The Indian IT and ITeS sector continues to maintain healthy growth rate despite the economic slowdown and global financial crisis. With the annual growth rate of the IT companies remaining above 20 per cent, no major adverse impact of the slowdown is expected on this sector.
The total software and services export is estimated at US $ 40.4 billion in 2007-08 as compared to US $ 12.9 billion in 2003-04. During the year 2008-09, it is expected that the employment in the IT/ITeS industry would grow from 20 lakh to 22.3 lakh.
FDI (Foreign Direct investment) in computer software and hardware too has shown phenomenal growth. During the first six months of the current fiscal year (April-September 2008), FDI inflow in IT sector has already reached US $ 1.4 billion against the same level of FDI inflow during the whole of previous year.
Seventeen proposals, involving an investment of the order of Rs.1,57,000 crore have been received over a period of 10 years under the Special Incentive Package Scheme (SIPS). The Scheme, which aims at encouraging investments for setting up semiconductor fabrication and other micro and nano technology industries in the country, has received a positive response from prospective investors.
Saturday, February 21, 2009
Friday, February 13, 2009
Railways to invest Rs 2.3 lakh cr in 11th Plan
The Railways have deployed their investible surplus of nearly Rs. 70,000 crore earned between 2004-05 to 2008-09 to increase its productivity.
Announcing this while presenting the Interim Railway Budget 2009-10 in the Lok Sabha today, Railway Minister Lalu Prasad said that Railways will invest Rs.2,30,000 crore under the 11th Five Year Plan which is almost three times the amount allocated in the 10th Five Year Plan.
The Minister said that the objective of larger investment is to increase the transport capacity of the Railways and to reduce the unit cost of operations. Railways’ investment outlays have been stepped up from Rs.13,394 crore in 2003-04 to Rs. 36,773 crore in 2008-09.
Lalu Prasad also announced that Railways would be completing the work of 4900 kms of gauge conversion, 1800 kms of doubling and laying 1100 kms of new lines, over five years.
Announcing this while presenting the Interim Railway Budget 2009-10 in the Lok Sabha today, Railway Minister Lalu Prasad said that Railways will invest Rs.2,30,000 crore under the 11th Five Year Plan which is almost three times the amount allocated in the 10th Five Year Plan.
The Minister said that the objective of larger investment is to increase the transport capacity of the Railways and to reduce the unit cost of operations. Railways’ investment outlays have been stepped up from Rs.13,394 crore in 2003-04 to Rs. 36,773 crore in 2008-09.
Lalu Prasad also announced that Railways would be completing the work of 4900 kms of gauge conversion, 1800 kms of doubling and laying 1100 kms of new lines, over five years.
Thursday, February 12, 2009
Delhi-Mumbai industrial corridor takes shape
NEW DELHI:President Pratibha Devisingh Patil today said the Government has constituted the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) for developing an industrial corridor along the Dedicated Railway Freight Corridor between Delhi and Mumbai.
Addrtessing the joint session of Parliament, she said the proposed industrial corridor will pass through six States of the country and infrastructure facilities will be developed at identified locations in consultation with the States concerned.
The Government has also come out with a new policy for promoting investment in Petroleum, Chemicals and Petrochemicals sector through development of Investment Regions. Significant progress has been made towards setting up Petroleum, Chemicals and Petrochemical Investment Regions in Andhra Pradesh, Gujarat and West Bengal.
Recognising that rapid growth in industry and services is essential to provide the avenues for employment required by our youth, the Union government has put in place appropriate policies which have promoted growth and employment opportunities.
"In particular, my government enacted the Special Economic Zones Act, which has already facilitated incremental investment of Rs.90,000 crore, and generated direct and indirect employment for over 7 lakh persons," she said.
Addrtessing the joint session of Parliament, she said the proposed industrial corridor will pass through six States of the country and infrastructure facilities will be developed at identified locations in consultation with the States concerned.
The Government has also come out with a new policy for promoting investment in Petroleum, Chemicals and Petrochemicals sector through development of Investment Regions. Significant progress has been made towards setting up Petroleum, Chemicals and Petrochemical Investment Regions in Andhra Pradesh, Gujarat and West Bengal.
Recognising that rapid growth in industry and services is essential to provide the avenues for employment required by our youth, the Union government has put in place appropriate policies which have promoted growth and employment opportunities.
"In particular, my government enacted the Special Economic Zones Act, which has already facilitated incremental investment of Rs.90,000 crore, and generated direct and indirect employment for over 7 lakh persons," she said.
Wednesday, February 11, 2009
Praful warns againsr air cartels
Civilviation Minister Praful Patel today came out strongly against reports of cartelization amongst airlines.
The Minister said, “The Ministry is against any categorization among airlines. We will keep watch and take strict action in any such case. The national carrier Air India will never be a part of it and will ensure that competitive pricing ensures better prices to the passengers."
He declared:"Air India shall act as a counter with better pricing and competitive fares.”
The Minister said, “The Ministry is against any categorization among airlines. We will keep watch and take strict action in any such case. The national carrier Air India will never be a part of it and will ensure that competitive pricing ensures better prices to the passengers."
He declared:"Air India shall act as a counter with better pricing and competitive fares.”
Tuesday, February 10, 2009
Sahara Power: Mega plants coming
Sahara India Power Corporation Limited, the subsidiary of Sahara India Pariwar's real estate company Sahara Prime City Limited signed Memorandum of Understanding (MOU) with the Government of Orissa for setting up a 1320 MW (2 x 660) Coal Based Thermal Power Plant in Turla Tehsil of Balangir District, Orissa at an investment of about Rs.5604 Cr.
