Apollo Hospital's Investing About Rs 1,000cr

New Delhi: Medical care services provider Apollo Hospital's group on Wednesday said that it will be investing about Rs 1,000 crore in the next 18 months to set up about 15 hospitals in tier II and III cities in India.

The hospital chain, which is looking for an overseas expansion, is also planning to re-enter Sri Lanka besides expanding its operations in African continents. "The idea is to set up tertiary hospitals in tier II and III cities, we plan to set up about 1 5 hospitals in next 18 months with an investment of about Rs 1,000 crore,'' Apollo Hospitals Group Chairman Prathap C Reddy told reporters here on the sidelines of CII annual session.

He said on an average these hospitals would have around 200 beds and in the next 18 months, the group is looking at 10,000-bed capacity.

Commenting on overseas expansions, Dr Reddy said the group is planning to re-enter Sri Lanka again.

Apollo Hospitals, earlier, had operations in Sri Lanka in which they had minority stake and it had to abandon the project following the take-over by the Sri Lankan business tycoon Harry Jayawardene.

Some Investments To Beat Inflation

High crude oil prices coupled with near-Emergency-like situations in the agri-commodity prices have forced many an investor to re-jig their strategy to account for this factor. Here is a remedy that could help investors:

Basis of theory I have been advocating ‘Hubbert’s Peak’ in crude oil since October 2005 and have been proved dead right. The Hubbert’s Peak theory says productivity of oil wells will constantly be on the decline across the world.

There are various ways you can counter this energy food shortage - keep your petrol tanks full at all times and keep your kitchen & attic well stocked with food grains and items of daily consumption. But they are short-term solutions to a long-term problem.

The gameplan:The following stocks are outperformers (rally more than indices and decline less in times of duress). If the beta delta factor is lower, higher weightages have been allocated. Some ideas appear to be laggards, we are simply betting on future prospects.

Buy and wait or wait and buy? This is a million dollar question as the time period after deploying money actually decides your annualised rate of return.

While we do not rule out price volatility in the near term, we suggest you go ahead and buy these scrips in a phased manner. Like real estate, you need to buy and then wait for the fruits of your labour to materialise on these stocks.

Cairn India: From being a market performer (RSC@100, where 100 = base), the stock is a market outperformer after October 2007. (RSC is a technical term standing for relative strength comparative. When two assets are compared, you basically take one as a yardstick, such as a Nifty) Note that stock is near all time high when the indices remain 20% below peaks.

Aggressive players may keep futures long positions rolling in the mid far month series on an ongoing basis and hedge by selling the deeply out of money calls in the near month series to reduce costs. This strategy is capital intensive & risky but will yield higher returns over time. The higher the crude prices, the better for this scrip, as a positive co-relation exists. Our conservative target is at 345 + in the long term.

Gail Gaining momentum of late, the stock lagged in the last few quarters and that is changing as the RSC has started gaining since October 2007.

Note the bullish channel was overcome and has not yet been violated downwards as the scrip remains above the threshold of the erstwhile channel. Gann chartists will instantly realise that the scrip has moved upwards into the next higher angle, thereby signaling intentions of edging higher.

The Rs 400 level is now the de facto short-term floor above which the bulls are likely to retain dominance over the bears. Traded volumes are lower than what we would prefer to see. A target of Rs 600+ levels in the next 15-18 months seem a possibility.

Gold BeES: This age old hedge against inflation is available in electronic (demat) format. Note the RSC=100 (same returns as Nifty) of late. Also note the traded volumes in the last 6 weeks, which are showing massive interest emerging on a relative basis. These are signs of “flight to safety” of the smart money and it should pay suit.

If crude is to rally (high probability), this bet is a low risk “no brainer”. Drawdown potential is limited to approximately 100 points. Upside headroom is over 4 times as much. The risk reward ratio itself is compelling and the bet is attractive for long-term players. Investors need not panic on the news of the IMF offloading Gold in the physical market to raise funds cool off overheated sentiments. We see declines as a buy opportunity. Practically the lowest risk proposition of the entire list.

