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Noel set to take over as Tata International MD

free stock tips — Fri, 30 Jul 2010 06:28:37 +0000

The role of the 53-year-old Noel Tata just got bigger in India’s biggest conglomerate on the 106th birth anniversary of JRD Tata, setting tongues wagging, yet again, on it being a step in the group’s succession plan for top job.

The reclusive Tata, who grew the retail business more than 10-fold in less than a decade, will be managing director at Tata International, a leather and engineering trading company with presence in 10 African nations, a region where it wants to double revenues to $1 billion in two years.

The Tata group that has kept everyone guessing on the successor to Ratan Tata, the 73-year-old chairman due to retire in two years, on Thursday said, “we pledge to sustain his legacy,” in advertisements commemorating JRD’s birthday. It declined comment on speculation Noel Tata may succeed Ratan.

“Africa is one of the largest markets and any business plan needs to be tested there to succeed,” said a senior Tata Sons executive on the move to appoint Noel to head Tata International. He did not want to be identified.

The assignment may well be a test for Noel Tata to prove his mettle to get the throne. While Tatas are a household name in India, its increasing revenues from overseas markets and high-profile acquisitions such as Jaguar-Land Rover are yet to give it a kind of an international profile commensurate with its size.

“Despite the fact that 65% of the group’s revenues now come from outside India, the Tata brand is still not well known in various countries,” says business historian Morgen Witzel, who has authored a book on the Tata brand. “While some know that Tatas make steel and chemicals and are into software, knowledge about them is largely sketchy overseas.”

Shareholders and management gurus are eager to learn how Ratan Tata eventually guides succession planning. While some believe that the group requires a professional as a head instead of someone with the surname given the sprawling empire, others think that a family member could be more committed to the businesses to carry on the value system.

“The successor, I would hope, would have integrity and our value systems in the forefront and hopefully would carry on the path that we have tried to set for the company’s growth,” Ratan Tata told a conference in November.

Tatas are remembered by the masses as much for their hospitals, educational institutions such as the Indian Institute of Science and Tata Institute of Social Sciences, than for their businesses. Above all it needs someone at the helm to keep echoing what Ratan Tata said about remaining steadfast on the Nano’s Rs 1-lakh price tag at launch. “A promise is a promise.”

Nothing better reflects the group’s values than what JRD Tata said, “I do not want India to be an economic superpower. I want India to be a happy country.”

At the same time, the horizon has expanded under Ratan Tata with steel and automobile acquisitions in the UK for billions of dollars.

“We are looking both within the organization and outside,” Ratan Tata had told the conference. “It would certainly be easier if that candidate were an Indian national. It could also be an expatriate sitting in that position.”

While no outsider is in the vicinity, Noel Tata role does appear to be growing. Unlike most business establishments, the biggest factor in the Tata House is not just profits, but values.

Last month, Noel became a non-executive chairman at Tata Investment Corp, a finance company with a portfolio of investments, including Tata Mutual Fund.

The latest appointment may be to expose him to diverse business that the critics say he lacks experience in, despite making a success out of Trent, which was just a shell company.

With giants such as Tata Steel and Tata Motors headed by professionals at the executive level, there may not be much scope for Noel Tata to get into them. But Tata International, may just be the right platform.

Its Johannesburg-headquartered Tata Africa Holdings aims to more than double the revenue to $1 billion in two years, from $500 million last year. It employs more than 750 people and operates in sectors such as information systems, engineering, services, materials, consumer products and chemicals. Other nations include, Zambia, Tanzania and Ghana.

Noel Tata grew Trent from a single store company in 1998, to over 90 stores across retail formats that include Westside, Star Bazaar, Landmark, Fashion Yatra, Sisley and Zara. The retailer’s consolidated revenue grew to Rs 1,137 crore in 2009-10, from Rs 8 crore in 1998-99.