The MoU was signed by Mr. Pradeep Jena, Commissioner Cum Secretary - Power, on behalf of the Government of Orissa and Mr. Ashok K Bhargava, Chief Advisor and Head – Sahara Power Projects, in the presence of the Hon'ble Chief Minister of Orissa, Shri Naveen Patnaik and other distinguished dignitaries and officials.
To be built on an area of 1,500 acres, the Sahara Power's Turla plant is planned to commission its first Unit of 660 MW by February 2013 while the second unit of 660 MW is expected to be commissioned within 6 to 8 months thereafter. The plant is planned to be set up through Joint Venture Participation with Power Companies from different parts of the world.
Sahara India Power Corporation Limited will develop fuel based or non conventional power plants using the latest and emerging technologies. Sahara Power will set up a 5 MW Grid Interactive Solar Photo Voltaic Power Plant in Dhenkanal District of Orissa at an estimated investment of about Rs. 125 Cr. The Company has already received an in-principle approval from the Government of Orissa through M/s Orissa Renewable Energy Development Agency (OREDA). Sahara Power has tied up with M/s Solar Integrated Technologies Inc. (SIT) USA, as its strategic partner for supply and installation of the required plant and equipment.
In addition, Sahara Power is also planning to set up 25 MW of Wind Power projects in Orissa through a reputed Wind Energy Company which has already set up wind masts at 7 locations. The company plans to proceed with the project once it receives data, gathered by the masts in next 6 to 9 months.
Sahara India Power Corporation Limited has also proposed to set up a 2000 MW Coal based power plants in Jharkhand and Chhattisgarh at an estimated investment of Rs. 8000 Cr. each.
On this occasion Mr. Ashok K Bhargava said, "We extend our sincere gratitude to the Government of Orissa for their kind support, cooperation extended to us at all levels of our efforts to initiate the power projects in the state. We are confident that our project will not only serve the Energy requirement of the state and the country but will also bring in all round integrated development in the region of Turla district."
Sahara India Pariwar, considered as one of the most socially responsible corporates of the country, has plans, along with the setting up of the Mega Power Plant, to contribute to the welfare of the people of the Balangir district. The group with the aim of improving the quality of life of the local populace will develop pucca roads in the projects vicinity, make provision for potable drinking water and will also set up primary health and education centre. The Power Plant and its related infrastructure shall further attract investment in the region by Corporate Houses and Entrepreneurs in the Manufacturing, Real Estate, Service Sectors etc. by setting up of establishments, amenities and facilities, including Ancillaries and SMEs.
Commenting on the signing of the MoU Mr. Sushanto Roy, Head – Infrastructure & Housing, Sahara Prime City Limited, said, "It is a moment of great pride for all of us at Sahara India Pariwar as we have joined hands to fulfill the power requirements of the nation. Power Sector also holds a huge business opportunity and we have forward integrated plans to be a major player in all the segments including power generation through conventional and renewable resources, power transmission & distribution, power trading, manufacturing of power equipments etc."
More on Sahara:
• Sahara India Power Corporation Ltd is a 100% subsidiary of Sahara Prime City Limited, the real estate Company of Sahara India Pariwar.
• Sahara Prime City Limited has developed commercial and residential projects which includes townships, premium group housing projects, hospitals, hotels, among other projects.
• The flagship project of SPCL is 'Sahara City Homes', a chain of townships to be developed across 217 cities in India.
• The other projects of SPCL are 'Sahara Star', a luxurious 5 star Deluxe Hotel located near the Domestic Airport in Mumbai, and a 554 bedded Super Specialty, Multi-Disciplinary, Tertiary Care Sahara Hospital in Lucknow.
• Sahara Power was set up in 2001 with the aim to provide reliable and continuous power supply to 'Sahara City Homes'. Each project of Sahara City Homes will need 30 MW of dedicated power, aggregating over 6000 MW.
The MoU was signed by Mr. Pradeep Jena, Commissioner Cum Secretary - Power, on behalf of the Government of Orissa and Mr. Ashok K Bhargava, Chief Advisor and Head – Sahara Power Projects, in the presence of the Hon'ble Chief Minister of Orissa, Shri Naveen Patnaik and other distinguished dignitaries and officials.
To be built on an area of 1,500 acres, the Sahara Power's Turla plant is planned to commission its first Unit of 660 MW by February 2013 while the second unit of 660 MW is expected to be commissioned within 6 to 8 months thereafter. The plant is planned to be set up through Joint Venture Participation with Power Companies from different parts of the world.
Sahara India Power Corporation Limited will develop fuel based or non conventional power plants using the latest and emerging technologies. Sahara Power will set up a 5 MW Grid Interactive Solar Photo Voltaic Power Plant in Dhenkanal District of Orissa at an estimated investment of about Rs. 125 Cr. The Company has already received an in-principle approval from the Government of Orissa through M/s Orissa Renewable Energy Development Agency (OREDA). Sahara Power has tied up with M/s Solar Integrated Technologies Inc. (SIT) USA, as its strategic partner for supply and installation of the required plant and equipment.
In addition, Sahara Power is also planning to set up 25 MW of Wind Power projects in Orissa through a reputed Wind Energy Company which has already set up wind masts at 7 locations. The company plans to proceed with the project once it receives data, gathered by the masts in next 6 to 9 months.
Sahara India Power Corporation Limited has also proposed to set up a 2000 MW Coal based power plants in Jharkhand and Chhattisgarh at an estimated investment of Rs. 8000 Cr. each.
