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Institute Of Management Technology Ghaziabad Inside this issue: Company in Focus:

FinXpress

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Berkshire Hathaway Inc. OCTOBER 2, 2011

StartUp in focus: LeadFormix Markets this Week

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News of the Week

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CAN YOU SOLVE IT?

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DIVERSIFYING INTERESTS Sources of Data:

ADDING NEW DIMENSIONS TO

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 HDFCsecurities  Economic Times  The Hindu  Rediff Money  MoneyControl.com  Financial Express  Indiapetro


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FinXpress

Company in Focus : About the company: Berkshire Hathaway Inc. is an American conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years, while employing large amounts of capital, and minimal debt. Berkshire Hathaway stock produced a total return of 76% from 2000–2010 versus a negative 11.3% return for the S&P 500.It is one of the fortune 500 company. Its last year’s revenue and profit are $136,185 million and $12,967 million respectively.

The company has operations principally in the US and Western Europe. It owns subsidiaries engaged in a variety of business activities including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, retailing, and services which includes GEICO, General Re, the Berkshire Hathaway Reinsurance Group, Berkshire Hathaway Primary Group, and National Indemnity Company. Strategies: Warren Buffett is the company's chairman and CEO. Buffett has used the "float" provided by Berkshire Hathaway's insurance operations (paid premiums which are not held in reserves for reported claims and may be invested) to finance his investments. In the early part of his career at Berkshire, he focused on long-term investments in publicly quoted stocks, but more recently he has turned to buying whole companies. Berkshire now owns a diverse range of businesses including confectionery, retail, railroad, home furnishings, encyclopedias, vacuum cleaners, jewelry sales, newspaper publishing, manufacture and distribution of uniforms as well as several regional electric and gas utilities. Strengths: Its diversified product offering is its core strength along with its strong ratings. It is focusing on top as well as bottom line growth. It has huge opportunities due to its strategy of inorganic growth. It has recently acquired The Lubrizol Corporation as a part of its growing strategy. In India: It has a wholly-owned subsidiary that will use a corporate agency license to sell motor insurance policies offered by Bajaj Allianz General Insurance. It has invested about US$11 million, to build a support structure that will include a call center. It has entered insurance market as an agent since India currently caps foreign ownership in insurance companies at 26 percent.


FinXpress

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StartUp in Focus : LeadFormix LeadFormix is the leader in next-generation marketing automation software, known as Marketing Automation 2.0. LeadFormix delivers a game-changing real-time marketing automation solution for enterprises that converts anonymous online visits into qualified sales leads, determines website visitor interest and intent, and enables sales teams to reach decision-makers more effectively and close deals faster using patented business intelligence and data mining technology. LeadFormix provides significantly richer lead data than any other solution, enabling enterprise sales and marketing teams to uncover hidden opportunities, accurately identify decision-makers, and deliver powerful, targeted, real-time responses and offers to potential customers. The company was founded in early 2008 by experienced software executives from Microsoft, Yodlee, Autonomy (Optimost / Interwoven), and Healtheon. The goal at LeadFormix is to revolutionize the enterprise lead generation market by creating a collaborative ecosystem that rewards enterprise-focused publishers and delivers significant value to enterprise sales and marketing professionals. With key locations in Santa Clara, California, and Bangalore, India, their team of employees is dedicated to their customers’ success. What is Marketing Automation 2.0? Online marketing is rapidly displacing traditional forms of marketing such as direct mail, display advertising in print and electronic media such as radio and TV. LeadFormix delivers the next generation SaaS-based marketing automation solution for online marketers. They call it Marketing Automation 2.0 (MA 2.0) More than simple process management, MA 2.0 is proactive, not reactive. The LeadFormix MA 2.0 solution consists of a suite of capabilities integrated into a collaborative, unified platform which delivers greater intelligence and insight into lead generation, lead nurturing, and sales conversion through applied online analytics and business intelligence. In its manifestation, MA 2.0 means converting a lead to a live conversation with a prospect in minutes, not days. It means understanding the interest and intent of the online visitor, not just the name and email address. It means sophisticated data mining and business intelligence at work to provide marketing and sales teams with most complete and multi-dimensional prospect information possible enabling marketing and sales teams to work together more efficiently, target decision-makers more effectively, and close deals faster. The LeadFormix platform LeadFormix is a highly proactive, cloud based, Marketing Automation Software that helps identify and create sales opportunities by measuring visitor intent. It provides unmatched actionable intelligence to qualify an opportunity accurately and provides a scalable solution for targeted response using a state of the art data mining engine. LeadFormix achieves this in the following ways: 1)

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LeadFormix kick starts its activities with marketing campaigns that create awareness and drive visitors to the corporate website.

