Railway Budget 2007-2008

Railway Minister Lalu Prasad in his pro-poor Railway Budget for 2007-08 presented in the Lok Sabha on Monday announced major relief for passengers by cutting fares across the board.

1. The minister cut passenger fares cut by 4 per cent for sleeper class rail travel.
2. Lalu Prasad also kept the freight rates unchanged.
3. AC Ist class fares reduced by 6 per cent in lean season and by 3 per cent in peak season.
4. Re 1 cut in daily non-suburban train fares.
5. For AC two-tier, the busy season reduction is 2 per cent and lean season 4 per cent.
6. He also lowered fares for all classes of high capacity new design reserved coaches which would be 4 per cent for AC three-tier and AC chair car in busy season and 8 per cent in lean season.
7. In sleeper class, the fare-reduction would be 4 per cent in all seasons.
8. The railway minister announced that discounts for the busy season shall be applicable in popular trains throughout the year.
9. Superfast charge on second class tickets has been reduced by 20 per cent from Rs 10 to Rs 8, he said.
10. Prasad announced introduction of tourist ticket in Mumbai suburban services with facility for unlimited travel.
11. He brought down charges for e-tickets booked on the Internet.
12. The railway minister also cus petrol diesel freight rates by 5 per cent.

Check this as well.

Following are the highlights of the Railway Budget:

2006-07: Review of Performance and Revised Estimates

Record breaking performance in the first nine months of the year 2006-07
Freight earnings register growth of 17%. Incremental loading of 59 MT likely to be achieved
Growth in Passenger Earnings, Other Coaching Earnings and Sundry Earnings 14%, 48% and 11% respectively
Gross Traffic Earnings register an unprecedented growth of 17%
In Revised Estimates Passenger Earnings, Other Coaching Earnings, Freight Earnings and Sundry Earnings expected to be Rs 17,400 cr, Rs 1,726 cr and Rs 42,299 cr, Rs. 1,695 cr respectively
Gross Traffic Revenues projected at Rs 63,120 cr are 16% higher than the previous year and 5.5% higher than the Budget Estimates
Cash Surplus before dividend expected to be Rs 20,000 cr
Net Revenue expected at Rs 14,870 cr and Net surplus after payment of dividend expected at Rs 10,627 cr
Operating Ratio likely to be 78.7% - best ever for IR and one of the best in world Railways
Year end fund balances likely to increase from Rs 12,000 cr in 2005-06 to Rs 16,000 cr
Return on capital set to reach historic level of 20%
In spite of reduction in Passenger fares, the losses in passenger business expected to come down
2007-08: Initiatives taken for improvement in Freight Business

Target for freight loading kept at 785 Million Tonnes (MT) in 2007-08
Mission 200 MT - Railways' target higher share in transportation of Cement and Steel - 200 MT each by 2011-12
Mission 100 MT - container traffic target of 100 MT by 2011-12
Planning for Triple-stack container trains on diesel route and double-stack container trains on electrified route
Railways offer to run Merry-go-round systems of power plants
Upgradation of Freight terminals handling more than 15 rakes per month.
22.9 tonnes and 25 tonnes axle-load freight trains to run on more routes
Production of wagons of higher axle-load and payload to commence
Wagon manufacturers to be encouraged to design wagons with higher payload and new technology
Majority of air-brake trains to be examined in accordance with premium CC or premium end-to-end examination system
Implementation of Unit Exchange Maintenance for rolling stock to improve productivity
Zonal Railway to engage independent marketing agencies for exploring further possibilities in freight business
Initiatives in passenger business:

800 more coaches to be attached in popular trains
Plan to provide cushioned seats in unreserved second class coaches
Increase in unreserved second class coaches from four to six in every new train � Efforts will be made to increase unreserved second class coaches in existing trains also.
Facility for reservation of lower berths for senior citizens and women above 45 years traveling alone
Increase in provision of special coaches (SLRD & SRD) for Physically challenged passengers
Vendor coaches for sections frequented by milk and vegetable vendors and other retail sellers
More convenient, comfortable and high capacity new design passenger coaches will be manufactured
Concession of 50% in second class for candidates appearing for main written examination conducted by SSC and UPSC
Facilitating travel by passengers

Countrywide Train Enquiry call centres � Common Tel. No. 139
Pilot project for providing hand held terminals to TTEs in reserved coaches to update PRS with onboard vacancies for giving reservation to passengers at ensuing stations without delay
Expansion of reserved ticketing facilities
PRS counters to be opened at premises of Post-offices and Defence organizations to be operated by them
e-ticketing services through State Government's e-services, Petrol pumps, Bank's ATMs etc.
Expansion of Unreserved Ticketing facilities
UTS counters to be increased to 8000 in the next 2 years
6000 Automatic Ticket Vending Machines to be installed and linked to UTS in metropolitan cities in the next 2 years
Coupon system for ticket distribution to be extended to Kolkata and Chennai
Pilot project on Central Railway for issuing suburban tickets through multi-purpose smart cards
Passenger Amenities at Stations

300 more stations to be developed as modern stations.
Year 2007 declared 'Cleanliness Year' - Special campaign to ensure cleanliness in station complexes, passenger trains, railway lines, waiting rooms etc.
11th five-year plan � Railways' new profile

