The World's Biggest Companies

One world; one gigantic marketplace. This year, 60 countries have global 2000 entries vs. 51 in our inaugural list in 2004. The Forbes global 2000 are public companies with the top composite scores based on their rankings for sales, profits, assets and market value. Our justification for using a composite ranking is simple: One metric alone can give a false impression about corporate size.

In total, the global 2000 companies now account for $30 trillion in revenues, $2.4 trillion in profits, $119 trillion in assets and $39 trillion in market value. Around the world, 72 million people work for these companies.

The U.S. still dominates this list of global giants, but with 61 fewer entries than last year and 153 fewer than in 2004, as many U.S. companies failed to keep pace with global competitors. In contrast, China, India and Brazil are rapidly adding companies to the list. India, for example, has 48 companies this year vs. 27 in 2004.

Measured by number of companies, 315, the banking industry has the biggest presence on the global 2000. Banking also dominates in assets, with total assets of $58.3 trillion, and profits, $398 billion. The 123 companies in oil and gas operations lead all industries in aggregate revenues, of $3.76 trillion, and take second place in total profits, of $386 billion.

For the past few years, we have also identified an important subset of the global 2000: big companies that also have exceptional growth rates. To qualify as a global high performer, a company must stand out from its industry peers in growth, return to investors and future prospects. Most of the 130 global high performers have been expanding their earnings at 25% a year or better--easy for a start-up, hard for a blue chip.

One such exceptional company is HSBC Holdings (nyse: HBC - news - people ), which not only leads this year's global 2000 in size--by moving past Citigroup (nyse: C - news - people ), which we now rank 24--but also is one of five global high performers in the banking industry. HSBC has delivered 26% annual average growth in revenue and 31% in net income over the past five years--results that seem more suited to a growing regional bank than one operating in 83 countries with 10,000 offices and $2.3 trillion in assets.

Our tables on global high performers include international brand names such as McDonald's (nyse: MCD - news - people ), Nestlé (other-otc: NSRGF - news - people ), Toyota Motor (nyse: TM - news - people ) and Walt Disney (nyse: DIS - news - people ), as well as rising stars such as Turkcell (nyse: TKC - news - people ), Turkey's biggest wireless telecom company, and Infosys Technologies (nasdaq: INFY - news - people ), a technology service firm headquartered in India.

To find these global superstars, we analyzed 26 industries of the global 2000 (we excluded trading companies) and gave each company scores for a low debt-to-capital ratio, long- and short-term sales growth, profit growth, return on capital and total return over five years. The composite performance score also wires in earnings growth forecasts tabulated by Thomson IBES. We deleted a few candidates with good numbers but big problems.

Other requirements for the global high performers list: shares traded in the U.S. or american depositary receipts, a share price of at least $5, positive equity and sales of at least $1 billion.


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Oil steady in Asia

SINGAPORE: Oil traded steadily near $ 40 in Asia today despite an OPEC minister's forecast of additional output cuts by the cartel.

New York's main futures contract, light sweet crude for delivery in April, fell six cents to $39.97 a barrel on its first day of trade.

The March contract expired at the close of trade on the New York Mercantile Exchange Friday, down 54 cents at $38.94 a barrel.

Brent North Sea crude for April delivery shed four cents to $41.85.

"The market returned to a consolidated market... because of a lack of news," said Jonathan Kornafel, Asia director of Hudson Capital Energy, a trading firm.

He said weak global energy demand, counterbalanced by the Organization of the Petroleum Exporting Countries' (OPEC) production cuts, were the main factors affecting prices.

Algeria's minister for energy and mines said Sunday that OPEC will probably decide on more cutbacks in output in a bid to prevent further price drops, Algeria's APS news agency reported.

"It is very likely that OPEC will decide on March 15 to reduce production again to stabilise prices that are
going down," said Chakib Khelil, referring to the oil cartel's next meeting in Vienna, according to APS.

Source: http://timesofindia.indiatimes.com/Business

Barclays banker sees manufacturing deals

NEW YORK (Reuters) - Merger and acquisition activity could pick up in the manufacturing industry over the second half of the year as better-capitalized companies start to take advantage of relative bargains, a high-level Barclays (BARC.L: Quote, Profile, Research, Stock Buzz) investment banker said on Friday.

"We are a seeing a number of large, well-capitalized companies that are looking much more closely at acquisitions today than, say, four or five months ago," said Robert Bertagna, managing director and co-head of industrial coverage at Barclays Capital, speaking ahead of the Reuters Manufacturing Summit, which will be held in Chicago next week.

"They are clearly putting certain companies in their gun sights and feeling a little more comfortable that now may be the right time," he said.

