ASIAN SHARES LOWER AS JAPAN CRISIS DRAGS ON

“Progress is often
Asian markets were mostly lower
equal to the difference on Tuesday, as Japan‘s inability to
between mind and tame a nuclear crisis cast a
mindset.” shadow over investment
sentiment.
INSIDE THIS
Japan‘s benchmark Nikkei 225
ISSUE: index dropped 1.2% to 9,606.72,
amid frantic — and unsuccessful
JAPAN CRISIS AND — efforts to control a radioactive
leak at a nuclear plant damaged
ASIAN SHARE MARKET by a monster earthquake and
tsunami that struck off the
CORPORATE watch country‘s northeastern coast on 11 March.
ECONOMY watch Shares of Tokyo Electric Power Co. Inc., the utility known as TEPCO that operates the
plant, have been in a free fall since the disaster, nose-diving a staggering 80%.
INDUSTRY watch
On Tuesday, the stock hit an all-time low after dropping 12% in the morning session.
FACT OF WEEK
TEPCO‘s coastal Fukushima Dai-ichi nuclear power plant has been leaking radiation
since the quake and tsunami knocked out its crucial cooling systems, leading to
INTERVIEW
explosions and fires.
ZARGONOMICS
The company is now struggling to contain radioactive water leaks. Shares in Japan‘s
powerhouse export sector also skidded downward, hit hard by supply chain disruptions
ENTREPRENEUR
and power shortages that have forced many factories to suspend or reduce output.
Answers to BIZ WIZ-10
Toyota Motor Corp., the world‘s largest automaker, dropped 2.7%. Honda Motor Corp.
slid 2.5%, and Nissan Motor Corp., slumped 2.7%.

The central bank has pumped billions of yen into the economy to keep liquidity flowing
through the system. It has also received international support to stem the export-sapping
appreciation of the yen following last month‘s disaster.

Benchmark crude for May delivery was down 24 cents to $108.23 on the New York
Mercantile Exchange. The contract settled at $108.47 per barrel on Monday, a fresh 30-
month high as fighting in Libya and unrest in the Middle East continued to raise doubts
about future supplies.

In currencies, the dollar rose to 84.33 Japanese yen from 84.04 late Monday in New
York. The euro was lower at $1.4190, from $1.4216.
 THE DERRICK

CORPORATE WATCH
MUKESH FORAYS INTO FINANCIAL SERVICES IN JOINT VENTURE WITH DE
SHAW
RIL announced an equal financial services joint venture with global private equity and hedge fund company
DE Shaw. The joint venture will build a financial services business in India, under a non-banking finance
company (NFBC).These two groups will offer services like energy and carbon trading and derivatives related
to these areas in which DE Shaw has expertise. It will also enter more sectors as private equity, mutual funds.
DE Shaw had approximately $19billion in investment capital at the start of this year. It has offices in North
America, Europe, Middle East and Asia.RIL and DE Shaw did not reveal the financial commitment made
towards the JV. Under Indian regulations, non-banking finance companies get automatic approval if the
investment is above $50 million and around $150 has been committed on papers so far.

HERO GROUP FORMS 12-MEMBER TEAM TO EXPLORE FOREIGN MARKETS

The Hero Group has formed a 12-member team to chalk out strategies to boost two wheeler exports,
signalling its quest to transform Hero Honda into a global company competing with rivals, including its 27-year-
old Japanese partner Honda Motor Company which has recently agreed for a divorce. The joint venture pact
barred Hero Honda from exporting two wheelers to countries where Honda sells bikes and scooters. A
dedicated cross-functional team has been set up with the mandate to work on a range of subjects with regard
to export opportunities. While domestic market in India will continue to be their main focus. The internal think
tank will outline broad directions, helping the company to appoint a head for the exports business which
accounts for only 2% of its total sales. Hero Honda, which plans to set up overseas ventures to assemble its
bikes and scooters in foreign locations, will focus on places such as North Africa and Latin America which is
fast emerging as developing markets for the two-wheelers.

GOOGLE IN CHINA TAX CASE

American search engine Google, which recently accused the Chinese government of blocking its services, has
been charged with tax evasion along with three of its affiliate companies. Three Google-affiliated companies
have been found using fake invoices and accounting and business tax irregularities were also discovered that
involved more than 40 million Yuan ($6.06 million), the state-run Economic Daily reported on Thursday, citing
sources in China's tax authority.

JINDALS, REDDYS MAY JOINTLY BID FOR HANCOCK'S ASSETS

The Jindals and the Reddys of the GVK Group could join hands with a third Indian company to offer a
combined bid for the coal assets of Australia's Hancock Coal, which is valued at more than $2.7 billion. The
Jindals' JSW Energy has suggested to its Indian counterparts, including the Aditya Birla group, on forming a
consortium similar to the strategy typically adopted by Chinese companies, to pool finances and present a
formidable bid for large global assets. Hancock Coal is selling Kevin's Corner and Alpha Coal, both located in
the Queensland province, as it expects strong valuations for the assets which are estimated to have 7.9 billion
tonnes of thermal coal. So far, Australia, Indonesia and countries in Africa have been common destinations for
Indian power firms. Korean firm Korya Electric and Power Company and two other Chinese bidders are also in
the fray for Hancock. In the past, Chinese oil giants, including CNPC, Sinopec Group and CNOOC, have
shared strengths to bid for large oil assets which are typically valued at more than $10 billion. A delegation
from Hancock is scheduled to visit India early next month for final discussions with Indian companies. The
delegation is also scheduled to visit China after the India trip.

