AUCTIONING OF 2 NEW IPL TEAMS

Auctioning of 2 new IPL Franchises was conducted on March 21^st 2010 at Chennai where history was created when Sahara Adventure Sports which is part of Sahara Group bought Pune team for a whopping US $ 370 million. This is highest bid in the IPL history. The second highest bidder was the little unknown Rendezvous Sports which bought Kochi team for US$ 333.33 million. The exchange rate was Rs 46 for a dollar and the contract is valid for 10 year period.

These 2 teams together work out to US $ 703.33 million or Rs.3235.53 crores, which is much higher than the auctioning of all the 8 teams in IPL1 in 2008 which was only Rs.2840 crores.The highest bid price for the IPL 1 season team was only US $112 million which is less than 3 times the bid for Pune team ($370 million).This the brand image that IPL has created in just 3 years. The brand value of IPL today is estimated to be around $ 4.13 billion. This year for IPL season 3, live online streaming and theatre screenings of IPL matches was introduced for the first time.

For IPL 4, 500 players will take part in the auctioning. Number of matches will be increased from 60 to 94 matches. Star players like Sachin Tendulkar, Rahul Dravid, Yuvraj Singh etc will be deprived of their icon status and will appear on the auction list if their respective franchise wants.

Hoping to see S.Shreesanth in the Kochi team next IPL season.

Indian BPOs spot onsite avenues in US

India is known as the hub of IT and BPO industry.It contributes 7% of national GDP.But after Barack Obama has been selected as the president of USA he gave a stimulus package of $787 billion to improve the economic condition of the country after recession .Along with the package he introduce some policy which create some difficulty for the company to hier foreigner on temporary work permit .The policy had also make some restrction regarding the outsourcing of jobs.
That was the reason to worry for the indian BPO firm .But now thry see lucrative opportunity emerges because of falling real estate price(upto 30%-40%)and labour cost(unemployment upto 10%) in USA.So they are planning to establish operating units in US which gives them the better exposure to the country.


Advantages

->low cost location
->hire local people
->business model change from off-shore to on-shore
->diverse workforce
->help in getting contract
->halp in getting more challenging job
->more opportunity
->scope to know the socio-economic condition and make decision accordingly
->increase profitability ,productivity
->better customer relationship

Gates foundation to go all out to reduce child deaths in U.P,Bihar

This news is with reference to 'THE HINDU' dated 29th march 2010.Gates foundation is placing a new emphasis on innovations that inculcates social and cultural change to bring down the unacceptable high death rates in uttar pradesh and Bihar.Melinda gates co-founder and co-chair of the Bill & Melinda Gates Foundation who was in India visited villages in barabanki and rae bareilyand also talked about new investments and memorandum of understanding with chief minister Mayawati.Gates foundation is committing $55million in the states over next 3 to years for the polio eradication,immunisation coverage,maternal and child issues. Established in1994 Gates foundation is one of the largest trust in the world with an asset of $33.5 billion having global health programs and global development programs.

How to reduce child death rate?

-creating awareness among women to change their traditional culture related to babies.

-polio eradication

-immunisation coverage

-improve upon maternal and child issues.

Why India?

There has been an unacceptable rate of child deaths in India and thus Gates foundation is stressing on cultural and social change,to make women believe that they need to come out of the traditional practices.According to Melinda gates,the infrastructure facility in India is also high,and the govt can improve the gaps there have been in National rural health mission and National urban health mission.

THE IMPACT

The increase in immunisation rate and social change in these two sates ,will bring a healthy life to the people and help in uplifting them in the society.

VEDANTA RESOURCES

To have a clear ownership structure and in order to have a clear valuation of its Aluminium business,the Anil Agarwal-owned Vedanta Resources has planned to demerge its Aluminium Extraction Units operational in Orissa.