Manufacturing deal volume fell about 85 percent in the fourth quarter of 2008 with only 11 deals announced during the period, according to PricewaterhouseCoopers. The average deal value dipped as well.

Bertagna said most manufacturing companies are still working to conserve cash, but as the second half of the year rolls around those larger companies might start to pull the trigger.

Deals offer the companies cheap entry into new markets, franchises and technologies, he said.

On the other end of the financial spectrum, manufacturers who are currently under financial pressure might need to do deals in order to stay afloat.

"The process of losing liquidity happens a lot faster than one expects," Bertagna said.

As managers start to see their competitors go under, they will start to look for deals -- to take the money while they can, and not when they are forced to.

Moreover, as the current recession drags on, weaker companies will start to adjust to the reality that their market value has lowered, Bertagna said.

"Four or five months ago it was a lot easier for companies whose stock prices were suffering to just say no. But this has been going on now for a year or 18 months in some cases. There's a certain seasoning, a certain recalibrating of expectations that needs to take place," he said.

(Reporting by Michael Erman, editing by Matthew Lewis)

Source: http://www.reuters.com/

Cheaper, simpler deals await exporters

NEW DELHI: The government is likely to announce an interim foreign trade policy on February 26. The policy will include measures to simplify
procedures and cut transaction costs for exporters and importers facing fierce competition in a contracting global market, a government official said.

Measures on the cards include an increase in the time limit for meeting export obligations against duty-free imports of machinery and raw materials, allowing exporters to get benefits under duty reimbursement schemes without waiting for export proceeds, allowing revalidation of expired licences for duty-free imports and reducing the average export obligation of exporters.

“While we may not be in a position to give more fiscal sops to exporters, we can certainly make the going easier for them by bringing in some procedural simplifications and measures to bring down transaction costs,” the official, who asked not to be named, told ET.

In the interim budget last week, acting finance minister Pranab Mukherjee announced just one benefit for exporters: allowing the continuation of the interest rate subvention scheme. The scheme allows exporters from sectors such as textiles, handicrafts, gems & jewellery, marine products and leather to avail credit at a discounted rate. Exporters are hopeful of getting more benefits in Mr Mukherjee’s reply to the debate on interim budget on Tuesday.

One major incentive exporters could look forward to in the next week’s interim trade policy is a delinking of grant of benefit under the duty entitlement pass book (DEPB) scheme, a duty reimbursement scheme for exporters, with the realisation of export proceeds.

Under the present norm, exporters can claim back duty only when they get their export proceeds. However, with exporters’ payments getting delayed due to the credit crunch, exporters had requested the government to delink the two.

To make it easier for industry to meet its export obligations at a time of declining orders, the government could give importers of duty-free machinery under schemes such as the export promotion capital goods (EPCG) more time to meet their export obligations. The average export obligation for exporters may also be reduced, the official said.

Because of the industrial and trade slowdown, many licence-holders for duty-free imports of capital goods have not been able to use their licences, which have since expired. The government could revalidate the licences.

The commerce ministry has to come up with its policy soon, as once the dates for the general elections are announced and the model code of conduct kicks in, no new announcements can be made. The commerce minister in the previous National Democratic Alliance government, Arun Jaitley, had also similarly announced a mini trade policy in January 2004 just before the announcement of election dates.

Source: http://economictimes.indiatimes.com/

Cheaper, simpler deals await exporters

NEW DELHI: The government is likely to announce an interim foreign trade policy on February 26. The policy will include measures to simplify
procedures and cut transaction costs for exporters and importers facing fierce competition in a contracting global market, a government official said.

Measures on the cards include an increase in the time limit for meeting export obligations against duty-free imports of machinery and raw materials, allowing exporters to get benefits under duty reimbursement schemes without waiting for export proceeds, allowing revalidation of expired licences for duty-free imports and reducing the average export obligation of exporters.

“While we may not be in a position to give more fiscal sops to exporters, we can certainly make the going easier for them by bringing in some procedural simplifications and measures to bring down transaction costs,” the official, who asked not to be named, told ET.

In the interim budget last week, acting finance minister Pranab Mukherjee announced just one benefit for exporters: allowing the continuation of the interest rate subvention scheme. The scheme allows exporters from sectors such as textiles, handicrafts, gems & jewellery, marine products and leather to avail credit at a discounted rate. Exporters are hopeful of getting more benefits in Mr Mukherjee’s reply to the debate on interim budget on Tuesday.

One major incentive exporters could look forward to in the next week’s interim trade policy is a delinking of grant of benefit under the duty entitlement pass book (DEPB) scheme, a duty reimbursement scheme for exporters, with the realisation of export proceeds.