CAIRN-VEDANTA DEAL A STEP CLOSER

Mining group Vedanta resources has moved closer to acquiring control of Cairn India, with its mining company
Sesa Goa obtaining the capital market regulator‘s approval to launch an open offer for shareholders of India
Oil and Gas explorer. SEBI approved the open offer after Vedanta Resources carried out a few changes in the
share purchase agreement it had entered into with UK-Based Cairn Energy Plc and also agreed to provide
more disclosures according to a person with knowledge of the revised offer. The earlier agreement had built-in
clauses that would have ensured Vedanta would have acquired more shares from Cairn Energy if the open
offer for acquiring at least 20% stake from shareholders of its Indian unit received lukewarm response.
Vedanta will buy share from Cairn in such a way that its stake will reach anywhere between 51% and 60%.

ANDHRA HC TELLS SATYAM TO PAY RS 350 CRORE TO CBDT

In a major setback to Mahindra Satyam, the Andhra Pradesh High Court asked the company to issue bankers'
cheques worth Rs 350 crore to the Central Board of Direct Taxes (CBDT). The court has given three weeks to
the CBDT for filing the counter. This will be a relief to the company as senior counsel for Mahindra Satyam, S
Ganesh, had pleaded with the judges to release the accounts to pay salary for the company's employees. The
counsel was requesting the court to pass relief orders before the banking time gets over. The attachment of
accounts would not affect the company's day-to-day operations as the company already made arrangements
for the salary of employees but how this money was organized been not disclosed. As per Mahindra Satyam's
last quarter result, salary bills account for about 70% of its total revenues. So, every month it will have to shell
out about Rs 298 crore for paying salaries.

TOPSGRUP PLANNING 400-CRORE IPO FOR DOMESTIC ACQUISITIONS

Security services provider Topsgrup, which counts billionaire investor Rakesh Jhunjhunwala and private
equity funds ICICI Venture and Everstone Capital among investors, is planning to raise 400 crore through an
initial public offering.The IPO, which will comprise a fresh issue of shares and an offer for sale, could set a
benchmark in terms of the valuation for similar firms in the industry waiting to tap the primary market this year.
Tops Security, the flagship company of Topsgrup, is the first security firm in India to secure private equity
funding in 2007. ICICI Venture invested 115 crore for a 13.66% equity stake, while Indivision India (now
Everstone Capital), increased its stake in the company to 7.08% from 4.11% with an additional investment of
25 crore. Rakesh Jhunjhunwala & Associates, who invested in 2005, has a 10.41% stake.

VODAFONE TO BUY OUT RUIAS FOR $5 BILLION

Vodafone and Essar have agreed on an amicable divorce after a four-year marriage marred by bitter fighting,
with the British group offering its Indian partner a previously agreed pre-nuptial settlement of $5 billion (Rs
22,200 crore). Vodafone on Thursday said both sides would exercise options under which Essar would sell its
33% holding in India's No. 3 mobile operator by customers, Vodafone Essar, to the world's biggest mobile
phone company by revenues. Industry experts said the contours and timing of the deal, expected to be
completed by November, underscored the fractious nature of the relationship between the two sides. The $5-
billion figure had been agreed in 2007 when Vodafone bought into the Indian company, and, in the process,
granted options to Essar to enable it to sell its entire stake at that value. Essar could sell a part of it at an
independently appraised fair value. Essar had a put option allowing it to sell a 22% stake to Vodafone, which
held a call option to buy the remaining 11% if Essar chose to exercise its option. These options were to expire
on May 8, after which both sides would have been forced to negotiate a price, which many analysts say would
most certainly have been less than $5 billion because the Indian telecom sector has seen a significant
downward re-rating since 2007.

ICICI & HDFC BANK TURN FOREIGN COMPANIES

ICICI Bank and other private banks that have more than 50% foreign investment will be treated as foreign
companies as per the new FDI policy, imposing restriction on their downstream investments in sectors
prohibited for foreign investment. ‗‘ICICI is an Indian bank, but it is over 50% (equity) foreign owned, it is
owned by foreigners in that sense... for downstream investment it is a foreign company‘‘ said Department of
Industrial Policy and Promotion (DIPP) Secretary R P Singh. Besides ICICI Bank, the other lenders which have
more than 50% foreign equity holding are HDFC Bank, Yes Bank, IndusInd Bank, Federal Bank, ING Vysya,
and Development Credit Bank. The clarification should put to rest the debate over their status ever since the
new FDI policy was put out in 2009.According to this policy, a company having more than 50% foreign holding
or control outside India was to be considered foreign company.

MICROSOFT COMPLAINS TO EU AGAINST GOOGLE

Microsoft Corp filed a formal complaint with European anti-trust regulators about Google's dominance of the
Internet search market in the region.

Google bars competitors from accessing its YouTube video site for search results and has kept phones
running Microsoft's operating system from working properly with YouTube, Redmond, Washington-based
Microsoft said in a blog posting by General Counsel Brad Smith. A Microsoft unit and two other rivals last year
lodged a complaint with the European Union, which is investigating whether Google has violated the region's
anti-trust laws. Google is under growing pressure from global regulators that are probing whether the company
uses its dominance of Web search to thwart competition.

While Microsoft and partner Yahoo! Inc. have about a quarter of the US search market and Google the rest,
Google has almost 95 percent of the market in Europe, Smith said, citing data from regulators.Amelia Torres, a
spokeswoman for the European Commission in Brussels, declined to comment. Google shares fell 0.7% to
411 euros and Microsoft fell 0.03 percent to 18.15 euros at 9:18 a.m. in Frankfurt trading.

Besides cordoning off YouTube, Google is also seeking to block access to content owned by book publishers
and restricting its own advertisers from accessing the data they put in Google servers as part of ad campaigns.