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LeadFormix conducts behavioral analysis of website visitors to provide teams with a list of interested enterprise visitors, contact details of possible visitors along with the intent behind their visit.

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The business intelligence features of LeadFormix aggregate, analyze, and package visits from the same company to give a company level view that reveals where they are in their purchase cycle.


FinXpress

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Markets this week After moving sharply lower last week, markets witnessed a pullback rally this week with the Nifty finding support at the 4758 levels. Selling pressure on Friday however curbed the gains as the Sensex/Nifty ended with W-o-W gains of 1.71/1.55% respectively. Inspite of the pullback rally seen in the Sensex/Nifty, market breadth was negative in four out of the five trading sessions of the week. This indicates a negative bias for the markets. The biggest gainers this week were Bharti Airtel followed by Reliance Industries with gains of .44% and .02% respectively. The biggest loser being Coal India, lost 5.15% . HIGHLIGHTS

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 Morgan Stanley, which owns the world's largest retail brokerage, is being priced in the credit-default swaps market as less creditworthy than most US, UK and French banks and as risky as Italy's biggest lenders.  Although Kodak said it has "no intention" of filing for bankruptcy, the fact that its shares closed under $1, and market capitalization shrank to less than $300 million suggests that even the most die-hard investors may have lost faith. Companies are likely to post a year-on-year (y-o-y) revenue growth of around 15 per cent, as compared to 19 per cent in the preceding quarter and 22 per cent in the corresponding quarter last year as per CRISIL. The Government will borrow Rs 2.20 lakh crore for the second half (October 2011-March 2012) of the current fiscal. This is nearly Rs 53,000 crore more than the budgeted amount. Higher prices of gram, pulses, vegetables and fruits have pushed food inflation beyond 9 per cent again. It stood at 9.13 per cent for the week against 8.84 per cent a week ago. The rupee touched a two-year low against the US dollar. There was some speculation that the RBI intervened in the market to provide some support to the rupee and reiterated that it was monitoring rupee movements closely. W-o-W, the USDINR pair gained 3.67%. Silver prices tumbled by Rs 1,300 to Rs 53,000 per kg in the national capital on emergence of profit-selling by stockists amid weak global trend. Gold, however, held steady at Rs 26,640 per 10 gram in restricted trade. The Anil Dhirubhai Ambani Group's financial services arm Reliance Capital today said it has received approval from the Reserve Bank of India (RBI) for its proposed 26 per cent stake sale in Reliance Life Insurance to Japan's Nippon Life. The euro zone's debt crisis and weakness in Chinahave fueled investor concern that the global economy could tip back into recession, possibly dampening US earnings growth at a time when the US economy is still struggling to gain ground. Overseas sales have helped US companies beat earnings expectations in the last couple of years, with foreign sales totaling 30 per cent on average for Standard & Poor's 500 companies. The Securities and Exchange Board of India (Sebi) on Friday told the high court that it could not withdraw its order refusing permission to MCX Stock Exchange (MCX-SX) to start equities trading. The finance ministry is contemplating a holding company structure for public sector banks. This will help the banks raise capital and government can hold on to a majority stake. Banking industry officials say by forming a holding company, it would be possible to raise funds from the market, and the government holding can be maintained at above 58 per cent.


FinXpress

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News of the Week Delhi Metro earns UN Manipur prices: LPG at praise, ` 47 crore in ` 2000, petrol at ` 140 per litre carbon credits The Delhi Metro has become the world’s first Metro rail & rail based system to earn carbon credits - ` 47 crore annually for the next seven years.

The blockade of two crucial highways by tribes in the north-eastern state of Manipur entered its 63rd day, making prices of essential items shoot through the roof.

people impacted & displaced by projects. In case of non-coal miners, the new law will provide for the payment of an amount equivalent to royalty paid to state government to project-affected persons.

Reliance, Bharti open hypermarkets in Mumbai Mukesh Ambani's Reliance Retail and Sunil Mittal's Bharti Retail, which started their operations from opposite geographies, have opened their first hypermarkets in this city.

The United Nations has hailed the Delhi Metro Rail Corporation for helping reduce pollution levels in Delhi by 6.3 lakh tonnes a year.

Women in Saudi Arabia get voting rights Saudi Arabia will allow women to stand for election & vote, King Abdullah announced on Saturday, in a significant policy shift in the conservative Islamic kingdom.

Women will now be able to run as candidates in the municipal elections & will even have a right to vote. This will be a litmus test for the government’s appetite for social & political reform as Saudi Arabia adheres to a strict version of Islamic Law that enforces the segregation of the sexes.

The blockade began on July 31, when the Sadar Hills District hood Demand Committee, spearheaded by the Kuki tribe, choked National Highways 39 & 53 to press their demand of creating a separate Sadar Hills district.

