Biz12:Pg12 9/10/2010 8:46 PM Page 1
GOA, SATURDAY, 11 SEPTEMBER, 2010
July factory output nearly doubles at 13.8% PTI NEW DELHI, SEPT 10
Growth in industrial production almost doubled to 13.8 per cent in July from the yearago level on robust expansion in capital goods, and doused fears about any slowdown in demand. The stellar numbers, the Planning Commission believes,
would help the economy beat the government's overall growth projection of 8.5 per cent for this fiscal. But analysts disagree. In fact, most analysts had predicted factory output to fall to single digit in July as a result of waning demand. Finance Minister Pranab Mukherjee said he expects av-
Athwal motivates audience to 'Unleash their DNA'
Reg Athwal conducting the workshop.
PANJIM (HBD) -- Rotary Club of Bicholim in association with Sigma Plus Training organized a series of transformational workshops in the city recently. The workshop was conducted by Reg Athwal, from London who is an approved expert resource and speaker to the world's most influential and private CEO organizations to include Vistage Internation, The Academy for Chief Executives (ACE), The Entrepreneurs Organization (EO), The Youth Presidents organization (YPO) and the World Presidents Organization (WPO) and The CEO Clubs. His personal success story, his business case studies, best practices, methodologies, tools and extensive research have been shared by Oxford University, The University of Chicago, Hult Business School, Cranfield University, SP Jain Institute of Management, MIT College of Management and hundreds of other schools and colleges The first workshop, entitled "Unleash Your Leadership DNA", targeted all the top Corporate Leaders of the state. Over 100 prominent CEOs and top managers of the state attended the workshop. The second day-long workshop entitled "Unleash Your DNA" was attended by top executives, entrepreneurs, professionals, parents and students. Reg Athwal helped the audience find a difference in perception and understanding of the operations and success strategies of each business. He helped understand the Concept of Building a "Dream Book" and "Dream Team", thus giving each individual a greater focus and clarity in their organization and other areas of life. One of the more interesting sessions held later in the evening, where Reg Athwal helped the audience recognize the sensory power of their "Super Brain" and tap into the 97 per cent of the mind power, most people never use in their lifetime. Earlier, Rajkumar Kamat, President of the Rotary Club of Bicholim welcomed the gathering and appraised the gathering of the innovative achievements of the Rotary Club of Bicholim. He spoke about the successful, adoption of households in Bicholim affected due to natural calamities and how they rebuilt their lives. The Traditional Lamp was lit on the occasion by the Chief Guest of the occasion Asst. Governor Rtn. Gaurish Dhond, along with the other dignitaries. Manoj Patil of Sigma Plus Training introduced the Speaker for the day, Reg Athwal. He also spoke about the tremendous support he received to organize this event, from the Goa Chamber of Commerce and Industry (GCCI), Cidade de Goa, Business Goa, Kingfisher Spring Mineral Water, Prudent Media, Best Goa Deals and Team Inertia Technologies
Kaydence Media Ventures, Web18 sign deal PANJIM (HBD) -- Kaydence Media Ventures and Web18, the Internet division of the Network18 Group, have entered into a cross media promotion agreement. This agreement extends to Kaydence Media Ventures’ new, globally positioned and marketed online product on Goachronicle.com (Goa’s global online mall of news, information, communication and services). With this alliance, Goa Chronicle will now be able to provide its visitors with national and international news on current affairs, business, sports, movies, technologies and politics with text and video feeds from IBNlive.com; live stock market updates from Moneycontrol.com; songs, movies, games and much more from In.com. Savio Rodrigues, MD, Kaydence Media Ventures, said, “The aim of Goachronicle.com has been to provide its visitors with the best of news from Goa, India and the international markets, while adding value to visitor experience with songs, movies, games or business interests like stock markets. While catering to the Goa market for news, information, communication and other services is part of the company’s core competency, Web18’s product offerings such as Cricketnext.com, Tech2.com, Commoditiescontrol.com, Poweryourtrade.com and CompareIndia.com will help provide our visitors with a more holistic experience of different services under one roof at a state, national and international level.”