INTERNATIONAL PAPER TO BUY 53.5% IN AP PAPER MILLS FOR $257M

The world‘s largest paper company International Paper has struck one of the rare deals where a global paper
producer is acquiring an Indian firm by entering into an agreement with LN Bangur Group to acquire 53.5% or
entire promoters stake in mid size firm Andhra Pradesh Paper Mills Limited (APPM) for $257 million or Rs
1,150 crore in cash.

In addition, International Paper has also agreed to a $62 million or Rs 280 crore non-compete payment to the
sellers.

APPM is the country‘s fifth largest paper producer by revenues behind Ballarpur Industries, JK Paper, Tamil
Nadu Newsprint and the paper division of diversified firm ITC.
International Paper will also coming out with a mandatory public tender offer and seeks to acquire up to an
additional 21.5% of the outstanding shares of APPM for approximately $104 million or Rs 470 crore in cash. If
totally successful as it is expected to be, International Paper will end up with 75% stake in the company.

THE DERRICK

ECONOMY WATCH

GOVT FIRM ON BLACK MONEY COMBAT, PM TELLS INDUSTRY

Prime Minister Manmohan Singh stated the government was considering all measures, including legislative
and administrative, to tackle corruption and improve transparency. Comprehensive steps have been taken to
strengthen the intelligence and implementing institutions to combat the menace of black money and rein in
corruption.

The meeting of the Prime Minister‘s 23-member council on trade and industry was being held at a time when
government‘s macroeconomic managers are grappling for options to sustain growth and keep prices under
check amid corruption scandals that are hitting political and business sentiments. Tata group chairman Ratan
Tata, Bharti group chairman Sunil Mittal and Aditya Birla Group chairman Kumar Mangalam Birla were among
those who are members of the council — a forum for policy dialogue between government and industry on
important economic issues.Govt is also committed to major reforms in education and skill development. We
have started a programme to raise resources by sale of equity in public sector enterprises. Legal reforms
aimed at reducing delays are another key priority. It‘s been viewed that the country needed to develop long-
term debt markets and deepen corporate bond markets.

GOVT ALLOWS FDI EQUITY AGAINST IMPORTED MACHINES

The government relaxed the rules for foreign direct investment (FDI) in the country, allowing the issuance of
equity to overseas firms against imported capital goods and machinery. After stakeholder consultations, the
government has now decided to permit issue of equity, under the government route, in... import of capital
goods, machinery, equipment (including second-hand machinery). This will allow conversion of non-cash items
into equity. The guidelines relating to down-stream investments have also been comprehensively simplified
and rationalized. Companies have now been classified into only two categories – ‗companies owned or
controlled by foreign investors‘ and ‗companies owned and controlled by Indian residents‘. The earlier
categorization of ‗investing companies‘, ‗operating companies‘ and ‗investing-cum-operating companies‘ has
been done away with. Besides, the new circular also changes the norms of pricing of convertible instruments.
MANCHESTER UNITED CAFÉ TO INVEST RS 100 CR IN INDIA
Betting big on the growing popularity of football in India, Manchester United Café — the franchisee model bar
and restaurant of the English Premier League football team — has lined up aggressive plans for India. The
café entered the country last year and is now present in three metros. It will be seen in all major cities by year-
end. An investment of R100 crore is slated for expansion of our food and beverages (F&B) business that has
exclusive rights for the café‘s expansion in India. Restaurant and bars, especially those modelled on sports
concept are seeing a tremendous surge in popularity, especially in tier-I cities, according to industry experts. It
was virtually impossible to find a place in any sports concepts restaurant in the metros on Wednesday when
India played Pakistan in the semi-final of the cricket world cup. Manchester United Café is currently present in
Mumbai, the National Capital Region and Goa through five cafes under Mirah Group. The company plans to
start another 12 cafes including at least one in Kolkata and Hyderabad by the year-end.The group, an unlisted
entity with a presence in hospitality business, has a topline of R1,500 crore, company executives said. The
group‘s F&B business clocked revenue of R100 crore in the current fiscal year. The F&B business also
includes other ventures such as Rajdhani, an Indian cosine restaurant and Falafels, a vegetarian Lebanese
fast food chain.

VAT HIKE COMES INTO EFFECT

The hike in value added tax (VAT) announced in the state's 2011-12 budget has become effective from April
1.The last time a tax increase had been made in the state was on April 1, 2006. The tax hike would yield an
additional Rs 450 crore annually to the state exchequer, which would be used to support welfare schemes. In
keeping with the rise in taxes, VAT on some Schedule-3 items has been increased from four to five per cent,
while the tax charged on items like motor vehicles, TV, fridge, cosmetic items, zarda and cigarette would now
be 13.5% compared to 12.5% earlier. Besides, the new 10% luxury tax charged for holding functions
(conferences, workshop, exhibitions and various social functions) utilising venues like hotel, halls or open-air
grounds also became effective from April 1. The report of the Comptroller and Auditor General of India (CAG)
for the 2009-10 fiscal, released last week, had noted that the state government ought to find means to increase
its revenue receipts through both tax and non-tax routes, if the state does not have to get caught into debt trap.
The tax increase on select items has been made in states such as Gujarat, Rajasthan, Uttar Pradesh,
Karnataka and Madhya Pradesh, among others.

ADVERTISERS LINE UP TO MILK IPL CASH COW

Advertisers are making a beeline to cash in on the cricket fever during the Indian Premier League. Many
companies and brands hitherto not associated with cricket advertising and sponsorship have jumped on to the
bandwagon, booking ad spots on Set Max, the sub continental broadcaster for the IPL matches this summer.
Many companies such as Piramal, Tata Motors, Nikon, Paragon, Kansai Nerolac Paints, Hitachi and Johnson
& Johnson have come on board for the first time. ―We have seen the craze for the IPL only grow,‖ said Nikon
India GM Sachin Kumar. Nikon is for the first time earmarking 30% of its total marketing budget for TV to IPL.