Mining Bill gets nod, coal firms to share 26% profit with locals The Union cabinet on Thursday approved the new mines Bill which provides for the first time, sharing of profit & royalty with project-affected people. The profit sharing formula is expected to smooth out the process of land acquisition.

While Bharti opened its Easyday Hyper on Thursday, Reliance made an announcement on its Reliance Mart Friday. For Bharti, this is the first hypermarket it ever opened in the country; for Reliance, the 12th. Easyday Hyper offers over 20,000 products that include 475 new items across categories such as jams & spreads, spices, flour, biscuits, namkeens, ethnic sweets, oils etc. Reliance Mart offers over 20,000 products in fashion, apparel, consumer electronics, leisure, dairy, grocery etc.

Al Qaeda’s killed: Yemen The Bill is likely to be tabled in Parliament in the winter session. Under the Bill, coal mining companies will now have to share 26% profit from mines with

Awlaki

Anwar al-Awlaki, a US-born cleric linked to Al- Qaeda’s Yemenbased wing, was killed in an air strike, Yemeni & US officials said, removing a “global terrorist” high on a US wanted list.


FinXpress

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News of the Week continued... External debt at $ 317 billion in Q1, FY12 India’s external debt increased by USD 10.5 billion to USD 317

billion in April-June period of this fiscal over the last quarter of 2010-11, mainly due to the rise in commercial borrowings & trade credit. As per the data released by the RBI, about 70% of the increase in total external debt was on account of commercial borrowing & short-term trade credits broadly reflecting surge in imports. The long-term debt at USD 248.5 billion & short-term debt at 68.5 billion accounted for 78.4% & 21.6% respectively, of the total external debt.

INDIA, 25 countries oppose EU plan on emission trading India and 25 other countries including the US, China, Russia and Brazil, have opposed the European Union's (EU) plan to

include aviation under its emission trading scheme and impose emission charges on airlines flying into the region

starting next year. After a two-day meeting, the non-EU ICAO members adopted a joint declaration in which they termed as "unilateral" the imposition of EU Emissions Trading Scheme (EU-ETS), saying it was "inconsistent with applicable international law". The EU move, which would become effective from 2012, would lead to a hike in air fares on these flights as the airlines, which would be paying the ETS charges, would on-pass them to their customers.

Govt. raises FDI cap in FM Radio to 26%

This would give foreign shareholders in private radio channels more power to take decisions which was earlier not possible and also induce foreign investors to look into the sector more actively. However, even if the government would have increased it to 49 per cent, rights of the foreign shareholder would have remained the same.

IBM topples Microsoft to become the second most valuable technology company in the world IBM passed Microsoft to become the world’s second most valuable technology company, a reflection of industry changes including the shift away from the personal computer.

The government on Friday relaxed the foreign direct investment (FDI) norms for the FM radio segment by raising the limit of foreign capital inflows to 26 per cent from 20 per cent. It has also eased the FDI norms regarding construction of old-age homes and educational institutions. The new norms would be effective from October 1. The Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and industry had issued the first Consolidated FDI Policy in April last year with the objective of updating the document every six months. In July, the Cabinet had approved raising the FDI limit during the third phase of expansion of FM radio broadcasting services.

IBM’s market value rose to $214 billion on Thursday, while Micosoft’s fell to 213.2 billion, the first time IBM has exceeded its software rival based on closing prices since 1996. IBM is now the fourth—largest company by market value & in technology trails Apple, the most technological companies


Solve it Now!

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CAN YOU SOLVE IT ?

Set A Identify which companies do the taglines LAST WEEK’S ANSWERS belong to : Set A -

1) T akin g yo u f or wa rd 2) K e ep wa lkin g 3) T ou ch th e p er f ec tio n 4) Th e d i ff er en ce l ie s in ou r DN A 5) Qu a lity in e v ery th in g w e d o 6) Bu ilt f or th e road ah e ad 7) Pu r e b h i. Poo ra Bh i . 8) W e mak e t h in g s wh i c h ma ke In d ia p rou d 9) Th e sp ir it o f Co m m er ce 10 ) You an d U s

1) R M Lala 2) Krishna Kumar Birla 3) Kishore Biyani 4) Peter F Drucker 5) Nandan M Nilekani Set B 1) POLO 2) Bombay stock exchange 3) Shombit Sengupta

**Rush in your entries to :

finniche.imt@gmail.com

LAST WEEK’S RIGHT ENTRIES WERE FROM : Pankaj Singh Amey Ratnaparkhi

Mayank Girotra

The right entries will get their name featured in the next issue of FinXpress. So hit the quiz fast & get yourself Rahul Dutta Gupta Pravesh Anand Krishna Koundinya visible among 1000 odd in the campus.

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Drop in your suggestions to the editorial team :

finniche.imt@gmail.com

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finxpress_02oct2011