On this occasion Mr. Ashok K Bhargava said, "We extend our sincere gratitude to the Government of Orissa for their kind support, cooperation extended to us at all levels of our efforts to initiate the power projects in the state. We are confident that our project will not only serve the Energy requirement of the state and the country but will also bring in all round integrated development in the region of Turla district."
Sahara India Pariwar, considered as one of the most socially responsible corporates of the country, has plans, along with the setting up of the Mega Power Plant, to contribute to the welfare of the people of the Balangir district. The group with the aim of improving the quality of life of the local populace will develop pucca roads in the projects vicinity, make provision for potable drinking water and will also set up primary health and education centre. The Power Plant and its related infrastructure shall further attract investment in the region by Corporate Houses and Entrepreneurs in the Manufacturing, Real Estate, Service Sectors etc. by setting up of establishments, amenities and facilities, including Ancillaries and SMEs.
Commenting on the signing of the MoU Mr. Sushanto Roy, Head – Infrastructure & Housing, Sahara Prime City Limited, said, "It is a moment of great pride for all of us at Sahara India Pariwar as we have joined hands to fulfill the power requirements of the nation. Power Sector also holds a huge business opportunity and we have forward integrated plans to be a major player in all the segments including power generation through conventional and renewable resources, power transmission & distribution, power trading, manufacturing of power equipments etc."
More on Sahara:
• Sahara India Power Corporation Ltd is a 100% subsidiary of Sahara Prime City Limited, the real estate Company of Sahara India Pariwar.
• Sahara Prime City Limited has developed commercial and residential projects which includes townships, premium group housing projects, hospitals, hotels, among other projects.
• The flagship project of SPCL is 'Sahara City Homes', a chain of townships to be developed across 217 cities in India.
• The other projects of SPCL are 'Sahara Star', a luxurious 5 star Deluxe Hotel located near the Domestic Airport in Mumbai, and a 554 bedded Super Specialty, Multi-Disciplinary, Tertiary Care Sahara Hospital in Lucknow.
• Sahara Power was set up in 2001 with the aim to provide reliable and continuous power supply to 'Sahara City Homes'. Each project of Sahara City Homes will need 30 MW of dedicated power, aggregating over 6000 MW.
Monday, February 9, 2009
IDBI Fortis Plan - Inherit Home, Not Home Loan!
•Unique cover on home loans to absorb impact of interest fluctuations
•Plan ensures you inherit home, not a home loan
•Competitive premiums & comprehensive tax benefits
MUMBAI, February 09, 2009: Striving to ensure that families inherit homes and not the burden of home loans, IDBI Fortis Life Insurance today announced the launch of its unique Homesurance Protection Plan.
Homesurance Protection Plan is a mortgage reducing term insurance plan that secures the policy holder irrespective of interest fluctuations at a nominal cost with high benefits.
“For many in India, owning a home is a long-cherished dream and a lot of hard work and careful planning goes into buying a house with a home finance. A home is the best gift a customer gives to his family and in the event of an unfortunate event, if he were not around, his family would have to bear the burden of the home loan. But, here, the powerful Homesurance Protection Plan ensures that our customer’s family will inherit a home and not certainly the home loan burden,” said Mr. G V Nageswara Rao, CEO and MD, IDBI Fortis Life Insurance Company Ltd.
IDBI Fortis Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe.
IDBI Fortis Homesurance Protection Plan provides full insurance cover for properties even under construction thus ensuring that the beneficiary gets the full sanctioned amount. Thus one can pay up the builder up front, rather than waiting to take another home loan.
Another notable feature of HPP is the joint life cover wherein lives of co-borrowers can be covered jointly, saving on premiums. Joint life cover comes cheaper than taking individual covers separately. In case of the unfortunate death of either of the joint life insured, the loan liability is taken care of, so that the survivor does not have to pay the loan from his pocket.
The premiums paid are eligible for deduction under Sec 80C of the Income Tax Act. Any benefit amount accrued to the beneficiary on the death of the policy holder is also tax-free under Sec 10(10D) of the Income Tax Act.
IDBI Fortis launched its operations on March 2008 with the innovative Wealthsurance Foundation Plan which received a very encouraging response, helping IDBI Fortis race to more than Rs. 200 Cr in issued premiums in record time.
About IDBI Fortis Life Insurance Co. Ltd.
IDBI Fortis Life Insurance Co. Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe.
It is one of the fastest growing new life insurance companies in the country, having launched operations in March 2008 with their innovative product ‘Wealthsurance’. The company has already launched 31 branches and plans to have a pan-India presence with a total of a 100 branches. It also sells through the more than 1000 branches of its promoter banks, IDBI Bank and Federal Bank.
Contact:
BN Kumar - Concept PR
93210 48332
93200 48332
Email: bnk@comnceptpr.com
•Plan ensures you inherit home, not a home loan
•Competitive premiums & comprehensive tax benefits
MUMBAI, February 09, 2009: Striving to ensure that families inherit homes and not the burden of home loans, IDBI Fortis Life Insurance today announced the launch of its unique Homesurance Protection Plan.
Homesurance Protection Plan is a mortgage reducing term insurance plan that secures the policy holder irrespective of interest fluctuations at a nominal cost with high benefits.
“For many in India, owning a home is a long-cherished dream and a lot of hard work and careful planning goes into buying a house with a home finance. A home is the best gift a customer gives to his family and in the event of an unfortunate event, if he were not around, his family would have to bear the burden of the home loan. But, here, the powerful Homesurance Protection Plan ensures that our customer’s family will inherit a home and not certainly the home loan burden,” said Mr. G V Nageswara Rao, CEO and MD, IDBI Fortis Life Insurance Company Ltd.
