….and in knowledge society are fast conforming it into one
nation…..
It is great to see a thriving nation, full of activities and transformation…..full of energy and
positivity…..
I believe, corporate India has to play a much bigger role….and more so…for the
Young Turks of India…that claims itself to be Unstoppable…..we name it Unstoppable
Indians…..same people ..who can buy businesses 10 times bigger than their own…can
negotiate with Walmarts,Shells Fords and MTNs of the older version of the globe…can take
world on a stride…..
For it is to the same India…that has to take the blueprint or the roadmap of New avatar to
remote Bharat version of the same nation…For the same Entrepreneurs…to take their growth
agenda to bigger masses…to left out ones…..Remember ..it was only because these two
nations could coalesce and could take the dream together…that we see all the difference….in
post 1991 era…..
As someone aptly said….each day many people from that side of argumentative,sceptic and
orthodox India are crossing the iron thorn fenced boundaries and entering into this side of
unstoppable, ambitious and dreamy India…….Now it is high time,,,we destroy this old worn-
out walls between these to nations..India and Bharat….to converge in one great nation….
I believe, it is in the interest of Corporate India and also we,,,as part of 350 million+ middle
class to take the initiative and gap this widening divide if at all we want our own success and
prosperity to be sustainable……Gone are the days when rich and poor, haves and have-nots,
stronger and the weaker could stay and survive together……
Definitions are fast being changed….rules of the game are fast being rewritten…..it is high
time …share your part of responsibility towards..Your nation…your society…your
people…your earth and yourself……
And if you fail to…..you are doomed to finish…destined to put yourself in the black-books of
history….
We do not want our children to remember ourselves as cowards and selfish...who got an
opportunity to change the lives and fate of millions but dare not to………
And what are the Advanies, Uma Bhartis, Vinay Katiyars, Prakash Singh Badals, Janrail Singh
Bhinderawalas, Narendra Modies and Imam Bukharis of this country are doing?
Well! they are trying to convince you that your religion is always at war front from other religions.
For it is for them that they are safeguarding your religion, culture, caste, state or language from
those of mine.
And if you observe little more closely, they will always attempt that YOU REMAIN AGAINST ME
ALWAYS .We and YOU may be Bihari –Marathi, North Indian-South Indian, Tamil-Kannadiga, Hindu-
Muslim or any other differentiation. And I have been seeing these hostilities to always aggravate
during election times.
They forget that post election; they leave some open wounds, burnts and stigma of hatred. That
remains teasing forever.
Several Suply –Chain issues, that let our over 40% agro produces get spoiled.
And if you observe ,you will feel that these are not only people who are creating nuisance at the
political arena , there to be blamed…for there is one more picture…that is equally grimmer.
I, as a young citizen of this great nation and as a representative of 110 billion + people of India, hold
responsible all those who are blocking its prosperity and growth in any way…. Leaders like Madhu
Koda, Prakash Karat and many more are equally responsible for they are the once who got chance at
the helm of affairs but did not do any thing to bring this nation at the path of growth.
Remember growth opportunity foregone is the growth and prosperity denied to all the citizens of
India, which in itself is a crime. It could be one more election time. Elections are around the corner.
Take a new
initiative, grab your leader’s collar and ask them WHAT THEIR AGENDA IS FOR THIS NATION? WHAT
ARE THEIR THOUGHTS ABOUT INDIA AS A NATION NOT ANY SPECIFIC RELIGION, CASTE OR REGION?
India, sometimes I feel has yet not emerged as a nation in ideology. A nation is not just a politically
sovereign geographical, demographic establishment. Nation is a spirit that binds all its dwellers in
ONENESS where sense of belongingness supersedes all differences and proclaims…WE ARE
ONE...ONE NATION…ONE POWERFUL..EMOTIONAL UNITY…….and I feel, this sense of belongingness
is still missing in all of us.
I know…and so do you…we in India have several issues to be resolved before emerging as a strong
nation and we all at some point or other have felt….that….this nation is hopeless…..simply
hopeless…..
