Nuclear Bill Liabilityl
Nuclear bill liability is a civil liability for nuclear damage.A crucial bill that provides for compensation in case of a nuclear accident.It is key to operationalise the landmark Indo-Us nuclear deal.The bill pegs the maximum amount of liability in case of each U.S nuclear accident at Rs 300 crore to be paid by the operator of the nuclear plant.However the draft bill also has provisions that would enable the government to either increase or decrease the amount of liability of any operator.The bill is necessary to activate Indo-U.S. Civilian nuclear agreement .after this bill becomes an act ,India will become a member of the international convention on liabilty in the civil nuclear arena.The bill is certainly debatableas it has certain clauses which indirectly let free the manufactures and the builders of the nuclear reactors from any financial and legal liability.according to the clause 7 defines the operator will haveto pay Rs.500 crores and the remaining amount will be paid by the indian government.This is considered as a ridiculous point as the operator will be the Nuclear Power corporation of india Ltd(NPCIL) which itself is a government owned facility.The operator can claim the liabilites form the manufactures and supplier if it is mentioned in the contract .But the maximum amount payable by the foreign companies will be a very little sum of RS 500 crore.Ultimately ,it is the Indian Tax payer who will have to give the money even when the accident has occured due to others mistakes.Clause 17 deals with legal binding of the culpable groups in case of a nuclear accident.pratically,no one is considered legally liable because the recourse taken by the operator will yield only Rs 500 crore at maximum.The operator or the responsible persons in case of a nuclear accident will undergo the trial under Nuclear Damage claims commissions and no civil court is given the authority.
Business of cricket
Today world is highly competitive and a businessperson would look for the opportunities to make money, sports are not exception there is no place for emotion in business. For example if not cricket but badminton is providing money then a businessman would surely invest in that. Coming back to the point IPL has come up in such a way that it is no more a game it is more of glamor, entertainment, fun and money.
Business decisions are dictated by strategy, tactics and cold logic. IPL is the business of more than $3bn. Moreover it has become a case study for management students. Cricket is now cricket industry. The concept of marketing is emerging in the field of cricket and can be addressed as “cricket marketing”. There are functional areas in IPL:
Marketing management
Financial management
Product management
Human resource management.
Business decisions are dictated by strategy, tactics and cold logic. IPL is the business of more than $3bn. Moreover it has become a case study for management students. Cricket is now cricket industry. The concept of marketing is emerging in the field of cricket and can be addressed as “cricket marketing”. There are functional areas in IPL:
Marketing management
Financial management
Product management
Human resource management.
NUCLEAR SECURITY SUMMIT
In full accord on a global threat world leaders on Tuesday endorsed Barack Obama's call for securing all nuclear materials around the globe within 4 years to keep them out of grasp of terrorists. They offered few specifies for achieving that goal.
Securing the nuclear material for effective use in power generation and biomedicals is the talk of the news. But the main agenda of this summit is to make furthur progress in a disarmament act and restrict the use of nuclear materials by non-state actors and terrorists.
The summit countries said they would cooperate more deeply with the United Nations and its watchdog, the International Atomic Energy Agency. Several countirs including Ukraine, Mexico and Canada, declared their intention to give up Highly Enriched Uranium(HEU) as a step toward making it harder for terrorits groups. Russia and US signed a deal to dispose of tons of weapons-grade Plutonium, although that wont start for 8 years.
Securing the nuclear material for effective use in power generation and biomedicals is the talk of the news. But the main agenda of this summit is to make furthur progress in a disarmament act and restrict the use of nuclear materials by non-state actors and terrorists.
The summit countries said they would cooperate more deeply with the United Nations and its watchdog, the International Atomic Energy Agency. Several countirs including Ukraine, Mexico and Canada, declared their intention to give up Highly Enriched Uranium(HEU) as a step toward making it harder for terrorits groups. Russia and US signed a deal to dispose of tons of weapons-grade Plutonium, although that wont start for 8 years.