Under the present norm, exporters can claim back duty only when they get their export proceeds. However, with exporters’ payments getting delayed due to the credit crunch, exporters had requested the government to delink the two.

To make it easier for industry to meet its export obligations at a time of declining orders, the government could give importers of duty-free machinery under schemes such as the export promotion capital goods (EPCG) more time to meet their export obligations. The average export obligation for exporters may also be reduced, the official said.

Because of the industrial and trade slowdown, many licence-holders for duty-free imports of capital goods have not been able to use their licences, which have since expired. The government could revalidate the licences.

The commerce ministry has to come up with its policy soon, as once the dates for the general elections are announced and the model code of conduct kicks in, no new announcements can be made. The commerce minister in the previous National Democratic Alliance government, Arun Jaitley, had also similarly announced a mini trade policy in January 2004 just before the announcement of election dates.

Source: http://economictimes.indiatimes.com/

Long India, short China

A slow but steady India is a better bet than China over the next decade

History makes observations regarding consistent economic and cultural growth by being self reliant. Revisiting those lessons might suggest a way out of the ongoing crisis. I have the privilege of working close to the city centre and since the city is surrounded by hills, as you move away from the centre, the altitude keeps rising.

This gives me a chance to see a big 600-year old church surrounded by long pine trees and celebrated by a huge metal statue of an armed king riding a horse, ready for battle. Matei Corvin the Hungarian king defended the country in 1458-1490 from the Ottoman Empire (1299-1923) which is viewed as an offshoot of the Mongol Empire.

During the renaissance era, the Venetians raised great walls around cities threatened by the Mongol Empire. The great wall (Qin 221-260 BC) has played a significant role in the Chinese history and defended the country from the same Ottoman Empire. No other culture seems to have adopted walls as enthusiastically as the Chinese, maybe the reason why the Chinese could retain four thousand years of continuous economic and cultural history.

Starting 1900's, the Republic of China (1912), Republic of Turkey (1929), Republic of India (1947), the walls are still there but the strategy of war, expansion and protection continue to take different forms. Now we have trade policies, currencies and stock markets. We have a need to grow, to raise payment surplus, to keep inflation lower, and to have a double digit GDP growth.

Competition-coopetition-survival

In August 2005, it was all positive stories about China's extraordinary ability to mobilise workers and capital, tripling of per capita income in a generation, easing 300 million out of poverty and projection of decades of new growth. It was more of competition, India's inability against China's ability. India's lack of subways and a dearth of expressways compared to China's high-tech Beijing.

This was followed by coopetition with comments like “What makes the two giants especially powerful is that they complement each other's strengths. China will stay dominant in mass manufacturing, building multi-billion-dollar electronics and industrial plants. India is a rising power in software, design, services, and precision industry. What if the two nations merge into one giant “Chindia?” America was expected to make room for China and India. What happened? A majority of us did not see the ongoing struggle for survival over competition and coopetition stories.

Overplayed population

If Thomas Malthus could project the 1929 crisis in 1800's, it was owing to the population curve he devised. Population curve was popularised and fine tuned by Pierre Verhulst, as the fractal S curve. Barring time, everything has a limit of growth. This suggests that there is a limitation to which even population can work as a growth driver.

Conventional thought has population as a constant input in forecasting models. If population will grow, consumption will and if consumption will increase, economic growth will follow. The same population curves can explain long pauses in growth despite a booming population and if indeed we have hit a population ceiling, the respective parameter will cease to cause absolute growth or relative growth. Rather, it could become a liability.

Thus, trend forecasts of China overtaking US owing to global output and large internal consumption by the mid century might be a myth. Collapse of US economy would see most emerging markets as relative outperformers.

This also means that half a million engineers and scientists a year from China and India, as compared to 60,000 in the US are just numbers. The brains don't work in depressions and recessions, the stomach does. Population cannot just be a source of instability, but cause instability, if the government can't provide education and opportunity, which invariably happens.

Efficiency and consumerism

Consumerism will become a chapter in Econohistory. The old kings did not comprehend this phenomenon, as life was more self sustaining and not about going to the mall. Actually consumerism is nothing but indulgence, like speculation over investment.

The current economic times that we live in warrants both consumerism and speculation for profits. This creates larger chaos and larger risks, pushing us again to the self sustaining past. This is why markets can never be efficient, as it is consumerism and speculation that drive it.

In the process of driving the 'made in China' consumerism, the country has seen dropping efficiency and increasing wastefulness. More than half of China's GDP is ploughed into commodity, autos and construction. Its factories are known to pollute and are highly inefficient compared to global and Indian manufacturers.

More than half of China's listed companies are known to earn below their actual cost of capital. This is not the case in India. There are numerous studies comparing the better average of Indian companies' return on capital than their Chinese counterparts.

