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The Indian pharma industry stands fourth globally in terms of volume and is growing at 10 per cent per annum.

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FICCI spelts out 4-point agenda to FM
FICCI
Sunday, February 10, 2008 (New Delhi)
FICCI spelt out a four-point action agenda to achieve the 11th plan growth target of 9% over the next five years. The agenda calls for focus on agri-reform, strengthening manufacturing and infrastructure sectors, encouraging savings and investments, and widening the tax base.

The FICCI President, Mr. Habil Khorakiwala in the pre-budget meeting with the Finance Minister, Mr P. Chidambaram, presented the action agenda.

Mr. Khorakiwala informed the Finance Minister that India’s growth momentum of close to 9% could be sustained and even accelerated, given the potential for continued improvement in productivity, infrastructure facilities, market structures and linkages and the continuation of positive initiatives in the regulatory and policy framework. Even a double-digit growth of around 10% was possible if the reform agenda was pushed forward with vigour, he said.

Specifically, Mr. Khorakiwala said the following need attention in the ensuing Budget.

CBoP to merge with HDFC Bank

New Delhi, Feb 23: Centurion Bank of Punjab`s board on Saturday gave an in-principle approval for merger with HDFC bank, official sources said.

HDFC bank is the country`s second largest private sector lender after ICICI bank while CBoP is the fourth largest. HDFC bank has about 746 branches pan-India, while CBoP has 394.

If the merger takes place, the combined entity could have a market capitalisation of about Rs 63,000 crore, based on their current market values.

CBoP is currently the tenth most valued bank in India with a market cap of about Rs 10,500 crore, while HDFC bank is the third-most valued at over Rs 52,000 crore.

Bureau Report

MNS asks Sonia to send back 25 lakh Biharis to Bihar

Mumbai, Feb 23: Raj Thackeray-led MNS has asked Congress president Sonia Gandhi to send back 25 lakh Biharis in the city to their home state.

The MNS was reacting to the behaviour of Bihar MLAs who created unruly scenes during Bihar Governor RS Gavai's address to the state assembly on Friday wherein some of them reportedly raised slogans saying "Gavai go back to Maharashtra".

"This is not just an insult of the Governor but insult to crores of Dalits. To prevent further insult of Dalit leader like Gavai, Sonia Gandhi should call him back to Maharashtra. But while doing so she should also see to it that 25 lakh Biharis from Mumbai are sent back to Bihar," MNS general secretary Shishir Shinde said in a statement.

He said "Congress and Lalu Prasad should first teach lessons of good behaviour to Bihar MLAs before giving advises to the people of Maharashtra".

MNS chief Raj Thackeray on Friday took a dig at the Bihar MLAs who created ruckus in the assembly and said, "this was the reason (unruly behaviour) why he was opposed to outsiders in Maharashtra.

"Why did I have to launch an agitation to protect the culture of Maharashtra? The answer to this question lies in the manner in which the MLAs of Bihar behaved in front of the the Bihar Governor, who is a Maharashtrian," he said.

Bureau Report

FM to present budget for `aam aadmi`

New Delhi, Feb 24: Personal and corporate income tax cuts, excise duty relief and simplification of taxes are expected in the Union Budget for 2008-09, the last full- fledged budget before the next general elections.

Finance Minister P Chidambaram, who will be presenting his seventh budget on Friday in parliament, has a tough exercise on hand of balancing conflicting interests in coming out with a budget for the `aam aadmi` (common man).

He is expected to announce massive funds for social sector projects like National Rural Employment Guarantee (NREG), Sarva Shiksha Abhiyan, rural health and power sectors and a debt-relief package for farmers to "share the benefits of high growth" especially in view of the coming Lok Sabha elections by this year end or early next year.

The Indian middle-class and the industry, which still remember his "dream" budget of 1997-98, are expecting a bonanza from the finance minister in terms of relief in income tax and excise duties and simplification of other taxes.

Government servants are expecting an announcement on implementation of the sixth pay commission.

Sources say that the finance minister is unlikely to introduce any new tax in the budget for 2008-09 although some controversial taxes like the banking cash transaction tax may be reviewed, adding that with buoyancy in revenue collections he is capable of working out packages for every constituency.

Apart from meeting the fiscal and revenue deficit targets, the budget is likely to aim at sustaining 9 percent GDP growth, while containing politically sensitive inflation rate around 4 percent.

Concerned over the slump in agricultural growth, Chidambaram is expected to announce a package for irrigation sector and farm production.

There is a strong likelihood that the small and medium enterprises may get a technology fund apart from jump in credit.

By announcing Rs 500 crore financial package for exporters ahead of the budget, he has already indicated that the government was ready to extend its helping hand to sectors like textiles hit by the rupee`s appreciation against the USD.

On income tax cuts, the minister himself has acknowledged that with better tax compliance, there could be a case for cut in rates.

The minimum income threshold limit for income tax payer could be raised from Rs 1,10,000 to Rs 1,25,000 or Rs 1,30,000, sources said.