Petronet LNG: The long term wave count was confidence inspiring since 2006 but the time frame appeared laborious. While we expected a long haul, the performance has been almost double that of the Nifty ( RSC = 192 ) and counting. We feel a 25 % reduction in the expected waiting period of 27-30 months is justified.

Should the scrip remain consistently above the 80 mark, expect above average performance as the upmove of the next higher degree unfolds. Traded volumes are picking up since the last fortnight and need to perk up, in line with prices. Aggressive players may keep futures long positions rolling in the mid far month series on an ongoing basis and hedge by selling the deeply out of money calls in the near month series to reduce costs. This strategy is capital intensive & risky but will yield higher returns over time.

Reliance Industries: If the market is to rally, it will be led by this counter. Many triggers exist - high gross refining margins, retail foray (I just bought Reliance tea, salt, sugar), gas discoveries, NELP VII and another refinery coming up at Jamnagar. Even amateur technical analysts will recognise the 52-week simple moving average acting as a support from where the scrip has rallied. Traded volumes are beginning to perk up —- a sign of optimism.

As long as the stock remains above Rs 2,650 levels, the case for the bulls is strong and a rally to (or past) the previous peak is a high probability. We suggest a buy for the long-term investors.

Aggressive players may keep futures long positions rolling in the mid far month series on an ongoing basis and hedge by selling the deeply out of money calls in the near month series to reduce costs. This strategy is capital intensive & risky but will yield higher returns over time.

Suzlon: This scrip is a game of patience and strong nerves. Usually highly volatile and unpredictable, the stock has been a market performer - the RSC = 103. Unfortunately, the beta factor is one of the highest in this list, which makes it a lower exposure proposition compared with the other recommendations.

Note the perfect trend-line support at the 230 levels and therefore a 25 % drawdown from present levels. Traded volumes have spiked higher and that implies stronger hands buying, thereby reducing the chances of a decline to the trend-line. We expect a 50 % and higher appreciation from the current levels and therefore recommend a buy based on risk reward perceptions.

Vardhaman Developers To Invest Rs 400 Cr In Jewellery Malls

Mumbai: Vardhaman Developers, which are set to launch Mumbai's first jewellery mall Jewel World, will build four more such malls with an investment of over Rs 400 crore, a top company official said.

"We hope to launch Jewel World by June and are planning to build four more jewellery malls in Mumbai before we start expanding in India," Vardhaman Developers Managing Director Rajesh Vardhan told PTI.

"The investments in the four malls will be upwards of Rs 400 crore and will be raised by the company through its own resources," Vardhan added.

The four malls are likely to come up in the suburban Mumbai areas of Borivli, Mulund, Ghatkopar and Santa Cruz.

Jewel World, which proposes to be a one-stop-shop for all kinds of jewellery in the traditional Zaveri Bazaar market here, probably has the most expensive lease rentals.

"The lease rentals for Jewel World is Rs 475 per square feet, almost double the general malls and a tad more than the high street malls," Vardhan said.

"With conservative estimates, we expect Jewel World to witness a Rs 2,000 crore turnover in the first year of operations," Vardhan said.

Mahindra & Mahindra Signs Mou With Government Of Maharashtra To Invest An Additional Rs 1500 Crore I

Mahindra & Mahindra Ltd has announced that the Company on March 31, 2008 signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to further boost their investment at its upcoming Chakan Greenfield project. The Company will invest an additional Rs 1500 crore to the already earmarked Rs 2500 crore. The total sum of Rs 4000 crore will be utilized towards the development and production of all vehicles slated to be rolled out from the proposed Greenfield.