Conclusion

Conventionalism is a philosophy for an up cycle; it fails miserably when the cycle turns as chaos takes over. Time makes majority look smart at one time and foolish at the other. Anil K Gupta, author and professor of strategy, University of Maryland said this at a conference in Chicago in May 2007, “Emergence of China and India is like the emergence of the Internet, here to stay and the only real option for us is to get on board.” The timing to get on board was perfect. The avalanche started after six months.

When a sizeable part of your population is manufacturing-oriented, you are in a high risk sector, only if you understand the volatile nature of consumerism and speculation. China, hence has a bigger problem at hand than the Indian policy makers. India's poor got used to living on $1 a day.

Above this the cumbersome democracy still has internal ways and means to balance itself compared to China's, which attempted selective capitalism. While Chinese leaders might be worrying about how to cope with the ongoing joblessness and protests, India is busy in an election.

The time has pushed relative performance in the favour of India, as the challenge of China moving from manufacturing to services faster than India resolves its infrastructure bottlenecks ceases to exist. Building basic infrastructure is a stronger economic activity in tougher times compared to creating a vibrant service sector.

We explained the broken BRIC model first time in December 2007 and then we revisited it in May 2008. In a recent paper to the Kyoto University written by Ionut Nistor and me, timing models comparing BRIC countries performance against Nikkei were used.

We were forecasting performance cycles for 2009-2010 and 2012-2015 time windows. Our findings reinforced our initial hypothesis that BRIC is more polarised than the Goldman Sachs' model assumed. Within BRIC also Russia should outperform Brazil, and India should outperform China over the next decade.

Like we said earlier, barring time everything has a limit. Chinese outperformance against India can never be linear. The next decade should just prove this, especially now that the 'Great Wall of China' is not for the invading Genghis Khan but for happy tourists.

The author is CEO, Orpheus Capitals, a global alternative research firm

Source: http://www.business-standard.com/

Small buying may cause upthrust

The markets opened on a placid note and ended with minor changes as the players lacked a clear sense of direction. The benchmark indices gained under 0.50 per cent at close. The traded volumes were lower as compared to the previous session, which is a negative indicator for an uptick session.

The market breadth was negative as the BSE advance decline ratio was 1073:1299. The capitalisation of the breadth was also negative the sellers outnumbered buyers.

The indices closed in the upper half of the intraday range and on negative market internals. The lower traded volumes indicate a lack of buying conviction. The banking stocks continued to remain a drag on the markets even as technology stocks outperformed on bear covering and fresh buying. As was advocated yesterday, the downward momentum was slowing as the bears eased their presence.

The intraday range advocated for Thursday at the 2850-2680 held as the Nifty traded within these. The coming session being the weekend, the bulls are unlikely to enhance commitments en masse. The outlook for the markets on Friday is of cautious optimism as markets are trading on thin open interest and small amounts of buying may cause an upthrust.

Source: www.business-standard.com/

Small buying may cause upthrust

The markets opened on a placid note and ended with minor changes as the players lacked a clear sense of direction. The benchmark indices gained under 0.50 per cent at close. The traded volumes were lower as compared to the previous session, which is a negative indicator for an uptick session.

The market breadth was negative as the BSE advance decline ratio was 1073:1299. The capitalisation of the breadth was also negative the sellers outnumbered buyers.

The indices closed in the upper half of the intraday range and on negative market internals. The lower traded volumes indicate a lack of buying conviction. The banking stocks continued to remain a drag on the markets even as technology stocks outperformed on bear covering and fresh buying. As was advocated yesterday, the downward momentum was slowing as the bears eased their presence.

The intraday range advocated for Thursday at the 2850-2680 held as the Nifty traded within these. The coming session being the weekend, the bulls are unlikely to enhance commitments en masse. The outlook for the markets on Friday is of cautious optimism as markets are trading on thin open interest and small amounts of buying may cause an upthrust.

Source: www.business-standard.com/

Toyota weathers challenging times

This is part of a series of articles on how Pueblo’s major new/used and used automobile dealers are coping with the challenges that industry is facing.

It's Toyota tough.

The brand name is helping his car dealership cope with hard times, says John Butkovich, Pueblo Toyota general manager.

"Business is still a little sluggish," Butkovich said this week of his 2125 U.S. 50 West enterprise. "But December was better than November, January was better than December and February is holding its own.

"We're not where we were before, but I feel like we're getting some traction."

Butkovich said that Toyota's line of hybrid cars, cars that use more than gasoline to move, has enticed people into his store.

"We have the Prius, Camry and the Highlander," he said. "We have a couple on the lot, where when gas prices were so high last year we had to order them and buyers had to wait.

