Tag Archives: India

Reebok India Alleged Fraud Cost Euro 153 Million to Adidas

Reebok India alleged fraud last year has put 153 million euro dent on the balance sheet of German sportswear maker Adidas. In year 2012, Reebok India filed FIR against two top officials of the company.

The investigation is currently on and ex-Managing Director Subhinder Singh Prem and ex-COO Vishnu Bhagat are under investigation for their alleged involvement in the fraud.

Adidas Group changed top management this year by bringing Erick Haskell from China operations to lead Indian team. The company also offered voluntary retirement to 84 employees last year. The company has also reduced its store count in India to reduce costs.

Adidas CEO Herbert Hainer announced that 2012 was successful year for Adidas Group with the company managing to grow its overall sales by six percent. The company registered 14.9 billion Euro sales in 2012.

AirAsia Gets FIPB Approval to Start New Airline in India

AirAsia has received approval of Foreign Investment Promotion Board for setup of new airline in India. The Malaysia based budget airline has jumped in Indian aviation sector by setting up a joint venture with Tata Sons and Telestra Tradeplace. Tata Group was planning to enter aviation sector for quite some time.

After the modifications in FDI policy in September 2012, AirAsia is the first airline to enter domestic aviation sector in India. Domestic travelers in India can expect lower airfares as the new airline company will try to cut the market share of other players.

In Indian domestic aviation sector, Indigo Airlines and GoAir have been doing very good. Jet Airways and Air India are also prominent players in domestic aviation space.

Jet Airways is also looking to expand its base in India with investment from Abu Dhabi based Etihad Airways.

The Tata Sons-AirAsia joint venture company will operate from Chennai. The company will focus on Tier-II and Tier III cities connectivity by air routes. AirAsia will be involved in operations of the airline while Tata Sons will be holding 30 per cent stake in the company with negligible operating role.

Indian Stock Indices Trade Marginally Higher; Asian Stocks High

Indian Stock Markets opened marginally higher and banking stocks have continued from yesterday’s rally. Axis Bank and SBI were among major gainers in early trades. BSE Sensex was up by 15 points while NSE Nifty was higher by 3 points.

Among banking stocks, Federal Bank, Union Bank, Axis Bank and Bank of India were up by more than a per cent. PNB, Kotak Mahindra, IndusInd Bank, SBI, Bank of Baroda, Yes Bank and Canara Bank were trading higher.

Among sectoral indices, BSE Auto was up by 86 points. BSE HealthCare was up by 45 points and BSE Metals index was also positive. IT, Oil & Gas and Capital Goods stocks were trading lower.

Aashish Tater of Fortunewizard. com has suggested Omkar Speciality Chemicals as a multbagger stock during at interview with CNBC-TV18. He has also suggested investors to buy Lanco Infratech with a medium term view for decent gains.

Indian Market Trades Positive; CARE Debuts Strong

Indian Markets opened positive on Wednesday with BSE Sensex up by 42 points at 19296 and NSE Nifty up by 11 points. Asian Markets were trading strong as well. Nikkei 225 was trading higher as Japanese Yen was weak compared to US Dollar and Euro.

CFO of McLeod Russel has expressed his view that tea prices are likely to remain strong during year 2013. As the production of tea was hit by weather, the supply constraint will most likely push up prices. McLeod Russel stock was up by 0.6% at Rs 356.

Bharti Airtel, JP Associates, Ranbaxy Labs, Cipla and Sun Pharma were among major gainers in todays session. Infosys, TCS, Wipro and other technology counters were trading marginally lower. Banking stocks were also trading lower compared to previous close.

Market analyst SP Tulsian has given buy call for Balrampur Chini. Sudarshan Sukhani has given buy call for Sesa Goa. Manoj Murlidharan has given buy call for ITC with target price of Rs 301.

CARE has debuted on stock market today with positive surprise for retail investors. The stock has touched intraday high of Rs 985 and is currently trading at Rs 964 on back of strong trading volume.