IDBI Fortis Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe.
IDBI Fortis Homesurance Protection Plan provides full insurance cover for properties even under construction thus ensuring that the beneficiary gets the full sanctioned amount. Thus one can pay up the builder up front, rather than waiting to take another home loan.
Another notable feature of HPP is the joint life cover wherein lives of co-borrowers can be covered jointly, saving on premiums. Joint life cover comes cheaper than taking individual covers separately. In case of the unfortunate death of either of the joint life insured, the loan liability is taken care of, so that the survivor does not have to pay the loan from his pocket.
The premiums paid are eligible for deduction under Sec 80C of the Income Tax Act. Any benefit amount accrued to the beneficiary on the death of the policy holder is also tax-free under Sec 10(10D) of the Income Tax Act.
IDBI Fortis launched its operations on March 2008 with the innovative Wealthsurance Foundation Plan which received a very encouraging response, helping IDBI Fortis race to more than Rs. 200 Cr in issued premiums in record time.
About IDBI Fortis Life Insurance Co. Ltd.
IDBI Fortis Life Insurance Co. Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe.
It is one of the fastest growing new life insurance companies in the country, having launched operations in March 2008 with their innovative product ‘Wealthsurance’. The company has already launched 31 branches and plans to have a pan-India presence with a total of a 100 branches. It also sells through the more than 1000 branches of its promoter banks, IDBI Bank and Federal Bank.
Contact:
BN Kumar - Concept PR
93210 48332
93200 48332
Email: bnk@comnceptpr.com
Wednesday, February 4, 2009
India Post gold retailing pilot a success; soon to launch Gold Accumulation Plan
Over 10,000 customers since October 15, 2008
More than 24,724 gold coins sold
Number of branches currently selling gold coins increased from 108 to 155
Soon to launch its Gold Accumulation Plan (GAP) - a first-of-its kind initiative by India Post in association with Reliance Money and World Gold Council
GAP to be modeled on the lines of Postal Savings Scheme
Mumbai, 4th February, 2009: India Post today announced the success of its Gold retailing pilot project in association with Reliance Money and World Gold Council. It also announced plans to launch Gold Accumulation Plan (GAP) via its retail network.
The announcement was made by Ms. Sunita Trivedi, Chief General Manager, India Post today.
Over 10,000 customers have purchased 24,742 gold coins through India Post outlets since October 15, 2008.
“The response that we have received to our pilot project has been highly encouraging. Based on the increased demand we increased the number of outlet retailing gold coins from 108 to 155. Customers can now purchase gold coins from any India Post outlet across 9 states in the country. Going forward, we not only plan to further expand this service to another 100 India Post outlets but also launch our Gold Accumulation Plan to help customers make systematic investments in gold,” said Ms. Trivedi.
The proposed GAP will offer customers a SIP (Systematic Investment Plan) like option while investing in gold through accumulation of small quantities as and when they have the money during a particular month. Hence, customers will not need to invest a huge lump sum at a single point of time.
“Retailing gold through India Post is a ground-breaking initiative in the Indian investment sector and one of its kind in the world. The success of this pilot study is a true reflection of the faith an average Indian has in India Post and in gold as an asset class. Gold is also the most credible form of Social Security for the women of India and introduction of GAP by the Indian Postal Services will be one more innovation from them in the service of these women. This initiative will be another first by a highly credible organized player in the Indian investment sector” said Mr. Ajay Mitra, Managing Director of World Gold Council, India.
Under GAP, the customer will benefit from the average pricing of gold over a period of time, as more gold grams will be credited when the price of gold is low and lesser will be purchased when the price is high. The quantity of gold to be invested in or grammage (such as 25/ 50/ 100 grams) and the tenure (such as 12/ 24/ 36 months) specified can be increased as and when desired by the customer.
“We are extremely happy with the success of the gold retailing pilot and are looking forward to introducing the GAP with India Post. Through this pioneering move, we aim take the culture of structured investments in gold to the masses by giving them the convenience of investing in small quantities. We are sure this move will bring about a paradigm shift in the way people invest in gold in the country,” said Mr. Sudip Bandyopadhyay, Director and CEO, Reliance Money.
For details contact –
Reliance Money
Mumbai: Tamanna Khanna tamanna.khanna@relianceada.com +91-93236 09510
Delhi: Sanjiv Kumar sanjiv.k.sinha@relianceada.com +91-93124 56677
Concept PR: B. N. Kumar bnk@conceptpr.com +91-9321048332
More than 24,724 gold coins sold
Number of branches currently selling gold coins increased from 108 to 155
Soon to launch its Gold Accumulation Plan (GAP) - a first-of-its kind initiative by India Post in association with Reliance Money and World Gold Council
GAP to be modeled on the lines of Postal Savings Scheme
Mumbai, 4th February, 2009: India Post today announced the success of its Gold retailing pilot project in association with Reliance Money and World Gold Council. It also announced plans to launch Gold Accumulation Plan (GAP) via its retail network.
The announcement was made by Ms. Sunita Trivedi, Chief General Manager, India Post today.
Over 10,000 customers have purchased 24,742 gold coins through India Post outlets since October 15, 2008.