TATA STEEL TOPS CORPORATE REPUTATION LIST, BHARTI AIRTEL FIFTH

Country's leading companies Tata Steel, Tata Motors, Aditya Birla Nuvo, Wipro and Bharti Airtel have been
rated as the top five firms, respectively in terms of corporate reputation as per a latest survey by the Nielsen
Company. According to Nielsen's corporate image monitor that measures people's perception of the image of
the country's leading firms, largest consumer goods firm by sales, Hindustan Unilever has dropped to the 10th
position in 2010, down from the seventh place two years back.Others, including L&T, Bajaj Auto and HDFC,
have dropped out of the list of top 10 corporates in the 2010 study, compared to the previous survey of 2008.
Interestingly, IT giant Infosys has dropped to number seven in 2010, compared to the number two position in
2008. In the previous survey, Tata Steel was at the fifth position, while Tata Motors was ranked first. Aditya
Birla Nuvo and Bharti Airtel did not figure in top 10 list of the last survey. Wipro was ranked fourth, which it has
retained this time also.

Elements that drive corporate reputation are customer service, product quality, financial performance,
innovation, and pace of growth, media visibility, vision, leadership and talent pool. Wipro, Bharti Airtel and TCS
lead the 'innovators' in the service sector, while Aditya Birla Nuvo, Tata Motors and RIL, constituted the top
three most innovative companies in the product category. The selection of companies for the survey is based
on market capitalization, sale and assets.

JAPAN EYES BAILOUT FOR N-ENERGY FIRM

apan plans to take control of Tokyo Electric Power Co, the operator of the country‘s stricken nuclear plant, in
the face of mounting public concerns over the crisis and a huge potential compensation bill. Shares of the
company, also known as TEPCO, fell as much as 10% after the Mainichi newspaper said the government
plans to inject public funds into the firm, although it is unlikely to take more than a 50% stake. Peppered with
questions about TEPCO, Japan‘s chief cabinet secretary Yukio Edano told a news conference the government
had not decided on how it would support the company but buying a stake had not been ruled out. Analysts said
more palatable options for the government may include meeting some or all of TEPCO‘s liabilities, letting it
raise electricity prices or spinning off and nationalizing the company‘s nuclear business alone.

GOVT BANS FOOD IMPORTS FROM JAPAN OVER RADIATION FEARS

Government has imposed a three-month ban on import of food articles from Japan, a statement said on
Tuesday, saying the ban could be extended until radiation fears subside.

India mainly imports small volume of processed food items, fruits and vegetable from the disaster hit country.

―After detailed discussions it was concluded that since the radiation is spreading/expanding horizontally in
other parts of Japan, it may result in further radioactive contamination in the supply chain of food exports from
Japan,‖ the statement said.

Food Safety and Standards Authority of India will review status of radiation hazards on food articles coming
from Japan on a weekly basis, it said.

GOVT EXCEEDS INDIRECT TAX COLLECTION ESTIMATE

The government on Tuesday said indirect tax collections for FY2010-11 have exceeded the revised estimate of
Rs3.34 trillion for the fiscal on the back of strong economic activities and the partial withdrawal of fiscal
stimulus measures.According to Central Board of Excise and Customs (CBEC) chairman S. Dutt Majumder,
the finance ministry expects at least Rs7,000 crore more than the revised estimate for the last fiscal.He further
said the finance ministry has exceeded the revised target by Rs6,000 crore, with the total indirect tax collection
at Rs3.40 trillion already.

The upward revision in the tax collection target was due to robust economic growth in the last fiscal. The
country‘s GDP is expected to grow 8.6% in 2010-11.The buoyancy in indirect tax collections during the last
fiscal can also be attributed to partial withdrawal of economic stimulus measures in the Budget 2010-11. In the
Budget 2010-11, finance minister Pranab Mukherjee raised excise duty by 2% to 10% as part of a plan to
gradually withdraw the incentives given to industry to combat the impact of the global financial meltdown.
 THE DERRICK

INDUSTRY WATCH
TYRE MAKERS' PROFITABILITY MAY SKID IN 12-15 MONTHS: ICRA

Despite a robust demand for tyres in the domestic market, the profitability of manufacturers will be affected in
the next 12-15 months due to supply gap for rubber. Rising raw material costs as well as increased debt and
higher interest and depreciation charges are likely to keep industry profitability under pressure over the
medium term in spite of a strong growth potential. The domestic industry faces the threat of increasing
penetration of Chinese tyres into the Indian truck and bus (T&B) radial segment, at least partly contributed by
domestic capacity constraints. The industry is currently at a structural inflexion point in the T&B segment, with
the Indian market converging towards the global trends of radials in the commercial vehicle segment. Immense
potential in the industry, particularly for radials, many industry majors have announced large capital
expenditure plans for the next two years. While demand is expected to be robust going forward, cost
pressures, particularly from natural rubber, remains a challenge. Ability to successfully pass on the input cost
to the end customer increases, which will be critical for the industry. With no significant supply additions for
rubber expected over the next 12-15 months, rubber prices are likely to remain high over the next four-six
quarters

WHARTON BUSINESS SCHOOL TO EXPAND PRESENCE IN INDIA

The Wharton School , University of Pennsylvania , is planning to expand its presence in India in the next one-
and-half years, according to its dean Thomas Robertson . One of the world's top business schools will zero in
on either Mumbai or Delhi for the expansion. Wharton, has various points of presence in India - the healthcare
institute with ISB, study trips of the executive MBA student faculty to India, and executive education
programmes. Wharton's focus is on India and China, two of the fastest growing economies. Over the past two
decades, Wharton has positioned itself as a global school. Close to 40% of its students and 35% of faculty are
international.

