Tuesday, April 3, 2012

Bajaj Auto raises stake in KTM Power Sports to 47%; has been consistently increasing stake

MUMBAI: Bajaj Auto, India's second-largest two-wheeler maker, has tightened its hold on KTM POWER SPORT by buying another 6.3%, taking it stake in the Austrian motorcycle to a little over 47%.
ET learnt that the company purchased this stake from one of the key stake holders through an open market transaction recently. The purchase was made through Bajaj Auto International Holdings, a Netherlands-based wholly-owned subsidiary of Bajaj Auto.
A senior Bajaj official confirmed the development, but declined to share the details, as the firm is bound by confidentiality agreement.
Bajaj Auto is the second-largest shareholder in KTM. Other large shareholders-Stefan Pierer and Rudolf Knuenz-hold more than 51% stake. Bajaj Auto and KTM are working on a few joint development projects.

Posted By- Nitesh Kumar Singh
PGDM 2nd SEM

Sunday, April 1, 2012

Tata Group targets $500bn revenue by 2021

Tata Group targets revenues of USD 500 billion by the financial year ending in March 2021,a newspaper report said, as the steel-to-software conglomerate aims to increase sales five times over nine years.
Ratan Tata, outgoing chairman of the group, which includes flagship companies Tata Consultancy Services , Tata Steel and Tata Motors , unveiled the growth plan at a meeting with around 500 senior group executives last month, the newspaper said.
A spokesman for the group declined to comment on the report when contacted by Reuters.
Chairman Tata will step down in December this year, and will be succeeded by Cyrus Mistry, deputy chairman and a former member of the board of holding company Tata Sons.
The 74-year-old has led the conglomerate since 1991 and has embarked on a global shopping spree that has brought companies such as UK tea brand Tetley, European steelmaker Corus and luxury car manufacturer Jaguar Land Rover into the Tata stable.
Around two-thirds of its revenue is generated overseas. The group posted revenues of USD 83 billion in the financial year ending in March 2011, and is expected to see revenues of USD 100 billion in the year that ended last month, the newspaper said.
Dhananjay Singh
PGDM 2ND

Manufacturing growth slows for third consecutive month: PMI

2 Apr, 2012, 10.39AM IST, Reuters

Manufacturing growth slows for third consecutive month: PMI

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BANGALORE: The expansion of India's factory sector slowed for a third month in March as growth in new orders eased and costs for raw materials kept rising, a business survey showed on Monday.

The HSBC manufacturing Purchasing Managers' Index (PMI) , compiled by Markit, eased to 54.7 in March from 56.6 in February. In January, the PMI reading was 57.5.

The index has now stayed above the 50 mark - which shows growth rather than contraction - for three years. But with many of its components in a steady decline, that picture may change.

The survey's factory output index slipped to 56.3 in March from 60.5 in February, well below its life-time average of 58.9.

"Activity in the manufacturing sector expanded at a slower pace in March led by a moderation in output and order growth, although export orders accelerated," said Leif Eskesen, economist at HSBC.

Price pressures also continued to rise, with the sub-index for input prices, or the cost of raw materials, increasing from February and staying well above its long-term average.

But output prices eased a little in March, after hitting an 11-month high in February.

"While inflation of output prices eased, a further rise in input price inflation suggests it could pick up again as cost pressures are passed on to customers," Eskesen added.

Headline inflation, as measured by the wholesale price index, picked up in February for the first time in five months, trumping chances for a reversal in the hawkish monetary stance of the Reserve Bank of India ( RBI).

The RBI's battle against inflation has resulted in numerous rate hikes since late 2010, taking the benchmark repo rate to a three-year high of 8.5 per cent, even though it has tried easing liquidity conditions by reducing the amount of cash banks must park with the central bank.

Those rate hikes, along with a deteriorating global economic climate resulted in slowing the Indian economy and choking the investment cycle.

Dhananjay singh

PGDM 2ND

PG|11|13

Air India's financial revamp plan cleared

Grappling with a fragile financial position, Air India's financial restructuring plan (FRP) has been approved by a consortium of banks, which may enable the ailing carrier save several hundred crore in the first year itself.

As part of the FRP, Air India signed four agreements with the SBI-led consortium late Friday. These were Master Restructuring Agreement, Working Capital Facility Agreement, Appointment of Facility Agent Agreement and Appointment of Trustee Agreement, airline officials said.

“The Cabinet approval for infusion of funds is still awaited and is expected to be received some time next week,” the officials said.