"The new Venza is a popular model. It's not a hybrid, but it is a cross between an SUV and a car. They were just launched and we have a few in."

The hybrid models come complete with a tax break, he said.

The veteran of 25 years in the auto business, the last 13 at Toyota, said it is certainly "the most challenging time" he has seen.

"We can only rely on the product," Butkovich said. "And the value of the product."

He pointed out that most Toyotas are built in Tennessee and Texas, an American car.

"Sixty percent of our vehicles are made in America," he said. "Every automaker gets their parts from all over the world."

The hybrids are made in Japan, he said.

Pueblo Toyota has been in business for 26 years and employs 50 workers. They also sell used cars of all makes and models.

"We've seen an uptick in our service business, because I think people are holding on to their cars longer," he said.

"But really, it's business as usual. We haven't changed a lot."

Source: http://www.chieftain.com/

Gen Next turns its back on small, medium pharma companies

Chennai-based T S Jaishankar and his wife Rajam are worried about the future of their healthcare businesses. They are not sure whether their only daughter Swetha and son-in-law and Indian tennis player Mahesh Bhupathi would takeover the reins of Chemech Laboratories and contract research company Quest Lifesciences when they decide to retire.

"I don't think that will happen unless we make it a great business of interest for them. They are already more successful than us," says Jaishankar, who is in his early 50s and an industry leader as the chairman of Confederation of Indian Pharmaceutical Industries (CIPI). Jaishankar now takes care of Quest, while Rajam, a renowned gynaecologist, runs Chemech.

Succession is an issue with many drug companies, especially in the medium and small scale segment. "I estimate about 90 per cent of the drug companies in the SME segment don’t have a proper succession plan in place. Several of them will have to either merge or sell off because of lack of interest among the next generation," says Jaishankar. Chemech has been downsizing the business by selling some of its major brands to Solvey, a European drug maker.

The Rs 65,000-crore Indian pharmaceutical industry, which has largely evolved as a global force in the past three decades, is now floundering. With the second generation of the country’s largest drug maker, Ranbaxy Laboratories, selling out the business, doubts on the continuity of the existing business have surfaced.

Recent reports of Piramal Healthcare exiting the business has strengthened speculation on the interest of the second generation in running the pharmaceutical businesses. Indian drug industry is facing increasing competition, patent-related issues and narrowing margin.

"I do not agree with this. This business has good potential in the future and if you are confident of managing it there is no need to exit an established business and look at other pastures,’’ says Alok Saxena, director of Elder Pharmaceuticals and son of J Saxena, who started the company in 1989.

India was import dependent on drugs till 1970, when Indira Gandhi, the then prime minister, decided to amend the Patent Act to legalise process patenting or copying of drugs innovated by multinationals.

In the next two decades, numerous drug firms came up in India, mainly in Gujarat, Maharashtra, Andhra Pradesh and Tamil Nadu. Many young and aspirant pharmacists, drug traders and salesmen with multinational companies risked their safe jobs to start own pharmaceutical companies.

From a handful number of players, Indian pharmaceutical industry grew to over 8,000 companies within two decades. Some of them went on to become large corporate houses such as Dr Reddy's Laboratories, Wockhardt, Sun Pharma, Lupin, Elder Pharma and Glenmark.

Most of their sons and daughters chose management studies and not pharmaceutical science. The Generation Next shows more interest in more glamourous and high-profit business sectors, than the complex and low profit world of generic drug business.

Malvinder Mohan Singh may not have sold Ranbaxy Laboratories last year if he had a pharmaceutical background like his father Parvinder Singh, said an industry observer.

Suresh Kare, a veteran pharma professional and chairman and managing director of Indoco Remedies, laughs at the question on succession. His company’s annual turnover is Rs 300 crore. "I am sure the next and next generations are capable of taking Indoco to more heights," he says and notes that his eight-year-old grand daughter is already capable of explaining what sub-prime crisis in the US is all about. Kare's daughter Aditi is a director on the company's board and is in charge of its business development and human resources.

However, the scene may be a bit different at bigger drug companies as they see a brighter future for themselves and their companies. The overseas-educated second generation is ready to take over the responsibilities.

At Dr Reddy's, chairman Anji Reddy has handed over the reins to son Satish and son-in-law G V Prasad — both US-educated management experts — to pursue his dreams on drug discovery. "Often I wake up in the middle of night to discuss my ideas with our senior scientists in the US and we still enjoy the passion associated with drug discovery, the amazing chemical compositions that can cure diseases of the world," Anji Reddy told Business Standard in an interview last year.

