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CEO Indra Nooyi made over USD 10 mn last year

New York, March 25: Indra Nooyi, the CEO of beverages major Pepsico, received compensation to the tune of 11.79 million dollars last year, an increase of 24 per cent over that in 2006.

Nooyi was awarded 9.56 million dollars as compensation in 2006, according to a recent regulatory filing to the Securities and Exchange Commission (SEC).

The India-born CEO had assumed charge as the Chairman of the board in addition to the responsibilities as Chief Executive Officer of PepsiCo from May two last year.

Nooyi received 1.3 million dollars in salary and stock awards worth 3.23 million dollars, the break up of the compensation given in the filing shows.

Further, the CEO was awarded 404,071 dollars under the head of "all other compensation".

Among the other highly paid executives from Pepsico, Chief Financial Officer Richard A Goodman received a compensation of 3.2 million dollar, while the Vice-Chairman Michael D White was awarded 11.17 million dollars in 2007.

Dawn Hudson, former president and chief executive officer, Pepsi-Cola North America, received 11.64 million dollars and John C Compton, CEO of PepsiCo Americas Foods, got 8.2 million dollars, the filing added.

Wi-Fi market in India over USD 890 mn by 2011

New York, March 26: Wi-Fi, the world's most pervasive wireless local networking technology is set to take a major leap in India.

The technology is a significant factor in the social and economic development in the regions it is available, the survey conducted by Tonse Telecom for Wi-Fi Alliance said.

The report, "Wi-Fi in India: A Key Enabler of Economic, Social and Community Development," cited growing laptop sales, rising broadband penetration, and pervasive use of mobile phones for rich content transfer as key harbingers of widespread Wi-Fi use among a growing segment of India's more than 1.1 billion citizens.

The study forecasts that by 2011-2012, the market for Wi-Fi networking gear and services (excluding laptops, handsets, and chipsets) in India will top USD 890 million, marking a 36 percent compound annual growth rate from 2008.

With real estate development exceeding 30 per cent annual growth, deployment of Wi-Fi networks in new residential, retail and corporate construction is cited as a key opportunity for Wi-Fi device manufacturers and service providers.

The report profiles the work of a non-profit organization, Byrraju Foundation, which leverages Wi-Fi technology to connect rural farmers to experts in agriculture, remote patients to doctors, and young villagers to training and employment opportunities.

Analysts' picks: Jet Airways, Gammon India, Satyam Computer, Pratibha Industries
26 Mar, 2008, 0430 hrs IST,....................................

Jet Airways
cmp: Rs 548.65
target price: Rs 765

Citi has maintained a ‘sell’ rating on Jet Airways with a price target of Rs 765 after factoring in the competitive domestic aviation sector, the infancy of the company’s international operations and the acquisition of Air Sahara. Citi feels while Jet arguably has superior growth opportunities to most of the global full service carriers, it has still to demonstrate its ability to deliver robust and consistent earnings over time and strong sustainable market share in the face of aggressive competition. However, the company’s ‘market position within the domestic market is fairly well entrenched, and its international operations are proceeding at a satisfactory pace’, says the brokerage. It further feels that any ‘faster than anticipated capacity rationalisation in the domestic airline industry’ and ‘a sustained decline in ATF prices’ can provide upside risks to its recommendation and target price. ‘A faster than anticipated ramp up, greater than forecast profitability of international operations and rapid restructuring and turnaround of Jet Lite’ can also provide further upside.

Gammon India
cmp: Rs 395.55
target price: Rs 461

Morgan Stanley has maintained its ‘overweight’ rating on Gammon India while marginally reducing its price target to Rs 461 from the earlier Rs 471. The foreign brokerage’s price target is based on a sum of the parts and factors in the core construction business (Rs 246/share) based on its residual income model, Gammon Infrastructure Projects (GIPL) share value (Rs 202/share) based on the IPO price, and Gammon’s investment in Sadbhav Engineering (Rs 14/share). Morgan Stanley has also reduced its PAT estimates for F2008E and F2009E by 27-30%, taking into account the higher marginal tax rate of 34% instead of the reduced tax rate (under section 80 IA) that was used by Gammon. While the GIPL issue closed at Rs 167 per share, the brokerage ‘believes that the listing price of the stock might be an important driver’.

Satyam Computer
cmp: Rs 411.05
target price: Rs 463

Indiabulls has maintained a ‘buy’ rating on Satyam Computer Services after the company’s EBITDA margin, topline and the utilisation rate improved in the third quarter. According to the report, the software major’s EBITDA margin improved by 164 basis points (bps) for Q3FY08 to 21.5% driven by higher utilisation rate, steadily increasing offshore contribution and 2.3% QoQ (quarter-on-quarter) increase in offshore billing rates. The company’s topline also grew at 8.10% QoQ on account of offshore volumes growing at 12% and rise in offshore & onsite billing rates by 227 bps and 236 bps respectively, adds the report. The brokerage feels the company can maintain volume growth in Q4FY08 and FY09 through larger revenue contribution from retail, transport & logistic segments and manufacturing segment as it continues to diversify. Meanwhile, the utilisation rate of Satyam improved to 78.2% from 76.4% in Q2FY08 for offshore (including trainees), despite aggressive hiring.