Target of 1,100 MT freight loading and 840 crore passengers in the terminal year of 11th Plan.
Focus would be on doubling transport capacity and reducing unit cost of transportation by increasing volumes.
Short-term strategy- investing in low cost high return projects for eliminating bottlenecks and ensuring intensive asset utilization
Mid and long-term strategy � twin pronged approach of network expansion and modernization and technical upgradation
Public-private partnerships projects will play an important role.
Construction of Eastern and Western Dedicated Freight Ccorridors at a cost of Rs 30,000 cr will commence from 2007-08 for completion during the 11th plan.
Pre-feasibility surveys for East-West, East-South, North-South and South-South Corridors
Most of the metre-gauge lines will be converted into broad-gauge by the end of this five-year plan.
High speed Passenger Corridors to be constructed to run trains at more than 300 km/hr speed.
Expansion of suburban services through completion of MUTP Phase-1 and initiating MUTP Phase-2 through joint funding
Efforts to provide air-conditioned suburban trains in Chennai, Kolkata and Mumbai and escalators at important stations
The production of rolling stock will be doubled compared with previous plan. Production of high-horse power and energy efficient locos to be increased.
Manifold increase in investment in IT to increase earnings, ensure effective utilization of human and physical resources and facilitate long-term policy decisions
Commercial portal to be developed over next 3 years for better yield management
Integrated time bound implementation of all FOIS modules by 2010.
ERP package for workshops, production units and select Zonal Railways
Railway Safety

Number of rail accidents has decreased despite substantial increase in volume of traffic
Majority of Special Railway Safety Fund works will be completed by March, 2007. Balance to be completed by March, 2008.
Testing of Anti-Collision Device in last stages
General Managers empowered to sanction subways costing up to Rs 50 lakhs on unmanned level crossings for reducing accidents.
Production of improved crashworthy coaches will be increased.
Railway Security

Number of trained dogs will be increased in the existing dog squads.
Door frame and hand held metal detectors to detect explosives being installed in many sensitive divisions and CCTV, smart video cameras etc for sensitive stations
8,000 vacancies will be filled in the RPF on all India basis.
Jagjivan Ram Railway Suraksha Bal Academy (Lucknow) has been recognised as Centralized Training Institute.
Staff Welfare

Per-capita contribution to Staff Benefit Fund will be increased from Rs 30 to Rs 35 per year.
Condition of Railway Staff colonies to be improved
50 room rest houses will be built near the Railway hospitals in the four metropolitan cities for stay of relatives of the patients.
An extensive training programme will be launched to inculcate market and customer oriented approach in frontline staff.
A committee has been constituted to improve promotion prospects of Group 'D' employees.
Previous service tenure of ex-servicemen and central government employees recruited by Railways, will be added to their existing service tenure in the Railways while calculating eligibility for post retirement complimentary passes
Organisational and Human Resource Development

Training of Railway employees and officers to be reoriented towards changing economic and competitive environment
Institutions of GMs, DRMs, CAOs (Construction) to be strengthened and empowered for development as business units, profit centres and project units respectively.
Railway Staff College, Vadodara will be renovated as heritage building
A Railway chair will be established at IIM/Ahmedabad for research in railway infrastructure and management
Special Recruitment Drives

95% of the vacancies of Scheduled Castes and Scheduled Tribes have been filled through special drives and 75% of backlog in the promotional quota has been cleared.
Action is being taken to fulfill the stipulated 27% quota of the OBC candidates.
Passenger Services

8 new Garib Raths to be introduced
New Trains : 32 pairs
Extension of Trains : 23 pairs
Increase in Frequency : 14 pairs
Annual Plan 2007-08

The Annual Plan of Rs 31,000 cr is the largest ever Annual Plan so far, which includes:
� Support of Rs 7,611 cr from General Revenues.

� Internal Generation of Rs 17,323 cr.

� Extra Budgetary Resources of Rs 5,740 cr.

The thrust of the annual plan is to maintain the high growth in traffic, by focusing on early completion of works for throughput enhancement on high traffic density routes, improvement of traffic facilities and enhancing sectional capacity.
v High Density Network to be made suitable for running of Heavy Axle load trains

v Enhanced line capacity planned for on busy routes by implementing IBS, Automatic Signaling etc.

v Increase in speed of trains through fly-overs, bypass, yard redesign etc. at busy junction stations, will be built and will be modified

v 200 Diesel, 200 Electric engines and 11,000 wagons to be produced

Outlay on project related Plan heads : New Lines Rs 1,610 cr, Gauge conversion Rs 2,404 cr, Electrification Rs 300 cr, Metropolitan Transport Projects Rs 722 cr.
Outlay on Safety related Plan heads : Track renewal Rs 3,360 cr, Bridges Rs 597 cr, Signal & Telecommunication works Rs 1,597 cr, Road over/under bridges Rs 551 cr and manning of unmanned level crossings Rs 500 cr.
Important Targets : New Lines 500 kms, Gauge Conversion 1800 kms, Doubling 700 kms.
Rs 2,725 cr required for four National Projects
Other Important Announcements

New Electric Loco works to be set up at Madhepura.
Wagon Bogie Complex to be set up at Dalmia Nagar.
Shortfall of rolling stock bogies to be met by setting up of Joint venture company with Kerala Government at Alleppey.
Railways emerging International image

Railways to impart training to railway personnel of African countries
Chairman Railway Board elected as first chairman of Asian Railway Association and also as first non European President of International Railway Union (UIC )


Proposals relating to freight rates and passenger fares

Freight Business

No across the board increase in freight rates
Highest class 220 reduced to 210
Freight rates of diesel and petrol to come down by about 5 per cent
Minerals and Ores (iron-ore, lime-stone and dolomite) - reduction in classification from class 170 to 160
Wagon load class rates for commodities up to class LR1: reduced from class150 to class120
Schemes Announced/ Modified

Commodity based freight policy-exclusive package for cement traffic
Dynamic Wharfage and Demurrage rates - reduction in wharfage rates and relaxation in loading/unloading free time at select terminals.
Discounts up to 40% on incremental loading of bagged consignments in open wagons in empty flow direction.
Discount of 20 per cent during lean season and 15 per cent during peak season under Two Leg Freight Discount Scheme for covered wagons in up and down directions.
Distance between unloading points in Two Points Rake Scheme to be increased from 200 to 400 kms during lean season.
Facility for loading less than block rakes under Empty Flow Direction Scheme.
Empty Flow Discount extended to all commodities except coal, coke and iron ore.
Empty Flow Direction Freight Discount will be given at 30 per cent throughout the year for traffic lead of more than 700 kms.
Passenger Business