“The response that we have received to our pilot project has been highly encouraging. Based on the increased demand we increased the number of outlet retailing gold coins from 108 to 155. Customers can now purchase gold coins from any India Post outlet across 9 states in the country. Going forward, we not only plan to further expand this service to another 100 India Post outlets but also launch our Gold Accumulation Plan to help customers make systematic investments in gold,” said Ms. Trivedi.
The proposed GAP will offer customers a SIP (Systematic Investment Plan) like option while investing in gold through accumulation of small quantities as and when they have the money during a particular month. Hence, customers will not need to invest a huge lump sum at a single point of time.
“Retailing gold through India Post is a ground-breaking initiative in the Indian investment sector and one of its kind in the world. The success of this pilot study is a true reflection of the faith an average Indian has in India Post and in gold as an asset class. Gold is also the most credible form of Social Security for the women of India and introduction of GAP by the Indian Postal Services will be one more innovation from them in the service of these women. This initiative will be another first by a highly credible organized player in the Indian investment sector” said Mr. Ajay Mitra, Managing Director of World Gold Council, India.
Under GAP, the customer will benefit from the average pricing of gold over a period of time, as more gold grams will be credited when the price of gold is low and lesser will be purchased when the price is high. The quantity of gold to be invested in or grammage (such as 25/ 50/ 100 grams) and the tenure (such as 12/ 24/ 36 months) specified can be increased as and when desired by the customer.
“We are extremely happy with the success of the gold retailing pilot and are looking forward to introducing the GAP with India Post. Through this pioneering move, we aim take the culture of structured investments in gold to the masses by giving them the convenience of investing in small quantities. We are sure this move will bring about a paradigm shift in the way people invest in gold in the country,” said Mr. Sudip Bandyopadhyay, Director and CEO, Reliance Money.
For details contact –
Reliance Money
Mumbai: Tamanna Khanna tamanna.khanna@relianceada.com +91-93236 09510
Delhi: Sanjiv Kumar sanjiv.k.sinha@relianceada.com +91-93124 56677
Concept PR: B. N. Kumar bnk@conceptpr.com +91-9321048332
Aditya Birla Financial Services Group scales new peaks
•Consolidated revenues of the financial services businesses crossed Rs. 3043 crores for the nine months ended 31st December, 2008, as against Rs. 2016 crores during the corresponding period, last year - representing an impressive growth of 51%
•Both the life insurance and mutual fund businesses among Top 5 in the private sector in the country, with the life business achieving a market share of 8.5% (amongst private sector players) and the mutual fund business 8.7%.
MUMBAI, February 04, 2009: Aditya Birla Nuvo has a strong presence across various financial verticals that include life insurance, asset management, distribution & wealth management, security based lending, insurance broking & advisory services and private equity.
The results for Q3 2008-09 and the 9 months ended 31st December 2008 reflect continued strong momentum across all the verticals.
Commenting on the performance, Ajay Srinivasan, Chief Executive - Financial Services, Aditya Birla Group, said, "We continue to remain excited with the India story and the yet under penetrated financial services opportunity. We have created a strong foundation with the products, distribution, team and brand in place. And the results are showing. As a manufacturer and distributor of products, today, we can meet virtually all the financial needs of our target customer, just short of a savings or current account. We believe that looking ahead there is opportunity to implement learnings from the year gone by, while continuing to emerge much stronger."
Some of the highlights for the 9 months ended 31st December 2008, across the businesses, were as follows:
BIRLA SUN LIFE INSURANCE
•An annualized premium of Rs. 1810 crores, as against Rs. 1222 crores for the same period last year.
•While the private players grew by 26%, BSLI achieved a 62% year on year growth.
•More significantly, this growth comes at a time when the industry has de-grown for the month of December 2008 by 23%.
•The growth has seen BSLI move to the 5th rank amongst private players within the industry.
•The market share has gone up to 8.5%, up from 6.6% in December 2007.
•Product gaps were filled with launch of Freedom 58 and Health Plan.
BIRLA SUN LIFE ASSET MANAGEMENT COMPANY
•The average domestic assets under management grew to Rs. 36,565 crores as on December 31, 2008.
•While the industry registered a fall of 23%, BSLAMC grew by 20% year on year.
•BSLAMC increased its reach to a total of 116 branches, up from 74 in December 2007
•The market share has gone up to 8.7%, from 5.6% in December 2007.
•Fund performance remained strong with fixed income especially being noteworthy. Overall 17 out of 41 funds have got a 4/5 star rating from Value Research.
BIRLA SUN LIFE DISTRIBUTION
•The company's distribution presence was enhanced with the numbers of branches growing to 40 and number of channel partner increasing over the period
•Product gaps were filled with the introduction of Fixed Deposits, General Insurance and other investment products
BIRLA GLOBAL FINANCE
•Revenues grew from Rs. 80 crores to Rs. 120 crores, a YOY growth of 50%.
•PBT grew from Rs. 25 crores to Rs. 42 crores, a YOY growth of 65%.
•The general insurance advisory services business witnessed a YOY growth of 33% in premium placed as of YTD December 2008
ADITYA BIRLA CAPITAL ADVISORS
•The Private Equity business received SEBI approval in December 2008
•In Q1 2009, the company will launch its maiden fund.
•Both the life insurance and mutual fund businesses among Top 5 in the private sector in the country, with the life business achieving a market share of 8.5% (amongst private sector players) and the mutual fund business 8.7%.
MUMBAI, February 04, 2009: Aditya Birla Nuvo has a strong presence across various financial verticals that include life insurance, asset management, distribution & wealth management, security based lending, insurance broking & advisory services and private equity.