Lets start it…..start creating your India..Share it with me…its problems…issues…difficulties…good and
bad things…everything that has its share in this nation….and when I say nation…I mean distant
Kashmir…in deep militancy…..Far north East…in separatist camps……….remote village of Bihar, Orissa
or West Bengal…where no light of development has reached……
And when I say India…I also mean all those affluent people who are busy in extravaganza of IPL 20 –
20 at the time when more than half of nation is fighting its battle against poverty, malnutrition and
ignorance….and exactly at the time when millions of soldiers are facing lethal bullets at their chest
guarding our borders……at the same time when some people are making money selling the coffins
of martyrs of kargil……at the same time when naxalites are slowly and steadily creating a separate
country full of hostilities against your own nation…at the same time when an Adivasi(tribal) is
getting killed in Assam by ULFA….…at the same time when a poor laborers from remote village of
Bihar is being kicked away from Maharashtra to alter on political ambitions of Mr Raj Thakeray……at
the same time when we, in India hold Lakmey fashion week …..at the same time when Salman khans
charge Rs 50 crore per movie…aat the same time when millions of dollars are being wasted on
cheer-girls…….at the same time when you and me are burning hundreds and thousands on birthday
parties at PVRs and Mc Deys …at the same time when…..there is one boy of around 6-7 years is not
attending basic primary school to work in a garage……at the same time……when India is taking
birth…….and being foetisized in mother’s womb…..at the same time when someone tries to divide
you ….at the same time……when I and You are just mute spectators…
………at this very moment…i….and …you can rise up …hold each others hand …..and …….create a
strong nation which if free from all slaveries……….at the same time…few Baba Amte….Kiran
Bedis….Anna Hazare….Sandeep Pandeys …..Dalai Lamas…..Rajendra Awasthis ….Mohammad
Unush…..are doing their best to change few lives…..
Indian premier league
IPL: Transition of Cricket from a Gentleman Game to New Business Venture
As India’s wealth base broadens, consumers will demand and be prepared to pay for more and better
live entertainment opportunities. Watching live sport is a major weekly pastime in the world’s
advanced economies - approximately 400,000 attend Premiership football every weekend in England
generating nearly $5 billion in match day revenues (tickets, premium seating, ground concessions
etc). In recent years international music acts such as the Rolling Stones, Shakira and Black Eyed Peas
have played to packed stadiums in India – the Indian public are starved of high quality entertainment
opportunities. A star studded Twenty20 cricket tournament will help to satisfy this increasing
demand.
The chart below clearly indicates the popularity if T 20-20 especially when Indian team is playing in
that. So if we see the revenue side the money from TV Rights, advertisements will keep coming.
Cricket has a big market in India there is not any big competitors of it.ICL could be one of the major
competitor for IPL in coming time. But it all depends upon its accreditation by ICC and capacity to
attract famous foreign & domestic players.T20-20 formats in other countries like England or Australia
could affect mildly in terms of availability of their players. However viewership wise there will not be
any major impact to IPL because Indian cricket viewers are more than the total cricket viewers
around the world.
Young & regional players will get a chance to play with international players. This
would definitely boost their confidence.
Huge revenue income through this tournament will be spent the development of
better infrastructure like stadium, fitness centers, training centers. The level of local
cricket will improve.
Shorter version of the game could be more popular in Europe and America when
people prefer short duration games. This would help in increasing cricket fans all
around globe and make it more appealing.
Ugly form of the Cricket:
As huge money following this game. Already, almost $1.7 billion has been wagered on
the IPL, Real spirit of the game will be lost.
City based team will have their own fan following and that would create regionalism
among the fans and also up to an extent in players.
Performance of the National team would suffer because the players will get less time to
practice and excess cricket will cause fitness problems to the players.
All the above points are not based on any facts or figures but from the general perception of cricket
analysts and experienced players. Since everybody has their own explanation and justification some
of the readers may not agree on above assessment.
Many of the world’s top sports competitions are run on a Franchise basis – NFL, MLB,
NBA, NHL, MLS, Super league, AFL
The Franchisee receives a share of the central revenues and has the opportunity to
develop and retain local revenues
As the league matures the revenues grow and the brand develops, the capital value of
the Franchise grows
Franchises are traded under terms agreed between the Franchisor and the Franchisee
The valuation of Manchester United is £9 billion. The sheer number of people viewing cricket in India
is much more than soccer viewers there so we can estimate the monetary benefits of this model in
sports (Cricket) in India.
Reasons of the failure of Indian Cricket League(ICL)….
It has been launched by Subhash Chandra in May 2007; ICL is a unique concept in cricket after Zee
was not able to secure rights of the World Cup 2011.
ICL initially had six teams which have now increased to eight (over 200 players). All these
teams were owned by Subhash Chandra unlike the eight teams in IPL owned by different
franchises.
The investments in ICL are in excess of Rs1bn.