Indian Stock Market Gains; Ambit Capital Expects Sensex at 23000 in 12 Months

Ambit Capital has expressed bullish view about Indian stock market with 23000 as target for BSE Sensex in coming 12 months. Saurabh Mukherjea, Head Equities, Ambit Capital said during an interview to CNBC TV18 that he expects markets to move higher. The current results are an indication of bottoming out of the earnings for Indian majors. He expects Indian markets to outperform other emerging markets.

Indian stock market was trading higher on Monday. BSE Sensex was up by 92 points at 18774 and NSE Nifty was trading higher by 22 points at 12.02 PM IST.

Among majors gainers were TCS, ICICI Bank, Mahindra & Mahindra and NTPC. Bank of Baroda, Ambuja Cements, ITC and Jindal Steel were among major losers in today’s trading session.

TCS management has expressed satisfaction over the current market condition. The outlook for the upcoming quarters is positive and the stock has been performing well on the bourses.

If the government pushes forward with reforms agenda, the investment climate in India can improve. The country faced rating downgrade from major rating agencies including S&P. If the UPA government is successful in reducing the current account deficit, the markets may look up in medium term.

Indian Markets Recover; Asian Markets Lower

Indian Markets bounced back on Thursday with NSE Nifty strongly over 5000 mark and BSE Sensex nearly a per cent higher at 16635.

Gold was trading at 28,440 per 10 grams while Silver was nearly a per cent down at 54,700.

In today’s trading session, IDFC was up by 5% at Rs 121. Cairn India was trading higher by 3.9% at Rs 320. BHEL and Kotak Mahindra Bank were also among major gainers.

After yesterday’s rally, pharmaceutical major Ranbaxy Labs was trading lower today. PNB was also trading lower. Among other losers were auto major Maruti Suzuki and technology leader Infosys Technologies.

Indian markets are expected to close positive today. Among sectoral indices, BSE Auto was up by 101 points. Capital Goods and BSE Metals indices were also trading with decent gains.

Wal-Mart Might Not Function Under Its Name in India

It has been revealed in a recent report that Wal-Mart might not be able to function under its brand name from now on. This was recently revealed as the brand is ready to launch its operations in India. It was revealed by Rajan Bharti Mittal, from MD Bharti enterprises that when the brand comes to India, it will be adopted in an Indian model and will be named according to the specific requirements of the Indian markets.

Wal-Mart is a huge chain of enterprises primarily from the US and functions in a few other nations as well. It is the first tie it is entering the Indian retail market, due to huge potential in the country. It is a matter of time to see how the shopping fanatics of the country will find solace in this world renowned brand and will make it an instant hit in no time.

For now, it is functioning in countries like Mexico, Japan and a few other nations, under different names, suiting the needs of those nations.

“Our partnership with Wal-Mart will take a natural progression and we will start having a dialogue on how to take it forward keeping in mind the fresh development on FDI”, revealed Mr. Mittal. It was further added that they hope the firm will bring great success to the nation’s retail business and will work well for both the partners.

Wal-Mart sure wants to be functioning under their own brand name in India, but time will tell what is more suited according to the needs of the Indian markets, and then the decision will be taken accordingly. Many know about the huge brand name but many still don’t. This might be one of the contributing factors towards making a decision.’

India Pakistan Trade Talks

It has been recently revealed that there is soon going to be a deal struck between India and Pakistan. This is going to be a huge trade deal that is going to open ways for better relations between the two nations. Pakistan has promised that they shall grant Most Favored Nation status to New Delhi.

There were talks held between commerce secretaries from both the nations and there were discussions done over a number of important issues regarding the new deal. Pakistan has also promised to give the full normalization of the bilateral trade relations with the neighboring country. This would also suffice the legal needs of the agreement.

According to a joint statement that was given out after the meeting, it was revealed that the negative list of items is going to be removed by Pakistan by February 2012.