A pharmaceutical scientist with the public sector Indian Drugs and Pharmaceuticals for six years, he had left his job in 1975 to start Uniloids, Standards Organics and in 1984 Dr Reddy's Laboratories, now India's second largest drug company.

At Lupin, chairman D B Gupta is assisted by daughter Vinita as group president and chief executive of its US business and son Nilesh as group president and executive director in India.

Similarly, at Wockhardt, chairman Habil Khorakiwala still heads the company in its day-to-day activities with the assistance of sons Huzaifa and Murthasa, both executive directors.

Twenty-year-old Aalok D Sanghvi joined Sun Pharma a few months ago as a trainee to learn the tricks of his father Dilip Sanghvi's business.

"Generation Next thinks global unlike us, who preferred to focus more on domestic business in the early years and was reluctant to take risks," says Kare.

An example is Glenmark Pharmaceuticals. When Glen Saldanha — a pharmacy graduate who took his MBA from the Leonard Stern School of Business in New York — joined as director of his father's business after a brief stint as an employee with a famous consultancy in 1998, Glenmark was selling drugs in the domestic market with less than Rs 250 crore turnover. Now, the company sells its products all over the world and has grown to become one of the largest drug houses in India.

The Generation Next of pharma industry thinks global — and will have to — to survive in an industry, which transformed a lot globally in the last three decades.



Source: www.business-standard.com/

City gets Rs 3,300 cr

Karnataka chief minister B S Yeddyurappa has allocated Rs 3,300 crore for the infrastructure development of Bangalore city in the state budget for fiscal 2009-10. Of this amount, Rs 2,000 crore will be spent on upgrading arterial roads in greater Bangalore under the public private partnership for their maintenance. The Bangalore Bruhat Mahanagara Palike (BBMP) will invest Rs 800 crore on infrastructure development in the city, while the Bangalore Development Authority (BDA) will spend Rs 500 crore on other development works, including construction of 10-lane signal free road, connecting inner and outer ring roads, with private participation, he said.

The state government has spent Rs 1,000 crore for improving the basic infrastructure and Rs 500 crore worth of developmental works by BBMP in the next fiscal.

The state will also invest Rs 600 crore in FY 2010 towards its capital share for the first phase of Bangalore metro rail network, which is being extended. The centre-state project will require an additional Rs 1,763 crore for extending the route, Yeddyurappa, who also holds the finance portfolio, announced in his budget.

The state will provide Rs 300 crore for augmenting drinking water supply across the city. The Japan Bank for International Corporation is partly funding the ambitious project, estimated to cost Rs 3,384 crore. The water is brought from the river Cauvery, about 140 km from the city. The budget has allocated Rs 600 crore for drainage works in the city.

Another Rs 500 crore will be provided to start a luxury bus service, with a minimum fleet of 1,000 deluxe buses.

In addition to this, the chief minister has announced an allocation of Rs 500 crore capital grant to KRDCL for instituting Karnataka road fund for executing 10,000 kms of state highways and important roads and 12,600 kms roads in rural areas, with private participation.

Karnataka State Highway Development Project-2 will get an allocation of Rs 380 crore for development of 3,400 kms of highways. The government will also spend Rs 400 crore for maintenance of important district roads under Chief Minister's Rural Road Development scheme and roads and bridges under NABARD assistance at a cost of Rs 230 crore.

Source: http://www.business-standard.com/

Cisco And TCS Partner To Provide Advanced IT Solutions

Cisco Systems Inc has struck a strategic alliance with Tata Consultancy Services (TCS), India's largest information technology (IT) services provider to build a technology lab at the latter's Chennai campus.
The partnership will develop next generation data centers aimed at delivering IT solutions to Indian, US and UK based companies targeting small and medium enterprises.

TCS which has a market capitalization of ~$10.4bn (as of February 2009) will use the technology to cut costs by providing a pay-per-use virtualized data centre. In the short term, TCS is optimistic and does not expect budget cuts among its clients to affect its work. For CISCO, the rationale behind the alliance is to capitalize on the economic boom in India and the country's ongoing IT developments. Over half of CISCO's revenues are generated from providing data centers, technology solutions and network solutions.

According to a recent Gartner Inc, report, Data centre capacity in India is estimated to surpass 5 million square feet by 2012, a striking 31% growth from 2007. Given its long term capacities, India is expected to become a hub for nearby developed and developing economies. Recently IBM (NYSE: IBM) has been commissioned to build three 'green' data centers for leading financial services group Religare.

