Radico Khaitan’s super-premium brandy Morpheus to Hit the Shelf
Radico Khaitan, the spirits major of the country is all set to launch its super-premium brandy this month as an initiative to focus on premium-focused growth strategy.
The company will launch its brand Morpheus this month which was scheduled to be launched around six to eight months ago. The brand will cost Rs 550 to Rs 700 a quart in the south Indian markets which have shown strong annual growth over a period of time. The company is eyeing 10% market share of the premium brandy segment by the end of this fiscal.
At present in the premium brandy segment, there are only two brands available, Courier Napoleon brandy and Caesar brandy from Tilaknagar Industries and United Spirits (USL) respectively, which are sold mainly in the south Indian markets of Kerala, Tamil Nadu, Karnataka and Andhra Pradesh at a price of Rs 350 to Rs 500.
Radico Khaitan has some popular brands like Old Admiral and 8 PM Excellency with strong distribution network which will play a key role in successful launch of Morphes.
Apart from this the company is also working on launching one more premium brand shortly.
NIIT to introduce computer aided learning in 1,870 schools in Gujarat
NIIT has enhanced its portfolio in yet another state in India. The company has entered into a contract with the Department of Education, Government of Gujarat for introducing computer aided learning in 1,870 high and higher secondary government schools for classes 9-12 in Gujarat.
It would be a five-year contract and is valued at Rs 84.38 crore. The company had recently made a foray into Rajasthan with 1,672 schools.
NIIT remains committed towards making education more interactive, by leveraging IT, and ensuring that the best tools and resources are made available to the school students.
Recently, NIIT and New Delhi Municipal Council (NDMC) entered into an agreement to provide ICT Education in 29 Municipal Schools in the city. The company NIIT, had also set up NIIT Yuva Star, in its attempt to bridge the education-employability gap and create talent pool in urban slums, leading Global Talent Development Corporation.
BHEL cuts prices by up to 5% to combat Cheap Chinese Goods
Bharat Heavy Electricals (BHEL) has cut prices of its products by up to 5% in a move to combat stiff competition from Chinese power equipment manufacturers and have better chances of bagging orders from the private power producers.
The company also has price advantage in terms of payment in rupee compared to payment in US dollars to Chinese companies.
In 2008, the company had won a major order from Jindal Steel and Power (JSPL) for 2,400 MW power project and 500 MW from JP Group. It is expecting to bag a few more orders from the private players.
BHEL has also approached the ministry of power for specifying the heat rates of the super critical thermal sets.
Copper falls on speculation that China may curb imports
Copper fell for the third consecutive day on speculation that Chinese may curb imports, helping to erode a rally that’s boosted the price more than half this year.
Refined copper imports by China, the world’s largest metals consumer, may slow over the rest of this year as scrap supplies improve.
Copper for three-month delivery on the London Metal Exchange fell as much as 1% to $4,640 a metric tonne, and traded at $4,665 at 9:37 am Singapore time. Still, contract on the exchange has surged 52% this year on speculation demand will rebound as the global economy recovers.
An indication of a falloff in Chinese import needs is the easing in premiums paid by importer, referring to the difference between prices paid for overseas shipments and spot prices. The premiums are reported to have fallen by more than a third over the last two weeks.
Copper for August delivery on the Shanghai Futures Exchange lost as much as 3.4% to 37,420 yuan ($5,486) a tonne, and last traded at 37,560 yuan.
The period from end May through the summer is usually one of lower activity for Chinese copper fabricators as the holiday period takes hold.
Among other LME-traded metals, aluminium slipped 0.2% to $1,541 a tonne and zinc fell 0.3 percent to $1,550 a tonne. Lead and nickel were unchanged at $1,465 and $13,100 a tonne respectively.
JSW Steel Targets volume sales growth of 78%
Highlights
- The company posted standalone net revenue of Rs 3328.80 crore during the quarter ended March 2009, which was 7% lower compared to the corresponding quarter of the previous year. The standalone net profit during the quarter under review was Rs 49.20 crore as compared to a net profit of Rs 370.18 crore during the corresponding quarter of the previous year.
- The standalone net sales for the full year ended March 2009 increased by 23% to Rs 14,001 crore as compared to the previous fiscal. The standalone bottom-line for the full year stood at Rs 458.50 crore as compared to Rs 1728.19 crore during the previous fiscal.
- The standalone debt gearing was 1.24 during the year ended March 2009 as against 0.93 during the end of the previous fiscal. The standalone gross debt in the book is around Rs 10,047 crore and the average cost of debt during the year increased to 8.22% as compared to 7.34% during the previous fiscal.
- The consolidated turnover during the year ended March 2009 increased by 28% to Rs 16104.71 crore. The consolidated net profit fell to Rs 274.91 crore during the year ended March 2009 as compared to Rs 1640.04 crore during the previous fiscal. The poor performance of the consolidated entity was due to write down of inventory and demand contraction in USA and UK.