M&Ms Greenfield at Chakan will house the manufacture of medium and heavy commercial vehicles, to be produced by joint venture Company Mahindra International and other products slated to hit both the domestic & global markets at strategic timelines.
A memorandum of understanding to this effect was signed on March 31, 2008 by Mr. V K Jairath, Principal Secretary (Industries), Government of Maharashtra and Dr. Pawan Goenka - President Automotive Sector, M&M in the presence of Mr. Vilasrao Deshmukh, Honourable Chief Minister, Government of Maharashtra, Mr. Keshub Mahindra Mahindra Group Chairman, Minister of Industry, Mr. Ashok Chavan, Mr. Johnny Joseph, Chief Secretary, and other dignitaries.

Mr. Keshub Mahindra, Chairman of the Mahindra Group, said M&Ms new investment at the upcoming Chakan facility, besides contributing to the states economic growth will also produce jobs for the locals in that region. We have always been at the forefront to add value to the Indian automobile industry. This project is in keeping with this tradition of mutual growth.

Dr. Pawan Goenka, President, Automotive Sector - M&M said, We are very pleased to expand our activity in the State of Maharashtra. We had decided to make the state the launch pad for our commercial vehicles. The additional investment plan of Rs 1500 crores, will allow us to create a world class manufacturing facility for 300,000 vehicles. The Chakan Greenfield is a significant step for us to contribute to the Indian automobile industry.

NYSE Euronext May Be First To Invest In Idrs

MUMBAI: Indian Depository Receipts, the revised guidelines for which were formulated in mid-2007, have found no takers so far. It may just turn out that NYSE Euronext, the world’s largest exchange group, will be one of the first to make use of this listing window available in India, for overseas companies.

NYSE Euronext chief executive officer Duncan L. Niederauer said he could potentially list the exchange’s stock in other markets where companies listed on his exchange wanted to go.

“It wouldn’t shock me if US or European companies listed on NYSE Euronext have aspirations to list their stock in Asia, one of the hottest markets these days. We, as an exchange, can potentially list our shares in those markets in order to show the way to our companies, but there’s nothing imminent,” said Niederauer.

NYSE Euronext is currently listed on Euronext in Paris and New York Stock Exchange. It in turn has nearly 4,000 companies listed on it, across the six countries in which its family of exchanges is located.

“India, China, Japan and some ASEAN countries could be potential markets for our companies, and if our customers want help there, that can steer us as well,” said Niederauer, who visited Malaysia and Singapore before coming to India. This is Niederauer’s first trip to Asia after taking over as CEO of NYSE Euronext in December, following predecessor John A. Thain’s move as chairman and chief executive officer of troubled US investment bank Merrill Lynch.

“I treat this trip as an opportunity to do due diligence of these markets,” said Niederauer, who also has meetings lined up with National Stock Exchange (NSE) and Multi Commodity Exchange of India (MCX), in which NYSE Euronext has a 5% stake each.

“We’re not here to buy up exchanges. We’re here to forge alliances with them. We run a huge technology platform that could help many exchanges in the region (Asia) tide over their capacity issues. And we are open to only partner in technology initially, and maybe later translate that into an investment,” said Niederauer.

On when the NSE listing will take place, Niederauer said, “That’s Ravi’s decision.” Ravi Narain is the chief executive officer of NSE.

“Historically, stock exchanges were considered nationalistic utilities. However, now that their nature has changed to a dynamic industry, where there is rapid consolidation, it’s best to position them differently. It’s necessary that they have a public currency. If Ravi asked me, I would encourage him to list the exchange,” said Niederauer.

Ghana Backs India's UN Bid, Eyes Indian Investment

New Delhi: Ahead of the India-Africa Forum summit in April, Ghana Tuesday backed India for a permanent UN Security Council seat and launched a charm offensive to attract Indian investment in the resource-rich West African country.

"We recognise the might of India. We have excellent ties with India. Ghana and Africa support India for a (permanent) place in the UN Security Council," Ghana Vice-President Alhaji Aliu Mahama, who is leading a 42-member business delegation to India, told reporters here.

"We see India as a true partner with whom we can do business and learn a lot. Ghana is a place to do real business," said Mahama, while flaunting Ghana as a gateway to the markets of the resource-rich West Africa.