It was further added by Zafar Mahmood, the Commerce Secretary of Pakistan that the negative list shall be discussed further and phased out by the end of 2012. There is also going to be the enhancement of Preferential Trading Agreements between the two countries as per the South Asian Free Trade Agreement Process.

More interaction is going to be done between the two countries so that bilateral trade is benefitted. There is need for both the nations to open up to each other further and become close and friendly with each other in order to trust each other for trade purposes. It sa matter of time to see what turn the events take and how well is it to bring back arch rivals under the same trading roof. It will either bring the two nations closer in terms of trade and personal relations, or might tend to strain them further.

Toyota Plans To Appoint 1,500 People In India By 2012

Japanese car manufacturer Toyota announced that it will hire approximately 1,500 individuals for its Indian operations by the coming year (2012) as it steadily strengthens its production capacitance in the Indian market.

The company, which is present in the country via a JV with the Kirloskar Group, is making an investment of Rs 1,650 crore to strengthen its production capacitance by one lakh units and for raising localization of components by the next three years.

On the sidelines of an Automotive Component Manufacturers Association (ACMA) summit, Toyota Kirloskar Motor (TKM) Deputy Managing Director (Commercial) Shekar Viswanathan said, “We will be hiring about 1,500 permanent employees by 2012 to meet our expansion demand. In addition to this, we will hire some contract workers also.”

The company will employ people crosswise different disciplines as the growth programme steadily unfolds.

Presently, the company is expanding the combined capacitance of its two plants in Bangalore to 2.1 lakh units as against 1.5 lakh units by the coming year.

Afterward, the capacitance at the first facility will be increased further to 1,00,000 units as compared to 90,000 units, whilst the production at the second facility will be augmented to 2,10,000 units as against 1,20,000 units.

The company has made an investment of Rs 3,200 crore to establish its second manufacturing plant, with an opening installed capacitance of 70,000 units yearly, which is now being elaborated to 1.2 lakh units each year.

Toyota had also declared plans to construct an engine facility, and swell its transmissions capacitance at a collective investment of Rs 500 crore to fulfill the demand of its Etios and Liva models.

In addition, the company will roll out the diesel versions of its small car Liva and sedan Etios in the Indian market on September 9.

The company had launched the petrol edition of the Etios in 2010, whilst the Liva model was introduced in June 2011.

At the present moment, Toyota has capacitances in position to make 6,000 units of the Etios and Liva on a monthly basis.

It will boost the production capacity to 6,800-7,000 units per month by October 2011, comprising the diesel versions.

Thus far, the company has sold around 30,000 units of the two models since their respective launches.

Can India control Inflation and Manage to Reach Growth Targets

Indian economy faces tough times in coming quarters and Finance Ministry might find it difficult to keep inflation in control. Major trouble for the Indian economy is the expected slowdown in demand in western countries. The export related sectors might feel major impact on earnings and margins.

RBI has increased the base rates by 11 times since March 2010. The
interest rates for home loans have increased, putting more pressure on home loan consumers. New home loans have become expensive and this has bad effect on real estate sector.

With increasing borrowing costs, business owners are finding it difficult to raise money in India. There are many projects in infrastructure and power generation sector, which need higher investments.

With expected decline in manufacturing sector growth numbers, Indian companies may not be able to maintain the current margins. Stock market valuations for most companies have declined in the recent times. Banking, Real Estate and Technology stocks are trading near their 52-week lows. Major real estate companies are facing troubles for their housing projects. Brokerage houses across the world have given mixed outlook for Indian markets.

RBI expects inflation to remain higher for upcoming two quarters. The report points out that Inflation may reach 7% by March 2012. US Dollar has crossed Rs 46 level as FIIs continued selling during the past two weeks.

Goldman Sachs has said in recent research report that inflation will fall to six percent by March 2012. Goldman Sachs gives reduction in demand as major reason for the decline in inflation however, it is not sure that inflation can fall so much within 9 months. The oil prices are expected to remain strong in India and we have noticed in past that the oil prices generally do not go down in the country.