The results for Q3 2008-09 and the 9 months ended 31st December 2008 reflect continued strong momentum across all the verticals.
Commenting on the performance, Ajay Srinivasan, Chief Executive - Financial Services, Aditya Birla Group, said, "We continue to remain excited with the India story and the yet under penetrated financial services opportunity. We have created a strong foundation with the products, distribution, team and brand in place. And the results are showing. As a manufacturer and distributor of products, today, we can meet virtually all the financial needs of our target customer, just short of a savings or current account. We believe that looking ahead there is opportunity to implement learnings from the year gone by, while continuing to emerge much stronger."
Some of the highlights for the 9 months ended 31st December 2008, across the businesses, were as follows:
BIRLA SUN LIFE INSURANCE
•An annualized premium of Rs. 1810 crores, as against Rs. 1222 crores for the same period last year.
•While the private players grew by 26%, BSLI achieved a 62% year on year growth.
•More significantly, this growth comes at a time when the industry has de-grown for the month of December 2008 by 23%.
•The growth has seen BSLI move to the 5th rank amongst private players within the industry.
•The market share has gone up to 8.5%, up from 6.6% in December 2007.
•Product gaps were filled with launch of Freedom 58 and Health Plan.
BIRLA SUN LIFE ASSET MANAGEMENT COMPANY
•The average domestic assets under management grew to Rs. 36,565 crores as on December 31, 2008.
•While the industry registered a fall of 23%, BSLAMC grew by 20% year on year.
•BSLAMC increased its reach to a total of 116 branches, up from 74 in December 2007
•The market share has gone up to 8.7%, from 5.6% in December 2007.
•Fund performance remained strong with fixed income especially being noteworthy. Overall 17 out of 41 funds have got a 4/5 star rating from Value Research.
BIRLA SUN LIFE DISTRIBUTION
•The company's distribution presence was enhanced with the numbers of branches growing to 40 and number of channel partner increasing over the period
•Product gaps were filled with the introduction of Fixed Deposits, General Insurance and other investment products
BIRLA GLOBAL FINANCE
•Revenues grew from Rs. 80 crores to Rs. 120 crores, a YOY growth of 50%.
•PBT grew from Rs. 25 crores to Rs. 42 crores, a YOY growth of 65%.
•The general insurance advisory services business witnessed a YOY growth of 33% in premium placed as of YTD December 2008
ADITYA BIRLA CAPITAL ADVISORS
•The Private Equity business received SEBI approval in December 2008
•In Q1 2009, the company will launch its maiden fund.
Monday, February 2, 2009
Reliance Money launches online magazine - Money Advisor
India's first e-magazine that deals in equity and debt funds
Focus on research and views on sectors and not specific stocks
To carry interviews of senior fund managers/CIO's
Crisp and concise content
Mumbai, February 2, 2009: Reliance Money, part of the Reliance Anil Dhirubhai Ambani Group, today announced the launch of its online Mutual Fund Magazine – Money Advisor that deals with equity as well as debt funds as a part of its investor education drive.
The announcement was made by Mr. Sudip Bandyopadhyay, Director and CEO, Reliance Money here today.
Commenting on the launch, Mr. Bandyopadhyay said, "Reliance Money endeavors to change the way people choose and use financial services in this country. Investor education forms an important ingredient in this endeavor and we are happy to launch Money Advisor – our monthly magazine on the Mutual Fund Industry in India. While most research reports are complex to understand, we have tried to make Money Advisor easy to understand for the retail investor while focusing on both equity and debt funds so far neglected in most research.'
The magazine will provide a synopsis on the Mutual Fund industry and include the latest trends in AUMs, overview and recommendations on equity and debt funds, performance snapshot, interest rate scenario and fixed income update, economic review apart from sector updates.
It will also have views shared by various Fund Managers/ CIOs and an investor education series.
Money Advisor will be mailed to all Reliance Money customers and distributors. At present, Reliance Money has over three million customers and more than 10,000 outlets across 5,165 cities and towns.
About Reliance Money
www.reliancemoney.com
Reliance Money, a part of the Reliance Anil Dhirubhai Ambani Group is a comprehensive financial services and solution provider, providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Wealth Management Services, Mutual Funds, IPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services.
The largest broking house in India with 3 million customers and a wide network of over 10,000 outlets and 20,000 touch points in 5,000+ locations. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. The average daily volume on the stock exchanges is Rs. 3,000 crores, representing approximately 4% of the total stock exchange volume.
Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth.
For details contact –
Reliance Money
Mumbai: Tamanna Khanna tamanna.khanna@relianceada.com +91-93236 09510
Delhi: Sanjiv Kumar sanjiv.k.sinha@relianceada.com +91-93124 56677
Concept PR: B. N. Kumar bnk@conceptpr.com +91-9321048332
Focus on research and views on sectors and not specific stocks
To carry interviews of senior fund managers/CIO's
Crisp and concise content
Mumbai, February 2, 2009: Reliance Money, part of the Reliance Anil Dhirubhai Ambani Group, today announced the launch of its online Mutual Fund Magazine – Money Advisor that deals with equity as well as debt funds as a part of its investor education drive.
The announcement was made by Mr. Sudip Bandyopadhyay, Director and CEO, Reliance Money here today.
Commenting on the launch, Mr. Bandyopadhyay said, "Reliance Money endeavors to change the way people choose and use financial services in this country. Investor education forms an important ingredient in this endeavor and we are happy to launch Money Advisor – our monthly magazine on the Mutual Fund Industry in India. While most research reports are complex to understand, we have tried to make Money Advisor easy to understand for the retail investor while focusing on both equity and debt funds so far neglected in most research.'