What could work in favour of Noel Tata may be that he has the support of Shapoorji Pallonji Mistry family which he is married into. The Mistrys are the biggest shareholders in Tata Sons, the group’s holding company. But there has been no official word on it either.

Knowing Noel Tata

The Man

Born in 1956 to Naval and Simone Tata, this half-brother of Ratan Tata has run retail company Trent for 12 years. He began his career at trading firm Tata International and rose to become a senior general manager. His father-in-law Pallonji Mistry is the largest shareholder of Tata Sons.

His Trent years

The younger Tata was thrust into the job of heading Trent when retailing was at its infancy in India. With help from colleagues at group company Lakme, he opened his retail innings by taking over Bangalore-based Littlewoods, which eventually became Trent’s departmental store Westside. During his tenure, Trent’s turnover rose to `1,137 crore from `8 crore.

Low-profile Person

Mr Tata has stayed away from media limelight. He played a major role in forming Retailers Association of India along with Future Group’s Kishore Biyani and Shoppers Stop’s BS Nagesh. Often criticised for his slow approach, he proved his critics wrong when all other retailers, except Trent, had to close down stores and retrench employees during the downturn.

The Casual Man

Likes to unwind with his family at Mumbai’s famous weekend get-away — Alibaug. “Alibaug’s Kashid beach is his favourite picnic spot,” said a Tata Group person. Goes for annual vacations and London, where he had spent time as a student, still remains one of his favourite destinations.

Source : News – Economic Times / Photo – Live mint

Noel set to take over as Tata International MD is a post from: Indian Stock Market Tips

Sun Pharma net profit more than doubles up to Rs 322.63 crore for Q1

admin — Thu, 29 Jul 2010 07:12:00 +0000

Sun Pharmaceutical Industries has announced the unaudited results for the quarter ended June 30, 2010.

The Company has posted a surge of 165.51% in net profit after tax of Rs 322.63 crore for the quarter ended June 30, 2010 as compared to Rs 121.51 crore for the quarter ended June 30, 2009. Total Income has increased from Rs 491.41 crore for the quarter ended June 30, 2009 to Rs 791.71 crore for the quarter ended June 30, 2010.

On consolidated basis, the group’s net profit after minority interest has zoomed 244.43% at Rs 564.32 crore for the quarter ended June 30, 2010 as compared to Rs 163.84 crore for the quarter ended June 30, 2009. Total Income has increased from Rs 814.67 crore for the quarter ended June 30, 2009 to Rs 1390.94 crore for the quarter ended June 30, 2010.

Sun Pharma net profit more than doubles up to Rs 322.63 crore for Q1 is a post from: Indian Stock Market Tips

HDFC Bank to hike deposit rates, others to follow

admin — Thu, 29 Jul 2010 03:10:31 +0000

One day after the Credit Policy, banks have started pushing up deposit rates.

HDFC Bank was the first of the block raising deposit rates from 25 to 50 basis points, reports CNBC-TV18.

Central Bank of India will hike deposit rates by 25-50 bps from August. Sources at Axis Bank said they too should be shortly raising rates.

ICICI Bank said their board meeting is on July 31 and while they can’t be sure what decision will be taken, chances of a deposit rate hike can’t be ruled out. Some PSU banks said they may wait longer.

HDFC Bank to hike deposit rates, others to follow is a post from: Indian Stock Market Tips

GIC Housing Finance gains on higher Q1 bottom line

admin — Wed, 28 Jul 2010 07:44:00 +0000

GIC Housing Finance gained 2.51% to Rs 122.60 at 13:20 IST on BSE, after net profit rose 14.63% to Rs 19.35 crore on 0.22% increase in total income to Rs 78.02 crore in Q1 June 2010 over Q1 June 2009.

The company declared its results during trading hours today, 27 July 2010. Meanwhile, the BSE Sensex was up 88.46 points, or 0.49% at 18,108.51.

On BSE, 3.20 lakh shares were traded in the counter as against an average daily volume of 4.19 lakh shares in the past one quarter.