- The USA operation of the company is performing poorly whereas the company has deferred any further investment in Chile due to poor business environment.
- The consolidated debt in the book is around Rs 14,631 crore and the debt gearing was 1.79. The average cost of the consolidated debt is 7.17%.
- The company plans to lower the standalone debt gearing to 1.1 from the current level of 1.24, whereas it plans to reduce the consolidated debt gearing to 1.5 by the end of the current fiscal.
- The expansion project of increasing capacity to 7.8 million metric tonnes per annum at Vijayanagar works has commenced commercial production on April 10, 2009. The current expanded crude steel capacity is around 7.8 million metric tonnes.
- Production of Crude Steel during the quarter ended March 2009 stood at 9.66 lakh tonnes as compared to 9.93 lakh tonnes during the corresponding quarter last year indicating a negative growth of 3%. However the sale of saleable steel during the quarter increased 5% to 1.062 million metric tonnes.
- Production of Crude Steel during the full year ended March 2009 increased 3% to 3.724 million metric tonnes whereas the sale of saleable steel during the year increased 1% to 3.428 million metric tonnes.
- The sale of Rolled: Long during the quarter ended March 2009 increased by 19% to 96000 metric tonnes whereas during the full year ended March 2009 it increased by only 1% to 293000 metric tonnes.
- Sales of Semis during the quarter ended March 2009 stood at 110000 metric tonnes as compared to 123000 metric tonnes during the corresponding quarter last year.
- During the end of the quarter-ended December 2008 the company had high cost steel inventory due to rise in cost of coal, which were completely moved during the previous quarter.
- The company is consciously making efforts to bring down the international sales and thus concentrating on domestic sales in order to increase its volume. Earlier the export/domestic sales ratio was 40:60. Now it plans to lower this ratio to 13:87 in favor of domestic sales.
- Also the company plans to focus in the rural and semi urban areas in order to increase sales through JSW Shoppe and Dealer networks. The company has more than 50 JSW Shoppe currently and it plans to increase it to around 600 outlets.
- The company plans to reduce operating costs by as much as 40% through increased use of captive coke, lower fuel consumption & fluxes usage in iron making units, improvement in LD gas recovery in steel making.
- The first phase of 5 million metric tonnes new hot strip mill will be completed by March 2010. The company would also install 30 MW power plant and railway siding in Wasind & Tarapur by this period.
- The expansion of total crude steel capacity to 10 million metric tonnes would be completed by March 2011. There would also be 300 MW of captive power plant installed by this period.
- The company plans to increase production by 72% to 6.40 million metric tonnes during the current fiscal. The total sale of saleable steel for the current fiscal is targeted at 6.10 million metric tonnes, thus growing by 78% as compared to the previous fiscal.
- The total capital expenditure for the current fiscal is expected to be Rs 2,900 crore, out of which Rs 900 crore would be financed through debt and the balance Rs 2000 crore is through internal cash accruals.
- The capex for the fiscal 2011 is expected to increase to Rs 7000 crore out of which the company has already tied-up debt worth Rs 4800 crore and the remaining Rs 2200 crore would be funded through internal accruals.
- The steel demand in the country is expected to grow by 6% going forward. However the price is not expected to move up as many of the global steel manufacturers are operating at 40-50% of there installed capacity. So as the demand increases additional supply would check the price increase.
- The domestic steel manufacturers face a huge threat of cheap steel being dumped into the country by the global players. In order to protect the domestic manufacturers the government is planning to impose 25% safeguard duty on imported steel, the discussion paper for which is already presented. The meeting on the decision is scheduled on 11th May 2009.
SBI Life tops the list of private insurers for new business premium: IRDA
SBI Life Insurance has topped the list of private life insurers in terms of new business premium for the month of March 2009, as per an IRDA report.
The company attained Rs 1,038 crore of new business premium in March 2009.
Individual non-single premium contributed the most, almost 54%, to the business in the month of March.
The insurer also recorded Rs 258 crore from SBI Smart ULIP, within one month of its launch, a contribution of almost 25% of total business for the month.
Elder Pharmaceuticals Expects to launch 14 products in domestic market
Key Highlights
- The net sales for the quarter posted muted growth of 1% to Rs 157.59 crore and net profit declined by 51% to Rs 10.07 crore. The break up of the revenues as per segment as follows:- Women’s Healthcare- Rs 38.98 crore (up by 2%), Pain Management- Rs 18.60 crore (up by 1%), Neutraceuticals – Rs 9.36 crore (down by 18%), Anti-infective- Rs 10.73 crore (down by 2%) and Cardiac – Rs 5.83 crore (up by 15%).