Pratibha Industries
cmp: Rs 293.35
target price: Rs 490

PINC has maintained a ‘buy’ on Pratibha Industries as it feels that a ‘strong order book and revenues from the pipe manufacturing business’ would enable the company ‘to capitalise on the burgeoning opportunities in the infrastructure sector’. The brokerage has also set an 18-month price target of Rs 490 for the stock. The brokerage has also factored in the execution delays for some projects (Ulhasnagar water supply project) while revising its operating profit margin (OPM) estimates downwards due to steep increase in key raw material prices.

Farmer Bachchan retracts on land deal...................Imtiaz Jaleel
Tuesday, March 25, 2008 (Pune)
Bollywood actor Amitabh Bachchan has gone back on his decision to donate his agricultural land in Maval region of Pune that he bought from farmers, saying that he wants to retain it.

Bachchan's retraction comes after Allahabad High Court confirmed Amitabh as a farmer.

Following the court ruling, the Maharashtra government said he can keep his land, a 21-acre plot that he bought claiming to be a farmer.

''The government should have taken the land when he offered to give it to the farmers. But at that time the authorities did not act. Now that the land is rightfully his, he will get the land back,'' said Narayan Rane, Revenue Minister, Maharashtra.

Controversy broke in July 2007 over whether the actor had bought the land legally, then Amitabh had offered to surrender the land.

On Tuesday in a letter written to the Pune Sub Divisional Officer, he retracted that offer.

''We have received a letter from Amitabh saying that he would like to withdraw the letter sent earlier in which he had expressed his desire to donate that land to farmers,'' said Sanjaysinh Chavan, Sub Divisional Officer, Maval.

While the state's revenue minister may have given Amitabh his stamp of approval, local Pune farmers are not.

''We will continue with our agitation, it was because of this only that Amitabh had decided to donate back the land. We will oppose any construction there as it is agricultural land,'' said Baba Adhav, farmer.

Given the farmers' irate stand, Amitabh's troubles may not completely be over.

Stocks to watch on Tuesday
25 Mar, 2008, 0924 hrs IST...............

MUMBAI: Equities are likely to open sharply higher tracking buoyant global markets.

Reliance Industries, the country’s largest private sector company, has decided to shut down all the petroleum retail outlets owned by it directly as surging crude prices and the absence of government subsidies have made operations unviable.

On the other hand, it is evaluating a plan to set up its third refinery at Jamnagar in an ambitious project to reach a total capacity of 100 million metric tonne per annum (mmtpa), reports The Business Standard. The share closed at Rs 2,200 up 1.93% on the BSE.

The D-day is inching closer for Tata Motors. According to sources close to the development, it is likely to ink the Jaguar-Land Rover deal with Ford on March 26. Ford is scheduled to make the announcement on engines, pensions and other long-term agreements on that day. The stock ended at Rs 662.35, up 1.83 per cent on the BSE.

Shares of pharmaceutical companies may see some action on reports that companies such as Ranbaxy Laboratories, Cipla and Aurobindo Pharmaceuticals are submitting bids for the $200 million South African government tender to supply anti-HIV drugs. Zydus Cadila, Hetero and Matrix Laboratories are also expected to put in bids. The contract will be to supply 10 anti-Aids drugs to the SA government and is expected to be finalised in May.

GHCL will spin off its home textile and retail businesses into separate units as part of a restructuring plan to accelerate growth. The firm earns about 64 per cent of its revenue from home textiles and 33 per cent from soda ash business. In 2006, GHCL acquired UK-based retail chain, Rosebys, and has plans to expand it across the globe. Share of GHCL ended at Rs 74.65, up 1.36 per cent on the BSE.

Reliance Energy will start buying back its shares worth Rs 2,000 crore from today. The buyback would be made at a maximum price of Rs 1,600 a share. The last date for the buyback would be March 4, 2009. The stock fell 4.61 per cent to close at Rs 1,150 on the BSE.

Vardhman Textiles has signed a joint venture agreement with US-based American & Efird Inc(A&E), a subsidiary of Ruddick Corporation, to manufacture and sell sewing thread for industrial and consumer markets in India overseas. The stock closed at Rs 99.45, up 2.84 per cent on the BSE.

Jaypee Infratech sells stake for Rs 1,150 cr to ICICI Bank
25 Mar, 2008, 2034 hrs IST, PTI


MUMBAI: Jaypee Infratech Ltd, a subsidiary of the diversified business group Jaiprakash Associates, has raised Rs 1,150 crore by offloading one per cent stake to private sector lender ICICI Bank.