The stock hit a high of Rs 124.70 and a low of Rs 119.20 so far during the day. The stock had hit a lifetime high of Rs 127.80 on 23 July 2010 and a 52-week low of Rs 73 on 12 August 2009.

The small-cap stock had outperformed the market over the past one month till 26 July 2010, rising 21.11% as compared to the Sensex’s return of 2.54%. It had also outperformed the market in the past one quarter, gaining 33.63% as compared to the Sensex’s 1.55% rise.

The company has an equity capital of Rs 53.85 crore. Face value per share is Rs 10.

GIC Housing Finance gains on higher Q1 bottom line is a post from: Indian Stock Market Tips

Titan Inds Q1 net up on robust retail growth

admin — Wed, 28 Jul 2010 04:40:00 +0000

“We have witnessed a strong retail growth across all our brands and retail chains,” Bhaskar Bhat, managing director, said.

The firm currently has 568 retail outlets across all its business segments which include watches, jewellery and eyewear.

Watch and jewellery maker Titan Industries Ltd on Tuesday posted robust first-quarter numbers on the back of a strong retail performance

Titan posted a net profit of Rs813 million from Rs460.4 million in the same period a year ago. Net sales grew 42% at Rs12.53 billion.

“The growth in watches as well as jewellery was driven by a good wedding season in quarter one in the domestic market. The Asian markets are looking up and the watch business in the overseas markets grew by 52% over last year,” Bhat said.

Titan, which retails watches under a range of brands including the premium Titan and the economy brand Sonata, said its watch segment reported an income of Rs2.54 billion, up 22% from the same quarter a year earlier.

The firm’s jewellery business posted a 50% rise in income to Rs9.5 billion. The firm sells jewellery under the ‘Tanishq´ and ‘Goldplus´ brand, retails accessories such as eyewear under ‘Titan Eye´ and is also into the precision engineering business.

Shares of the firm ended up 1.33% at Rs2,824.3 in a firm Mumbai market.

Titan Inds Q1 net up on robust retail growth is a post from: Indian Stock Market Tips

Reliance Inds Q1 net up 32% on higher gas output

admin — Tue, 27 Jul 2010 17:54:25 +0000

Energy group Reliance Industries posted a 32% rise in fiscal first-quarter profit, slightly better-than-expected, helped by higher gas output from its fields off India’s east coast and improved refining margins.

The company posted April-June net profit of Rs4,851 crore versus Rs3,666 crore a year earlier

India’s largest listed conglomerate, controlled by billionaire Mukesh Ambani and with interests in petrochemicals, refining, oil and gas exploration, and retail, said it saw improved margins across all its businesses in the June quarter.

Reliance Industries, which has been looking to build its business beyond the domestic energy sector, recently made a dramatic return to India’s telecom arena and has announced plans to enter the country’s power sector.

“Reliance has also committed itself to participate in the high growth and exciting area of broadband wireless,” Ambani said in a statement.

“Both these initiatives are in line with the strategy to identify and invest in new, value creating businesses.”

In June, the firm said it would invest $1.36 billion in the US shale gas assets of Pioneer Natural Resources, its second such investment in as many months.

Reliance posted April-June net profit of Rs4,851 crore ($1.04 billion) versus Rs3,666 crore ($785 million) a year earlier.

A Reuters poll had forecast quarterly net profit of Rs4,830 crore. Gross refining margins at Reliance’s flagship refining business showed signs of recovery and stood at $7.3 per barrel for the June quarter, but was still lower than market forecasts for $7.7 a barrel.

The margins stood at $6.8 a barrel in the year-earlier quarter. Reliance GRMs had dropped 24% in the March quarter, and had nearly halved in the December quarter. Analysts expect margins to rise as the global economy recovers.

Ambani, the world’s fourth-richest man, struck a deal in May with his long-estranged younger brother Anil allowing them to compete directly with each other. Mukesh has since pursued markets where Anil is an established presence.