MFIs rule out any cut in lending rate
Inspite of the pressure from RBI, MFIs are not reducing the lending rate due to their higher operational cost of funds. MFIs are having the high lending rate of 24% but customers are paying up to 30% because lenders take security \money, processing fee and insurance premium. RBI governor D Subbarao is happy with the ability of the MFIs to provide door step credit policy but high rates are not acceptable to him. Small Industries Development Bank of India (SIDBI) also asked MFIs to reduce loan but MFIs like Bandhan,Basix are not accepting it . 2/3 of the operational cost is going in to paying back interest. 1/3 goes in to account of loan delivery, salary payments and all other operations to turn an operation. Bank and SIDBI charges12-14%. In the case of MFI 20-21% loan is the operating cost and 2-4% is the margin used as a buffer stock for adjusting the interest rate fluctuations. MFIs are refusing to reduce the lending rate because they think that interest rate can be increased in the future. MFIs are small financial institutions so the transportation costs are also high. Private equity players are coming to invest in MFIs because of the handful profit they are getting and RBI is not happy with it.
INDIA launches an IT campaign in CHINA
India on 27th March ,Friday launched an aggressive campiagn to showcase its IT capabilities in CHINA to convince local companies inorder to bridge the trade imbalance between the two nations.
Officials of over 300 top end chinese companies , including that of government owned undertaking attended India-China Business Technology submit in which NASSCOM President ,Som Mittal and other officials of top Indian IT firm made presentations.
Lou Qinjian ,Vice chairman of Chinese ministry of IT also attended the meeting.India ambassador S JaiShankar told in the meeting that " India is not asking for any favours as we are already competitive in this field .And India is just making an aggressive pitch to woo the chinese companies telling them if they have the ambition to become a global chinese comapnies they need a global IT solution provider.He told that cost wise and Quality wise we are superior to them "
India's total trade with China is about $ 42 billion this year with balance of trade tilting massively in favour of China. India imported a whooping of $32 billion and exported only $ 9.2 billion of goods ,mostly raw material like oil seeds and iron ore.
The main aim of this IT submit was a part of the strategy to attract local companies as the Chinese government has agreed to encourage its firms to look at Indian IT market.
FUTURE PROSPECT: India would make a strong bid to make strong dent in the Chinese market in IT ,Pharmaceuticals, Engineering Services and Agro products as India is strong in these fields.
Vindi Banga is going to end his 33 yr long association with Unilever.
Mr. Manvindar singh Banga who is better known as Vindi Banga is going to end his 33 yr long association with the popular FMCG giant unilever. The announcement was made in the head quarters of the company London.
When asked by report’s he said that ‘at the age of 55 he believe it is the right time to take on a new platform and explore another opportunity’.
Mr. Banga is a IIM(A) pass out. He joined HLL in the year 1977. He was fast in proving himself. He was appointed the chairman and MD of unilever’s Indian subsidiary HUL in the year 2000. from 2004 onwards he is the president of food, home & personal care wing of unilever. In 2005 he was elected as a member of the unilever executive.
He presided over the company at its difficult times. He was instrumental in facing the competition from the part of P&G. he introduced the power brand strategy were by he cut short the number of brands under the vast portfolio and focused on high performers. He played a big role in introducing brand wheel to tackle the competition of Nirma.
His colleagues remember him as a person with outstanding leadership and vision. He was awarded padma bhushan in the year 2010. He will be replaced by Mr. Michele B Polk who is currently president of unilever America.
When asked by report’s he said that ‘at the age of 55 he believe it is the right time to take on a new platform and explore another opportunity’.
Mr. Banga is a IIM(A) pass out. He joined HLL in the year 1977. He was fast in proving himself. He was appointed the chairman and MD of unilever’s Indian subsidiary HUL in the year 2000. from 2004 onwards he is the president of food, home & personal care wing of unilever. In 2005 he was elected as a member of the unilever executive.
He presided over the company at its difficult times. He was instrumental in facing the competition from the part of P&G. he introduced the power brand strategy were by he cut short the number of brands under the vast portfolio and focused on high performers. He played a big role in introducing brand wheel to tackle the competition of Nirma.
His colleagues remember him as a person with outstanding leadership and vision. He was awarded padma bhushan in the year 2010. He will be replaced by Mr. Michele B Polk who is currently president of unilever America.