Reduction in passenger fares.
Fares of second class in non-suburban ordinary passenger and non-superfast mail/express trains reduced by one rupee per passenger
AC First Class : 3% reduction in busy season , 6% in lean season
AC-2Tier Class : 2% reduction in busy season, 4% in lean season
Reduction in fares for all classes of high capacity new design reserved coaches :
AC3-Tier & AC CC: 4% reduction in busy season and 8% in lean season
Sleeper Class: 4% reduction in all seasons
Above discounts for busy season shall be applicable in popular trains throughout the year.
Superfast charge on Second Class tickets reduced by 20 per cent (from Rs. 10 to Rs. 8).
Tourist ticket to be introduced in Mumbai Suburban Services with facility for unlimited travel.
Charges for e-tickets booked on the internet reduced.

(Source : Rediff)
-Mumbaikar

Who's Bently is this?

The Bentley is one of the most-sought after dream machines in the world. Just that most of us can only dream of it. But on Thursday, when the gleaming white Bentley owned by Amar Singh but often driven by Abhishek Bachchan purred into the dusty compound of the Andheri Regional Office, assistant RTO V R Gujrathi, fancied his chance for a spin.

The car, owned by Amar Singh, and purportedly gifted to Abhishek Bachchan as a 31st birthday present by his father Amitabh, was brought to the Andheri RTO for registration by a representative of the Big B. But when the papers were taken to Gujrathi he allegedly asked that he be allowed to drive the car before he gave his go ahead for the registration. Baffled by this unusual request Bachchan's representative got in touch with a senior politician who in turn contacted Transport Commissioner SS Shinde and asked him to sort out the matter.

Gujrathi himself has denied that any such incident took place but well-place sources told this newspaper that Gujrathi at one point threw the registration papers away from him when he was denied the chance to take the car for a drive. The matter was resolved only after the senior politician who did not wish to be identified, intervened.

According to the sources at RTO the documentation of the vehicle is complete with Rs twenty two lakh and sixty-nine thousand already paid as tax to the Andheri RTO and another Rs seven lakh thirty-five thousand paid as Octroi.
"Since Bentley is among the international makes that have all-compliant status in most countries there was no need to test the vehicle in the RTO premises before allotting it registered status," sources at RTO said, adding that the registration was now just a matter of time since a letter from Amitabh Bachchan confirming that Amar Singh stays at his Juhu residence whenever he (Singh) visits Mumbai has also been provided for.

The Bentley has been in the news ever since it was first spotted in Mumbai when Abhishek Bachchan along with his fiancee Aishwarya Rai visited his ailing grand-mother in the Bentley. It was rumoured that the Rs 2.5 crore worth vehicle was a gift from Bachchan senior to Abhishek. But after controversy arose over documentation, Amar Singh told the media that it was he who had purchased the from London and had paid all taxes. He also admitted to have given Bachchan's residential address in Mumbai as his own.

(Source: Mid-Day & Rediff)

-Mumbaikar

Get Ready for Scottish whisky

Indian eyes Scottish whisky giant

An Indian businessman could be the owner of one of the UK's most famous whisky firms within two weeks, according to press reports. Vijay Mallya has been linked with Glasgow-based Whyte & Mackay since last year but is set to clinch a deal. Mr Mallya's UB Group is reportedly scrutinising the firm's books ahead of a £550m takeover. Whyte & Mackay said in October 2006 that it had received an unsolicited offer from UB Group. Now newspaper reports say a deal is believed to have been agreed and that "the formalities would be completed within a fortnight".

P.A. Murali, chief financial officer of UB Spirits confirmed that the process of looking at Whyte & Mackay's books, known as due diligence, is underway.

But he said it would be "speculative" to comment on when an agreement would be signed. A statement from Whyte & Mackay's chairman and chief executive said "We remain the owners of Whyte & Mackay and are still considering all of our options. The value of the business increases all the time."

1. Whyte & Mackay's brands include the Jura and Dalmore single malt whiskies, Vladivar Vodka and Glayva liqueur.
2. Mr Mallya's United Breweries is the world's third-biggest spirits group
3. Mr Mallya also owns the Kingfisher beer labels, an airline and a fashion label.
4. UB Group dominates the Indian spirits market, which is the world's largest for whisky.
5. Scotch whisky has only a 1% foothold in the Indian market, because of the tariffs imposed by national and state governments there.

(Source: BBC news)

-Mumbaikar

Home loans getting costlier

A story from The week !!

RBI clips real estate wings; home buyers wary
RBI Governor Y.V. Reddy believes it is high time the 'overheated' real estate sector was doused with a coolant. The hike in the repo rate (rate at which banks borrow from RBI) by 25 basis points, to curb inflation, increases bank lending rates. And, the increase in the provisioning requirement of standard assets, from 1 per cent to 2 per cent, requires banks to set aside more capital in their books for such lending.

