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Time Broadband launches IPTV services

New Delhi, March 20: Time Broadband Services in joint venture with Malaysia-based Stanton Technologies on Thursday announced the launch of IPTV services, which enables the user to download television and film content through mobile phone, to explore the USD 4 billion market.

The Internet Protocol Television Service (IPTV), which the joint venture will provide on 2.5G mobile platform, could be a possibility in India by the next fiscal, once 3G spectrum is introduced, Time Broadband Services' (TBSL) Chief Executive Officer and Managing Director Sujata Dev told mediapersons here.

In the meantime, TBSL and Stanton are looking at penetrating other countries like Dubai, Qatar, Hong Kong, Kenya and Malaysia.

The TBSL-Stanton JV has tied up with the Film and Television Producers' Guild of India, Indian Music Companies and IPTV India Forum for providing the service in the targeted countries.

Dell plans new PCs aimed at Chinese, Indian customers to drive Asian growth
20 Mar, 2008, 1728 hrs IST, AGENCIES

BEIJING: Dell Inc, the world's No. 2 PC maker, is developing new models aimed at Chinese and Indian consumers to drive sales in fast-growing Asian markets, CEO Michael Dell said on Thursday.

Personal computer makers increasingly are designing products with Chinese buyers in mind. Both Dell and China's Lenovo Group unveiled low-cost PCs last year for rural and novice users.

"This year, we plan to introduce 50 per cent more notebook platforms than we introduced last year, including exciting new products aimed exactly at Chinese customer needs," Dell said at a news conference.

New models are meant to meet "specifically the requirements that we see in countries like China and India," he said.

Dell says its consumer sales in China grew by 54 per cent last year, more than three times the industry average of 17 per cent.

"When we look at the potential for expansion, we do see enormous opportunity ahead," Dell said. "As far as the US goes, I think the US will be OK, but not the fastest-growing. We expect more growth in Asia."

Dell says it has about 18 per cent of China's market by revenue and 10 per cent by number of units sold. Worldwide, it has a 16.1 per cent market share, according to consulting firm Gartner Group.

In a bid for a bigger share of China's market, Dell broke with its Internet sales model and struck a deal in September to sell PCs through the country's biggest electronics retailer, Gome Group.

Dell's retail presence in China will expand to 1,200 cities by the end of this year, up from just 45 in 2007, said Amid Midha, Dell Greater China president, who appeared with Dell.

"By this summer, we will have more unique products coming to China," Midha said.

Dell has two factories in Xiamen, a southeastern Chinese city, and a design center in Shanghai that the company says is its biggest outside the United States. Dell said the company expects its purchases of components and other products in China to rise by 27 per cent this year to $23 billion (euro15 billion).

The company is undergoing a restructuring that Dell said has made growth in China "dramatically better" than a year ago.

Still, Midha said, "We have a lot of things to do before we can consider ourselves to be successful in China."

Also Thursday, Dell said it will donate 1.5 million yuan ($210,000; euro140,000) to build six education centers in China to teach computer skills to the children of migrant workers.

HCL Tech to take SPAC route for foreign buyouts
17 Mar, 2008, 1020 hrs IST,Deepshikha Monga,.............


NEW DELHI: This could be a global first: a strategic acquirer taking an unconventional route to strike an acquisition deal. India’s fifth-largest IT services player HCL Technologies’ founder, Shiv Nadar, told ET that he is planning to raise a blank cheque firm or a special purpose acquisition corporation (SPAC) on Paris-based NYSE Euronext exchange. This could potentially allow the IT firm or its promoters to acquire a company abroad without straining the balance sheet of the Indian company.

SPACs are usually raised by asset managers, merchant bankers or private equity investors who use it as a fund raising route to strike buyout deals. By character, it is a very individual-driven listed firm where the investors bet on the management’s ability to snap a good company. In simple words, SPACs are a more liquid form of private equity which usually focuses on a single buyout rather than a portfolio of transactions by a conventional private equity fund.