The ISB campus at Mohali will have four specialist Institutes, termed as Centres of Excellence, for promoting
research and offering additional specialisations in the post graduate programme -- Max Institute of Healthcare
Management; Bharti Institute of Public Policy; BML Munjal Institute of Manufacturing and Operation Excellence
and Punj Lloyd Institute of Physical Infrastructure Management.

INDIAN FILM INDUSTRY TAPS NEW REVENUE STREAMS

Indian filmmakers are targeting the country's burgeoning cable and satellite television sector as well as the
Internet for new sources of income to recover from a two-year slump, experts say. The sale of cable, satellite
and music rights, as well as DVDs, Internet and mobile phone downloads, is emerging as a potential money-
spinner for studios keen to offset losses at the box office. A new Hindi-language comedy "F.A.L.T.U" (Useless),
which was released on Friday, is offering its entire movie soundtrack for download. The film will also be
available on the Internet outside India. Until recently, Indian filmmakers could be virtually assured of high box
office returns, with cinema one of the few forms of entertainment and movie-goers traditionally loyal to big
name stars. But a combination of poor quality content, rising overheads, the global economic downturn and an
increase in other ways for people to spend their spare time and hard-earned cash has hit studios in the pocket.
Overall revenues fell 20 percent in the last three years from $2.3 billion in 2008 to $1.85 billion in 2010, global
consultancy firm KPMG said in its latest report on India's media and entertainment sector. According to KPMG,
cable, satellite and ancillary streams could make up nearly 20 percent of total revenues by 2015 -- nearly twice
the level seen in 2009. Some analysts estimate the figure could even be as high as 40 or 50 percent.

DABUR, EMAMI OPT OUT OF RACE TO ACQUIRE HENKEL INDIA

Homegrown FMCG companies Dabur and Emami have opted out of the race to acquire controlling stake in the
Indian subsidiary of German household goods maker Henkel. Jyothy Laboratories is now the likely frontrunner
for Henkel India, a person with knowledge of the development said. The bidding process will be finalised by
Tuesday. Jyothy Laboratories acquired a 14.9% stake in Henkel from Tamil Nadu Petro Products for 60.7 crore
last month. Jyothy Laboratories acquired a 14.9% stake in Henkel from Tamil Nadu Petro Products for 60.7
crore last month. For the calendar year 2010, Henkel India reported a 7% drop in net sales to 534 crore. Its
loss stood at 52 crore against a similar loss a year ago. However, Jyothy Laboratories could find a strategic fit
as it has similar product portfolio, though in regional market. With cash of 210 crore in its books, along with a
deleveraged balance sheet, Jyothy Laboratories could try to piggyback on Henkel brands for a national reach if
it manages to clinch the deal.

HIGHER PRICES BRIGHTEN OUTLOOK FOR ALUMINIUM COMPANIES

The aluminium maker expects demand for the metal to rise by 8.3%, after growing 9% in 2010, spurred by
growing consumption in the Bric (Brazil, Russia, India and China) countries. The aluminium maker expects
demand for the metal to rise by 8.3%, after growing 9% in 2010, spurred by growing consumption in the Bric
countries. Despite worries about China‘s efforts to restrict energy consumption and inflation-fighting monetary
measures, it expects aluminium consumption to rise by 12%. Another concern has been the high level of
inventories at the London Metal Exchange (LME). Investors in aluminium stocks will keep a close watch on
China‘s consumption growth and LME inventories for any signs of stress. UC Rusal projects the metal to trade
in the range of $2,500-2,600 (Rs1.12-1.16 lakh) per tone throughout 2011. Domestic producers will benefit
from steady aluminium prices. Hindalco Industries Ltd recently announced financial closure of its Rs10,500
crore Mahan aluminium smelter project, which will produce about 360,000 tones of aluminium. This project is
expected to start production in October. Another smelter project, with capacity similar to Mahan, and a 1,500
kilo tones per annum alumina refinery, will start production by the end of 2012. National Aluminium Co. Ltd
(Nalco) recently reported its fiscal 2011 production figures, with metal production of 440,000 tones, up by about
2% over the previous year. In the current fiscal, its targeted production is 10% higher. But Nalco missed its
target for fiscal 2011, so it may do so for fiscal 2012 also. Higher prices give its sales growth that much-needed
cushion.

RBI PENALISES TWO GUJARAT-BASED CO-OP BANKS

The Reserve Bank has imposed penalty of up to Rs 5 lakh on two Gujarat-based co-operative sector lenders --
the Mehsana Urban Co-operative Bank Ltd and the Jamnagar Peoples Co-operative Bank Ltd -- for violation of
certain guidelines.The violations range from conduct of non-banking business to non-reporting of cash
transactions. The apex bank added that the penalty was imposed for violation of RBI instructions on
membership of co-operative societies, conduct of non-banking business and using the word 'Bank' in the name
of another institution. In another case, a penalty of Rs 1 lakh was the Jamnagar Peoples Co-operative Bank
Ltd for violation of RBI instructions in respect of reporting cash transactions of above Rs 10 lakh. In both
instances the RBI had issued show cause notices to the bank and the fines were imposed after going through
the submissions made by the lenders.
LIFTING OF IRON ORE EXPORT BAN NOT TO CHANGE THINGS MUCH
The lifting of iron ore export ban in Karnataka from April 20 will do little to boost prospects for mineral exporters
who are already battling hike in custom duty and railway freight charges. The country's top iron ore producer
NMDC too felt that the move is not going to have much affect on its prices. he Supreme Court has today
directed Karnataka government to lift the ban on iron ore exports from April 20. The apex court has also
granted the state 15 days to put in place required infrastructure to check illegal mining in the state. Karnataka,
which is the country's largest iron ore exporter, had banned transportation of iron ore for export purposes from
July 2010. This was challenged by leading mining firms Sesa Goa, MSPL, SB Minerals, Minerals Enterprises
and Sathya Granites before the Supreme Court. According to the industry figures, the ban impacted outbound
shipments. Iron ore exports from India declined by 18 per cent to 85.43 MT during April-February period of the
current fiscal over the corresponding period last fiscal. Further, continuing its declining trend for the eighth
consecutive month, iron ore exports in February has gone down by 18.60 per cent to 10.13 million tonnes
(MT).