His double whammy has ramifications on two fronts. It could bring real estate developers down to earth and rein in the great Indian middle class' rush to own dream homes. In plain terms, banks will charge higher interest rates on loans to property developers, who in turn, will pass it on to consumers.
Strong economic growth, rising income levels, and improving transparency boosted the real estate sector in 2006. The industry has been growing at 30 per cent annually, and offers maximum returns to investors. The Associated Chambers of Commerce and Industry of India forecasts a growth to $90 billion by 2015.
Spiralling property prices and growing exposure of banks to the realty segment have allowed a huge flow of what RBI brands as ?'speculative money' into the sector. Credit has been rising by 84 per cent on a year-on-year basis, accounting for 2.5 per cent of non-food credit. RBI figures show banks' exposure to real estate was Rs 37,838 crore (October 2006).
The provisioning requirement directive to banks means that for every Rs 100-crore loan exposure to segments like realty or personal loans, they must deduct Rs 2 crore (up from Rs 1 crore) from the profit and loss account. The 2 per cent provision would mean banks having to set aside Rs 756.76 crore.
With the public alarmed at the possibility of further hikes in home loan rates, too, the finance minister cautioned the public sector banks to hold home loan interest at current rates. But private banks like ICICI have announced an increase of 1 per cent in home loans, with effect from February 9. Home loans have steadily risen over a two-year period, up from 7 per cent in 2004 to around 10 per cent today. The equated monthly instalments (EMIs) on a home loan for 20 years have grown by over 25 per cent in the same period.
Several banks are already going slow on sanctioning funds to the realty segment. "By raising the provision requirement to these segments, RBI is signalling that we should slow down loans to them, but focus on the productive sector where the provisions remain unchanged," said K.C. Chakrabarty, chairman and managing director of Indian Bank.

The FICCI, however, feels that at this juncture of economic growth it is critical for the industry to have access to bank funds at globally competitive rates. Increasing lending rates would adversely impact the small and ?medium enterprises, which do not have other ways to fund their expansion plans.
Sanjeev Srivastav, director, Assotech, a real estate major, said, "RBI is tightening the sector because of apprehensions over the so-called boom in real estate. Many projects in the pipeline would suffer. The sector has responsibility like housing for the low-income groups and economically weaker sections. It will be difficult for us to cut down on funds and provide affordable habitats."
Dibyendu Choudhury of Confederation of Real Estate Developers' Association of India is not pleased. "Real estate comes after IT in terms of contribution to the GDP. RBI could have asked industry bodies like the FICCI or ours to work out something," he said.
On the flip side, RBI's action could help curb liquidity and thereby reduce the pressure on inflation. Banks would lend selectively at a slightly increased cost. It would still pinch the wary middle class.

- Mumbaikar

TV Today has 1% more of Anil Ambani

The Anil Ambani Group has increased its stake in media house TV Today Network to nearly 12 per cent by acquiring an additional one per cent stake in a deal that could be estimated at about Rs 8 crore (Rs 80 million).

ADA Group company Reliance Capital's subsidiary Sonata Investments bought 5.83 lakh shares, taking its total to 69.20 lakh shares. This represents a shareholding to 11.93 per cent, TV Today informed the Bombay Stock Exchange.
The shares in the media company, which runs the 'Aaj Tak' and 'Headlines Today' news channels, were purchased in an open market transaction that was reported on February 19.

Going by the intra-day high of TV Today at Rs 137.75 on February 19, Sonata Investments could have bought the shares for about Rs 8.03 crore (Rs 80.3 million).

On February 12, Sonata Investments bought 0.96 per cent stake for around Rs 6.50 crore (Rs 65 million), taking its stake to above 10 per cent in TV Today. Prices of TV Today scrip have increased by nearly 25 per cent since the beginning of the month as ADAG has been picking up shares.

The scrip closed at Rs 100.75 on January 31 and currently it trades at Rs 126.51 per share. Anil Ambani Group has been actively purchasing stakes in media companies for sometime now.

Recently, it had acquired over six per cent in Global Broadcast News, which runs the IBN7 and CNN-IBN news channels, for Rs 87 crore (Rs 870 milllion) through Reliance Capital.

- Mumbaikar

Teledata buys Singapore firm

Teledata Informatics Ltd is a 16 year old software and solutions com. Chennai-based Teledata Informatics on Monday acquired a majority stake in the Singapore-headquartered IT distribution and PC maker, eSys Technologies, by investing $105 million (Rs 470 crore).

Teledata and eSys are also likely to invest $20 million (around Rs 90 crore) in Chandigarh to open a total business offshoring/outsourcing unit, with at least 1,000 employees, over the next six months, according to a company source.

TBO is a concept that allows whole businesses to be outsourced and run from low-cost, high-skilled countries. Currently, eSys utilises its centres in India and Singapore to carry this out.

Since 2004, Teledata has acquired 27 companies and with the recent acquisition of eSys, it is already in talks with two other companies in Europe for acquisitions. "The company is in the process of acquiring a marine insurance business company and the other is a software provider for billing in the utilities space," said a company spokesperson.

The valuation of these companies is much more than the recent acquisition of eSys.

"We have invested about $120 million in the company and will be investing additional 50 per cent of the already invested money in the next three months with an intention of acquiring all the other business of eSys," said K Padmanabhan, managing director, Teledata.

In 2005, eSys had a turnover of $1.676 billion and a profit of $15.5 million. The investment will enable the company capitalise on the synergy between Teledata and eSys.

Padmanabhan, while explaining the synergy between the two companies, said: "Every year we buy 3,000-4,000 personal computers for several e-governance projects. This year we plan to buy 15,000 PCs.

The eSys acquisition will now make these projects cost effective." Vikas Goel, eSys group chairman and managing director will be the CEO of Teledata Technologies and will hold 49 per cent in the company.

eSys already has a PC manufacturing unit in Delhi and is in the process of setting up another unit in Himachal Pradesh to produce 1 million units per year with an investment of Rs 250 crore.

"We might shut down the Delhi plant and shift the entire manufacturing capabilities to the new centre," said Goel.