ICL has evolved despite several constraints like unavailability of venues, national-international
cricketers & other professionals associated with ICC. It had a TVR of 1.2. Its revenues till date have
been Rs750mn and are expected to break even in FY09E. Unlike IPL, ICL had not any clear financial
details about its Business model san investors to put their money.
Each Franchise will play each other home and away – 7 guaranteed home matches per
Franchise (Each NFL Franchise has 8 home games).
The top 4 Franchises in the league will contest the semi finals and the victorious semi finalists
will meet in the Grand Final all over one weekend.
The 2 IPL finalists will advance to the new Champions Twenty20 tournament provisionally
scheduled for October 2008.
SONY-WSG has bagged broadcasting rights for 10 years for US$918mn, excluding marketing
for US$108mn.
The franchise amount collected is US$724mn, with each of the clubs being sold for US$67-
112mn, depending on the city.
Besides acquiring teams, each of these franchises has spent US$6-7mn on acquiring players
for their teams.
Financial Prospects of IPL
Making it financial viable and low risk game in long term Lalit Modi (BCCI Vice President & IPL
Chairman) the man behind IPL has ensured that a top broadcaster and eight large business houses
will have an equal financial interest in making the IPL a success. At the same time, he has spread the
business risks across three sets of stakeholders—the
broadcaster, the franchises and the BCCI. Like other franchisee
formats IPL has categorized their sources of revenues into two
forms: Central & Local
This is after reducing the
Central share of BCCI from the
Central Revenue. The rest
Media-
money will be distributed
Sponsorship equally to all franchisees.
Official Suppliers
Local
“Gate”
For the $918 million the Sony-WSG (World Sports Group) combine has paid, it will get a minimum of
12,744 ten-second ad spots every year. Sony expects to sell these slots at a card rate of about Rs 2.5-
3 lakh each. Be conservative I have taken only 2.25 lakh for each 10 second ad spots. Advertisers
typically pay a peak value of Rs 3 lakh for a 10-second slot in a test match, Rs 5.15 lakh for a one-day
international and Rs 8 lakh for a top-notch Twenty20 international. At a card rate of Rs 2.25 lakh the
Sony-WSG combine stands to earn Rs 286 crore in advertising revenue in the first year. Still, this is
not a bad first-year return on a Rs 3,672 crore ($918 million) investment made over 10 years.
1 2 3 4 5 6 7 8 9 10
Cash 367.2 367.2 367.2 367.2 367.2 440.64 440.64 440.64 440.64 440.64
Outflow
Cash 285.75 314.33 345.76 380.33 418.37 460.20 506.22 556.85 612.53 673.78
Inflow
By third year end Break even is on the cards and that may go very especially if there is the promise of
a huge upside if the IPL takes off. "If the tournament does well, the ad rates could well cross Rs 8
lakh,"
The eight successful franchise bidders. While they have paid anywhere between $67 million
(Emerging Media for Jaipur) and $111.9 million (Reliance for Mumbai), they will also receive about
$75 million over the 10-year period from assured payments coming from the central pool. This is a
rough estimate based on a simple model, though the IPL follows a graded structure. "The IPL business
model has minimal risks. Even if the tournament gets a lukewarm response, the franchises are
assured of covering 60% of their expenses through the central pool fund.
The success of the IPL in the long run depends on whether the team owners would be able to
breakeven in the near future. While some of the franchisees have expressed the confidence that they
will break even within two to three years, doubts remain. To diversify their risk some of the
franchisee owners are planning to raise funds though private equity by diluting minority stakes.
Chennai Super Kings, the team owned by India Cements (ICL), has been approached by private equity
investors.