The magazine will provide a synopsis on the Mutual Fund industry and include the latest trends in AUMs, overview and recommendations on equity and debt funds, performance snapshot, interest rate scenario and fixed income update, economic review apart from sector updates.
It will also have views shared by various Fund Managers/ CIOs and an investor education series.
Money Advisor will be mailed to all Reliance Money customers and distributors. At present, Reliance Money has over three million customers and more than 10,000 outlets across 5,165 cities and towns.
About Reliance Money
www.reliancemoney.com
Reliance Money, a part of the Reliance Anil Dhirubhai Ambani Group is a comprehensive financial services and solution provider, providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Wealth Management Services, Mutual Funds, IPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services.
The largest broking house in India with 3 million customers and a wide network of over 10,000 outlets and 20,000 touch points in 5,000+ locations. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. The average daily volume on the stock exchanges is Rs. 3,000 crores, representing approximately 4% of the total stock exchange volume.
Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth.
For details contact –
Reliance Money
Mumbai: Tamanna Khanna tamanna.khanna@relianceada.com +91-93236 09510
Delhi: Sanjiv Kumar sanjiv.k.sinha@relianceada.com +91-93124 56677
Concept PR: B. N. Kumar bnk@conceptpr.com +91-9321048332
Sunday, February 1, 2009
Banks must heed to RBI's call to cut rates
by Ashok Handoo*
By not reducing any of the key rates in its third-quarter review of the monetary policy, the Reserve Bank has sent a clear signal to commercial banks that they need to reduce their lending rates and make cheaper credit available to the customers. RBI is clearly of the view that banks have yet to pass on the benefits of the previous cuts in interest rates announced by it. Obviously, the Reserve Bank is not happy with the response of the banks, particularly private and foreign banks, to the initiatives taken by it so far. It feels there is enough scope for banks to do more.
As it is, the Reserve Bank in a space of just one quarter brought down the repo rate (the rate at which RBI lends overnight funds to banks) from 9 to 5.5 percent. The reverse repot rate (the rate at which RBI accepts deposits from banks) was brought down to 4 percent, what the RBI Governor Dr. D. Subbarao described as “historically lowest level”. But as he pointed out it’s “transmission in the credit market has so far been subdued”. RBI firmly believes that it’s policy easing had allowed banks considerable room to respond more actively which has not happened. It has thus adopted a wait and watch policy for the time being, to monitor the response from the banks and give them more time.
The bankers, on the other hand, feel that they have responded to the extent possible. They argue that the average cost of funds to them is still high and lending and borrowing rates can come down only when the fund costs come down. Some even expressed disappointment at the RBI “holding back it’s activism” in reducing the key rates to make cheaper funds available to them. But by and large, bankers agree that the RBI policy is on expected lines.
Through its earlier initiatives the RBI has infused liquidity of over Rs. 4 lakh crore into the system improving the liquidity situation, significantly.
It is not that the doors for further reduction in key rates have been closed. On the contrary, the RBI has made it clear that it will respond to any adverse development. So, more cuts outside the policy can happen anytime. The current pause could only be a temporary thing.
Another message that the RBI has given is that there is a clear evidence of deeper consequences of the global downturn on the Indian economy which can lead to its further slowdown. Industrial activity, particularly in the manufacturing and the infrastructural sectors, is decelerating. The services sector too, which has been the prime engine of growth for the last several years, will slowdown mainly in construction, transport, hotels, tourism and trade sectors. . The consequences have been more pronounced after October 2008 which has led the RBI to revise its GDP growth projection for the current financial year to 7 percent against the earlier 7.7 percent. In fact the Survey conducted by the 13 professional forecasters has put it at 6.8 percent.
That is all the more reason for the banks to respond more vigorously to the rate cuts already effected.
At the same time , there are two positive factors at play. One, the inflation rate has been falling sharply for the last 10 months to 5.6 % with only a small aberration in the latest figure which is attributed to the Truckers strike during that period. The current projections are that the rate will fall further to about 3 percent by March end, though it is reflected more in the Wholesale Price Index (WPI) than in the Consumer Price Index (CPI).That is primarily because of the fall in international crude oil prices, steel and select food items. A fall in demand has also played some role in this.
The second positive factor is the expected increase in consumption demand in the days ahead, reflecting rise in basic exemption limits in tax and tax slabs, the 6th pay commission award, debt waiver to farmers, and the expenditure that would be incurred in the run up to elections in a few months from now.
All this will allow an elbow room to the government to cut the key rates further, if the situation so demands.
The RBI has also warned that the fiscal measures to boost growth and lower revenue receipts could sharply widen the fiscal deficit from the earlier estimate of 2.5 percent to 5.9 % .The combined shortfall of the centre and the state governments could come to 8.5 %, or even more.
As the Prime Minister’s Economic Advisory Council pointed out the other day, both the saving and investment rates are likely to be lower in the current fiscal. The saving rates may fall due to larger negative savings of the Government. The investment rate will be less by 2.5 percentage points compared to the previous year, due to financing constraints facing Indian enterprises.
The widening trade deficit is a matter of concern as is the moderation in capital inflows. Though the Foreign Direct Investment (FDI) has shown an increase in the current financial year the portfolio investment has recorded a substantial outflow. The institutional investors have sold about $10 billion of their investment in Indian companies to cover losses in their home markets.