The newly formed company,"Vedanta Aluminium"is currently owned by Vedanta Resources with a stake of 70%,while Sterlite Industries that manages the Indian businesses of Vedanta,owns the rest.The demerger is planned by the London-based Advisers of Vedanta Resources.
After the demerger,which is subject to approval of the Stakeholders of Vedanta Resources,Sterlite Industries will be solely a zinc and copper producer.
The newly formed firm will also be a listed entity.

Credit Target of FY 2009-10

Credit target is defined as loan given by banks to corporates, individual, government etc. This is being set every year by RBI. For the financial year 2009-10 it was set 20%, but banks have seen very poor loan demand. Hence RBI decreased it to 18% and then to finally to 16%. Till January 2010, 9% of credit target was achieved, and next target was to lend Rs 1.9 lakh crore in next two months that is February and March.

Banks are lowering their lending rates in order to achieve credit targets. IOC ( Indian Oil Corp.) has raised Rs 1000 crore at 4.75% for 90 day loan. Also banks are providing extended loan for even one year at lower rates, in order to achieve their 16% target.

But condition is not same for all banks. SBI has achieved 17% credit growth in January itself and margin have improved 2.82% in December-09 from 2.3% in June-09 . Till March 26, 12.6% of the target has been achieved, and still Rs 94000 crore money is to be lended in order to achieve credit target.

REINVENTED BIHAR

REINVENTED BIHAR
This is a general belief that India would emerge as a global economic power in 21st century. for this emergence, the state of Bihar with its 82 million population will have to be a strong development partner.
After decades of non performance Bihar has finally reinvented itself as one of the most happening state of India. The two digit growth rate (11.35%) is not a flash in the pan. This could be achieved only through the painstaking efforts to reconstruct an almost non-functioning state.
The 1st phase of growth in Bihar is driven primarily by public investment. The plan expenditure of state at 4899 crore in 05-06 had more than trebled in just 3 years. In 2008-09 it stood at 15476 crore. This trend is expected to continue and that will insure crowding in of private investment both external and internal.
This growth could be possible because of numerous reforms introduced in the state. These reforms have not only improved government functioning but also created a base for private sector investment. The reform range from fiscal management to reducing the cost of business activity and improving investment climate, through passing FRBM act 2006 and Bihar single window clearance act (BSWCA). Even with initial reform attempts, the result in Bihar is dramatic. The time to start a business has reduced from 41 days to 30 days. The turn around in Bihar is tangible and visible in many spheres including physical infrastructure (roads both urban and rural), education, and health.
1st phase of growth is nearly complete and now Bihar needs 2nd stage of growth. For 2nd stage of growth six critical components are:-
1. Land record updates.
2. Power generation.
3. Water management.
4. Credit deposit ratio.
5. Public private partnership (PPP).
6. Delivery system.

Fortis healthcare acquisition and its impact on financial performance

This news is relating to one of the leading health care service provider of our country Fortis health care.
Fortis health care, owned by billionaire brothers malvinder singh and shivender singh has recently bought TPG capital's 24% stake in singapore based healthacare provider parkway holdings limited for 3080 crore catapulting itself as the largest hospital chain in asia.
After selling india's largest drug company Ranbaxy to japan's Daiichi sankyo for 10000crore the singh brothers are aggresively expanding their healthcare and financial service businesses through a series of buy-outs. last month it bought US based wealth management firm North gate capital for $250 million. It had funded the deal by short term loans where several banks and non banking financial institutions have agreed to lend. Post the borrowings the Debt-equity ratio remain below 1:1. With this buyout the company have 62 hospitals(over 10000 beds) placing it significantly ahead of Chennai based Apollo Hospitals that runs 46 Hospitals(over 8000 beds). more over this deal could impact Apollo Hospitals existing joint venture with parkway holdings.
With this deal the company has moved a step closer towards its vision of becoming Global health care delivery network.