Cash flows for Franchisees
Particulars/Years 1 2 3 4 5 6 7 8 9 10
Cash In Flow
Central-Tv Rights 36.7 36.7 36.7 36.7 36.7 44.1 44.1 44.1 44.1 44.1
Central-Sponsor Ships 6.8 6.8 6.8 6.8 6.8 8.9 11.6 15.0 19.5 25.4
Local
Team Sponsorship 14.0 14.0 14.0 16.8 16.8 16.8 20.2 20.2 20.2 20.2
Gate Money 12.0 14.4 17.3 19.0 22.8 27.4 32.8 39.4 47.3 56.8
Shirt Sponsorship 5.0 5.0 5.0 6.5 6.5 6.5 8.8 11.8 16.0 21.6
Stadium Advertisements 7.0 8.4 10.1 12.1 14.5 17.4 20.9 25.1 30.1 36.1
Merchandising 3.0 3.6 4.3 5.2 6.2 7.5 9.0 10.7 12.9 15.5
Total 84.6 89.0 94.2 103.1 110.4 128.5 147.3 166.3 190.0 219.6
Cash Outflow
Franchisee Owning Fee 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0
Players & others Salaries 22.0 22.0 22.0 27.5 27.5 27.5 38.5 38.5 38.5 38.5
Marketing & Branding Costs 12.0 16.8 23.5 32.9 36.2 39.8 43.8 48.2 53.0 58.3
Stadium & Allied Costs 2.0 2.4 2.9 3.5 4.1 5.0 6.0 7.2 8.6 10.3
Team Administrative Costs 7.0 8.4 10.1 12.1 14.5 17.4 20.9 25.1 30.1 36.1
Total 83.0 89.6 98.5 116.0 122.4 129.7 149.2 159.0 170.2 183.3
EBIT 1.6 -0.6 -4.2 -12.8 -12.0 -1.2 -1.9 7.4 19.8 36.3
All the calculations for one franchisee by taking on averages revenues from central & local pool for
8 franchisees
IPL prospectus suggests that these franchisees could command valuation akin to premium brands - a
Price/Sales ratio of 3-5 on an average. These high valuations are in league with English premier
league clubs like Manchester United. If we take a Price to sales of 4, then the Mumbai team, which
went for $112 mn needs to show annual revenues of $28mn, or Rs 110 crore. This would perhaps
need Rs 75-80 crore from local revenues. Any valuation gains may come only when revenues
significantly exceed this. As per my projection this high Price/sales ratio will be only possible after 6-7
years by taking a conservative approach that the present financial condition will at least prevail if not
much better. The cash flow analysis corroborates the point about the low risk of this investment
made by the Franchisee owners. But the towering valuation of $5 bn for every franchisee seems to
be very flattering one.
Third: Role of BCCI
From this exercise, the biggest winner remains BCCI. The way the deal is structured, BCCI seems set
to make almost riskless income of around $1bn from IPL. This income will primarily come from the
$723mn or so that the 8 team owners have bid to own the teams. BCCI will also get a minority share
of TV rights, ranging from 20% in first 2 years, to 40% from year 6 onwards. BCCI will get 40% of
tournament sponsorship money.
BCCI or more specifically the entity IPL that it has set up has largely an advisory role. There is no
particular fixed cost it incurs. IPL is supposed to do things like award commercial rights, two big legs
of which – the TV rights and the team ownership – are done. It also has to set up tournament
schedule, provide umpires and match officials (the franchisee bears the cost).
Compare this with say a consultant or a private equity partnership and you realize how good the deal
is for BCCI. The general partners get a 2% fees and 20-30% of profits. Here BCCI gets 20-40% of net
incomes from TV and tournament rights. Clearly BCCI benefits a lot from its monopolistic hold on the
game.
Concluding Words
When everything goes well, no body complains….remember the subprime crisis…..subprime was
quite successful in its initial phases but when subprime borrowers started defaulting on their
mortgage payments…the castle of financial securities got demolished.
In some ways, IPL is like a castle of cards. Spectators and viewers form the base. At the second level is
the BCCI, using its might in getting big Indian and international players to play in the IPL. At the third
level is the broadcaster, whose $918 million seed money has been leveraged well. At the top of the
deck are the franchises. But the foundation of the castle is India’s cricket-hungry public. If they fill
up the IPL stadiums and stay glued to Sony’s live coverage, the castle will stand. If they stay away, the
castle could come crashing down. If that happens, BCCI will suffer the least, financially at least. Sony-
WSG will take the biggest blow because it is the biggest financial investor in the IPL. And the
franchises may get away with a few millions in losses.
Contributed by
Vibhor
This gap in demand and supply will catapult India to one of the largest consumers of crude Oil
along with China. India and China, together will account for 35% of the world’s incremental
energy demand.
To address the growing demand-supply gap, the government has stepped up exploration and
production efforts through private participation under the NELP, and has also developed a
more holistic strategy for acquision of equity in Oil abroad.
ONGC Videsh Ltd, the wholly owned subsidiary of ONGC, is now active in 15 countries in Asia
Pacific, Latin America, Middle East, Africa and Russia.
Other Indian companies like RIL, Gujarat State Petroleum Corporation Ltd.(GSPC) and Videocon
are actively seeking Oil and Gas blocks across the globe.