With Indian economy getting more and more integrated with the world economy and the US, Europe and Japan already experiencing recession, India can not remain totally insulated. A less than optimistic sentiment in the economy is therefore quite natural. As the Prime Minster pointed out India’s economic problems would not be over in the current year and could spill over into 2009-10, but the “Government will continue its efforts for a supporting environment next year also. Both monetary and fiscal policy will have to be tailored.” The Deputy Charmin of the Planning Commission Shri Montek Singh Ahluwalia has also spoken of innovative interim measures. These include floating of tax- free bonds ‘to provide refinancing facilities to banks to encourage them to offer long term debts” to companies investing in infrastructure sectors which have long gestation periods.
It is a matter of satisfaction that everybody agrees that the Indian economy will recover earlier than the world economy, once things begin to improve. (PIB Features)
*Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of PIB.
By not reducing any of the key rates in its third-quarter review of the monetary policy, the Reserve Bank has sent a clear signal to commercial banks that they need to reduce their lending rates and make cheaper credit available to the customers. RBI is clearly of the view that banks have yet to pass on the benefits of the previous cuts in interest rates announced by it. Obviously, the Reserve Bank is not happy with the response of the banks, particularly private and foreign banks, to the initiatives taken by it so far. It feels there is enough scope for banks to do more.
As it is, the Reserve Bank in a space of just one quarter brought down the repo rate (the rate at which RBI lends overnight funds to banks) from 9 to 5.5 percent. The reverse repot rate (the rate at which RBI accepts deposits from banks) was brought down to 4 percent, what the RBI Governor Dr. D. Subbarao described as “historically lowest level”. But as he pointed out it’s “transmission in the credit market has so far been subdued”. RBI firmly believes that it’s policy easing had allowed banks considerable room to respond more actively which has not happened. It has thus adopted a wait and watch policy for the time being, to monitor the response from the banks and give them more time.
The bankers, on the other hand, feel that they have responded to the extent possible. They argue that the average cost of funds to them is still high and lending and borrowing rates can come down only when the fund costs come down. Some even expressed disappointment at the RBI “holding back it’s activism” in reducing the key rates to make cheaper funds available to them. But by and large, bankers agree that the RBI policy is on expected lines.
Through its earlier initiatives the RBI has infused liquidity of over Rs. 4 lakh crore into the system improving the liquidity situation, significantly.
It is not that the doors for further reduction in key rates have been closed. On the contrary, the RBI has made it clear that it will respond to any adverse development. So, more cuts outside the policy can happen anytime. The current pause could only be a temporary thing.
Another message that the RBI has given is that there is a clear evidence of deeper consequences of the global downturn on the Indian economy which can lead to its further slowdown. Industrial activity, particularly in the manufacturing and the infrastructural sectors, is decelerating. The services sector too, which has been the prime engine of growth for the last several years, will slowdown mainly in construction, transport, hotels, tourism and trade sectors. . The consequences have been more pronounced after October 2008 which has led the RBI to revise its GDP growth projection for the current financial year to 7 percent against the earlier 7.7 percent. In fact the Survey conducted by the 13 professional forecasters has put it at 6.8 percent.
That is all the more reason for the banks to respond more vigorously to the rate cuts already effected.
At the same time , there are two positive factors at play. One, the inflation rate has been falling sharply for the last 10 months to 5.6 % with only a small aberration in the latest figure which is attributed to the Truckers strike during that period. The current projections are that the rate will fall further to about 3 percent by March end, though it is reflected more in the Wholesale Price Index (WPI) than in the Consumer Price Index (CPI).That is primarily because of the fall in international crude oil prices, steel and select food items. A fall in demand has also played some role in this.
The second positive factor is the expected increase in consumption demand in the days ahead, reflecting rise in basic exemption limits in tax and tax slabs, the 6th pay commission award, debt waiver to farmers, and the expenditure that would be incurred in the run up to elections in a few months from now.
All this will allow an elbow room to the government to cut the key rates further, if the situation so demands.
The RBI has also warned that the fiscal measures to boost growth and lower revenue receipts could sharply widen the fiscal deficit from the earlier estimate of 2.5 percent to 5.9 % .The combined shortfall of the centre and the state governments could come to 8.5 %, or even more.
As the Prime Minister’s Economic Advisory Council pointed out the other day, both the saving and investment rates are likely to be lower in the current fiscal. The saving rates may fall due to larger negative savings of the Government. The investment rate will be less by 2.5 percentage points compared to the previous year, due to financing constraints facing Indian enterprises.
The widening trade deficit is a matter of concern as is the moderation in capital inflows. Though the Foreign Direct Investment (FDI) has shown an increase in the current financial year the portfolio investment has recorded a substantial outflow. The institutional investors have sold about $10 billion of their investment in Indian companies to cover losses in their home markets.
With Indian economy getting more and more integrated with the world economy and the US, Europe and Japan already experiencing recession, India can not remain totally insulated. A less than optimistic sentiment in the economy is therefore quite natural. As the Prime Minster pointed out India’s economic problems would not be over in the current year and could spill over into 2009-10, but the “Government will continue its efforts for a supporting environment next year also. Both monetary and fiscal policy will have to be tailored.” The Deputy Charmin of the Planning Commission Shri Montek Singh Ahluwalia has also spoken of innovative interim measures. These include floating of tax- free bonds ‘to provide refinancing facilities to banks to encourage them to offer long term debts” to companies investing in infrastructure sectors which have long gestation periods.
It is a matter of satisfaction that everybody agrees that the Indian economy will recover earlier than the world economy, once things begin to improve. (PIB Features)
*Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of PIB.
Subscribe to:
Posts (Atom)