Market Trend And Downturn Effects

Several Indian companies have been losing business from overseas amidst the recent global economic woes. Late last year Wipro Technologies (Wipro), lost contracts - some of its customers including CISCO, Credit Suisse (NYSE: CS) and Nortel cancelled and several others delayed. While Wipro expected business to pick up after April 2009, it also admitted to be more cautious about spending. Cost cuts have now become the order of the day with companies like Infosys (NASDAQ: INFY) docking per employee costs by at least $10. Interestingly, in December 2008 TCS had announced a host of cost management initiatives to withstand the global economic downturn. Besides, it was also re-examining its capital expenditure program.

Emergence as a possible data centre hub

The TCS-CISCO partnership as well as the recent IBM ' Religare data centre building partnership could perhaps be signaling the arrival of India as a lucrative data centre hub for companies in the near future, both within the subcontinent and in other geographical localities. Infrastructural framework such as adequate power back up would however be a prerequisite for India's emergence as a dominant player in the market for data centers.

Cross Border: US India News Wrap is a unique news and analysis service from ValueNotes. This weekly publication focuses on US corporations and what they're doing in India. This will be a unique service focused entirely on the US-India story; and will chronicle the growth in cooperation, closer economic ties, mutuality of interest and US corporations increase investment in India and its impact on companies, sectors and investing options.

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Source: www.tradingmarkets.com

People queue up to sell jewellery

People have found a golden opportunity in the sharp rise in bullion prices. Even as gold jewellery buyers seem to have almost vanished in thin air, there are long queues outside jewellery shops that buy back old gold ornaments.

Nitendra Jain, Proprietor, Jugraj Kantilal & Co, one of the largest buyers and sellers of gold and silver ornaments in Zaveri Bazar, the hub of gold trade in Mumbai, said, “We have been witnessing huge crowds who have come to sell their gold jewellery for the last ten days and expect it to increase if gold prices continue to rise.”

Without revealing the quantity of gold bought back, Jain said, “We are open from 11.30 a.m. to 6.30 p.m. and buy back whatever people offer to us. Our rates are one per cent lower than the market price for gold.”

J.A. Khan, who was the last in a serpentine queue outside Jugraj Kantilal & Co, said, “Though currently there are no attractive investment options, I decided to sell some of my old family jewellery as I feel the prices have peaked and may take a beating in the short term.”

Khan, who was earlier involved in the jewellery business, said he would invest a portion of the proceeds in mutual funds and fixed deposit schemes.

Gold prices crossed the Rs 15,500-level to an all-time intra-day high of Rs 15,545 for 10 grams, but ended at Rs 15,490 on Wednesday. It gained further on Thursday and closed at Rs 15,660 on Friday.

Shrikant Shreelekha, homemaker, said, “I was initially reluctant to sell my old jewellery, but then thought it is the right time to do so. I plan to go in for a new design later when prices fall. I had bought these jewels when gold was hovering around the Rs 8,000 to Rs 9,500 level.”

Demand down
Jewellery shops, which do not buy old jewels, wore a deserted look despite the peak wedding season round the corner. Kiran Dikshit, Manager, Tribhovandas Bhimji Zaveri, said casual buying of gold, particularly for investments and gifting, was just not happening, but compulsory buying, especially for weddings, was taking place.

“In fact, some people have advanced their jewellery purchases, anticipating that prices will go up further,” he added.

Prithviraj Kothari, Chairman, Riddhi Siddhi Bullions, said retail jewellery sales had slowed down and wedding demand was low compared to last year. Harish Galipalli, Head of Research, Karvy Commodities, said gold prices are no longer determined by demand and supply but by investment demand and variations in rupee-dollar value.

Since prices have risen by 20 per cent in the last one month, a sharp fall is expected in the near future before an upward march again.

Source: sify.com

Playing fair: Students educate about trade

Some local student groups will spend the week working to educate the public about the global fair trade of goods.

Beginning today and running through Thursday, WSU and University of Idaho groups will collaborate and host Fair Trade Awareness Week, an event which focuses on the coffee industry and educating the local community about fairness in trade, lobbying for local business to support fair trade, and developing responsible consumers.

“Fair Trade Awareness Week is about educating our campus on the issues surrounding trade justice, coffee and the power of the consumer,” said Molly Boers, coordinator of the events. “Americans consume over a quarter of the world’s coffee. Our purchase power has the ability to change the global market and radically impact the people that produce the stuff we buy.” Though the U.S. economically benefits from purchasing cheap coffee, doing so places it in an unfavorable light and dampers the success of the nations that produce the goods, said Jason Puz, vice president of the WSU Young Democrats.

“It affects Americans in the sense that attitudes toward Americans have grown poor,” Puz said.

Puz said coffee industry injustices can lead to regional instability and poverty when the poor countries who supply goods to America are no longer able to support themselves.