erage industrial growth this fiscal to be between 12 and 13 per cent, given the good showing of the labour-intensive manufacturing sector. Manufacturing sector output grew 15 per cent in July against 7.4 per cent a year ago and mining by 9.7 per cent compared to 8.7 per cent. But it was capital goods used by the manufacturing industry - that mainly fuelled growth, as production rose by a strong 63 per cent in July against just 1.7 per cent a year ago. Consumer durable goods production was also up 22.1 per cent, the same as in July 2009. But electricity generation grew at a slower 3.7 per cent against 4.2 per cent a year ago. Industrial growth stood at 7.2 per cent in July, 2009 and was 11.4 per cent during the first four months of this fiscal, against 4.7 per cent in the
year-ago period. "These July figures, I would say, are better than what I had expected. On the whole, taking together April-July, it thus suggests that we are on track at least to achieve the growth rate target... In fact, there may be a good case to marginally increase it (GDP target)," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here. "This is almost double the market expectations," Crisil chief economist D K Joshi said. However, experts are not as enthused, saying that the July figures may not sustain and could prove to be a blip. Said Joshi, "I don't see the IIP growth beyond 9 per cent this fiscal. These high numbers are not sustainable." To a query from reporters on whether the Reserve Bank may further tighten rates in the face of rising inflation, the Finance
Minister said: "The government and RBI are watching. Let's see. We will take actions as the situation demands." The Reserve Bank is slated to review its monetary policy stance on September 16, amid expectations that it may raise key rates to tame near doubledigit inflation. Renowned economist Rajiv Kumar said, "(It is) too early to revise the GDP figures upwards. I expect that there will be slowdown in industrial activity in the coming months." Economy grew by 8.8 per cent in the first quarter of this fiscal. In terms of specific industries, 12 out of 17 groups showed positive growth in July. The industry group 'Machinery and Equipment other than Transport equipment' has shown the highest growth of 49.9 per cent, followed by 31.1 per cent in other manufacturing industries and 24.9 per
cent in transport equipment and parts. On the other hand, wood and wood products showed a negative growth of 9.4 per cent followed by 2.1 per cent in beverages, tobacco and related products. The robust growth of 63 per cent in capital goods augur well for future industrial production. However, if demand does not increase proportionately, it might create only inventories, analysts said. It was mainly industry and services which had borne the brunt of the global financial meltdown during 2008-09. This prompted the government to provide stimulus by cutting duties and increasing public expenditure. This fiscal, the government partially withdrew stimulus by raising excise duty by two per cent to 10 per cent. Even after that, industry is showing signs of robustness.
Govt to boost Engg goods exports: Sharma AGENCY BANGALORE, SEPT 10
The government is taking proactive measures to lower transaction costs and upgrade infrastructure to make Indian exports competitive, Commerce and Industry Minister Anand Sharma said Friday. 'Creating an enabling environment, lowering transaction costs and upgrading port infrastructure remain the corner stone of a successful export promotion strategy and we will do everything possible to give our exporters the competitive edge,' Sharma said at an event organised by the Engineering Export Promotion Council (EEPC) here. He said exports grew 32 percent in the first quarter of fiscal 2010-11 despite difficult times in the global economy. India targets to increase its exports to $200 billion in the current fiscal. Sharma called for value creation in Indian products, especially engineering goods. 'Indian engineering products reach almost 200 countries but many of these items are low valued-added products. We must therefore, move up the value chain and be able to command a price that reflects the inherent strengths of our products,' Sharma added. Exports of engineering products fell sharply in fiscal 2009-10. EEPC Chairman Aman Chadha stressed the need for favourable export regulations for the sector, which accounts for over 20 percent of India's total exports.
To cut debt by half, India Steel to sell its land PTI MUMBAI, SEPT 10
With a view to unlock value from its real estate and use the proceeds to reduce its debt, India Steel Works, said that it plans to sell its 2-acre plot in Navi Mumbai. "We have a secured debt of Rs 70-crore which we intend to reduce through sale of this land. We are eyeing over Rs 35crore from the sale," India Steel Works' executive chairman, Ashwin Gupta, said. The company has a downstream finishing facility of 1,000 tonnes per month (tpm) at this site which it will now merge with its Khopoli plant. It has already completed the voluntary retirement scheme (VRS) at the Navi Mumbai plant. Gupta said that with real estate prices increasing, the company wanted to cash in on this and "knock-off half our debt. We plan to bring down our
India eyes 10% growth in 2012-17 AGENCY NEW DELHI, SEPT 10
India will target nearly 10 percent growth in the 12th fiveyear plan (fiscal 2012-17), even though growth may fall short during the current plan period, said Deputy Chairman of Planning Commission Montek Singh Ahluwalia. 'Our GDP growth target during the 12th plan will be somewhere between 9 to 10 percent. I think 10 percent target is quite feasible,' Ahluwalia said, adding that during the current plan period GDP growth is likely to remain 8.1 percent. The planning commission has set 9 percent GDP growth target for the 11th five year plan (fiscal 2008 to 2012). However, in the first three years of the plan, growth has fallen short of the target. 'Because of the crisis in the global economy, we will not be able to achieve the growth target during the 11th plan. I hope we will achieve overall 8.1 percent growth in the current plan, which is quite good,' Ahluwalia said here Thursday.