“In India, you can’t float a SPAC. Even in Europe, it’s very new. On Euronext, we would probably be floating one, maybe one of the earliest,” Mr Nadar, who is HCL Technologies chairman and chief strategy officer, said. He didn’t give any hint about the size of the proposed SPAC or whether he intends to use this vehicle to acquire strategic interests which could have synergies with HCL Enterprises. HCL Enterprises includes both the IT software and hardware businesses of the group.
Mr Nadar said Indian companies should look at opportunities to acquire parts of global biggies facing the impact of a global slowdown. “I see worried CEOs when I meet them. They say demand is shrinking for their products or services. There lies an opportunity to carve out something out of them. We did something similar with British Telecom and Deutsche Bank earlier,” he added.

HCL Technologies has earlier expressed interest in acquiring small companies in the US and Europe with capabilities in the area of SAP implementation, infrastructure management and BPO. It recently acquired US-based software product company Capital Stream for $40 million in an all-cash deal. The acquisition would strengthen HCL’s capability to provide end-to-end solutions to commercial and retail financial institutions.

Blank cheque firms or SPACs basically raise funds through a public offering and put it in an escrow account till they find a target company. Their management, in effect, gets a blank cheque from shareholders to invest and hence, the name. When they zero in on a potential acquisition, they ask their shareholders for approval and go ahead with the deal. Usually SPACs restrict themselves to targeting small and mid-sized companies. This also separates them from large private equity funds.

Some of the key India-focussed SPACs have been Millennium India Acquisition Company (MIAC) and Indian Hospitality Corporation (IHC). The US-listed MIAC acquired 14.9% stake in Delhi-based brokerage firm SMC Global for about $40 million last year while London’s AIM-listed IHC acquired Mars Restaurants and SkyGourmet Catering for $110 million.

Moser Baer unit seeks $150 million Nasdaq IPO
20 Mar, 2008, 1847 hrs IST............................

HONG KONG/MUMBAI: A unit of Indian compact disc maker Moser Baer India Ltd is seeking to raise about $150 million by listing on the Nasdaq exchange, two sources familiar with the plan said on Thursday.

Morgan Stanley is among the underwriters appointed by Moser Baer Photo Voltaic, which manufactures solar cells and modules, for its US initial public offering, the two sources said.

The company has started the process and been working on the deal for a few months, but may choose to wait given volatile market conditions, added one source who had been briefed on the plan but was not authorised to speak to the media.

A second source, who is familiar with the company's plans, said an IPO may be a few months away. Moser Baer Photo said in November it was seeking to invest $150 million on expansion projects and was looking at an overseas listing, though it had not provided details regarding the IPO.

"We are looking at all options to unlock value, but nothing has been finalised as of now. We can't comment on any speculation," said Moser Baer spokesman Deep Ghatak. Morgan Stanley declined to comment.

Air India IPO to come at 'appropriate time': Govt
18 Mar, 2008, 1825 hrs IST............................

NEW DELHI: The government on Tuesday said the initial public offering of the national carrier Air India would come "at an appropriate time" after looking at the performance of the airline.

"We will have to see the performance of Air India for the timing of the IPO. The IPO would come at an appropriate time," Civil Aviation Secretary Ashok Chawla told reporters here.

The public issue of the airline is to come after the complete merger of state-run airlines Air India and Indian, slated to happen by the first half of 2009.

Chawla hoped the current stock market volatility may subside by the time of the launch of the IPO and said the government was not confronted with the question of deferring the IPO.

"There is no question of deferring or not deferring the IPO at the moment," he said.

The merger of the two airlines was initiated in July-August 2007 and the government had indicated a timeframe of 12-18 months for its completion.

There was a proposal to offload 10-15 per cent of government stake in the merged entity for its expansion. It was also expected to give away five per cent of its equity as stock options to the employees of the airline.

