Brandhouse Retail to roll out 15 new stores as a part of JV with Oviesse
Highlights of the conference call are
- Brandhouse Retail is the master franchisee for leading domestic brands including Reid & Taylor, Belmonte, Carmichael House and Stephens Brothers and exclusive India franchisee for International luxury brands like Alfred Dunhill.
- BHRL has been involving in the setting up and managing of over 670 EBO’s (Exclusive Brand Outlets) for various brands across India with a special focus on fashion and lifestyle, as the fashion textiles constitute 36% of the share in the Indian organized Textile Industry.
- The company in month of February 09 has entered into a Joint Venture agreement with Oviesse, a leading Italian ‘fast fashion’ retailer to set up 190 private label format stores across the country over next 5 years. The store roll out is expected to commence later this year and continue for the next five years setting up stores across metro / tier 1 / tier 2 cities. The equity requirement over 5 years will be Rs. 161 crore.
- For the first year the JV will, import the merchandise from Italy and thereafter will introduce local sourcing / manufacturing in a phased manner in order to minimize costs. The company plans to open 15 stores in the first year with an investment of Rs 71 crore.
- Thus newly demerged entity – BHRL will operate in two strategies – through already existing EBO’s and through the newly entered JV with Italian retailer Oviesse which holds 37.5% in the Joint venture.
- As on quarter ended December 08, the company has 242 Reid & Taylor, 203 Belmonte, 201 Carmichael House and 19 Stephen Brothers and 3 Dun Hill EBO’s totaling to 669 EBO’s covering around 66000 sq ft of the area. Of the total store, the company owns 348 stores and the rest 335 stores were Franchise Network stores.
- Under Franchise Network stores, Franchisers will get the stock from the company at a whole sale price plus 4% of overriding from the company.
- Going further, the company has capex plans of Rs 115 crore for FY10 and assures to maintain Debt to equity ratio of 2 for FY 10.
- The debt on books is Rs 110 crore; Working capital cycle of 90 days. The average cost of Debt is 14%.
- The Net worth of the company is Rs 120 crore, and the equity is Rs 53.60 crore.
- The company plans to scale up its stores count to 900 stores in FY 10. It also estimates to reach revenues of Rs 800 crore, EBITA of Rs 79 crore and PAT of Rs 22 crore by FY 10.
IRDA may allow insures to launch Universal Life Policy
The Insurance Regulatory and Development Authority (IRDA) is likely to allow the life insurers to introduce the Universal Life Policy (ULP) which allows the customers to change the policy amount after buying the policy for a different amount.
The regulator is currently studying the UK model of this policy which is at the front position in this segment. This policy is expected to offer the customers flexibility in terms of both the premium paid and sum assured.
In UK, the ULP policyholder is free to change terms of the amount of death benefit at his convenience.
The policy also offers lapse protection, which ensures that the policyholder will continue to enjoy the benefits as long as the premiums are paid regularly.
The customer can also make a choice in the timings of the premium payment. The premium can either be paid at regular intervals or in one stroke. However the amount of premium to be paid cannot be changed.
Another feature of this policy is that it will not get cancelled automatically even if the customer fails to pay the premiums.
ULP also helps the customer to raise finances by allowing him to borrow money from the insurer in the form of surrender value and loans
Matrix Laboratories gets first tentative FDA nod for Generic Truvada
Matrix Laboratories has got the first tentative nod from the US Food and Drug Administration (USFDA) under the President’s Emergency Plan for AIDS Relief (PEPFAR) for its Abbreviated New Drug Application (ANDA) for Emtricitabine and Tenofovir Disoproxil Fumarate Tablets, 200 mg/300 mg.
The tablets are the generic version of Gilead Sciences Inc.’s Truvada Tablets.
The company considers the product approval to be an additional important step in providing access to a range of critical HIV medications to patients in developing countries. Mylan and the company have continued to make a major contribution to bringing down the cost of these vital treatments through the expansion of their high-quality anti-retroviral franchise.
Tata Indicom offers TV streaming on Mobile Handsets
Covering over 25 channels including channels on news, kids, entertainment & lifestyle, Tata Indicom further enriches the mobile subscriber’s experience with this latest value addition. The service aims at offering superior picture and sound quality to all its subscribers. The charges for the service are Rs. 15/- for 5 minutes.
To install the service, the subscriber needs to login to Tata Zone and download the “TV Streaming” application. Subscribers can select the channel of their choice. The service is available on select, Brew-enabled handsets i.e. Motorola V3C (Razor), Samsung Max (F679), Samsung Duo (W339) and Samsung T-Nimbus (F519).
The “TV Streaming” solution is powered by APALYA Technologies, a leading end-to-end technology provider and content aggregator (channel feeds) in the mobile entertainment industry.
The channels that are made available are – CNN IBN, Times Now, Aaj Tak, NDTV 24×7, TV9, CNBC, and TV18. Likewise for regional and entertainment channels, subscribers will be able to select channels like ETV (Marathi, Bengali, and Gujarati), Jaya TV, Zoom, Pogo and Cartoon Network respectively.
HDFC Ergo launches cover for exclusions
HDFC Ergo has launched covering exclusions for a slightly higher premium after the Insurance Regulatory Development Authority of India (IRDA) allowed partial freedom. This is the first time a general insurer is offering cover for exclusions.
Exclusions refer to those developments that are not compensated by the insurance companies. These will be clearly mentioned in policy wordings of any insurance policy.
For example, until now in case of fire in a factory, insurers did not pay claims for the equipment that caused it, Instead it paid only for the damages caused to other equipments and premises due to the fire.