Eco-friendly polymer notes in currency
The Reserve Bank of India will soon issue 100-crore polymer notes of Rs 10 denomination to improve their longevity and thwart counterfeiters. These notes will be initially introduced by RBI in five cities. This was disclosed by RBI governor D Subbarao while speaking at the Foundation Stone laying function for the bank note paper mill at Mysore. The bank note market is monopolistic in India. The existing bank note mill facility is at Hoshangabad. India produces only 5% of its requirements in bank note paper. We need to significantly increase our self sufficiency in this regard for a number of operational, economic and strategic reasons. The Mysore bank note paper mill will have an annual production capacity of 12,000 tonnes as a backward linkage in the process of note printing. The proposed paper mill is a JV between the Bharatiya Reserve Bank Note Mudran and the Security Printing and Minting Corporation of India. The two agencies are responsible for printing of all currency notes.
Polymer notes are printed on a specialized polypropylene plastic that is derived from petroleum, and this material is not available commercially for security control purposes.
While cleanliness and durability are seen as the major advantages of polymer, the carbon footprint associated with production, use and disposal of polymer notes is an important issue. Polymer bank notes and the waste from production can be granulated and recycled into useful plastic products.
Polymer notes are printed on a specialized polypropylene plastic that is derived from petroleum, and this material is not available commercially for security control purposes.
While cleanliness and durability are seen as the major advantages of polymer, the carbon footprint associated with production, use and disposal of polymer notes is an important issue. Polymer bank notes and the waste from production can be granulated and recycled into useful plastic products.
COMPARATIVE ADVERTISING: IS IT REALLY COMPARING?
Our Group presented on the topic brand wars: Rin v/s Tide. We had presented a talk show on the topic. All of the students were amazed to see the advertisement where Rin have literally attacked the Tide naturals in every aspects such as appearance, name even the tag line also. but may I remind you friends, this is not the first time that two products are 'openly compared'. There is a lot of examples in the past like Complan -Horlicks, Audi - BMW etc... When we search for more details we found that as per ASCII laws comparing advertising is legal when it is clear what aspects of the advertiser's are being compared with that aspects of the competitors product and when the comparisons are factual, accurate and capable of substantiation. In this case when we observe closely we can see that in the bottom of the screen they have written that tested in a third party lab. But when you see the advt: you can also understand that there is only the comparison with figures, no statistical figures. We have to see the circumstances in which this ad comes out. Hindustan Unilever Limited (HUL) is desperate to downsize the competitor that is the international giant P&G because now tide has got more share than the Rin. Actually this advertisement is only a follow up of a series of incidents. At first P&G came up with an advertisement of it's new product tide naturals. They argued in the advertisement that the detergent only includes natural ingredients. HUL gave a complaint in the court against the statement of natural ingredient and extra whiteness. This controversial ad came right after the verdict of the court in favor of the HUL. Now P&G has moved in the same way and filed a case against the HUL. as a result court has banned the controversial advt: but HUL ad has attracted so much of public attention because it was launched on a weekend and they got 2 days of time to show it repeatedly. This shows the clear intention of HUL to only attract the customers towards the product. But according to the view of my group the ad concentrated more on the competitors product than on their product. In the 30 second ad 22 seconds are spend to show about the Tide natural. At the end of our group presentation the question which arises is that whether the advertising was really comparative or dominating? Answer will be different from each person. But we can conclude by saying that the comparative advertising is good only if it give some information to the people otherwise it is only a play for attraction.
JOHN PLAYERS’S REINVENTING ITSELF
The last two years all apparel brands were reeling because of the
impact of the retail slump. ITC’S midsized men’s wear apparel brand
JOHN PLAYER’S also had to shut down 30 of its
exclusive stores which were opened with miscalculated & overzealous
planning during the preceding boom period. But now the company is
once again on an expansion mode with clear strategy.
According to ITC’s chief-executive. Mr.Atul Chand john player’s being a midsize brand The Company’s aim is to increase the responsiveness and to bring it closer to the consumers. Company is now set to open 75 new stores by this month end focussing on small cities with 1-5 lakh population. The new stores which are to be opened would be smaller to increase the profitability with smaller stores. Another reason is the display facility of entire range in stores such as Denims, Jackets etc apart from shirts; this facility is not available in the 1000-1100 multi brand stores.
Company is endorsing RANBIR KAPOOR as its brand ambassador to position itself from semi-formal to casual and to go in sync with generation Y, The company plans to make the new star endorser the epicentre of its brand communication to be able to connect to dynamic youth of today and achieve estimated sales of 200-250 crore rupees. In the coming few months all expectations of the company is leaned on its new Star icon RANBIR KAPOOR.
impact of the retail slump. ITC’S midsized men’s wear apparel brand
JOHN PLAYER’S also had to shut down 30 of its
exclusive stores which were opened with miscalculated & overzealous
planning during the preceding boom period. But now the company is
once again on an expansion mode with clear strategy.