Young Democrats President Chelsea Tremblay said injustice anywhere affects Americans because it is important to promote human rights in the U.S. By promoting fair trade in Pullman, she said the effort will inform the public and contribute to creating better living standards for the nations providing the goods.

The evidence that the U.S. contributes immensely to injustice and others’ poverty is clear, Boers said.

“Americans affect the injustice in the coffee industry far more than any coffee industry injustices affect Americans,” Boers said. “As the main consumers of coffee, American consumers control the practices and conditions for coffee farmers, producers, and communities in over 50 countries.” Boers said supporting fair trade products and companies is significant because it ensures a fair wage for workers, fair labor conditions, direct trade, community development and environmentally sustainable farming practices.

Puz encouraged applying consumer pressure to the issue by contacting local congressional leaders to push for the city’s investments going to businesses that support fair trade. He said if enough public pressure builds, legislators will take a stance on the issue.

Boers said students also can use everyday opportunities to take a stance.

“Start asking coffee shops to only purchase fairly traded products,” Boers said. “Make the choice to buy coffee only when you see the fair trade-certified sticker.” Boers urged students to buy coffee from more fair trade-conscious locations such as Café Moro, which supports fair trade and small-scale cooperatives by brewing Doma Coffee..

The four-day lineup of events will include a “tables and coffee” exhibit along with petitions and fair trade coffee booths from 10 a.m. to 2 p.m. today on the Glenn Terrell Mall, as well as a brewing demonstration by Equal Exchange today and Tuesday.

Also today, “Black Gold,” a documentary depicting the injustice in the coffee industry, will be showed at 8 p.m. in the CUB Auditorium.

Tuesday and Wednesday’s events will be highlighted by speakers. Jorge Alberto Tapia Ortiz will discuss fair trade communities in Santa Anita and Chiapas at 8 p.m. Tuesday in the Fine Arts Auditorium. Daniel Jaffee, assistant professor of sociology at WSU-Vancouver, will deliver a broader lecture on fair trade coffee based on his book, “Brewing Justice: Fair Trade Coffee, Sustainability and Survival” at 8 p.m. Wednesday in CUE 202.

“We hope that people will begin to understand that what we buy is more than just ‘stuff’ because ‘stuff’ is always connected to people,” Boers said. “The espresso we drink represents 50 coffee beans handpicked by a worker who was paid around three American cents. We want to see ‘stuff’ in a new light.”

Source: www.dailyevergreen.com

Big profit increase for ThinkSmart

ThinkSmart (ASX:TSM), an international computer and office equipment financing company, reported a record full-year EBITDA (pre IPO and U.S. costs) of $11.3 million for the year ended 31 December 2008, up from $8.3m in the previous corresponding period. The results exceeded the company’s recent profit guidance.

Total revenue rose 7% to $38.9 million with gross margin increasing 7%. ThinkSmart declared a fully-franked final dividend of 1.5 cents per share, representing a 22% dividend yield for the full year.

“This is a pleasing and solid result given the current global economic climate,” said ThinkSmart Founder and CEO, Ned Montarello. “Our business has proven exceedingly resilient, and traded well through these challenging times.

“We have had strong customer demand which is evidenced in markets like the UK where, despite our partner’s retail sales being in double digit decline, we have experienced a 10% like-for-like (LFL) increase in demand as small businesses increasingly look to solutions such as ours to help them sustain their cash flow.

Locally in Australia, JB Hi-Fi and Dick Smith continue to perform well.”

“Margins are up, and our recurring inertia income, which is received on the expiry of customer contracts continues to exceed forecasts.”

Mr Montarello said that despite most of the downturn for retail trade in Europe having occurred in the last half of the calendar year, ThinkSmart had achieved a 33% growth in EBITDA for that period over the same time in the previous year.

“We finished off 2008 with strong EBITDA growth and have seen a solid LFL growth for January. Although we expect 2009 to be flat with regard to customer acquisition, we have a positive outlook for EBITDA in 2009.

“Operationally, we are net debt free; have managed our cost base; and are aggressively pursuing market share gains within our European territories where we have a real opportunity to increase our retail distribution channels.


“Our strategy is to align with market leading, international retailers to meet the finance needs of small businesses shopping for technology in their stores. It’s a niche that we believe we are leading globally. While we have not scheduled to expand in to any new territories during 2009, our clear strategy is to continue to grow market share in all of our existing territories, both organically and through the establishment of new retail partnerships.”

ThinkSmart is a leading international financial services company that is focused on the delivery of B2B finance products through the retail environment. The business currently operates with market leading retailers and financial institutions in the UK, Spain, Italy, France, Australia and New Zealand where it has built a reputation for processing high volumes of low value business finance transactions both quickly and efficiently.

Source: proactiveinvestors.com