debt to Rs 35-crore." The company intends to complete the sale-deal in a few months. India Steel Works (formerly known as Isibars Limited) manufactures stainless steel products which are used in the construction and food and dairy industries, manufacture of electronic items and capital equipment. At Khopoli, the company has a 15,000-tpm (installed capacity) plant. Downstream finishing will now be integrated at this plant and the company will make a small investment financed entirely through internal accruals to construct a few new buildings and purchase some balancing equipment, he said. India Steel Works had earlier been referred to the corporate debt restructuring (CDR) cell. Once in the CDR ambit, a company needs to repay its debt and become debt-free before it
can bring in fresh debt, Gupta said. Presently, the company's interest outgo is around Rs 50lakh per month. "Once we become debt-free for which purpose we are selling-off our Navi Mumbai land, we can raise working capital and drive up our turnover. We hope to make a profit in FY 12," he said. The company had clocked a turnover and net loss of Rs 105-crore and Rs 16-crore, respectively, in FY 10. The company's strategy now is to modernise and consolidate its business and reach its full capacity of 15,000 tpm (from the present around 8,000 tpm) in two years, he said. Recently, a Dubai-based conglomerate, the ANC Group, bought a 10 per cent stake in the company for Rs 19-crore. Consequently, the promoterholding in the Indian company declined to 48 per cent.
High stocks, Eco gloom to temper food inflation REUTERS HONG KONG, SEPT 10
Rising prices for a wide range of agricultural commodities are stirring fears of global food-driven inflation, but there should be no repeat of the crisis seen in 2007/08 unless governments start to panic. Analysts cite much higher global stocks of staples such as wheat and a more challenging economic environment as factors which should temper any prolonged rise in food prices. Some governments have already begun to respond. Egypt, the world's biggest wheat importer, quickly refilled its order book after drought-hit Russia banned exports in a bid to avoid shortages and a rerun of violent protests seen in 2008. Analysts say, however, governments need to avoid inflaming the situation. Export bans and stockpiling, can help keep a lid on domestic prices but also risk global market turbulence. "We could see behaviour by governments which would put us in a more difficult situation," said Karen Ward, Senior Global Economist at HSBC Bank.
Riots in Mozambique, in which 13 people were killed, showed the potential dangers for governments if domestic prices are not kept in check. A 30 percent rise in the price of bread -- linked to soaring global wheat prices -- had to be quickly reversed. Surging agricultural commodity prices in 2007/08 led to a sharp rise in the cost of basic food staples, sparking riots in several countries. In some cases, governments responded by banning exports in a bid to stem food price inflation. It took a global economic downturn to end the crisis. BUYING FRENZY Wheat futures in Chicago raced to a two-year high of $8.41 a bushel in early August after Russia, suffering its worst drought in more than a century, banned wheat and flour exports. The rally ran out of steam, however, well short of the peak of $13.34-1/2 a bushel set in February 2008, partly due to abundant global stocks. The International Grains Council estimates global wheat stocks at the end of the
2009/10 season (July/June) were 197 million tonnes, up more than 60 percent from two years earlier, following the two largest crops in history in 2008 and 2009. "The situation is totally different from 2007 as, following the very good harvests in 2008 and 2009, there are significant global and European stocks," Roger Waite, agriculture spokesman for the European Commission, said. Prices for another food staple, rice, have been climbing after the worst floods in history damaged more than 30 percent of the rice crop in Pakistan. They remain, however, far below 2008 peaks. The benchmark 100 percent B grade Thai white rice prices are trading around $490 per tonne, less than half the record $1,050 in May 2008 when fears of global shortages drove the market higher, stoking food inflation. Traders said prices were not expected to climb much further even if Pakistan banned rice exports. EXPORT CURBS
"Pakistan is still going to export rice but there was some talk that they may be looking at imposing restrictions," said a trading manager with an international trading company in Singapore. "Even if they do have a ban on exports, prices are not going to move up anywhere close to 2008 level. The price might go up to around $550 a tonne if there is no rice coming out of Pakistan." The US Agriculture Department said last month that U.S. food prices in 2010 could rise at their slowest pace since 1992 despite the recent surge in raw commodities prices. Some private analysts, however, said the forecast may be too conservative, with meat prices particularly firm. The average U.S. wholesale pork price hit a record high last month amid strong exports and six-year low pork stocks. Beef prices are historically high amid the smallest July 1 cattle herd on record. "The meat supply is smaller and demand is coming from both exports and a lack of imports and the US consumer
seems to be coming back, demanding more meat," said Len Steiner, a principal at the food consulting firm Steiner Consulting. "As this economy turns around all of a sudden we could see the meat prices go flying up," he added. Analysts said a thus-far tepid US economic recovery could hold back food inflation a bit as cash-strapped consumers, worried about high unemployment, spend less. But the developing world is increasingly steering commodities markets, they cautioned. "Everybody is pretty gloomy about the U.S. numbers. But a lot of the developing countries are seeing decent strong GDP numbers and they are the market-makers right now in a lot of these commodity markets," Michael Swanson, agricultural economist with top agricultural lender Wells Fargo, citing Brazil, China, India and other fast growing economies.
BOARD MEETINGS Arvind Intl Midpoint Soft Source: Indiainfoline.com
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