According to ITC’s chief-executive. Mr.Atul Chand john player’s being a midsize brand The Company’s aim is to increase the responsiveness and to bring it closer to the consumers. Company is now set to open 75 new stores by this month end focussing on small cities with 1-5 lakh population. The new stores which are to be opened would be smaller to increase the profitability with smaller stores. Another reason is the display facility of entire range in stores such as Denims, Jackets etc apart from shirts; this facility is not available in the 1000-1100 multi brand stores.
Company is endorsing RANBIR KAPOOR as its brand ambassador to position itself from semi-formal to casual and to go in sync with generation Y, The company plans to make the new star endorser the epicentre of its brand communication to be able to connect to dynamic youth of today and achieve estimated sales of 200-250 crore rupees. In the coming few months all expectations of the company is leaned on its new Star icon RANBIR KAPOOR.
India's fiscal deficit up by 23%
India's fiscal deficit has gone up by 23% to Rs. 3.80 lakh Cr. in the first eleven months of this fiscal mainly because of the overruns due to the stimulus measures taken by the government during the slowdown last year.
Lets look back to the history , when in 1930 there was the great depression in the world economy at that time Keynes came up with a solution in his great piece of work "The General Theory" that if at the times of recession government provide investments then it helps in increase in demand and overcoming from the situation of recession , same thing can be seen here but now we can also see the drawbacks of the same coming up in the form of Inflation, fiscal deficit and many more .
To deal with such situation now government is coming up with various measures such as in the budget 2011, the government has raised excise duty by 2% to 10% and enhanced tax rates on other products making consumer goods like cars etc, apart from this there are disinvestment polices as well.
SEBI MAY GET POWER TO MONITOR USE OF IPO FUNDS
The new companies bill will give SEBI the power to look into the power to look into the end use of Initial Public Offering (IPO).In an official discussion SEBI said that according to the Section 55A of company’s act, it has only the power to look into the issues of IPO and not beyond that. But some changes are about to be made in this regard. According to SEBI guidelines, at present the monitoring agency is required only for IPO’S of over rs. 500 cr. As the cost involved is high, but now in order to enhance the level of transparency it has suggested that all the companies with IPO’s of even less than rs 500cr should also be monitored. The monitoring agency involved here are the banks or the other financial institutions who will be appointed by the company itself who is going for an IPO. It has been left to SEBI to change its guidelines and also see that all the IPO have a monitoring agency .These steps are being taken because there were complaint about the
mis-utilisation of the money in the IPO’s of less than rs500 cr.
As a solution all IPO’S should have a monitoring agency that will give its report to SEBI and all the shareholders on the use of IPO money. This will help in avoiding the use of money in illegal activities such as terrorism, smuggling or some of the personal use. If it is properly inforced then it will create a positive impact on the market and will also boost the investor’s confidences.
Beside these the government should setup Fund Utilization and Monitoring Agency Authority of India that will look into the use of all the fund raising activities.
mis-utilisation of the money in the IPO’s of less than rs500 cr.
As a solution all IPO’S should have a monitoring agency that will give its report to SEBI and all the shareholders on the use of IPO money. This will help in avoiding the use of money in illegal activities such as terrorism, smuggling or some of the personal use. If it is properly inforced then it will create a positive impact on the market and will also boost the investor’s confidences.
Beside these the government should setup Fund Utilization and Monitoring Agency Authority of India that will look into the use of all the fund raising activities.
TN's next bet; e-component making
Chennai is emerging as a major manufacturing hub for electronic hardware. But 75%-85% of the components required for this industry are imported. So Tamil Nadu feels there is an immense scope in the local manufacturing of these components.
Of the top global electronic manufacturing service(EMS) producers , Foxconn , Flextronics and Sanmina have chosen Chennai to locate their facility. Other projects attracted include Samsung,Dell,Nokia-Siemens,Motorola etc. As of now this industry has attracted an investement of 8000 crore.
Nokia set up its first plant in Chennai in 2006. After that they expanded it twice making Chennai facility largest in the world. Studies by Nokia prove that Chennai is most cost effective and competitive than even china.
