• Like
  • Save
Weeky newsletter 26th may 2012
Upcoming SlideShare
Loading in...5
×
 

Weeky newsletter 26th may 2012

on

  • 779 views

Weekly Economic Review.....

Weekly Economic Review.....

Statistics

Views

Total Views
779
Views on SlideShare
779
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Weeky newsletter 26th may 2012 Weeky newsletter 26th may 2012 Document Transcript

    • Top HeadlinesReebok India accuses former top execs of $157M fraud.Rupee hits 56 versus dollar, Reserve Bank cautious.S Raghunandan joins Jyothy Labs as CEO & director.ValueFirst acquires Way2sms.com, 160by2.comPE-backed Azure Power may get $70M from US Exim BankF&B chain Steammo raises funding from IncuCapitalComp-U-Learn to acquire US-based ECG Technology Weekly Economic ReviewIt was a bad week for the rupee. India’s currency took a beating for thefirst three days of the week only to make a modest recovery onThursday and Friday. All in all, the rupee was down about 1.7% for theweek at 55.37 to the US dollar. This was the eight straight week ofdecline for the rupee.Moving on, the troubles in the world economy are taking their toll onIndia. The services sector is expected to benefit from a weak rupee. Butglobal uncertainty has cut into demand. Provisional data from theReserve Bank shows services exports increased just 4% in the last fiscalto about $137 billion. Meanwhile, the import of services fell 3.8% to$81.1 billion. The new figures are the worst in a decade with theexception of the 2009-10 periods. IT industry lobby group Nasscomsays onsite and offshore exports grew a total of more than 16% duringthe fiscal to about $70 billion.And in other news, the UPA government has finally bitten the bullet anddelivered the pain. On Wednesday, state-run oil companies announced adramatic hike in petrol prices. Excluding sales tax or Vat, petrol pricesacross India are up by Rs6.28 per litre. Government-owned fuelmarketing companies took losses of nearly 5,000 crores last fiscalbecause they sold their products at below-market prices. 1
    • And in other news, private companies could soon find it much harder toacquire land for their projects. On Thursday, a parliamentary panelrecommended strict rules that would not allow the government toacquire land on behalf others. The panel said all for-profit venturesshould have to buy land in the open market. It added that agriculturalland should not be acquired. And also said there should be noexceptions for infrastructure, mining, or SEZ projects. Theparliamentary committee’s proposed rules are much stronger thanthose in the 2011 land acquisition bill, which exempted landacquisitions under various existing legislation like those for highwaysand SEZs.And switching to telecom, BhartiAirtel could soon get a head start in theupcoming battle for wireless data services in India. On Thursday thecompany announced it would acquire a 49% stake in Qualcomm India’sbroadband venture. Under the deal, Airtel will buy a 26% stakecurrently owned by two Indian firms. The remaining 23% will comefrom fresh equity. All in all, the deal will be worth about $165 million.And Airtel is slated to take on the existing debt of $1-1.2 billion onlyafter 2014. BhartiAirtel’s acquisition will allow it to offer broadbandservices in major telecom circles like Delhi and Karnataka. Inside The StoryReebok India accuses former top execs of $157M fraud.Reebok India, owned by Germanys Adidas, lodged a police complaintagainst two former top executives accusing them of fraud that had ledthe company to lose 8.7 billion rupees. The alleged fraud would be themost high-profile corporate scandal in India since 2009 when SatyamComputers former chairman and founder Ramalinga Raju revealed thatthe company had overstated profits and falsified assets foryears.Reebok India is accusing former India Managing DirectorSubhinder Singh Prem and former Chief Operating Officer Vishnu 2