6 rounds of competitive have already been done, under which, 162 blocks were awarded and
in-place volume estimated at 600 MMT of Oil and Gas have been discovered.
The recent NELP-6 was a success with 165 bids being received from both domestic and
international companies for exploration rights.
DGH (Directorate General of Hydrocarbons) has already announced the 7th round of bidding for
57 blocks.
RIL is constructing a 28 MMTPA refinery at Jamnagar which is expected to be operational during the
financial year 2008-09.
HPCL has entered into a partnership with Mittal Investments, to set up a 9 MMTPA refinery-cum-
petrochemical complex at Bhatinda.
Significant investments are also planned for up gradation of existing refineries to meet specifications as
per Euro 4 and Euro 3 (implementable by 2010).
India’s Trade of Oil Products:
India’s trade in Petroleum products is driven by sustained increase in refining capacity ,driven by cost
advantage over erstwhile importing countries.Currently,India possesses surplus refining capacity
generating exportable products. Significant proportion of exports is driven by petrochemicals sale by
RIL.
The Government has taken steps to set up strategic crude oil storage reserves at various locations,
improving the country’s ability to respond to short term supply disruptions.
GAS SECTOR
Per capita consumption of Natural Gas in India is currently amongst the lowest in the world; at
29 cubic meters compared to a world average of around 538 cubic meters. The present share
of natural gas in the energy basket is only 9% compared to a world average of around 24%..
The demand for Natural Gas at about 180 MMSCMD in the country has far outstripped supply
(about 95 MMSCMD).and there has been an increasing trend towards emergence of new
Natural gas demand as well as conversion from existing fuels to Natural gas.
By 2025, India is expected to bat both China and Japan in becoming Asia’s largest Natural Gas
consumer. Demand is expected to be in the range of 350 MMSCMD.The share of NG in fuel mix
is expected to go upto 22% by 2030.
80% of NG demand is met from domestic sources.70% of NG market is made up of the power
and fertilizer sectors.
LNG as a substitute for costlier Naphtha has seen increasing absorption in the domestic market.
The lack of a cross –country gas pipeline to enable transmission, the emphasis on coal as a
preferred fuel for power generation and the gradual emergence of Coal Bed Methane have
made LNG increasingly uncompetitive for power generation in short to medium term.
With proven reserves of 765 MTOE and indicated reserves of between 1,260 and 2,340 MTOE, CBM
could be a great opportunity. More than 26 blocks are already awarded so far and more to be taken up
as part of future phase of CBM bidding. Compression of CBM and marketing as CNG could be exploited
in potential industries as a monetization option for stranded gas.
A related exciting technology is that of underground coal gasification. Given India’s large coal reserves,
the UGC technology could potentially produce volumes of multiples of India’s free natural gas reserves.
At least 30 cities are going to adopt city-wide gas coverage by private and public players as
compared to 6 cities today.
Oil Drilling
B.V EPS
Company Name Equity Gr. Blk Sales NP PATM Rs Rs. P/E P/BV
Jindal Drilling 11.47 56.4 413.23 18.99 5% 211.3 16.6 74.1 5.82
Aban Offshore Lt 7.56 1146.99 658.41 168.7 26% 194.9 44.6 78.7 18
Alphageo (India) 5.12 82.45 54.29 7.65 14% 55.5 14.7 38.3 10.14
Asian Oilfield 10.46 8.55 34.78 7.46 21% 50.4 7.1 27.2 3.83
Cairn India 1892.19 0 1.27 -78.82 168.7 0 0 1.49
Dolphin Offshore 9.56 69.79 205.81 14.82 7% 63.8 15.1 16.1 3.81
Hind.Oil Explor. 130.53 159.8 114.51 -25.5 -22% 76.7 0 0 1.88
Interlink Petro 8.1 3.23 0 -0.64 3.4 0 0 5.29
ONGC 2138.87 52038.07 56635.58 15327.87 27% 289.5 66.9 15.5 3.59
Selan Expl. Tech 14.42 12.74 34.46 13.1 38% 39.9 9.1 29 6.62
Shiv-Vani Oil 43.91 375.59 409.45 57.62 14% 141 10.5 54.3 4.04
Gas Distribution
Deep Industries 20 31.9 20.02 6.37 32% 34.9 3.2 43.8 4.01
GAIL (India) 845.65 14932.56 16036.59 2386.25 15% 134.7 26.8 16.7 3.32
Guj. Gas Company 12.83 652.02 1187.89 159.01 13% 85.5 24 11.3 3.16
Indraprastha Gas 140 613.13 622.02 138.18 22% 33.4 9.4 13.2 3.71
Petronet LNG 750 1945.53 6555.31 474.65 7% 21.6 6.3 13.2 3.84
Corporate Radar
Shopper’s Stop:
Leading fashion and lifestyle retail department store Ahmedabad, Jalandhar, Ludhiana, Amritsar,
Shoppers Stop will be investing around Rs 1,500 crore Vijayawada and Mangalore. The high cost of
over the next three years to double its outlets to 48. operation still remains a concern while there was a
Of this, Rs 500 crore will be raised through equity and hype surrounding the business. They will continue to
warrants, Rs 500 crore through internal accruals and focus on premium category and also on luxury and
the rest through debt," Shoppers Stop Managing have high-end brands like Espirit, Mac, Tommy
Director B S Nagesh said in Mumbai.They are planning Hilfiger and Lancome. The company has also launched
to have at least 48 stores by 2011-12 and the present its own in-store radio format and tied-up with music
1.5 million sq ft area of operation of Shoppers Stop content company Blue Frog, which would update
will touch 3.5 million sq ft. The per store area, customers on new fashion, homeware and others. A
currently about 40,000-45,000 sq ft, will be increased Norway-based private equity fund will invest Rs 400
to around 75,000-85,000 sq feet. They are looking at crore (500 million Norwegian kroners) in India's
having bigger formats of Shoppers Stop. The company energy sector that is expanding rapidly to meet the
will get into a number of new Tier-II cities like South Asian country's growing need for power and oil.
Ispat Industries:
Ispat Industries Ltd said on Wednesday it will not hot-rolled coil by 5,000 rupees a tonne in May due to
raise steel prices till June due to pressure from the escalating prices of raw materials such as iron ore and
federal ministry to control prices to rein in inflation. coke.
Earlier, the company had said it will raise prices of
IDFC:
Indian infrastructure specialist IDFC Private Equity is director for investment, Satish Mandhana, said the
raising a new $700 million fund to buy stakes in firms fund would close in the next two to three weeks, with
expected to thrive as the country modernises its rag- around 85 percent of the money coming from abroad
tag power and transport networks. IDFC's managing
.Bajaj Electricals:
Lighting products and appliances maker Bajaj revenues and 40 percent to net profit. The exclusive
Electricals Ltd announced a strategic alliance with alliance in the first phase would sell stoves and
Italy's Nardi Elettrodomestici S.p.a to sell the latter's chimneys, ovens and microwaves in the second
range of premium gas appliances in India. They are phase, and will look for tie-ups for modular kitchens
aiming for a 25 percent market share in the top-end in the last phase. In 2006/07, Bajaj Electricals
segment in a span of three to five years. Bajaj reported net profit of 385.3 million rupees on net
Electricals sold 3.2 million units of appliances in sales of 10.8 billion rupees. Adjusted for inflation, oil
2007/08 translating into revenue of 3.75 billion is now above the $101.70 peak hit in April 1980,
rupees. The unit makes a range of home products according to the International Energy Agency, a year
including food processors, water heaters, irons and after the Iranian revolution.
gas stoves and contributes about 30 percent to
OBC:
Public sector lender Oriental Bank of Commerce on The bank's board of directors has recommended a
Wednesday announced a net loss of Rs 99.44 crore dividend of 47 per cent for fiscal 2008, it said. OBC
for the quarter ended March 31, 2008. The bank had has posted a net profit of Rs 353.22 crore for the year
reported a profit of Rs 54.86 crore for the fourth ended March 31, a 39 per cent decline as compared
quarter last year. However, total income has to Rs 580.81 crore in the preceding fiscal. Total
increased to Rs 2,071.01 crore for the three-month income has increased to Rs 7,454.84 crore from Rs
period from Rs 1,577.29 crore in the same period last 5,652.91 crore in the previous year.
year, the bank informed the Bombay Stock Exchange.
Sterlite Tech:
Company has received three contracts valued at Rs August 2008. Sterlite was chosen as the sole
296 crore from Power Grid Corporation of India manufacturer and supplier for over 8,300 km of ACSR
(PGCIL) for the supply of power transmission Conductors that would be installed in the 400 kV D/C
conductors. As per PGCIL's requirements, supplies Korba-Birsinghpur-Damoh-Bhopal Transmission Lines
against these contracts would commence from in Madhya Pradesh.