This industry can generate employment for 45000 persons in future. Currently Chennai is known as the auto capital of Asia wit a total investment of $4.5billion. Similarly electronic manufacturing industry has the potential to make our country a global power house.
Of the top global electronic manufacturing service(EMS) producers , Foxconn , Flextronics and Sanmina have chosen Chennai to locate their facility. Other projects attracted include Samsung,Dell,Nokia-Siemens,Motorola etc. As of now this industry has attracted an investement of 8000 crore.
Nokia set up its first plant in Chennai in 2006. After that they expanded it twice making Chennai facility largest in the world. Studies by Nokia prove that Chennai is most cost effective and competitive than even china.
This industry can generate employment for 45000 persons in future. Currently Chennai is known as the auto capital of Asia wit a total investment of $4.5billion. Similarly electronic manufacturing industry has the potential to make our country a global power house.
Belkin is planning to launch its innovative products in India
Hello friends, This is the news of 29th march-2010 from "THE HINDU".
Belkin is planning to launch its innovative products in India.
Belkin International is a global manufacturer of computer hardware that specializes in connectivity device. This company sells both the consumer and the commercial business-to-business market, with various product lines including routers, ipod, switches, hubs (USB and computer network), cables, iphone accessories, mobile computing accessories, KVM switches, racks and enclosures, and other peripherals.
The company was founded in 1983 in Howthorne, California, by current CEO Mr. Chet Pipkin. It has twice made the Inc. magazine's list of 500 fastest-growing privately held companies in the United States. At present, Belkin is headquartered in Compton, California.
This US-based company is focussing on home and small entrepreneurs to corporate and business to expand its base in India. The company has already done $5 milion worth of sales with current sales of over 70,000 varied products every month. Currently, company has 150 products across various verticals, and they will take this number of 500 to boost sales. They are expecting $10 million by next fiscal and sales would jump to $100 million by 2013-14. Apart from launching the entire range of innovative products, the company would be investing heavily on building infrastructure. one of the Innovative product is a unique "power on the go" device i.e AC anywhere-with USB charging that charges small batteries for mobile phones, cameras, ipods and DVD-players from car's cigarrete lighter. Company is also focussing structured cabling business strategy so they are introducing the entire range of copper and fibre structured cabling of solution.
Belkin is planning to launch its innovative products in India.
Belkin International is a global manufacturer of computer hardware that specializes in connectivity device. This company sells both the consumer and the commercial business-to-business market, with various product lines including routers, ipod, switches, hubs (USB and computer network), cables, iphone accessories, mobile computing accessories, KVM switches, racks and enclosures, and other peripherals.
The company was founded in 1983 in Howthorne, California, by current CEO Mr. Chet Pipkin. It has twice made the Inc. magazine's list of 500 fastest-growing privately held companies in the United States. At present, Belkin is headquartered in Compton, California.
This US-based company is focussing on home and small entrepreneurs to corporate and business to expand its base in India. The company has already done $5 milion worth of sales with current sales of over 70,000 varied products every month. Currently, company has 150 products across various verticals, and they will take this number of 500 to boost sales. They are expecting $10 million by next fiscal and sales would jump to $100 million by 2013-14. Apart from launching the entire range of innovative products, the company would be investing heavily on building infrastructure. one of the Innovative product is a unique "power on the go" device i.e AC anywhere-with USB charging that charges small batteries for mobile phones, cameras, ipods and DVD-players from car's cigarrete lighter. Company is also focussing structured cabling business strategy so they are introducing the entire range of copper and fibre structured cabling of solution.
NEWS ANALYSIS-RUSSIA TO REVIEW BAN ON EXPORT OF INDIAN BOVINE MEAT.
A russian expert team is likely to visit india shortly to study the situation on the ground and review ban on export of indian bovine meat to russia.ou union agriculture minister mr sharad pawar said he had taken up the problems on expert of indian farm produce to russiawith his russian counterpart yelena skrynikduring thier bilateral meeting of agriculture ministers from BRIC countries. we all know that there is lotof restriction on export to russia . Russian rules and regulation are stricter than internationally accepted requirement .Russsia have imposed several temporary ban on india exports bovine and poultry t INDIAN plant produceand is still to open it's market to indian meat.India exports bovine and poultry to 60 countries including in europe .I think there is tremendous potential for export to russia. It's quite evident from the fact that russia imported 6,00,000 tones of poultry and one million tonnes of meat.Russian in turn wants to export grains to india but mr sharad pawar has explain to yelena skrynik that since we had a bumper crop last year so india is not planning any wheat import but india could import pulsesand oilseeds since there is a shortfall in the production of it and prices of oilseed and pulses are going higher and higher so we can import from russia, this will help india in checking food inflation to certain extent. this will go a long way improving india and russia business relation.