NTC TO INVEST RS 425 CRORE TO FORAY INTO TECHNICAL TEXTILES SPACE

The National Textiles Corporation will invest Rs 425 crore in association with a joint venture partner to foray
into the manufacturing of technical textiles to cash in on the burgeoning demand from healthcare and
infrastructure sectors. NTC would offer a minority stake to the proposed joint venture partner and has
earmarked Rs 425 crore investments for the project. The proposed investment would be financed in proportion
with the ratio of shareholding in the venture. The joint venture firm would set up two units -- one each in
Northern and Southern India -- and the land required for putting up the plants have already been acquired.
Used mainly for non-aesthetic purpose, technical textiles have a wide array of applications. These include
textiles for automotive applications, medical textiles, geo-textiles and agro-textiles among others. The joint
venture would try to market its produce both in domestic and international markets, which is currently growing
by 12 per cent year-on-year. The global market for technical textiles was likely to go up to USD 150 billion in
the coming years from around USD 127 billion in 2010. According to government's estimates, the domestic
market for technical textiles is expected to clock 11 per cent growth rate to cross Rs 66,000 crore by 2012.
 THE DERRICK

FACTS OF THE WEEK

1. US based paper and packaging firm International Paper co entered into agreement to acquire 53.5% of
Andhra Pradesh Paper Mills for around Rs.1,156crore.

2. PEPSI has made a Joint Venture with TATA global beverages to launch a glucose base beverage costing
Rs.5.

3. UK- based consumer products and pharmaceutical giant ‗RECKITT BENCKISER‘ has got permission from
cabinet to invest Rs.3,300crore (FDI) in Paras Pharma.

4. InterGlobe has launched a luxury sports car ‗Koenigsegg‘. Price of the car will be Rs.12.5crore.

5. Vodafone group will buy an additional 33% in its Indian joint venture for $5 billion as partner Essar Group
has exercised a pre-agreed option to sell the holding in India‘s third largest mobile phone operator.

6. IDEA cellular announced its 3G launch in Haryana.

7. Spinning firm Winsome Textile is investing Rs.200crore to set up cotton spinning unit with capacity of
40,000 spindles in Himachal Pradesh.

8. The Dahez SEZ, which is emerging as a big petrochemicals hub, will export goods worth Rs.70,000crore
annually in five years.

9. Mining company Vedanta is buying 20% stake in cairn India.

10. Topsgrup plans Rs.400crore IPO for Acqisitions.

11. Hero Group forms 12-member Team to explore foreign market for Two-wheelers.

12. The Jindals and Reddys of the GVK group will join hands to Bid for Hancock‘s coal Assets.
 THE DERRICK

INTERVIEW
FORAYING INTO EDIBLE OIL BUSINESS: MANOJ GAUR, JAYPEE GROUP

The Rs 15,000-crore diversified infrastructure conglomerate

with interests in engineering & construction, power, cement,
real estate and hospitality, the Jaypee Group is setting up
a soya and mustardprocessing plant at Rewa, Madhya
Pradesh. To begin with, the group will process 1 lakh tonne
each of soya & mustard a year and also produce oil cakes,
Jaypee Group executive chairman Manoj Gaur told ET.

What prompted the group to foray into the edible

oilbusiness? What is the synergy between the edible oil
business and the group's existing businesses?

The diversification into agri business was primarily due to

our commitment to the welfare of farmers in Rewa and adjoining areas. Through Jaiprakash Sewa Sansthan,
we have been running various health care, education, women empowerment and rural development
schemes in states where we have our cement and power plants such as Madhya Pradesh, Himachal
Pradesh, Gujarat, and Uttar Pradesh. The agri business will help the farmers of Rewa and its surrounding
areas as they will not have to travel long distances in search of a better price for their produce because they
will get a willing buyer like Jaypee at their doorsteps.

Under which brand do you plan to market edible oil? Are you planning to rope in celebrities to
promote it?
We are exploring many options. All I can say now is that our brand will truly convey the purity and quality of
our products. Effective communication is important in today's overcrowded market. We will do whatever is
required to effectively communicate with our valued consumers and stakeholders.

Has the group floated a separate company for the new initiative? Do you plan to take up plantation of
edible and non-edible oilseeds also?
A separate company, Jaiprakash Agri Initiatives Company, has been floated. We plan to procure oil seeds
from villages located within a radius of 100 km of Jaypee Nagar in Rewa. Going forward, we are evaluating
various supply options to ensure a smooth supply of quality raw materials. We will take a call on the issue
depending upon the oil seed plantation policies of various state governments.

Will the group look at both organic and inorganic route for growth in the edible oil business?

Over the last few months, we have received several proposals from market and merchant bankers to take
over various assets. But our agri initiatives have been taken up with a mission, and any asset or project will
be evaluated keeping those guiding principles in mind.
A late entrant in the edible oil space, how do you intend to compete with your rivals? Do you plan to
export edible oil?
We feel the edible oil market in India is large enough to accommodate one more player. India is currently
importing almost 50% of its total consumption of edible oils. We are open to the idea of exporting our
products.