Implementation of the FRP would begin after the Union Cabinet approves additional equity infusion into the airline, they said. Officials of at least 19 banks were present at the signing ceremony here.

One of the major highlights of the agreements is conversion of about Rs.10,500 crore of the airline's working capital in to long-term loan, carrying an annual interest of 11 per cent.

ASHRAF HUSSAIN

PGDM-2^ND SEMESTER

Sensex up 80 points in early trade on selective buying

MUMBAI: The BSE benchmark Sensex today gained over 80 points in early trade on continued buying by funds as well as retail investors.

The 30-share index, which had gained 345.59 points in the previous session, rose further by 80.05 points, or 0.46 per cent to 17,484.25.

The wide-based National Stock Exchange Nifty index also moved up by 16.20 points, or 0.26 per cent, to 5,311.75.

ASHRAF HUSSAIN

PGDM-2^nd semester

High service tax: Phone calls, eating out to become expensive from today

Telephone calls, restaurant bills and other activities will cost more from today with the budgetary proposal of raising service tax rate to 12% coming into effect from Sunday.

In order to garner an additional Rs 18,660 crore during 2012-13, finance minister Pranab Mukherjee increased the service tax from 10% to 12%.

The proposal, which will make host of services including travel by air-conditioned rail coaches, courier services and coaching classes expensive, comes into effect from April 1, 2012.

There are over 120 services which attract service tax. These also include air travel, life insurance, beauty parlour, advertisement, dry cleaning, health clubs, cable operator, credit card, credit rating etc.

The minister in his Budget speech last month had said, "I propose to raise the service tax rate from 10% to 12% ... My proposals from service tax are expected to yield an additional revenue of Rs 18,660 crore."

The government proposes to collect about Rs 1.24 lakh crore from service tax during the current financial year, up from Rs 95,000 crore during 2011-12.

The services sector accounts for about 59% of the country's Gross Domestic Product (GDP).

In order to expand the base of service tax, the Minister proposed a negative list, a notification regarding which would be issued later.

Under the negative list proposal, the service tax will be levied on all services expect those mentioned in the list. At present the tax is levied on the basis of a positive list, meaning that it applies only to specified services.

The proposed negative list of services, on which the increased service tax of 12% will not be levied, include admission to entertainment events, access to amusement facilities and travel by radio taxis and auto rickshaws.

Other important services which will not attract the tax include funeral, burial, mutate services and transport of deceased.

While unveiling the negative list, the government had clarified that the tax will be levied on travel by first class and in air conditioned rail coaches, transport of goods by a transportation and courier agencies.

As regards education, the service tax will not be levied on school, university education and approved vocational courses. The coaching classes and training institutions, however, will continue to be subject to service tax.

In order to bring as many services as possible in the net, the government has come out with a very wide definition of service. With some exception, it has been defined service as "any activity carried out by a person for consideration".

By RAZI ANWAR (PGDM 2nd sem)

Rail passengers to pay more in AC1, AC2 classes from Sunday

Passengers travelling in AC 1 and AC 2 classes in trains will have to shell out more from Sunday when the upward revision in higher class fares will come into effect. The fare is also being hiked in Executive class and first class as per the Rail Budget 2012-13 announcements.

The revised tariff will also be applicable to tickets issued in advance for journey to commence on or after April 1, 2012.

"In case tickets are already issued at pre-revised rates, the difference in fares will be recovered from passengers either by TTEs in trains or by the booking offices before commencement of the journey," said a senior Railway Ministry official.

Rail passengers to pay more in AC1, AC2 classes from Sunday

As per the decision, passenger fares will be increased 10 paise per km in first class, 15 paisa per km for AC 2 and 30 paisa per km for AC 1 from April 1.

The platform ticket is also to cost Rs 5 from tomorrow, said the official.

Though there was proposal for fare hike in all classes including AC III, sleeper class, suburban and second class in the Rail Budget, new Railway Minister Mukul Roy decided for partial roll back of fares in these classes.

Railways have earned Rs 28,000 crore revenue from passenger fares in 2011-12. The national transporter was aiming to earn Rs 36,000 crore in 2012-13 with the five per cent expected growth in passenger volume in 2012-13 and the hike in all classes as proposed by the former Railway Minister Dinesh Trivedi.

However, now with the roll back in major classes like AC III and second class, railways is expected to earn only Rs 400 crore from the hike in AC 1, AC 2 and first class fares.

The revised fare list is being displayed at all stations for public and the changed fare tables are also available on the ministry website, said the official.

By RAZI ANWAR(PGDM 2nd sem)