Similarly, the income threshold for 30 percent tax rate could be raised from the current Rs 2,50,000 per annum, sources said, adding that this had been kept constant since fiscal year 2005-06.

Apart from pleasing his party colleagues and voters, the tax relief will also help Chidambaram to address the recent slow down in industrial production.

More income in the pockets of consumers will boost demand for consumer goods as well as household savings for investment.

Concerned over the slump in industrial production and to maintain inflation around 4 percent, the government is also likely to provide relief to the manufacturing sector by marginally cutting excise duty rates or sector-specific duties in the budget 2008-09.

Bureau Report

3:5 ratio r power.you will get 60 share for 100 share as bonus.

Reliance shareholders get more Power

news Bureau

Mumbai, Feb 24: In an apparent attempt to compensate battered shareholders, Reliance Power Chairman Anil Ambani on Sunday announced that the Board has approved the issuance of bonus shares.

The bonus shares will be issued to the investors in 3:5 ratio, Ambani announced. Ambani will lower his stake in the company in order to make up for the bonus shares. After this move his stake in the Reliance Power will go down to 40% from 45%.

The public stake in the company, after issuance of bonus shares will go upto, 15%. This move will protect dilution of REL stake in Reliance Power while promoters will accept dilution of their own stake.

The move will also reduce cost of acquisition for shareholders.

After the issue of bonus shares the price of the Reliance Power ‘s share will go down to Rs 269 for retail investors and Rs 281 for institutional investors.

While announcing the move, Anil Ambani hinted at some foul play in the way the price of Reliance Power’s share fell to nearly Rs 380 from the listing price of Rs 540. He said the shares most likely plunged due to price hammering by an entity working against his company.

ADAG ready with IPO plans of group firms

Mumbai, Feb 24: Undeterred by a dismal performance of Reliance Power IPO, which it attributes to abnormalities in the equity market, Anil Ambani Group Sunday said it will go ahead with listing plans of its other firms.

The firm has lodged a complaint with market regulator Securities and Exchange Board of India, seeking investigation in "price hammering" of its shares since listing on February 11.

"The fact that seven Mauritius-based FIIs sell in a falling market has got to do something more than that meets the eye," group chairman Anil Ambani told reporters here.

"Our common complaint to SEBI is price hammering where within four minutes of listing, the stock price comes down from Rs 540 to rs 380," he said.

The scrip, after listing at Rs 547.8, slid into red within a minute and closed at Rs 372.5, a level much below the issue price. Investors in the company lost over Rs 1,700 crore on February 11, the day the scrip debuted on the stock exchanges.

On whether he would go slow on listing other group companies such as Reliance Infratel, he said: "there is no rethink on the issue. A DRHP has been filed. We will wait for the right time."

The group had raised USD 3 billion through the Reliance Power IPO - the largest in the country. It has also filed draft papers for initial public offer of Reliance Infratel, a subsidiary of Reliance Communications.

The company proposes to raise Rs 6,000 crore through the offer with an issue of 8.91 crore shares, representing about 10.05 per cent equity in Reliance Infratel. The issue proceeds are proposed to be utilised toward funding development of passive infrastructure and general corporate purposes.

Bureau Report

RFCL looking for acquisitions in US, Europe

New Delhi, Feb 24: Veterinary products and speciality chemicals maker RFCL, a part of private equity firm ICICI venture, is scouting for acquisitions abroad to establish a base in the high volume US and European markets, as it sees revenues crossing the Rs 500 crore mark by 2010.

The company, which also manufactures chemicals used in medical diagnostics, is looking for opportunities in lab chemicals and animal healthcare products segment abroad for which it has appointed Yes Bank as its consultant.

"The share of India in lab chemicals and animal healthcare segment is only 1 percent. The sector offers huge growth potential overseas and in order to cash in on this opportunity, we have to be present in bigger markets such as Europe and US," RFCL managing director Sushil Mehta told agencies.

Mid sizes firms valued at USD 40-50 million would be on the company's radar for a possible takeover.

"We are only interested in companies having a strong research-based product line," Mehta said.

The company intends to outsource a part of the acquired firm's manufacturing to India to have cost-effective operations.

"Going forward, we expect to become a Rs 500 crore company by 2010. We should comfortably touch the Rs 300 crore mark in the current fiscal," Mehta added.

RFCL is under a rapid phase of expansion and is also looking at organic ways to expand operations in the domestic market.

The company is setting up a laboratory chemicals manufacturing facility in Panoli, Gujarat, at an investment of around Rs 60 crore to cater the demand from western India.

The company is also looking to tap the capital market to fund its expansion programme but has not fixed any time-frame for the purpose.

Bureau Report

Manmohan Govt looks to `do` the N-deal by April

As the clock ticks away for the nuclear deal with the US, the Indian government is planning to conclude a safeguards pact with the International Atomic Energy Agency (IAEA) latest by mid-March and has set itself an April-end deadline to force the issue with its Left allies which are determined to thwart the deal.