- For the year ended March’09, the net sales increased by 11% to Rs 608.80 crore and net profit declined by 19% to Rs 55.69 crore. The revenue break up as follows- Women’s Healthcare- Rs 147.43 crore (up by 20%), Pain Management- Rs 73.15 crore (up by 2%), Neutraceuticals – Rs 47.43 crore (up by 3%), Anti-infective- Rs 48.51 crore (up by 14%) and Cardiac – Rs 22.74 crore (up by 21%).
- The debt on the books as on 31st March’09 is Rs 380 crore with average interest cost of around 13-14%.
- During the year, company has entered into a strategic alliance with Germany’s Chemische Fabrik Dr Weigert GmbH, Germany for infection control related to operating theatres, diagnostics, patient hygiene, patient handling and wound care.
- Shelcal CT is a combination of 1250 mg of Calcium Carbonate derived from Oyster shell and Calcitrol. The product was launched in April 2008 and has generated Rs 10 crore. The growth in Women’s Healthcare business was due to launch of the product.
- Revenues from domestic market increased by 8% to Rs 166.37 crore and international revenues declined by 51% to Rs 3.55 crore in the quarter under
- Women’s Healthcare continues to remain the lead value creator with winning brands Shelcal and Carnitor.
- During the year, R & D centre in Nerul has earned recognition from the Department of Scientific & Industrial Research, Ministry of Science & Technology.
- Shelcal group drugs of Calcium Supplement segment sales grew by 25% to Rs 98.20 crore for the year. The market share of the drug is 33%.
- Chymoral sales in the Pain Management stood at Rs 30.60 crore, an increase of 4% on yoy basis. The market share of the drug 86.1%.
- Other own formulation with more than Rs 10 crore sales are Carnitor, Formic and Eldervit.
- In-licensed products sales with more than Rs 10 crore are Carnitor, Somazine and Tiger Products.
- The Langa Road facility is expected to commission by end of September 2009.
- The Patalganga plant in Maharashtra has been upgraded in order to WHO guidelines.
- Company is expanding its production capacity at Selaqui unit which is currently running at 75% load following which, the plant will be in a position to address growing product demand for solid dosage in developing markets.
- The company’s Bulgarian operation’s were completed and expects revenues flow from this geography by Q1FY10.
- To concentrate on rural market, the company has formed new marketing team Elvista during the quarter. Around 240 sales force were added during the quarter under review. Current sales force stood at 2300.
- Effective tax rate for FY’10 would around 13%.
- Expects to launch 14 products in domestic market during FY’10 and earn Rs 15-20 crore on those new launches.
- Capex for FY’10 is Rs 40 crore.
RBI Data on Banks Lending to Real Estate Grew 61% YoY
According to RBI data, Indian banks’ real estate exposure grew 61% to touch Rs 90,765 crore Y-o-Y as on February 27, 2009, as compared to the growth of 26.7% during the corresponding period in the previous year. Foreign banks too, were not way behind when it came to lending the realty sector, registering a modest 41% growth for the 12 months up to February 27, 2009, as against 36% drop last year.
The growth of 40% in exposure to real estate firms by the foreign banks is an eye-opener when compared against their annual growth in total credit of meager 4% as on March 27, 2009.
Jet Airways slashes return fares to London
Private air carrier Jet Airways has announced new special return fares between Indian cities and London effective from Wednesday, May 6, 2009 until June 30.
However to avail the special fares the bookings will have to be made in May, airline officials stated. Under the new scheme the return economy ticket, normally costing over Rs 50,000, will now be available for Rs 30,000.
The premier and first class tickets will now cost around Rs 1,25,000 and Rs 2,00,000 respectively. The company is planning to take advantage of the holiday season with the new fares.
The cost of fare will be the same for passengers boarding from 17 cities including Hyderabad, Bengalore, Chennai, Kolkata and Ahmedabad, to reach New Delhi or Mumbai to board Jet’s international flight to London.
Jet Airways currently operates two daily flights, one from Mumbai and one from Delhi, to London.
SEBI notice to RIL, 12 associates over RPL insider trading charges – An Eyewash
The Securities Exchange Board of India (SEBI) is reported to have issued show-cause notice to Mukesh Ambani led Reliance Industries (RIL) and its group entities, following an investigation into charges of insider trading in securities of group firm Reliance Petroleum (RPL).
RIL had sold more than 4% equity in RPL in November 2007, prior to which heavy selling, said to be by various associate entities, was noticed in the futures contract of RPL. The gains made from these transactions are expected to be over Rs 500 crore.
Sources quoted that SEBI had begun the probe in early 2008 after the issue was raised in the parliament.
In the notice, SEBI is understood to have asked RIL and 12 group entities involved in this why action should not be taken against them under the SEBI Act and the Prevention of Fraudulent and Unfair Practices Regulation.
Both SEBI and RIL refused to comment in this regard.
FreePress.in Comment: – We believe that there will be no outcome of this investigation and the same will be closed or suspended forever. Financial Frauds like this are worse to the country when compared to incidents such as 26/11.