India Inc eyes industrialised countries

NEW DELHI: North America and Asia have emerged as the most sought-after destinations for India Inc's acquisition bids, with takeover deals in the region touching $12 billion in the first four months of fiscal 2008, an Assocham Eco Pulse study said.

India Inc's acquisition deals in North America are valued at $7 billion while that in Asia totalled $4.2 billion, the chamber said.

Indian businesses signed deals worth $5.1 billion with US-based companies during April-July 2007, with the Tatas, Essar, Reliance and Infosys leading the brigade.

Tata Group remained at the forefront with total deal values worth $2.13 billion in steel, hospitality and automotives sector, followed by Essar's acquisition of Minnesota Steel for $1.65 billion. Reliance Communication expanded footprint in the US communications market by acquiring Yipes for $300 million.

Read more in The Economic Times

Down but not out

India Inc has slowed down in the June 2007 quarter. A sectoral analysis of Q1 FY08 results and what to expect.

After running at a breakneck speed for several quarters, India Inc’s financials have taken a breather. In the June 2007 quarter, our universe of 942 companies, excluding banks, financial services, oil and gas companies, and with a turnover of more than Rs 25 crore have shown the slowest growth in terms of almost all parameters like net sales, operating profit and net profit.

Net sales and operating profit (excluding other income) have grown at 19.5 per cent and 18.8 per cent year-on-year respectively-the slowest since last four quarters starting June 2006 quarter (Click here to see table: Stocks in Focus).

As a result, operating profit margins declined marginally by 11 basis points year on year, thanks to a small rise in total expenditure. However, a growth of 32 per cent in net profit has been maintained on a year-on-year basis, thanks to higher other income, declining interest cost and lower increase in depreciation costs.

Read more in Business Standard

India Inc all set to lose Rs 163-crore

NEW DELHI: The Indian team’s loss to Sri Lanka at Trinidad Friday night, virtually throwing men-in-blue out of the reckoning for the second-stage in the ongoing ICC World Cup, has upset many a marketer’s neatly laid out business plans, big time. India’s dismal showing in the Caribbeans, a source of much heartburn and anxiety amongst advertisers has clearly turned into panic now. Marketing and media plans are being furiously reworked to salvage big spends around the World Cup, and long faces abound across some of corporate India’s marquee names - Pepsi, LG, Reebok, Visa, Nokia, Videocon, Hero Honda, Hutch, Samsung et al.
According to Mindshare, a media buying agency, India Inc’s losses would tot upto over Rs 163-crore. And this just on the Rs 350-400-crore advertising monies that they had committed with the official broadcaster, Sony Entertainment Television (SET). Mindshare’s estimates are based on the premise that viewership for the rest of the World Cup matches, sans India, will drop as much as 50%. “Advertisers are now talking about the loss in profits. We are looking to strike an amicable resolution with Sony on this issue,” says Manish Porwal, managing director, Starcom India (West & South), another big media buying firm.

Read more at Economic Times