Press Release

eSys in Strategic Investment deal with Teledata
Singapore headquartered eSys Technologies gets SGD160million investment from Teledata through its subsidiary

Singapore 13, Dec 2006

Singapore Headquartered IT Distribution major and PC Maker, eSys Technologies has signed an agreement with Teledata Informatics Ltd for a strategic investment of up to SGD160 million in eSys. Teledata Informatics Ltd is a technology solutions provider with a vision to be among the top 20 IT companies of the world.

eSys and Teledata would accelerate the business levels with tremendous prospects”

Mr. Vikas Goel will also be joining the Board of Directors of Teledata Informatics. Welcoming Mr.Goel to the board, Mr. Padmanabhan said, ‘We would like to utilize Mr. Goel’s vision, global experience and acumen to further interests of Teledata group of companies’

Mr. Vikas Goel is a well known entrepreneur and has won numerous awards. He was Ernst & Young Entrepreneur of the year in Singapore in 2005 and was one of the top contenders for World Entrepreneur of the Year award in Monte Carlo in June 2006. Besides this eSys has won numerous awards including Enterprise 50 Award in 2005 given to most dynamic companies of Singapore and Enterprise of the Year 2005 in Singapore Business Awards.

About eSys Technologies

Incorporated in the year 2000, Singapore headquartered eSys Technologies is a Multinational IT Company with over 100 operations in more than 30 countries. With a global leadership position in desktop Hard Disk Drive distribution and other Technology products, eSys has successfully diversified into PC Manufacturing and Business Process & IT Services. eSys has four advanced, automated PC manufacturing facilities in Singapore, Los Angeles, Dubai and New Delhi, which produce the world’s best priced computers.

It has pioneered the concept of TBO (Total Business Off shoring / Outsourcing) in which whole businesses in multiple locations are run from low-cost, high-skilled countries. Currently eSys utilizes its centres in India and Singapore to carry this out.

With more than 1100 employees, and business customers spread across the globe, eSys has three business verticals of Technology Distribution, PC Business and Business Process & IT Services.

eSys is among the fastest growing companies in the world across industries and clearly the fastest growing IT Distribution Company globally. eSys has won numerous awards, prominent among them are Ernst & Young Entrepreneur of the year, Singapore 2005, being among Top contenders in E&Y World Entrepreneur of the Year in Monte Carlo in June 2006, Enterprise of the Year 2005 in Singapore Business awards, Top Spot in Enterprise 50 in Singapore in 2005, given to most dynamic companies in Singapore, etc.

Some more facts & figures on Teledata will come soon!!

- Mumbaikar

World's youngest CEO in India

Suhas Gopinath, who at 14 earned the distinction of being the world's youngest CEO, is ready to make his next big move: a possible takeover of a Chinese firm and raising $4 million to fuel expansion plans. Well this is quite a old news...I know... but since we are talking about inspirations in Indian business world .. I thought of giving it a new life.

Gopinath, CEO and president of Globals Inc that he founded in 2000, said the four-year old Shanghai-based firm he is in talks with, is operating in the RFID and IT solutions space, with 50 employees and 150-200 customers.

"We are in discussion. If everything goes well, we hope to conclude the deal by March," the 20-year-old told PTI today.

He said it would either be a merger or an acquisition. The synergy would give Globals a foothold in Chinese, Singapore and Korean markets, he said, adding, employees of the Chinese firm in question have tremendous skills in the multimedia space as well.

Gopinath is also in talks with private equity players and banks to raise $4 million. The company, which currently has a headcount of 600 employees, has plans to build its own facility here housing 800 employees. The company has opened an R&D and business development centre at Frankfurt in Germany, which he said was the "right hub" as most of his clients cater to European market.

Some facts:
1. Suhas Gopinath (born 1986) is CEO and President of Globals Inc, a company he founded in 2000 in San Jose, California, United States
2. The laws in India did not allow him to setup a company as he was at the time a minor at age fourteen.
3. He has been named the world's youngest CEO by the media several times.
4. His business has grown from 4 employees to over 400 under his leadership.
5. The company has offices in Australia, Baharin, Bangladesh, Canada, India, Italy, Spain, UK & USA.
6. His company has got 2 products eSchola & e-Campus in its kitty
7. I tried to trace his first website www.coolhindustan.com but looks like its missing. can Someone help me please?
8. This portal bagged Best Indian portal award in 2001 & this is where Suhas started his journey.
9. He lost a deal in Singapor in 2003 because he was too young to sign the MoU. The deal was covering six contracts to develope websites with e-library capability & worth $22,000
10. Suhas' ambition as a child was to become a vet, but the internet fired his imagination when he was 14.
11. Barely two months after the launch the site was hacked into and changed overnight to CoolPakistan.com.
12. In 2003 he had plans of developing a GPS (Global Positioning System) -based vehicle tracking system that would cost less than Rs 5,000 and should be launched in one year. A similar system costs upwards of Rs two lakh
13. the company has developed products like the Corporate Image Enquiry system for the healthcare, banking and aeronautics segment, the Institution Management System for schools and the vehicle tracking system for fleet operators and Government machinery.

Here is a sneak peek for you guys from the Globals inc website:
Bangalore, INDIA - August 7, 2006: Globals ITeS Pvt. Ltd., the Indian wing of Globals Inc today officially received the confirmation order from Kendriya Vidyalaya Sangathan, Ministry of Human Resource Development, Government of India for Office Automation and Student Information System project in which Globals will be centralizing 957 Kendriya Vidyalaya Schools under 18 Regional offices across the country.

Out of 957 Schools, approximately 400 schools currently have broadband connections and the rest of the schools have dial-up internet facility. Globals had built a prototype of this project which took more than 8 months to develop that was implemented at 13 Bangalore based Kendriya Vidyalaya Schools for testing, and then was exhibited to the Kendriya Vidyalaya Head office on April 26, 2006. Through this project, Kendriya Vidyalaya Head office at New Delhi will be able to monitor attendance of students and staff at every school, and they can also instantly generate reports on Payroll, Attendance, Examination, Marks, etc from any Kendriya Vidyalaya school in the country. Similarly the respective Regional Office of any school can also generate reports instantly without much manual intervention.