This came after the Supreme Court in May backed Mukesh in a bitter public dispute over gas pricing that had hit Reliance Industries’ share price performance.

Shares in Reliance, valued at around $74 billion, have fallen 3.4% in 2010, while the Mumbai market has gained 3.5%.

Ahead of the earnings announcement, shares in Reliance ended up 0.1% at Rs1,053.50 in the main market that rose 0.3%.

Reliance Inds Q1 net up 32% on higher gas output is a post from: Indian Stock Market Tips

TPG speeds up deal talks for Vishal Retail, but no pact yet

free stock tips — Fri, 23 Jul 2010 06:21:00 +0000

Both Vishal Retail and TPG had to fast-track the final agreement after Kishore Biyani’s Future Group made a bid for the firm

In a bid to pre-empt a rival offer by Kishore Biyani’s Future Group, US-based private equity firm TPG Capital Lp sought to rush through a deal to acquire the assets of beleaguered discount retailer Vishal Retail Ltd on Thursday, but a formal agreement proved to be elusive.

TPG and Vishal agreed in principle on the terms after day-long efforts to reach a deal, but the retailer’s creditor banks deferred a decision, said a person with direct knowledge of the negotiations, who asked not to be named.

The consortium of banks that are part of Vishal’s corporate debt restructuring programme will discuss the deal next week before deciding whether to back an agreement under which TPG would take over the retailer’s assets, said the person.

An agreement would not only give TPG control of the company, but also mark the exit of Vishal Retail’s founder Ram Chandra Agarwal, who built one of India’s largest discount chains before it fell prey to the economic slowdown of 2008-09.

“There has been a sudden change of emotion and the promoters are in a hurry to get the deal done,” said the person cited above.

Vishal Retail spokesman Manmohan Sharma said talks with TPG were ongoing. Procedural issues were still being discussed, he said, but declined to comment on the specifics of Thursday’s talks. TPG director Amol Jain declined to comment.

In order to make the acquisition compliant with the rules on foreign direct investment in retail, Vishal will transfer all its assets to an entity engaged in wholesale activities, according to the deal that’s being discussed.

TPG will control the company through this so-called cash-and-carry venture, the only retail business in which India allows 100% foreign ownership. It’s unclear who will operate the retail part of Vishal’s operations.

The person cited above said both TPG and Vishal Retail had to fast-track the final agreement after Biyani’s Future Group made a bid for the company. Biyani declined to comment on his interest in Vishal Retail, which began as a tiny apparel store in Kolkata in 1986.

Agarwal opened the 150 sq. ft store selling ready-made garments after quitting his job as an assistant manager at a Kolkata metals firm.

Most of his expansion came in the 2000s. Sales almost tripled to Rs288 crore in 2007 from Rs88 crore in 2004, while net profit jumped to Rs12 crore from Rs38 lakh in that period.

Agarwal hired professional managers to help him run a retail network that had by then spread to many parts of the country and went in for an initial public offering in mid-2007 that was oversubscribed almost 70 times. Agarwal’s style of functioning, however, came under criticism from the professional managers he had hired for refusing to delegate power to them.

The economic slowdown brought on by the global financial crisis hit Vishal badly, leaving it with unsold goods and mounting debt, forcing bankers, including State Bank of India, HDFC Bank Ltd and ING Vysya Bank Ltd among others, to resort to the debt restructuring.

The banks that are not part of the debt recast, including Singapore’s DBS Bank Ltd, London-based Barclays Bank Plc and Germany’s Deutsche Bank AG have filed separate winding up petitions in the Delhi high court against Vishal Retail to recover their dues.

TPG speeds up deal talks for Vishal Retail, but no pact yet is a post from: Indian Stock Market Tips

Hindustan Media Ventures closes with a premium of 13.98% on the BSE

free stock tips — Thu, 22 Jul 2010 04:45:17 +0000

Hindustan Media Ventures made a smart closing on its debut date and finished at Rs 189.20, a premium of 13.98% or 23.20 points as against its issue price of Rs 166, on BSE.