However with exclusions being included, the insurers will now offer cover for equipments causing fire for an extra premium.
HDFC Ergo is a joint venture between financing major HDFC and Germany’s Ergo Group. Ergo holds 26% stake in the joint venture and the remaining is held by HDFC.
LIC-Corporation Bank all set to launch credit cards
State owned insurance major Life Insurance Corporation (LIC) is all set to launch its much hyped credit card which is likely to hit the market in the next two days.
The card’s launch was originally scheduled to be in held in January but was delayed due to the necessity of completing certain formalities.
The insurer has tied up with Karnataka’s Corporation Bank for launching the white-labelled credit cards. The bank will be the card issuer.
L&T Receives Rs 345 Cr. Order for Nuclear Project
Larsen & Toubro, India’s largest manufacturer of equipment for the nuclear power sector, announced that it has won the prestigious first order for design, manufacture and supply of 4 Nos. steam generators for 700 MWe Pressurized Heavy Water Reactors (PHWR) from the Nuclear Power Corporation of India Ltd (NPCIL).
The steam generators are critical & long lead equipment to be supplied to Kakrapar Atomic Power Project. These will be the largest steam generators built in India so far, and will enable an increase in the size of future indigenously built nuclear power projects from 540 MWe to 700 MWe. L&T has played a critical role in the development of technology & capabilities for the Indian nuclear power sector.
L&T is also rapidly emerging as a leading supplier of plant & equipment for the thermal power sector. It serves the power sector across the entire spectrum from design services to equipment manufacture, erection and commissioning of complete projects
CCI lines up funds worth Rs 9,000 cr for cotton procurement
The Cotton Corporation of India (CCI) has lined up funds worth Rs 9,000 crore for procuring cotton in the current season (October 2008-September 2009). The government-owned procurement agency is set to procure over 10 million bales in the current season – becoming the world’s first agency to do so.
Last season, the corporation borrowed only Rs 500 crore for procuring 1 million bales (1 bale = 170 kg).
CCI had initiated negotiations with a host of banks and has received sanction for the said amount as cash credit limit. The state-owned trading entity has already borrowed Rs 8,500 crore and is expected to borrow an additional Rs 500 crore in the near future, against the cash credit limit of Rs 15,000 crore.
Indian Equities – Far From Collapse – Nomura
Activity levels have picked up in many of the domestic sectors India. The biggest improvement has taken place in consumer- and rural-exposed sectors. Auto, cement and new mobile connections have rebounded sharply and are running ahead of pre September 2008 levels. This, we believe, is largely on account of a boost to consumption provided by a government stimulus package to the rural economy (in terms of farm loan waivers) and government employees (through salary hikes). Similarly, even the production of metals (both steel and non ferrous) seems to have remained impervious or picked up since the slowdown. There has been a deceleration in growth of textiles and related sectors. However, production cuts are not dramatic and declines have seen some sequential improvement post-September in some categories.
Taffic data from major ports show that export tonnage has bounced back, while import tonnage has fallen.
The Indian consumer is likely to be more resilient. On an aggregate basis, gains accruing to consumers from direct and indirect stimuli (e.g. falling fuel prices, etc.) have been significant, far outweighing losses in incomes in other sectors. So, while growth of car and two-wheeler sales may not continue at 20%-plus levels, it is likely to remain positive.
Communist Party Manifesto for Elections on Indian Economy
We have carefully studid the Manifesto of the Communist Party for the forthcoming general elections. Here is there vision for steering the Indian Economy,
- Support for Enhanced State Intervention - Scrapping the FRBM (Fiscal Responsibility and Budget Management) Act, raising borrowing limits to allow for higher public expenditure; Increase annual Plan expenditure amounting to 10% of GDP from the current 5%; and Aggressive expansion by Central Public Sector Units (CPSU) utilizing their vast cash reserves.
- Immediate Relief Measures - Specific relief packages for SMEs in textiles and garments, gems & jewelry, leather, software and IT, etc; Moratorium on job cuts; Preventing wage and pay cuts burden of cost cutting to be borne by profit earners; Income tax relief for salaried employees, pensioners and senior citizens; Massive increase in public investment in agriculture and irrigation; and Protection against price crashes of crops
- Taxation and Resource Mobilization – This additional spending will be funded via: Restoring Long-Term Capital Gains Tax and increasing Securities Transaction Tax; Launch a drive to unearth black money, especially those stashed in Swiss Banks; Increase wealth tax for the super rich; introduce inheritance tax; Plug the Mauritius route, and review the Double Taxation Avoidance Agreement with Mauritius and other countries.
- Financial Sector Regulation – Reversing move towards Full Capital Account Convertibility; Prohibiting P-Notes; Scrapping the Banking Regulation (Amendment) Bill to prevent takeover of Indian banks by foreign banks; Scrapping proposed legislation to raise FDI in insurance; No privatization of pension funds, no diversion of pension/provident funds to stock market.
- Land Reforms - Reverse the current thrust to dilute land-ceiling laws; Takeover and distribution of all surplus land above ceiling.
- Industrial Development - Strengthening and expansion of the public sector; Complete halt to disinvestment of profit-making
and potentially viable PSUs; Protection of domestic industry from indiscriminate lowering of import duties and takeover of
existing Indian companies by Foreign companies; Prohibition of FDI in retail trade; and Prohibiting export of iron ore and increasing royalty rates on coal and other minerals. - Social Reforms: Provide reservation in the private sector; Public expenditure on education to be 6% of GDP, enacting the Right to Education bill, with Central government the major financial contributor; Public expenditure on health to be raised to 5% of
GDP; All essential drugs to be brought under price control.
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