Showcasing Ghana, which has huge reserves of gold, diamond, manganese, bauxite and cocoa, as one of the 10 reforming economies of the world, the Ghanaian vice-president underlined a business-friendly environment in his country and envisaged a win-win partnership with India.

"Africa has a lot to gain from you. There are several business opportunities for Indian businessmen in Africa. It's a win-win situation," said Mahama, who was a businessman before he became vice-president.

"Business people are running the country. Private sector can play a big role in creating new jobs," he said while fondly remembering Indian teachers who mentored him in school.

He identified agriculture, oil and mining, financial services, IT, industries, tourism and civil aviation as key areas in which Ghana is looking for Indian foreign investment.

The discovery of the first major oil deposit last year, estimated to be anywhere between 250 to 650 billion barrels, has the potential of turning Ghana into an "African tiger".

Ghana, a former chair and active player in the African Union, also struck an upbeat note about the first-ever India-Africa Forum summit in April, which will be attended by 14 African countries.

Mahama will meet his Indian counterpart Hamid Ansari and discuss with him a host of bilateral and global issues.

"The relationship between India and Africa goes back centuries. There is now a wish for a formalised relationship between India and Africa," he said.

"We need to re-explore the relationship and identify two-three concrete steps that will cement and entrench the relationship."

"It's like being in a marriage. We need to remind each other we love," said Robert Ahomka-Lindsay, chief executive officer of Ghana Investment Promotion Centre.

Making a riveting presentation pitching Ghana as 'Africa's Golden Gateway', he beckoned Indian businessmen to take the first flight to Accra and soak in new opportunities in his country.

"Take the first flight. We are waiting to welcome you," he said while letting in on the one-stop shop Ghana has set for clearing all foreign investments.

Education Major Pearson To Enhance Investment In India

Chennai: Education major and Financial Times publisher Pearson will increase its investment and involvement in India substantially. Speaking to Business Line, Khozem Merchant, Deputy Chairman, Pearson India, said, “We want to roll out our services in a way that establishes our footprint as that of an education company.”

Emphasising that Pearson’s education services were much more than just textbooks, Merchant said that worldwide, the company has a significant presence in testing and assessment, tuition, professional tuition, accreditation and validation and online education and its accreditation

“That’s about $5 billion of educational services, and we want to try and reproduce some of those in India, which we believe will be achievable with partnerships,” he said.

In India, the company’s presence is confined to the field of higher education and a schools’ publishing division but the education space is vastly larger than that, he added.

The partnerships could take the form of equity arrangements, joint ventures or licensing.

The talks are at a very initial stage and the company still needs to identify which parts of the country are potential markets for the expertise Pearson has to offer and with who best it can partner.

Merchant said the company had not yet arrived at an estimate of the investments needed for expanding its presence in India. Pearson has a “fairly fundamental commitment to this market, which will be supported by capital but more importantly by an extraordinarily deep reservoir of educational services,” he said.

Pearson not only produces the material for its services but also puts in place the processes by which the learning is dispersed.

On queries about Indian content, he said there is quite a considerable amount that is specific to India but also content from elsewhere with minor modifications. “So much of the desire in the Indian industry is for a global workforce,” he said, adding that Pearson’s aim is to come here in a meaningful and substantial way to fill the talent crunch.

“Part of the task ahead is to roll out our brand of Pearson,” says Merchant, in reply to a query that Pearson itself is not familiar while its units, publisher Penguin and Financial Times, are well-known.

A press release from Pearson says that Penguin Books India sales in 2007 grew 72 per cent and were just short of Rs 100 crore, and that the schools division boosted Pearson Education sales in India by 61 per cent.

