While the government hopes the company would slip into the Nano site vacated by Tata Motors, it will also showcase other locations at Kalyani, Kharagpur and Haldia.

China’s First Automobile Works (FAW), in collaboration with Ural India, an Indo-Russian joint venture, wants to set up a Rs 1,500-crore automobile manufacturing unit in Bengal. And, the first vehicle to roll out of the plant in 2010 will most likely be a small car priced at a cool Rs 1.6 lakh.

A tie-up between Ural India, in which the state government has 11%, and FAW will be formalized through an MoU in the first phase. J K Saraf, chairman of Ural India and Ren Diansheng, vice-director of FAW, led the five-member delegation of the company that called on Bhattacharjee.

The company is expected to start manufacturing small cars and then go on to buses. “We plan to price the small car at Rs 1.6 lakh to keep it competitive,” Saraf said. However, Ural is yet to decide on the name of the car.

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Inflation stood at 10.68 for the week ended October 18. “Given the possibility of a further strong softening in commodity prices amidst a marked global slowdown, domestic inflation can be zero or near zero during H2 CY’09,” Edelweiss analyst Siddhartha Sanyal in his research report.

The US and the UK have already reported contraction in output and most emerging economies are also likely to be hit in CY09, the report said, adding that the slowdown is likely to soften overall price levels in most economies.

Slowing global industrial production will further weaken the base metal prices, especially after the decline in demand from China. Economic slowdown is expected to significantly cut down energy demand, the report noted.

A softened crude price will mean lower prices of various chemicals, fertilisers, etc. Accordingly, recession accompanied by deflation is a strong possibility in case of several industrial economies, it said.

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The decisions to cut the Cash Reserve Ratio and Statutory Liquidity Ratio by one per cent each and Repo Rate by 0.50 per cent come a week after the busy season credit policy review by RBI in which it had given an assurance of more measures to boost economic growth.

“Global financial conditions continue to remain uncertain and unsettled and early signs of a global recession are becoming evident. These developments are being reflected in sharp declines in stock markets across the world and heightened volatility in currency movement.

“International money markets are yet to regain calm and confidence and return to normal functioning,” a statement from the Bank said, announcing the decisions, while adding it will continue to closely monitor development in global and domestic financial markets and take swift and effective action as appropriate. With today’s measures, the RBI has pumped in about Rs 270,000 crore in the system since October, but industry leaders and bankers feel that more is needed to effectively bring down the commercial lending rates.

Source

“A hike in the sectoral FDI cap to 49 per cent would further grow the insurance sector and bring in much needed FDI to the country,” MetLife India Insurance’s managing director Rajesh Relan said in a statement.

The Confederation of Indian Industries, termed the bill as a much-awaited one, and said, that this bill “would further help in development of the insurance sector”.

The industry body, which had played an active role in preparing the draft bill, hoped that it would find a quick and easy passage in Parliament.

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The Luxembourg-based steelmaker, the world’s largest, declined to confirm that it will temporarily halt output but said it was “taking prudent and responsible steps to adapt supply to demand in the light of present market conditions.” 

It said it will provide details when it reports third-quarter earnings on November 5. 

The company has already announced a 15-percent cut in European output as its main customers — the construction and the car industries — see sales slip. 

Trade union representatives in France said management at the Fos-sur-Mer plant had told workers that it would reduce output and asked workers to take vacations of up to 16 days from November 1 and December 31. One furnace will cease work until the end of January, said Alain Nougue, a delegate from the CGT. 

Another steel plant at Florange in eastern France would also stop output for the month of December, Jean-Marc Verin of the CFDT union said. 

In Belgium, local press said workers had been told that ArcelorMittal plants at Genk and Chatelet would cease production for four weeks at the end of the year while facilities at Seraing and Ghent would decrease output levels. 

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So besides the king of good and bad times Vijay Mallya and Wilbur Ross, SpiceJet’s bankers Rothschild have shortlisted two more bidders till now.

This takes the suitor tally to four, out of which three are just investors while the fourth Vijay Mallya is looking a big bang merger with SpiceJet.