SBI:
The losses suffered by the corporate clients of State ended fiscal, the situation is not getting worse. Bank
Bank of India on account of currency derivatives could does not have exposure to any sub-prime paper
range between Rs 600 crore and Rs 700 crore in the except this, which it is marking to market. This is not
just ended fiscal, said Mr O.P. Bhatt, Chairman of SBI. exposure to Credit Linked Derivative Notes, but some
While the bank has a fair amount of derivatives investment they made in Fortis Bank. Credit growth in
transactions, it has not done any ‘exotic deals’. SBI fiscal 2008-9 is likely to be around 22 per cent, which
has structured derivative deals only for its customers is roughly the same as that of fiscal 2007-08. He also
and each deal has an underlying clause. In books said that deposit rates are unlikely to rise. The home
there is no provision on this account. SBI will make a loan segment is likely to see growth between 20 per
provision of $10 million (approximately Rs 40 crore) cent and 22 per cent and the bank hopes to maintain
on its marked-to-market losses on account of its top position in the segment. While speculative
exposure to sub-prime paper in its overseas demand for housing loans has slowed down, actual
operations. While the impact will be seen in the demand from first time buyers is still strong.
bank’s bottomline in the fourth quarter of the just
ICICI Bank:
ICICI Bank and its overseas subsidiaries have an financial instruments whose price and value derives
exposure of over $2.2 billion in the credit derivatives from the creditworthiness of the obligations of a third
market. (Credit derivatives are defined as tradable party).
JSW:
Jindal South West (JSW) Group will invest a whopping Rs 70,000 to Rs 80,000 crore to expand its operations in
steel, power, infrastructure, cement and aluminum sectors. out that of the total investment his Group would
invest about Rs 40,000 crore in steel sector, which includes ramping up production at its Vijaynagar Plant in
Karnataka, while Rs 25,000 crore would be utilised to enlarge its operations in power sector both for captive and
greenfield power plants. Another Rs 10,000 crore would be invested for making forays into the aluminum sectors
and about Rs 5,000 crore for cement and infrastructure sectors. As part of the Group's efforts to establish itself as
a major aluminum player, it was setting up an alumina refinery at a cost of Rs 10,000 crore at Vishakhapatnam
and the first phase of it would be commissioned by 2011. JSW's greenfield steel project in West Bengal would be
operationalised by 2011-12 and the company would begin the construction work for it by October-November.
The entire project will cost about Rs 30,000 crore. The money of all the projects would be met entirely from the
company's internal accruals while the Group would go ahead with an Initial Public Offering to garner about Rs
4,000-5,000 crore from the market for funding its power sector projects. The Group has posted a net profit after
tax after of Rs 270.06 crore for the quarter ended December 31 last year, while its total income was Rs 2878,08
crore during the same period. By 2020, the company was looking at having a total capacity of 30 metric tonnes
from our three plants in Karnataka, West Bengal and the one being planned in Jharkhand.
Macro economy
European Commission has forecasted the growth in the 15 countries sharing the Euro
would slow to 1.7% this year from 2.6 year in 2007 and to 1.5 % in 2009. In February, Commission
had forecasted the growth to be at 1.8% this year, a cut from its earlier forecast of 2.2% in
November 2007. The moderation in growth results from the persisting turmoil in the financial
markets, the marked slowdown in the US and soaring commodity prices, all of which are taking
their toll on global activity. The Commission expects inflation, which hit a record high of 3.6% yoy
in March, to accelerate to 3.2% in the whole of year 2008 from 2.1% in 2007 and to ease to 2.2%
in 2009.Euro appreciated by 13% against Dollar.
FDI investment in India for month of February 2008 has been record $ 8.34 bn—largest in a single
month so far.India continues to remain the most favorable destination for Private equity
investments in Asia(Excluding Japan) in first quarter of 2008.In second quarter of 2007,India
surpassed China in PE investments, intensified with the gap widening between two countries.
India has attracted PE investment worth $ 4 billion in Q1 2008 against China’s $ 570 million.
The Finance and Telecom were tied for the 3rd most favorable sector for investment with 8.7% ($
340 million each). The momentum in India is on the rise while it may lower in China after Beijing
Olympic. India was lagging behind China when latter bagged $13 billion against the former’s $ 7
billion. Globally, real estate and infrastructure fund raising by international real estate PE Funds,
has been brisk, with $130 billion raised over last 2 years. The Government’s announcement that
9% of the country’s GDP will be spent on infrastructure by 2012 has created unprecedented
investment opportunity.