Private FIs allowed to issue tax-free core sector bonds

Private FIs allowed to issue tax-free core sector bonds

This is the news which was shown on 24th march 2010 regarding the issue of infrastructural bonds.
Indian private banks and non banking finance companies join state owned firms and hence will be allowed to offer tax free infrastructure bonds to investors.
Infrastructure bonds were available through public sector financial institutions like ICICI and IDBI, in the name of safety bonds and IDBI flexi bonds. They are used as tax saving tools by investors. The government aims to raise long term funds through infrastructure bonds. The country requires a trillion dollars over the 12th plan period (2012 - 2017) to improve its infrastructure. Bearing this point in mind, the government has decided to issue tax free infrastructure bonds.
In the early half of the decade, infrastructure bonds were very popular with investors but the changes in 2005-2006 budget made them less attractive and practically killed the retail market for such bonds which was worth Rs.15000 to 20000 crores.
Effective yield on the infrastructure bonds comes out to be quite good. In case an investor invests Rs 20000 in these bonds, you can claim a deduction of Rs. 20000 in addition to the sec.8O.C deduction. Applying the highest rate of tax of 30% this translates into a ceiling of 6000 in taxes. In this way retailer can reduce the tax liability.
The government allowed a deduction of Rs 20000 on investment in long term infrastructure bonds. This deduction is an addition to 1 lakh under Sec.80 c of Income Tax Act.

Biyani eyes East,to double its Hypermarts in next months

The following is a news analysis from 'The Economic Times' dated March 22,2010.Mr.Kishore Biyani,the king of retail has planned to invest more than Rs.125 crores over the next 6 months to expand the Big bazaar chain of hypermarts.Big Bazaar is a subsidiary of Pantaloons and is headed by Mr.Kishore Biyani the CEO of Future groups.Big Bazaar was started on Oct 2001 and the first outlet was opened in kolkata and the subsequent outlets were added in Hyderabad and Mumbai in the same month.It follows a business model of US based Walmart.The company has 105 retail outlets country wide.Now The future Groups have planned to invest to expand in the eastern region of our country.At present there are 22 retail outlets in the east which will increase to 40 by Oct.Bigbazaar has also created 'Bigbazaar family centre' completely focussed on community Retailing.Future groups have also planned to convert 2 existing stores in Ranchi and Guwahati into Bigbazaar family centres.At present the store is spread over 10 lakh sq.ft of which another 6 lakh is to be added as a part of expansion process.Earlier the focus was on volume sales but lead to entire family shopping basket.As a part of theirexpansion plan they have planned to enter into eastern markets like Patna,Agartala,Bilaspur,Silchar,Gangtok and so on.In kolkata ther are already 7 oulets existing and they have planned to add 7 more.Future group is eyeing around Rs.12000 crore from the private labels by 2012.

Biyani eyes East,to double its Hypermarts in next months

The following is a news analysis from 'The Economic Times' dated March 22,2010.Mr.Kishore Biyani,the king of retail has planned to invest more than Rs.125 crores over the next 6 months to expand the Big bazaar chain of hypermarts.Big Bazaar is a subsidiary of Pantaloons and is headed by Mr.Kishore Biyani the CEO of Future groups.Big Bazaar was started on Oct 2001 and the first outlet was opened in kolkata and the subsequent outlets were added in Hyderabad and Mumbai in the same month.It follows a business model of US based Walmart.The company has 105 retail outlets country wide.Now The future Groups have planned to invest to expand in the eastern region of our country.At present there are 22 retail outlets in the east which will increase to 40 by Oct.Bigbazaar has also created 'Bigbazaar family centre' completely focussed on community Retailing.Future groups have also planned to convert 2 existing stores in Ranchi and Guwahati into Bigbazaar family centres.At present the store is spread over 10 lakh sq.ft of which another 6 lakh is to be added as a part of expansion process.Earlier the focus was on volume sales but lead to entire family shopping basket.As a part of theirexpansion plan they have planned to enter into eastern markets like Patna,Agartala,Bilaspur,Silchar,Gangtok and so on.In kolkata ther are already 7 oulets existing and they have planned to add 7 more.Future group is eyeing around Rs.12000 crore from the private labels by 2012.