Nippon To Invest Additional Rs 450 Cr In India Ops

Chennai: Nippon Paints, Japan-based international paint major, is planning to infuse additional Rs 450 crore in India operations in a phased manner. Till now, Nippon Paints has put in Rs 80 crore in its new green-field manufacturing facility at Sriperumbudur, near Chennai. The plant, which is set to go on stream from October this year, can manufacture 20,000 kilo litres of decorative paints a year. The company will invest another Rs 100 crore by 2009 for expanding its footprint in the Indian market. The company has also acquired 31 acres in Gurgaon to set up a new plant once the volumes pick up in India. This may involve an investment of around Rs 350 crore. Nippon India is among the smaller players in the Rs 7,500-crore Indian market for decorative paints. The company forayed into this market in mid-2006.

With Rs 9,000 Cr Investments, Pune Inc Is Growing Fast

Pune has been on a fascinating growth trajectory with industrial investments worth Rs 4,500 crore having poured into the district every year for the last two years. The city's manufacturing sector is poised to record an annual turnover of Rs 60,000 crore by 2010 from the current Rs 52,000 crore. Run-up to Budget 2008-09

These projections were presented by Manasi Phadke, economic advisor to the Mahratta chamber of commerce, industries and agriculture (MCCIA) at a press conference to announce the launch of MCCIA's industrial directory of Pune on February 28 at the inaugural function of Pune Expo 2008.

The industrial directory will be accompanied by a study on Pune Manufacturing Inc. titled 'Profile and Analysis of Pune Manufacturing Inc.: An Intelligence Report on Growth of Pune Industries.'

"Data available with MCCIA indicates that Pune's manufacturing turnover could easily touch Rs 60,000 crore by 2010," Phadke said. She said that manufacturing firms in Pune have a turnover of nearly Rs 52,000 crore annually and the top 12 companies (with a turnover of more than Rs 1,000 crore) contribute to more than 50 per cent of the total industrial turnover. There are about 12,500 formal sector manufacturing-driven industrial units in Pune. Of these, 9500 have a turnover of at least Rs 5 lakh per annum and formed the focus of our study," adds Phadke.

Stating that the directory will include details pertaining to investments, turnovers, export destinations, employment and quality certifications, Phadke said the study revealed that there is a broad spectrum of industrial activities in Pune, from automobiles, engineering goods, hardware, fabrication to white goods and food processing.

"Around 66 per cent of industrial units within Pune today are concentrated in the Pune Metropolitan Region (PMR) limits, while, in 1995, around 82 per cent of all industrial activity was in the PMR. This clearly shows that industrial growth has today found new grounds, as is obvious from the growth we are witnessing at such centres as Chakan, Pirangut and Ranjangaon," Phadke said.

She said that a 'golden industrial triangle' exists between PCMC, Talegaon and Ranjangaon within which industrial development seems to be taking place at a feverish pace, she says.

According to the MCCIA survey results, more than 2700 units in Pune district have obtained some form of quality certification- this could be ISO (applicable series), TS or HACCP (for food industries).

According to Phadke, manufacturing firms in Pune provide formal employment to around five lakh people and export goods worth nearly Rs 10,000 crore.

Among micro units, there are nearly 25 companies that have been awarded for innovations in production, best vendors/suppliers awards from their clients.

Huge Investments Coming Up In Photovoltaic Wafers

Bangalore: About half the investments that are coming up from companies that want to avail themselves of the benefits of the ‘semiconductor policy’ are for producing photovoltaic wafers. Run-up to Budget 2008-09

This is clear from the details of the proposed investments given by Jairam Ramesh, the Union Minister of State for Commerce and Industry.

These include a $1-billion investment by Solar Semiconductor, $2 billion by Moser Baer, $750 million by Titan Energy and $250 million by Videocon Group.

Ramesh was glad that such investments were coming into technologies for harnessing solar energy.

High potential

Speaking at a conference organised here recently by the Indian Semiconductor Association (ISA), Ramesh noted that currently, India produces PV wafers that can result in installed solar power capacity of 190 MW. This is tiny, but even so, about 90 per cent is exported.

Ramesh wants at least 1,000 MW to be produced from the sun. India’s 9 per cent growth should be ‘low carbon’.

Later, in a chat with journalists, he admitted that even 1,000 MW was miniscule, compared with the 12th Five Year Plan of about 80,000 MW.