This package by Globals includes 3 levels - Head Office, Regional Office and School levels. At School Levels, even Parents can access their ward's day-to-day activities including his/her attendance, marks, viewing of virtual marks card, etc. The modules packages in this project are Staff Management, Student Management, Fees Management, Payroll, Time Table, Library Management, Leave Management, Virtual Notice Board Card, School Event Management, Students' Attendance, Virtual Marks Card, Examination, and Student/Staff Search module.

According to the Head of Software Solutions at Globals, this project may take around 6-8 months for us to completely integrate and network all 957 Schools and 18 Regional offices. Globals plans to officially inaugurate the final implementation of the project at the Kendriya Vidyalaya Head Office from Shri. Arjun Singh, Hon'ble HRD Minister, Govt. of India.

This E-Governance project is first of its kind to be executed under the Ministry of Human Resource Development, Govt. of India.



If any reader knows more about Suhas Gopinath or Globals Inc & how it has progressed through out these years it will be more than a help for us. We are eager to hear about it. We have been reading news those are old enough. Lets read something fresh. So guys comments please!!

Saif had chest pain, not an attack

Sorry guys if my previous blog misled in any ways? Here is the fresh news which is more relaxing !!

Actor Saif Ali Khan was admitted to Lilavati Hospital, Bandra, late last evening after he complained of severe chest pain. At around 1 am this morning, doctors put to rest rumours of a heart attack and confirmed that it was just chest pains.

Dr N Trivedi, dean of Lilavati Hospital, said Saif was doing well. “He will be under observation for two days. His angiography shows everything is normal,” he said.

The host of celebrities who visited Saif last night said the actor was doing well and was cheerful. Omkara producer Kumar Mangat said, “I spoke to Saif and he told me that he’d be out soon and that he would meet me for a drink.”

Over-exerted
Soha Ali Khan, Saif’s sister Soha said that he had been working day and night and was over-exerted. Saif returned from South Africa at 1.30 am on Sunday morning and went directly to the MMRDA grounds, Bandra-Kurla Complex, to practise for his performance at last night’s Stardust Awards. He returned home at 4 am yesterday. At 1 pm he again went for the rehearsals.

This time he practised for well over three hours. At 6.30 pm, when he was on his way to the grounds for the event, he complained of chest pains. His driver Jailal Pandit immediately took him to Agarwal Nursing Home in Juhu. However, the doctors there advised him to go to a better-equipped hospital, as they suspected a minor heart attack. There, Saif was joined by girlfriend Rosa. Saif was then taken to Lilavati Hospital and admitted in ICU.

A dancer from choreographer Shiamak Davar’s troupe said Saif’s insistence on practising under the afternoon sun could have possibly brought on the chest pains. “He was really straining himself. I have never seen any actor rehearse so much,” added the dancer. Saif was to perform to a medley of songs, with Davar’s troupe. Saif’s 8-minute item was finally performed by Davar himself. Incidentally, Saif was awarded the Best Villain award for Omkara.

Bunty Walia, whose company GS Entertainments organised the awards function, added, “Saif was rehearsing from 2 pm at the venue for the finale. It was very hot and he was a bit exhausted. I told him to relax and go home, but Saif wanted to do a great job.”

Nari Hira, publisher of Stardust, added, “I was sitting with Amitabh Bachchan and Aishwarya Rai when Bunty came around 9 pm and showed me a SMS sent by Saif’s manager Sachdeva which read, ‘Saif very serious. Suspected heart attack. He’s been admitted to the ICU in Lilavati.’” Sources said that Saif’s first wife Amrita Singh followed the news on television but did not go to the hospital.

-Mumbaikar

It's raining money in Gujrat

Rs 2 lakh crore - that is the kind of money that companies are ready to invest in Gujarat's urban infrastructure. It is raining funds in Gujarat. In January, Gujarat, one of India's most urbanised states, got investment proposals of Rs 4.6 lakh crore at the Vibrant Gujarat Investment Summit. Now, infrastructure firms at the Urban Summit 2007 have signed multi-crore proposals.

Ashim Gandhi, Vice President, Parshvanath Constructions says, "Through this MoU we have given commitment of investing over Rs 1600 crore to the Gujarat government in the coming two to three years."

That is just one of the 312 investment proposals that the Gujarat government has received out of the total investment intent of Rs 2 lakh crore. Some of India's biggest infrastructure companies, including IL&FS, DLF, Parsvnath and L&T, have pledged crores of rupees.

Narendra Modi, Chief Minister, Gujarat says, "There are proposals to develop commercial zones, improve civic amenities, upgrade infrastructure, create facilities for physically challenged. Overall, these MoUs reflect proposals that would impact every facet of urban life."

The MoUs include proposals to develop integrated townships, urban infrastructure and commercial buildings.

I am wondering Where is the money coming from? Can anyone please explain?

- Mumbaikar

Guess who might be our next President?

Parliamentarians are due to elect a new president — a post mostly held by veteran politicians in the past — before President A P J Abdul Kalam’s five-year term ends in July. It looks like the nation will have to find another high-profile candidate for presidency & Big B Amitabh's name is speculated. Big B says he’s just not interested. News is that a political party intends to field Big B as its candidate for presidency has the mega-star touched but firm in his resolution to stay out of politics.

The 64-year-old actor has said, “I’m deeply humbled and touched by the thought. But I’m not worthy of such a distinguished post of responsibility. Besides, no such offer or proposal has come my way yet.”

Some sections of the media had reported that Bachchan’s friends in the Samajwadi Party (SP) have begun whispering his name as a potential candidate, with the support for his candidature allegedly coming from a gamut of political parties comprising the SP, Telegu Desam Party, AIADMK and Asom Gana Parishad.