Mallya’s offer involves a share swap, which could be either 1:3 or higher along with a cash advance of about Rs 200 crore. Under this offer once the share swap is done both the airlines will merge.
The present promoter will get Kingfisher Airline shares with a lock in period after which the promoters can exit.

The other simpler option for SpiceJet management is to bring in investors like Wibur Ross or other PE funds that specialise in stressed sales.

SpiceJet will issue fresh equity to these investors giving them about 14.9 per cent stake in the company and raising about $70-80 million.

Wibur Ross, the buyout guru of distressed assets, is the frontrunner among these investors which also includes PE funds from US.

While this will be less complex than a buyout, it could be only a short term solution to meet the cash flow needs of the company.

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The company has launched an offshore fund ‘Emergent India’ targeted at international investors, according to the Wealth Bulletin, a Dow Jones-owned online service for the global wealth management industry.

RAM manager Sunil Singhania said: “The timing for marketing may not be right, but from an investment perspective it is just right. From these levels there is a great opportunity for investors, although there will also be some short-term dips.”

Singhania started raising his cash weighting in October in expectation of a market correction. He had 25 per cent in cash at the start of June, but has just started to put the money to work.

The online services reported that: “He (Singhania) likes capital goods and construction companies, where he has been underweight of late. With valuations in these sectors down by more than half, its stocks are starting to look attractive again.”

He also likes financial services companies on the grounds that India is under-banked, although he expects the next six months to be tough for the local economy. India is in danger of becoming a hostage to inflation, which has hit 11.4 per cent, due to the rising cost of fuel and food”, it added.

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The king of good times Vijay Mallya, the other prospective buyer, may need to match Wilbur Ross’s offer to get back into the deal.

SpiceJet has been looking for an investor in the company for quite some time to raise about $100 million by issuing fresh equity.

The company’s promoters were in talks with Vijay Mallya who is looking to buy majority stake in the company but Wilbur Ross’s interest in Spicejet can provide the promoters an easier way out of these troubled skies.

In an exclusive interview to NDTV, SpiceJet management confirmed that Rothschild is scouting for investors to invest in the airline.

“Our merchant bankers are in talks with PE and potential investors. We are waiting for merchant bankers to get back to management,” said Siddhanta Sharma, Executive Chairman, SpiceJet.

Sources tell NDTV that Vijay Mallya is not giving up yet and is expected to forward a formal proposal to the SpiceJet management possibly offering its promoters a complete buyout of their stake.

The low cost carrier’s management also doesn’t seem too averse to giving over management control in the airline.

“We don’t have a situation where people own 70-80 per cent of the company. It is not about control,” said Sharma.

The SpiceJet board is likely to meet this week to take a call on the various offers its bankers are putting forward with a formal announcement on the likely investor coming anytime next week.
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“We have already got the necessary approval from FIPB. The first outlet will be opened by September,” Reliance Retail President and Chief Executive (Lifestyle), Bijou Kurien told reporters here.

On the sizes of the outlets Kurien said: “It will be smaller than our jewellery stores.” Earlier, Reliance Retail had announced the optical chain would comprise independent stores and stores within Reliance Retail’s other formats such as Hypermart, Super and Wellness.

The new entity would bring world class retail optical stores to India, with a range of private label frames, lenses, sunglasses, contact lenses and solutions.

Pearle Europe is a subsidiary of HAL Investments, the European investment subsidiary of HAL Holding NV, an international investment company based in the Netherlands Antilles.
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Maintaining a stoic silence over the fate of its agreement for exclusive talks with India’s Anil Ambani group firm RCom for an amalgamation deal, South African telecom giant MTN is likely to convene a board meeting on Thursday to discuss the issue.

Sources close to the development indicated that MTN could hold a board meeting to discuss the prospects of the possible deal, the 45-day exclusivity negotiations for which expired tonight, on July 10.

There was, however, no confirmation from either MTN or RCom on the status of the negotiations that could create an estimated 70-billion dollar combined entity, that has come into controversy following the legal issues raised by Mukesh Ambani-led RIL.

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