Sita Shree IPO fixes issue price at Rs 30
18 Mar, 2008, 1253 hrs IST...........................

MUMBAI: Sita Shree Food Products has fixed the issue price of its initial public offering at the upper price band of Rs 30. The issue was subscribed 2.38 times after teething trouble on the first day of its opening on Mar 11. The IPO had closed on Mar 14. The issue was in the price band of Rs 27-Rs 30 per share aggregating to Rs 31.50 crore.

The company plans to utilise the net proceeds to part finance its Rs 48.12-crore expansion. This includes setting up of a solvent extraction plant having 500 tonne per day capacity, a oil refinery for solvent extraction plant having 100 tpd capacity, a lecithin plant for processing the by products of solvent extraction plant having 5 tpd capacity, and a flour mill of 275 tpd. The project will be set up at Badiakima, Indore, Madhya Pradesh.

CRISIL had assigned Grade "2/5" to the IPO. The shares will be listed on Bombay Stock Exchange and National Stock Exchange.

Exim Bank, Afreximbank sign MoU

New Delhi, March 20: Exim Bank of India on Thursday entered into an understanding with African Export-Import Bank (Afreximbank) for extending Line of Credit to the tune of USD 30 million (over Rs 121 crore) for financing exports to Africa.

The Memorandum of Understanding (MoU) was signed by Exim Bank of India Chairman and Managing Director T C Venkat Subramanian and Afreximbank President Jean-Louis Ekra at the 4th CII-Exim Bank Conclave on India-Africa Project Partnership 2008.

Finance Secretary D Subbarao, who was present at the event, said Line of Credits have provided soft landing to Indian companies in Africa and the funding has contributed to building up of local capacity in the continent.

Free trade would assist Africa in growth process and the need to strengthen their manufacturing and infrastructural sectors, he said.

Africa would need assistance in building infrastructure to power their agricultural and manufacturing sectors, he said.

He expressed satisfaction over 100% credit offtake through the LoC route but said procedural delays had affected the rate of credit utilisation by the African states.

Ekra said Exim Bank of India, which is a shareholder in Afreximbank, has gone beyond the role of a shareholder to deepen trade and economic links in Africa.

"We look for not just finance, but also technical and management expertise and market access support from India," Ekra added.

India receives USD 27 bn in remittances in 2007: WB

Washington, March 20: India received a whopping USD 27 billion in remittances, beating China and Mexico to become the top country for such inflows, the World Bank has said in its latest report.

The top five recipients of remittances in 2007 were India (USD 27 billion), China (USD 25.7 billion), Mexico (USD 25 billion), the Philippines (USD 17 billion), and France (USD 12.5 billion), according to the report titled 'migration and remittances factbook 2008'.

"In many developing countries, remittances provide a life line for the poor. They are often an essential source of foreign exchange and a stabilising force for the economy in turbulent times," said Dilip Ratha, senior economist with the World Bank, and co-author of the report.

The inward remittances to India has more than doubled from around USD 12.89 billion in 2000 to USD 27 billion in 2007.

In 2006, inward remittances were USD 25.43 billion, while the outward flow constituted around USD 1.58 billion.

Rich countries are still the main source of remittances with the United States leading the pack.

"The United States is by far the largest, with USD 42 billion in recorded outward flows in 2006. Saudi Arabia ranks as the second largest, followed by Switzerland and Germany," the factbook added.

The US was also the top immigration country in 2005, with 38.4 million immigrants, followed by the Russian Federation (12.1 million), and Germany (10.1 million). Among low-income countries, India had the highest immigration volume of 5.7 million, followed by Pakistan (3.3 million), it stated.

‘RIL has not gold-plated gas field cost’

New Delhi, March 20: Reliance Industries' proposed USD 8.836 billion gas field development cost has been validated by independent valuers, which have certified that the investment is not gold-plated and is well below their own estimates.