What is the future of the edible oil business in India five years down the line, especially in an era
when consumers are becoming health conscious?
According to Government of India estimates, we are facing a serious deficit in edible oil production. With both
population and income levels of consumers on the rise, the edible oil sector has a very bright future.
Nutritionists too feel that edible oils are essential for good health. Consumers need to be educated about how
to choose a good edible oil. According to nutrition science, domestically produced oils like mustard, soybean
and sunflower are nutritionally better than imported palm oil.
 THE DERRICK

ZARGONOMY
INVESTMENT STRATEGY

Systematic plan to allocate investable assets among investment choices such as bonds, certificates of
deposit, commodities, real estate, stocks (shares). These plans take into account factors such as economic
trends, inflation, and interest rates. Other factors include the investor's age, risk tolerance level, and short-
or long-term growth objectives. Corporate investment strategies specify funds required to achieve a
competitive advantage, and the monetary results (profits) expected from such decisions. The three common
corporate investment strategies are (1) Building, (2) Defending, or (3) Harvesting the firm's market position.

REVERSAL ARBITRAGE

A riskless transaction consisting of the short sale of a security, the purchase of a call, and the writing of a
put. If the value of the security increases, the call is exercised to negate the short sale. If the value of the
security decreases, the put will be exercised by the holder and the received security will negate the short
sale.

PUBLIC BOND

A bond, issued by a U.S. government-sponsored agency. The offerings of these agencies are backed by
the U.S. government, but not guaranteed by the government since the agencies are private entities. Such
agencies have been set up in order to allow certain groups of people to access low cost financing,
especially students and first-time home buyers. Some prominent issuers of agency bonds are Student Loan
Marketing Association (Sallie Mae), Federal National Mortgage Association (Fannie Mae) and Federal
Home Loan Mortgage Corporation (Freddie Mac). Agency bonds are usually exempt from state and local
taxes, but not federal tax. also called agency bond.

BARGAIN ELEMENT

The difference between the strike price of a stock option and the market price of the underlying stock when
the option is exercised, times the number of shares purchased. The bargain element is not treated as
capital gains, but rather as income received from the employer who granted the stock option, and is taxed
differently depending on whether the stock option is a non-qualified stock option or an incentive stock
option.

INDIVISIBLE CONTRACT

Type of contract where obligations of the contracting parties are interdependent, and no party can demand
performance from the other(s) unless it performs its own part or is ready and willing to do it. Construction
contracts, for example, are usually indivisible: if the contract calls for the client to pay certain sums at
certain stages of the contract, then the contractor may stop the work at any stage if not paid accordingly.
Most lump sum payment contract are regarded indivisible. Also called entire contract.

LATERAL THINKING

Idea generation and problem solving technique in which new concepts are created by looking at things in
novel ways. Whereas the logical ('vertical') thinking carries a chosen idea forward, the sideways ('lateral')
thinking provokes fresh ideas or changes the frame of reference. And, while vertical thinking tries to
overcome problems by meeting them head-on, lateral thinking tries to bypass them through a radically
different approach. The term was coined by the Maltese-born UK psychologist Dr. Edward de Bono in his
1970 book 'Lateral Thinking.'

IN SPECIE

A Latin phrase which means "in its actual form." It is used to indicate that distribution of an asset will be in
its actual form, rather than transferring it into cash or another form. This will usually be done if cash simply
isn't available, or if it works out better to distribute the asset itself.

YIELD CURVE

Graph used typically to show yields for different bond maturities, and used for determining the best value in
bonds and as an economic indicator. Positive (upward sloping) curve indicates an expanding economy
whereas a flat or negative (downward sloping) curve indicates a slowing or contracting economy.

DEBT MANAGEMENT

A unique strategy developed to help a debtor manage their debt. This strategy is usually developed and
implemented by an outside company or organization on behalf of the debtor, usually because the debtor is
unable to sufficiently manage their debt on their own, due to lack of knowledge or because they are
overwhelmed by the amount of debt.

PRINCIPAL EXCHANGE RATE LINKED SECURITIES (PERLS)

Dollar-denominated debt, which has a varying principal depending on the current foreign exchange rate
between a county and the United States at the time that the security matures. For example, if the security is

obtained when the value is high on the dollar, the principal payment due at maturity may be reduced if the
value on the dollar has decreased at the time of payment.
 THE DERRICK

ENTREPRENEUR

V. G. Siddhartha
V. G. Siddhartha is an Indian businessman from Karnataka. He is
best known as the founder-owner of the chain of Cafe Coffee Day
outlets.

Personal life

Siddhartha Gowda obtained a Masters in Economics degree from

Mangalore University, Karnataka. He married the daughter of S.
M. Krishna, former Chief Minister of Karnataka and present Indian
Minister for External Affairs.

Early career

Siddhartha's business interests spreads across Coffee retailing, Plantations, Real estate, Venture Capital
and Financial Services. He is the visionary behind Way2Wealth and the founder of Sivan Securities. He has
been involved in the Indian Capital Markets since 1984. During his early years of his work-life he has spent
valuable years with J.M. Morgan Stanley, this experience stood him in good stead when he became a
successful investor. Having a Masters in Economics from Mangalore University, he is an avid reader and
traveler with a yen for creating companies and brands. He took over Sivan Securities Ltd, in 1984.

After doing his Masters he decided to join J M Financial Services (now J M Morgan Stanley) in Bombay as
a management trainee/intern in trading on the Indian Stock Market under Mr. Mahendra Kampani. After a
two-year stint with J M Financial Services, when Siddhartha returned to Bangalore, his father gave him a
good amount of money to start any business of his choice. Siddhartha promptly bought a stock market card
for Rs 30,000 with it, along with a company called Sivan, as well as a site in the city, in 1984 and turned it
into a highly successful investment banking and stock broking company.