Frying Oil
Goldman Sachs Report: Crude Oil
Crude oil may rise to between $ 150 and $ 200 a barrel within 2 years as growth in supply fails to keep
pace with increased demand from developing nations.
US gasoline demand typically climbs going into
the summer season when Americans take to the
Triggers:
highways for vacations. The peak-consumption
period lasts from the Memorial Day weekend in
US service Industry expanded in April, signaling higher
late May to Labor Day in early September.
energy usage.
Monthly fuel sales were the highest during
August in 5 out of last 6 years.
The Institute of Supply Management index of non-
manufacturing businesses, which make up almost 90% of
the economy, grew for the first time since December.
……..And What CEOs of major Oil
China is increasing refining capacity and boosting imports to Companies say?
meet rising demand for the Olympic Games.
Even as oil prices ascended to new highs
China has more than doubled oil usage since November of more than $124 a barrel this week,
2001 (Decade low of $ 16.7 ). many oil and gas industry executives say
they expect the price to fall significantly by
year's end, a new survey shows. Fifty-five
Price forecasts for spot US benchmark WTI crude Oil for percent of 372 petroleum industry
2008 to 2011 are revised as $ 108 ( 2008), $110 (2009) and executives surveyed by KPMG LLP said
they think the price of a barrel of crude
$120 (2010). These figures earlier were at $96, $ 105 and
will drop below $100 by the end of the
$110 respectively. year. Twenty-one percent of respondents
predicted a barrel of oil will end the year
Reasons for current Crude rally: between $101 and $110, while 15 percent
forecast the year-end price to be between
Dispute between the US and Iran over Nuclear issue. $111 and $120 a barrel.
Militant threats in Nigeria (Biggest Oil exporter of Africa).
Nine percent said they expect the price to
close the year where it's been this week _
Venezuela Slump: Production has slumped to about 2.34 above $120 a barrel. Participants included
million barrels a day from almost 3 million barrels a day in executives for major oil companies,
2002.before the President Mr Hugo Chavez, fired almost independent exploration and production
20,000 workers, who had closed the State Oil Company in an outfits and other energy companies.
attempt to overthrow the Government.
Widely watched oil price prognosticator
Iraq issue: Production is yet to reach 2003 levels, as the Goldman Sachs said this week oil prices
country struggles with sectarian fighting and attacks on its could rise to $150 to $200 within two
energy infrastructure. years; others say crude could plummet to
as low as $40 or $50 a barrel during the
same period.
Mexico’s production has fallen below 3 million barrels a day
since October as Petroleos Mexicanos, the state – owned oil
company failed to compensate for a 30 % drop at Cantarell, its largest field, accounting for its 40% production.
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Article Contributed by
Resurgence of Kalaripayattu
Following the collapse of the princely states and the advent of free India - Kalaripayattu had lost its
significance as a mortal combat code. Fortunately, Kalaripayattu has successfully survived the steady
and sad decline in popularity. Kalaripayattu now has a compelling global audience and its fame and
glory has won hearts all over.
Kalari Massage
The first stage of the preparation of a warrior and the artiste is based on oil massage known as
Udvarthaizam or Uzhichal. The Ayurvedic tradition of Susrutha says that diseases are afraid of
approaching a body which has been foot-massaged, just like animals in the sight of a lion.
Kalari massage is a traditional massage, performed by the therapist using his hand and feet, applying
appropriate pressure to specific vital parts of the body. It involves a full body massage with medicated
oil and stimulating or massaging the Marma points on the body.
Usually an uzhichil course lasts for fourteen days. At the time of this massage the student has to follow
strict restrictions in his or her daily routines. He should not expose to the sun for a long time should
take only the prescribed food and drinks and should follow strict celibacy.
Massage helps the body to attain a healthy constitution as well as flexibility, nimbleness and
suppleness. Moreover, massage enables proper blood circulation and easy maneuverability of the body
for turning and twisting. Kalari massage not only relieves back pain, stiffness and sports injuries but
also stimulates various bodily organs and systems.
Marma points
Marmas are certain vital points of the body. A marma point is a juncture on the body where two or
more types of tissue meet, such as muscles, veins, ligaments, bones or joints and 'where the Prana is
present'. There are total 108 Marma points in the body in which 64 are considered as kulamarma
(deadly points). These points could be used to heel or to harm. If these points are pierced hard, it could
result in trauma or even death. A kalari masseur uses the Marma points to heal.
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