Whom you would like to see as our next President?
I would still like Dr. A.P.J. Kalam sir to be our next President. But at the same time this is also true that Kalam sir should return to where he belongs. He has done such a great service to nation that it will be too much to expect more from him. So who do you want to be our next president? Big B is too much to be our President. Do u agree?

-Mumbaikar

Heart attack to Saif

I know it must be a spoiler for some of our regular readers but the news is ...
Saif Ali Khan was admitted to Lilavati Hospital in Bandra on Sunday night after the actor suffered a mild heart attack.

Saif was performing at an awards function in Mumbai when he suffered the attack and was rushed to the hospital.

This is just a quick news that I thought I should share. Saif is no doubt one of my favourite actors & I care to share about him!!

- Mumbaikar

Eklavya: The Royal Guard

Well.. I am a big movie freak..and when a movie has Amitabh, Vidya Balan & Sanju baba then how can I stop myself writting about it??

What is Eklavya: The Royal Guard?
Eklavya: The Royal Guard is a Bollywood film directed by Vidhu Vinod Chopra which was released in India, the Netherlands, the United States, and the United Kingdom on 16 February 2007.

The film marks Vidhu Vinod Chopra's return to directing after seven years. It stars Amitabh Bachchan, Sharmila Tagore, Sanjay Dutt, Saif Ali Khan, Vidya Balan, Raima Sen, Jackie Shroff, Jimmy Shergill and Boman Irani.

Some Facts:
1. Eklavya: The Royal Guard was originally titled Yagna
2. Production began in early 2005.
3. The primary location for shooting was in Rajasthan. Shooting also took place in Devigarh and Jaipur.
4. According to the official website, shooting took place inside the living quarters of the Jaipur Royal Family. Prince Raghavendra Rathore and Subarna Rai Chaudhari designed the costumes for the film
5. Eklavya's cottage was built from scratch.
6. The action sequences were to take place in Egypt but the sequences took place near Bikaner.
7. The release date was to be 15 December 2006 but this was pushed back to January 2007 and finally February 2007
8. Guess what?? Expressing gratitude to Amitabh Bachchan for his "stunning" performance in the movie, the film's director Vidhu Vinod Chopra has gifted the actor a Rolls Royce Phantom worth Rs 3.5 crore.
9. Shantanu Moitra who was the music director of Parineeta (2005) composed the music for the film

Story line:
The film is set in contemporary India. For nine generations Eklavya's (Amitabh Bachchan) family has guarded the Kings of Devigarh. He has only one purpose: to protect the Devigarh dynasty, the fort and the king. Eklavya has vowed to himself that whatever secrets he knows of the family will die with him on his funeral pyre. Having served the royal family all his life, he is getting old and blind. The heir of the throne, Prince Harshwardhan (Saif Ali Khan) tired of the unfair customs ruling the land escaped to London but reluctantly returns for the funeral of his mother Queen Suhasinidevi (Sharmila Tagore). The kingdom is overjoyed with his return as is his mentally challenged twin sister, Princess Nandini (Raima Sen) and his childhood sweetheart Rajjo (Vidya Balan). Well.. check on the big screen for what happens next :)

Reviews?
The first reviews of the film have been positive. The lead cast have been given good reviews. Taran Adarsh said Every actor in Eklavya: The Royal Guard stands out for terrific portrayal. Bachchan and Khan have especially been applauded for their performances.

Interesting business news about the movie !!
Thursday night saw a glittering premiere of Vidhu Vinod Chopra’s Eklavya at Imax, Wadala. While the film saw a galaxy of stars ranging from Rekha to Aishwarya Rai, the surprise guests of the evening were Mukesh and Neeta Ambani. And the shocking absentees, Anil and Tina Ambani, close friends of the Bachchan parivaar.

When it was asked to Vidhu vinod Chopra "Why did you take seven years to make Eklavya?" He answered : It took me five years to write the script.

So it must be a good film to watch on the big screens. I am looking forward to it. How about you guys?

- Mumbaikar

We are global leaders again !

After Birla's & Tata's ...it's Ramakrishna Karuturi !! With his efforts India is now global leader in roses. Here is the news about it.

B'lore firm buys world's largest rose co
TIMES NEWS NETWORK: FRIDAY, FEBRUARY 16, 2007 09:40:33 AM

A day after Valentine’s Day, there’s news of a deal that’ll make the global Indian takeover come out smelling of roses. Next Valentine’s Day, when lovers and spouses gift roses across the world, chances are most of the flowers will have an Indian imprint.

Karuturi Networks, a little known Bangalore company , is close to acquiring the Netherlands-based Sher, the world’s largest producer and supplier of roses, for about $50 million (Rs 220 crore) to emerge as the global leader in roses. Sher’s greenhouses in the Netherlands, Kenya and Ethiopia produce 600 million roses annually.

When contacted, Ramakrishna Karuturi , MD of Karuturi Networks, confirmed that his company was about to wrap up the deal. The acquisition will be funded through internal accruals and the proceeds of a $25 million foreign currency convertible bond issue. UTI Bank and the Londonbased Silverdale Services are involved in the deal.

It all began on a Valentine’s Day 12 years ago when Karuturi, a mechanical engineer, was sniffing around Bangalore for roses for his wife. Finding none, he decided to step out of the cable business he was running and plant high-value stem roses for a living. He set up Karuturi Networks, which now processes 12 million roses annually.

Karuturi Networks has 60 hectares of greenhouses in India and Ethiopia for rose cultivation. Apart from the European company’s facilities, Karuturi will get a strong brand in Sher.