    • Bhagat of financial wrongdoing, said police officials in Gurgaon, wherethe complaint was filed.Rupee hits 56 versus dollar, Reserve Bank cautious.The rupee dropped to a record low against the dollar on Wednesday,sparking mild intervention from a RBI seen by traders as reluctant to bemore aggressive against such a strong down trend.The rupee touchedthe symbolically significant level of 56 to the dollar as concerns aboutthe euro zone prompt global risk aversion and expose Indias domesticvulnerabilities, most prominently a widening current account deficitand sluggish policy reforms.The rupee has now fallen more than 5 percent this year against the dollar to make it the worst-performing AsianCurrency monitored daily by Reuters. It has dropped more than 13 percent from its 2012 high reached in February.S Raghunandan joins Jyothy Labs as CEO & directorIndian consumer products maker Jyothy Laboratories Ltd has appointedS Raghunandan as the chief executive and director.Raghunandan joinsJLL from Reckitt Benckiser (India) Ltd and has nearly 20 years ofexperience in sales, marketing and strategic & tactical planning. Heresigned from the general manager’s post within five months of joiningthe company due to personal and health reasons. He had also heldsenior positions with companies like Paras Pharmaceuticals (managingdirector), Dabur India (executive vice-president, sales), DaburInternational (CEO) and Hindustan Unilever (regional salesmanager).Raghunandan obtained his degree in Chemical Engineeringfrom Birla Institute of Technology and Science (Pilani) and was analumnus of IIM-Kolkata.ValueFirst acquires Way2sms.com, 160by2.comDigital media company Value First is pushing its inorganic growthstrategy as it acquires Hyderabad-based consumer Internet firmWay2online, which owns and operates Way2sms.com and 160by2.com.It is an all-cash deal, reported to be around Rs 200 crore.“Thetransaction is one of the largest acquisitions in the Internet industry in 3
    • India that makes ValueFirst the largest digital media company in thecountry in terms of revenues, as well as number of users. With thisacquisition, ValueFirst will cross 50 million profiled registered users,add 40,000 fresh registrations daily and get to Rs 250 crore of revenuethis financial year,” a statement issued by ValueFirst said. Theacquisition is being funded through internal accruals and by ValueFirst’sinvestors – New Enterprise Associates and Headland Capital. The dealwould give ValueFirst access to multiple platforms like Internet, voice,SMS and e-mail. The company is also targeting revenue of over Rs 250crore in FY13 and is to go for an IPO in the next 24 months.PE-backed Azure Power may get $70M from US Exim BankExport-Import Bank of the US may provide long-term finance of Rs395.9 crore ($70.35 million) to solar power producer Azure Power IndiaPvt Ltd for its solar power plant at Nagaur in Rajasthan.The plant is anexpansion of the firm’s existing 5 MW Nagaur photo-voltaic facility, andwill ensure a total output of 40 MW, making it the largest solar powerplant to be developed at a single location under the National SolarMission. The current project started in January this year.“With thisproject, we are committed to working towards meeting the grid parityobjective of the National Solar Mission in India,” said InderpreetWadhwa, CEO of Azure Power.F&B chain Steammo raises funding from IncuCapitalEarly-stage venture capital firm IncuCapital has invested in the F&Bchain Steammo, a new brand of Pune-based J&R HospitalityManagement Pvt Ltd.The VC firm has invested Rs 40 lakh in the firsttranche and IncuCapital’s Prashant Maharaj will be joining the board ofSteammo as part of the deal.J&R Hospitality is a speciality foodcompany, which offers steamed quick-service food through its brandedkiosks. Founded by Ravisha Sirohi and Jabish Gohlyan in 2011, thecompany plans to open around 20 outlets in the next 6-8 months. It hasalso gone through product trials for the last couple of months and will 4
    • Use the money raised to scale up its kiosks. These kiosks will operate inthe food courts across different cities.Comp-U-Learn to acquire US-based ECG TechnologyHyderabad-based software development company Comp-U-Learn TechIndia Ltd will acquire ECG Technology LLC, a Delaware-based firmengaged in engineering, technical and design consulting, according to aBSE disclosure. The company may also acquire 100 per cent stake inECG and is looking to raise $100 million through various routes (FCCB,QIP, GDR, ADR, Etc.) for scaling up its businesses. In February this year,Comp-U-Learn acquired Divya Knowledge Process Management Ltd, aneducational services company having a tie-up with BharathidasanUniversity (Tiruchirapalli, Tamil Nadu), for $0.8 million. The companyhad made five more acquisitions since 2009. 5