Super auto's disinvestment in Russia
NEWS: Super auto to pull back its stake in russia venture
Tuesday March 30, 2010, Economic Times, Page no. 8
Super auto to pull back iots stakes in russian venture. Super auto is a Chennai based auto component tier-1 supplier, has decided to pull back its entire 40% stake in venture Arya Super auto forge. It manufactures cold forge components for automotives Oil and Gas industries in Russia and Overseas .
Five years ago, Super auto made a distinction of being the first Indian Engineering company to establish a manufacturing unit in Russia. The total investment of Rs 160 Cr was employed in this project.
Now they are willing to disinvest 40 % of stakes that is Rs 64 Cr. the reasons behind this is firstly, they want to focus on domestic market which is evolving. Secondly, global slowdown. Arya Super auto forge got an order of Rs 16 Cr for past 4 concecutive years but in 2008 they only got an order of Rs 4.5 Cr which was a drastic change according to the company and now they are planning in bringing back the money to India
Tuesday March 30, 2010, Economic Times, Page no. 8
Super auto to pull back iots stakes in russian venture. Super auto is a Chennai based auto component tier-1 supplier, has decided to pull back its entire 40% stake in venture Arya Super auto forge. It manufactures cold forge components for automotives Oil and Gas industries in Russia and Overseas .
Five years ago, Super auto made a distinction of being the first Indian Engineering company to establish a manufacturing unit in Russia. The total investment of Rs 160 Cr was employed in this project.
Now they are willing to disinvest 40 % of stakes that is Rs 64 Cr. the reasons behind this is firstly, they want to focus on domestic market which is evolving. Secondly, global slowdown. Arya Super auto forge got an order of Rs 16 Cr for past 4 concecutive years but in 2008 they only got an order of Rs 4.5 Cr which was a drastic change according to the company and now they are planning in bringing back the money to India
NEW LOCATIONS FOR THE FAST FOOD JOINTS
The economics Times- March 29,2010
In the fast moving life style of India,the fast food sector now concentrating on upper middle class people.they target on airports,railway stations etc.
McDonald plans to open 40 outlets this year.They are planning to invest Rs.120cr.They are mainly focusing on airports.The new Delhi based fast food company recently opened 10 Express Kiosks at different locations in Delhi and plans to scale it up to 100 in the next year.
Cafe Coffee Day now operates in all major airports and now plans to expand its reach to smaller airports too.Encore hotel have a tie up with HPCl to start food courts in HP petrol pumps.
Kamats Restaurants opens a chain of restaurants along the highways. Himachal Pradesh Agro Industry Corporations(HPAIC) are planning to sell fruit based food products in the railways.
Quick service resturants business at airports in India is worth Rs.400cr and is groeing bu around 25% annually.
fast food sector is tapping the untapped areas and they are expanding.They are investing cores of rupees into the market.The only problem is that getting license,if they clear that there will be a sudden boom in this sector and lots of job oppurtinties will be there.
In the fast moving life style of India,the fast food sector now concentrating on upper middle class people.they target on airports,railway stations etc.
McDonald plans to open 40 outlets this year.They are planning to invest Rs.120cr.They are mainly focusing on airports.The new Delhi based fast food company recently opened 10 Express Kiosks at different locations in Delhi and plans to scale it up to 100 in the next year.
Cafe Coffee Day now operates in all major airports and now plans to expand its reach to smaller airports too.Encore hotel have a tie up with HPCl to start food courts in HP petrol pumps.
Kamats Restaurants opens a chain of restaurants along the highways. Himachal Pradesh Agro Industry Corporations(HPAIC) are planning to sell fruit based food products in the railways.
Quick service resturants business at airports in India is worth Rs.400cr and is groeing bu around 25% annually.
fast food sector is tapping the untapped areas and they are expanding.They are investing cores of rupees into the market.The only problem is that getting license,if they clear that there will be a sudden boom in this sector and lots of job oppurtinties will be there.