Coffee business

Almost 15 years later, Siddhartha established a successful coffee business in Karnataka. He grows coffee
in Chikmagalur and exports about 28,000 tonne of coffee annually, sells another 2,000 tonne locally for
about Rs 350 million each year, and his coffee growing and trading company Amalgamated Bean
Company(ABC) has an annual turnover of Rs 25 billion. Siddhartha now has 200 exclusive retail outlets
selling his brand of Coffee Day powder all over South India. ABC is India's largest exporter of green coffee.

He started his coffee trading company ABC in 1993, with a Rs 60 million turnover. His company grew
gradually. He bought an ailing coffee curing unit in Hassan for Rs 40 million and turned it around. Now, his
company has a curing capacity of 75,000 tonne, which is the largest in the country

He was the first entrepreneur in Karnataka to set up a cyber café in 1996 (Café Coffee Day, a chain of
youth hangout coffee parlors). Now, he has 11 Coffee Day Cafes all over Bangalore, and another four in
Hyderabad. V G Siddhartha also hopes to bag the contract to take his chain to all the airports of Karnataka
and then the rest of the country. His cyber cafes attract at least 40,000 to 50,000 visitors a week.

V.G. Siddhartha was awarded the 'Entrepreneur of the year' – 2003 by The Economic Times for 'crafting a
successful pan Indian brand for a commodity business and giving Indian consumers a new lifestyle
experience that is within reach of the common man.'

Amalgamated Bean Coffee Trading Company Ltd. today is the largest exporter of green coffee from India
and perhaps one of the two fully integrated coffee companies of Asia, involved in all sectors of Coffee from
plantations to retailing to exports. 'Coffee Day Group' today is the only fully integrated and largest coffee
conglomerate in India and is attributed with creating the 'coffee revolution' in India - acknowledged by the
Coffee Board of India Amalgamated Bean Coffee Trading Company Ltd. – (ABCTCL) is India's largest
coffee conglomerate and coffee exporter, pioneering India's first concept café's 'Café Coffee Day', a chain
of youth hangout coffee parlors. From a handful of cafés in six cites in the first 5 years, 'Café Coffee Day'
has today become India's largest and premier retail chain of cafes with 483 cafes in 84 cities around the
country.

Other businesses

Siddhartha also founded Global Technology Ventures Ltd. in 2000, a company that identifies, invests and
mentors Indian companies engaged in cutting edge technologies. Currently he also holds Board Seats in
GTV, Mindtree, Liqwid Krystal, Way2Wealth and Ittiam. GTV has now set up a global technology village on
a 59-acre (240,000 m2) technology incubator park in Bangalore, which will provide its companies office
space, communication links, recreational facilities and even a commercial centre. GTV has been valued by
BankAm at $100 million last year, and is expected to have doubled its valuation this year. It is poised to
grow on the lines of Softbank of Japan.
 THE DERRICK

ANSWERS – BIZ WIZ 10

1)As a result of budget , what tax will fall to 23% by 2014-2015?

Ans:- corporate tax

2) which organisation has announced plans to axe 1700 jobs including 1000 managers, as a part of its
modernisation programme?

Ans:Royal mail

3) According to the 2011 Brand Finance Global 500 report, which is the most valuable UK based brand?

Ans:Vodafone

4) Ofcom ,The independent regulator and competition authority for the UK communications industries has
recently announced what?

Ans:4G licences

5) Name this brand that is celebrating 100 years of its existence this year and has enlisted the pop star
Rhianna to lend her voice to its new ad campaign and is also sponsoring a couple of her tours

Ans:Nivea Cream

6) Name the car designed for the European market by an Indian company which has a zero turn drive and
innovative scissor door system.

Ans:Tata Pixel

7. Harmony is the name of which companies textile?

Ans:Wipro

8) Acme Clothing owns which famous brand?

Ans:Provouge

9) Which is the first state in india to announce an unemployment dole of 1200 pm to those who passed Class
12 ?

Ans:Goa

10. Goldman Sachs is acquiring an indian AMC which is a pioneer and the biggest in the ETF business.
Name it.

Ans: Benchmark
11) 'I know' is an online e letter of which service?

Ans:Tata Indicom

12) "Bollywood" name has been granted as a trademark to which US based Media and Entertainment
Company by Indian Trademark Registry?

Ans: Disney Enterprise

13.)Net Safe Credit Card is introduced by which Bank?

Ans: HDFC

14. Which Indian confectioneries brand and Times Warner are involved in a legal wrangle over the 'Bunny'
logo?

Ans: Nutrine

15) What pharma company markets the 'Ayurvedic Concepts' range of health products?
Ans.: Himalaya Drugs Company

16) Zee Movies is contemplating a co-branding exercise in collaboration with which major Hollywood Film
studio?

Ans: MGM

17. What famous car brand, originally from the former Czechoslovakia, was taken over by Volkswagen in the
1990s?

Ans: Skoda

18. Which famous CEO was featured in the endorsement ad for Microsoft XP with the quote, "When I saw
Windows XP in action, I was amazed. How did Microsoft get hold of my wishlist?"

Ans: N R Narayan Murthy

19.Identify logo

Ans: Thai airways

20. personality

Ans: Roshni Naddar(Executive Director and the CEO of HCL Corporation. The only child of HCL's founder,
Shiv Naddar

If you have any feedback, suggestions then mail us on newsderrick@gmail.com . Disclaimer: Derrick
does not have own reporters. These are the news collected from different sources. ................TEAM SYNAPZ