The shares of the company opened at Rs 170 and touched a high and a low of Rs 191.90 and Rs 170, respectively. A total of 1,49,43,690 shares were traded on the counter.

Hindustan Media Ventures, a subsidiary of HT Media (HTML) came up with an initial public issue in a price band of Rs 162-175 per share. The issue, which had been priced at Rs 166 a share, the issue was subscribed 5.43 times.

The company will utilize Rs 135 crore or half of the funds raised, for prepayment of loans, Rs 66 crore for setting-up new units and another Rs 55 crore for upgrades.

Hindustan Media Ventures was carved out of HTML as a separate company four months ago. It is one of the leading print media companies in India in terms of readership. The company publishes and prints ‘Hindustan’, the third largest daily newspaper in India in terms of readership with a readership of 9.3 million readers.

Hindustan Media Ventures closes with a premium of 13.98% on the BSE is a post from: Indian Stock Market Tips

Dabur India in talks to buy Turkish unit: Report

free stock tips — Wed, 21 Jul 2010 18:51:00 +0000

Dabur India is in advanced talks to buy Turkish personal care products maker Hobi Kozmetik, a newspaper daily reported on Thursday.

The company has been in talks with several overseas companies but Hobi Kozmetik is the front-runner, the newspaper reported citing an anonymous official.

“Yes, we are close to finalizing an acquisition overseas. But we are talking to more than one company and I cannot divulge any name,” the newspaper quoted Mohit Burman, director, Dabur India, as saying.

Hobi Kozmetik makes shampoos, hairstyling, haircare, skincare and bath and shower products for women, men and children under the brand names Hobby and New Era, the report said.

The firm has operations in more than 30 countries with annual revenue of about Rs 100 crore, the report said citing an unnamed official.

A Dabur India official could not be reached for a comment by Reuters immediately.

Dabur India in talks to buy Turkish unit: Report is a post from: Indian Stock Market Tips

Adani Enterprises to raise up to $850m via QIP

free stock tips — Wed, 21 Jul 2010 07:42:08 +0000

Adani Enterprises which is involved in coal mining and power generation, has launched a share sale to institutional investors to raise up to USD 850 million, sources with direct knowledge of the deal said on Tuesday.

The issue has received strong investor response and has already been subscribed by 1 time. Long-only funds, banks, and domestic institutional investors have participated in the book

This will result in a pre-issue equity dilution of about 14%. The floor price of the sale is Rs 536.15 a share, a discount of about 1.5% to the stock’s Tuesday closing price, said the sources, who did not want to be named as they were not authorised to speak to the media.

Shares in Adani Enterprises, which the market values at roughly USD 6 billion, ended 0.2 % lower on Tuesday at Rs 544.20 in a Mumbai market that fell 0.3%.

The qualified institutional placement is worth USD 600 million, with an option to increase it by USD 250 million, according to a term sheet seen by Reuters. Earlier, sources had told Reuters the company could raise up to USD 750 million.

The issue will close on Wednesday.

Adani Enterprises said in a document on its website on Tuesday that it plans to pursue "alliance opportunities" but did not say exactly how it intends to use the proceeds.

Australia’s Linc Energy was in talks with Adani to sell a coal asset for USD 1 billion, a media report quoted Linc’s chief executive as saying last week.

Adani Enterprises is one of the largest commodity trading firms in India. Its Adani Power unit, which last year raised USD 630 million in an IPO, is developing several thermal power projects in India.

The Adani share sale is being managed by Citigroup, Bank of America Merrill Lynch, Morgan Stanley, UBS, IDFC Capital, Enam Securities, ICICI Securities, and Kotak Mahindra Capital.

Adani Enterprises to raise up to $850m via QIP is a post from: Indian Stock Market Tips