In a notice to the Bombay Stock Exchange, parent company Jaiprakash Associates said that ICICI Bank will be investing Rs 1,150 crore by way of subscription to 10 million equity shares of Rs 10 each for cash aggregating to Rs 250 crore and the balance Rs 900 crore as long-term loan in Jaypee Infratech.

In addition to ICICI Bank's one per cent shareholding, a Jaypee Group employee trust holds one per cent in in Jaypee Infratech. The parent company Jaiprakash Associates Limited will hold the remaining shares.

Jaypee Infratech Ltd is a company promoted and incorporated by Jaiprakash Associates Ltd to develop, construct and operate Taj Expressway, a 165 km six lane access controlled toll expressway between Noida and Agra in the state of Uttar Pradesh.

Corporation Bank declares 45% interim dividend
25 Mar, 2008, 1628 hrs IST........................

MUMBAI: Corporation Bank has declared an interim dividend of 45 per cent for 2007-08 (Apr-Mar). The bank also plans to raise Rs 500 crore in the form of Tier-II bonds, in addition to Rs 500 crore already raised.

On March 19, Corporation Bank had raised Rs 200 crore from second tranche of Tier--II bonds.

Corporation Bank shares ended up 15.61 per cent at Rs 284.80 on BSE.

Four Soft hardens on new order win
Capital Market
Tuesday, March 25, 2008 (New Delhi) The company made this announcement during trading hours today, 25 March 2008.

Meanwhile, the BSE Sensex was up 652.05 points, or 4.26%, to 15,941.45 on easing credit worries in United States following JP Morgan Chase and Co's improved offer to buy Bear Stearns.

On BSE, 30,132 shares were traded in the counter. The scrip had an average daily volume of 51,348 shares in the past one quarter.

The stock hit a high of Rs 23.75 and a low of Rs 22.25 so far during the day, which is a 52-week low. The stock had a 52-week high of Rs 70.40 on 23 April 2007.

The small-cap scrip had underperformed the market over the past one month till 24 March 2008, declining 41.43% compared to the Sensex’s fall of 11.87%. It had also underperformed the market in the past one quarter, declining 54.92% compared to Sensex’s decline of 22.99%.

The company’s current equity is Rs 19.48 crore. Face value per share is Rs 5.

IAL is one of the largest shipping and logistics companies in the sub-continent and has a strong presence in Asia with its own office network. IAL group will utilize 4S eTrans for better visibility, real time information on the shipments, better reports and most importantly better billing cycle.

Four Soft reported a net loss of Rs 0.37 crore in Q3 December 2007 as compared to net loss of Rs 0.13 crore in Q2 September 2007. Net sales declined 11.11% to Rs 8.72 crore in Q3 December 2007 over Q2 September 2007.

Four Soft is an enterprise solutions company that develops innovative software products, and provides information technology (IT) consultancy services for the logistics and supply chain management

GHCL advances on restructuring plans
25 Mar, 2008, 1049 hrs IST.............

MUMBAI: GHCL shares surged on Tuesday after the company announced plans to spin off home textile and retail businesses into separate units, as part of a restructuring strategy to enhance growth.

At 10:21 am, the stock was at Rs 76.80, up 4.28 per cent. It touched a high of Rs 78.95 and low of Rs 75.30 in trade so far.

GHCL, which is mainly into making soda ash, would continue to be listed. The home textile business, comprising sourcing and manufacturing, is proposed to be shifted to a 100 per cent subsidiary of GHCL. The retail entity would look after the India and UK retail ventures, including that of Rosebys UK, which was acquired in 2006.

GHCL earns about 64 per cent of its revenue from home textiles and 33 per cent from soda ash business

Ctrl S to invest USD 250 mn in 4 new data centres

New Delhi, March 25: Hyderabad-based firm Ctrl S Data Centers on Tuesday said it is planning to invest 250 million dollars to open four data centres in the country in next 2-3 years.

"We are planning to open four data centres in Bangalore, Chennai, Delhi and Mumbai by 2010 which would entail an investment of 250 million dollars," Ctrl S Data Centers Chairman and Managing Director S Reddy said.

Ctrl S Data Centers is a data centre firm and data centres house computer systems and associated components, such as telecommunications and storage systems.

Currently, the company has a Tier-4 data centre in Hyderabad with a capacity of 1,000 racks.

All the existing data storage centres in India are tier-2 and tier-3, he said. The tier-4 facility is the highest category of data centres in the world and it costs 30 to 40 per cent higher than the other two categories of facilities.

With the new four data centres coming up in the country, the company expects to create a capacity of 20,000 racks.

The Asian Data Centre market would increase by a compound annual growth rate of 11.5 per cent over the period from 2006 to 2010 with India becoming the fastest growing market.

He said the data centre industry in the country is expected to grow many fold with nearly 1,700 square feet data centre space expected to be created in India by 2010.

With more than 50 new telcos coming in India, there would be an explosion of data centres in the country.

Ctrl S Data Centers is promoted by the Rs 500-crore Pioneer Group along with IDBI and Och-Ziff a New York-based global Top 5 hedge fund.