Disinvestment policy of Public Sector Companies
Recenty government came up with the disinvestment plan of three public sectors companies-NTPC, REC and NMDC to raise about 23000 Cr. But the FPO of all the three companies had a poor response from the retail investors and High net worth investors. Finally, local institutions have to come up to bailout the three PSUs. The major reasons for the poor response of the issue were:-
1.Use of French auction method:- Under the French auction method, institutional investors are free to bid above a certain floor price and the allotment would be on price- priority basis.
2.Poor Selection of Investment bankers on the basis of their bids.
3.Difference between the offer price and the market price was so narrow that it made no sense for the retail investors to invest.
Impacts:-
After the poor response of the FPO, disinvestment department reviewed the performance of the investment bankers and decided:-
1.Under the new set of rules being considered, 70% weight age will be given to the quality aspects of the Investment bank and only 30%to the cost of transactions fee quoted.
2.Use of pure auction route instead of French auction method:- In the pure auction, only minimum price is given to institutional investors with no ceiling. QIBs can bid any price above the floor price, but the retail investors and high net worth investors will receive the shares at the minimum price only.
3.15-20% discount could be given to the retail investors in order to attract them and set the right trend for the future disinvestments.
1.Use of French auction method:- Under the French auction method, institutional investors are free to bid above a certain floor price and the allotment would be on price- priority basis.
2.Poor Selection of Investment bankers on the basis of their bids.
3.Difference between the offer price and the market price was so narrow that it made no sense for the retail investors to invest.
Impacts:-
After the poor response of the FPO, disinvestment department reviewed the performance of the investment bankers and decided:-
1.Under the new set of rules being considered, 70% weight age will be given to the quality aspects of the Investment bank and only 30%to the cost of transactions fee quoted.
2.Use of pure auction route instead of French auction method:- In the pure auction, only minimum price is given to institutional investors with no ceiling. QIBs can bid any price above the floor price, but the retail investors and high net worth investors will receive the shares at the minimum price only.
3.15-20% discount could be given to the retail investors in order to attract them and set the right trend for the future disinvestments.
GROWTH OF MULTIPLEX INDUSTRY IN INDIA
In India multiplex industry is in nascent stage.As the world watches economy closely,India's cities are evolving and the plex industry is among the many sectors looking at tapping investment potential.
In the early 90's Ajay bijili invested Rs 45-50 lakh in his priya theatre to introduce dolby system.In 1997 India's first mutiplex at Saket delhi named pvr came into being.Five years before Anil ambani led entertainment group(then adlabs,now reliance media works) bought a controlling stake in Manmohan Shetty's adlabs in a whooping Rs 350 crore deal,along with their 16 multiplex screens the industry has not seen big buzz deal still, shravan shroff decided to sell his screen dream-fame(96 screens)to Inox and also small deals are going on inside mutiplex industry.this is due to the forecasting of there players in the industry because of huge untapping future potential.
according to the FICCI-KPMG 2010 report on the media and entertainment industry,by 2013,the number of plex screens in India is likely to cross 1600.60% of Indian theatrical revenves for hollywood and bollywood films,come from the plexes while for south Indian films its 25%.present investments is about 2220 crore about 850 screens and five years ago it was 497 crore.major players are BIG CINEMAS CINEMAX INOX FAME and PVR
In the early 90's Ajay bijili invested Rs 45-50 lakh in his priya theatre to introduce dolby system.In 1997 India's first mutiplex at Saket delhi named pvr came into being.Five years before Anil ambani led entertainment group(then adlabs,now reliance media works) bought a controlling stake in Manmohan Shetty's adlabs in a whooping Rs 350 crore deal,along with their 16 multiplex screens the industry has not seen big buzz deal still, shravan shroff decided to sell his screen dream-fame(96 screens)to Inox and also small deals are going on inside mutiplex industry.this is due to the forecasting of there players in the industry because of huge untapping future potential.
according to the FICCI-KPMG 2010 report on the media and entertainment industry,by 2013,the number of plex screens in India is likely to cross 1600.60% of Indian theatrical revenves for hollywood and bollywood films,come from the plexes while for south Indian films its 25%.present investments is about 2220 crore about 850 screens and five years ago it was 497 crore.major players are BIG CINEMAS CINEMAX INOX FAME and PVR