Houston-based mustang international, which was contracted by the government to audit the capital expenditure prepared by RIL for the Dhirubhai-1 and 3 gas fields in block kg-d6, put the cost for such field development at USD 9.035 billion, official sources said.

Mustang, a member of the wood group of the US, presented a voluminous analysis of the field development plan, which was compared with international cost to make a detailed report.

"Using the lengths, quantities and equipment as specified, the validation team produced a deterministic estimate of USD 9.035 billion, in contrast to the RIL estimate of USD 8.836 billion," the report stated.

RIL had in an initial field development plan (FDP) estimated cost of producing 40 million standard cubic meters per day of gas from the two fields at USD 2.321 billion. It later revised the FDP to USD 5.197 billion in phase-I lasting 2008-end and a further USD 3.639 billion in phase-II on account of more number of wells and associated gas handling, processing and transportation facilities to double the output to 80 mmscmd.

But the increase in cost was seen as 'gold-plating' by certain sections, prompting the government to order an independent validation.

The independent valuers' report is expected to put an end to the controversy, sources said.

Gold falls to 1-month low

Singapore, March 20: Gold dropped more than 2 percent to its lowest level in a month on Thursday amid a broad-based sell off in commodities and as funds cashed in after pushing the metal to a record above $1,000 an ounce this week.

Platinum, palladium and silver also dropped. New York`s COMEX gold futures fell more than 3 percent to hit their lowest in more than four weeks, while Shanghai futures sank by their 5 percent limit.

Gold hit an intraday high of $943 an ounce before changing course and tumbled to as low as $920.30 an ounce, down from $944.20/945.00 late in New York on Wednesday and off Monday`s record high of $1,030.80 an ounce.

"We have to see whether the funds will continue selling. If they do, of course there is a possibility that it will go down and test $900," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

A smaller-than-expected U.S. interest rate cut was an excuse for the funds to exit gold and the absence of Japanese speculators also exaggerated movements, said Leung.

Gold tumbled 6 percent on Wednesday, its biggest one-day percentage drop in nearly two years as cash-rich funds exited commodities, leading to declines in oil, base metals and agricultural products. Trading was thin on Thursday as Tokyo Commodity Exchange was closed for a national holiday.

"It is most probably liquidation on margin calls. It looks like players are exiting the market after gold hit $1,030 level and there`s no reason for physical buyers to buy at high levels," said a dealer in Singapore.

"Retailers are also starting to cash in. That`s why I think the market will still fall for another day. It`s hard to say where the support level is, but I think it`s going to fall below $900 today," he said.

The US dollar was mixed as persistent credit concerns, huge falls in U.S. bill rates and a sudden reversal in global commodity prices all tugged in different directions.

The Fed brought key interest rates to 2.25 percent on Tuesday after cutting them by 0.75 percent, against market expectations for a 1.0 percent cut.

Gold futures for April delivery on the COMEX division of the New York Mercantile Exchange fell $12.7 an ounce to $932.9 an ounce, after hitting a low of $915.

"High caution is advised before fresh buying is attempted as the market steps in to a long weekend starting today," Pradeep Unni, analyst at Vision Commodities in Dubai, said in a note.

"The market has yet to show any clear signals of market bottom. Also strong buying signals haven`t been shown by technical indicators that we closely follow," said Unni, who pegged key support at $898 an ounce.

A decline in global economic growth in 2008-09 will mostly dampen demand and prices for commodities if the slowdown is substantial, the International Monetary Fund said on Wednesday.

Spot platinum fell to $1,880/1,885 an ounce from $1,900/1,910 -- off a record high of $2,290 hit on March 4.

Silver dropped to $17.99/18.04 an ounce from $18.38/18.43 an ounce. Spot palladium fell to $444/451 an ounce from $455/460 an ounce.

The most active June contract on the Shanghai Futures Exchange fell by 5 percent to 214.55 yuan a kilogram, tracking declines in cash gold.