Isn't that inspiring?
Atleast I was inspired a lot by this news. This is truely clear that we have a long way to go. Steel, Aluminium or Roses. We are not really leaving anything behind.
It's a proud feeling isn't it? Well...I believe.. we are helping the economy to improve... and I am right... unless someone wants to come forward, leave his/her comments to this blog and prove me wrong :)

-Mumbaikar

I apologize

Hello Reader

If you are addicted to visit this blog daily, then I must say sorry for not being able to post a blog till evening. Please visit again late in the evening.

Meanwhile why don't you please visit my other websites and leave ur feedback?

A Free Internet Classified Advertising website

Total Credit Card Information Resource

- Mumbaikar

Happy Valentines Day

Happy Valentines Day Readers!! I was surfing through the newspapers this morning to search for news of protest against Valentines Day by Shivsena. No wonder!! I found one. Read this !!

The Shiv Sena activists broke up a party organised in a hotel in Mumbai on Valentine’s Day seems to have had the desired effect. The hotel has decided to stay away from any such party this year.

In fact, a senior employee who reportedly was the brain behind last year’s party quit after the incident in which nearly 50 couples had to run for safety after Sena activists led by its deputy district president Shirish Chauhan assaulted them and ransacked the venue, Vraj hotel.

Shirish Chauhan seemed a content man. “We had taught them a lesson last year. This year, no one has dared put up cards, posters or plan celebrations for Valentine’s Day. And if anyone dares to do so, he may face action from our side,” he warned before adding, “We obey the orders and feelings of Balasaheb Thackeray. We need not to learn love from Western society; we are people from the country of Krishna.”

Last year, the Shiv Sena had organised a drama festival to counter the influence of Valentine’s Day. But they were infuriated on hearing of the party in Hotel Vraj and. Sena activists rushed to the spot and disrupted the party. The organisers claimed that it was not a Valentine’s Day party. Acting on their complaint, police had arrested over 30 accused, including Chauhan.

This year, police want to prevent any untoward incident. “We have asked organisers to inform us of any celebrations this year. As far as we know, there are no celebrations this year. If they desire to celebrate, they can get police protection on completing the necessary formalities.”

The news talks about how Shivsena has taught a lesson to a hotel owner last year on celebrating Valentines Day and how the hotel has not dared to have a celebration this year. Well.. we still call it Democracy.

Let us sneek into what is Valentines day and why we celebrate it?

The History of Valentine's Day

Every February, across the country, candy, flowers, and gifts are exchanged between loved ones, all in the name of St. Valentine. But who is this mysterious saint and why do we celebrate this holiday? The history of Valentine's Day -- and its patron saint -- is shrouded in mystery. But we do know that February has long been a month of romance. St. Valentine's Day, as we know it today, contains vestiges of both Christian and ancient Roman tradition. So, who was Saint Valentine and how did he become associated with this ancient rite? Today, the Catholic Church recognizes at least three different saints named Valentine or Valentinus, all of whom were martyred.

One legend contends that Valentine was a priest who served during the third century in Rome. When Emperor Claudius II decided that single men made better soldiers than those with wives and families, he outlawed marriage for young men -- his crop of potential soldiers. Valentine, realizing the injustice of the decree, defied Claudius and continued to perform marriages for young lovers in secret. When Valentine's actions were discovered, Claudius ordered that he be put to death.

Other stories suggest that Valentine may have been killed for attempting to help Christians escape harsh Roman prisons where they were often beaten and tortured.

According to one legend, Valentine actually sent the first 'valentine' greeting himself. While in prison, it is believed that Valentine fell in love with a young girl -- who may have been his jailor's daughter -- who visited him during his confinement. Before his death, it is alleged that he wrote her a letter, which he signed 'From your Valentine,' an expression that is still in use today. Although the truth behind the Valentine legends is murky, the stories certainly emphasize his appeal as a sympathetic, heroic, and, most importantly, romantic figure. It's no surprise that by the Middle Ages, Valentine was one of the most popular saints in England and France.

So it's clear that the purpose of Valentines Day was probably very different when it was started. But later it was commercialised into a pure money making event. The Greeting Card Association estimates that approximately one billion valentines are sent each year worldwide, making the day the second largest card-sending holiday of the year behind Christmas.

India is not far behind. I remember my college days and how fancy it was to celebrate Valentines day. Even today the craze still remains. The shops are full of cute shaped & Red colored greeting cards & other gift articles. It's a special day for which lover boy awaits so that he can disclose his emotions towards his beloved. Not sure how girls feel about this day. But I am sure they wait impatiently to hear from the guy they secretly adore.

No doubts.. Love is the most beautiful feeling a human has gifted with & No wonder if this has been commercialised as well.

But even then Shivsena's protest against it is baseless. It's a democratic country and everyone has right to celebrate their emotions. I have personally seen the protest by these activist. They harrass the couples who meet to express their love. I have seen these couples being abused badly for carrying the roses & cards in their hands.

Never mind.. this will take time to die down. But surely this trend is going to go away. One day youth in Mumbai will come together and no one will be able to stop them to celebrate the day they deserve to enjoy. But guys... make sure you are not stalking the girls forcefully... nor you are annoying anyone with your behaviour.. and definately... No hugs and kisses in public places !!

- Mumbaikar

Of People, By People, For People !!

In USA, when there is powercut, it becomes a news!! In Maharashtra, power is always in a news. Not for a good reason though. Load shedding is what they call for having electricity customers reduce their consumption at critical times or in response to market prices. The word 'Reduce' is vital. The idea behind the load shedding is to reduce on the services like lights, machines, air conditioning according to a preplanned load prioritization scheme during the critical timeframes. But is it the reality in Maharashtra? Definately no!! Load shedding in Maharashtra means No electricity during the specific hours of the day.

While searching for more details I came across an article on the website of Maharashtra State Electricity Distribution Co. Ltd (MAHADISCOM). Click here to Read the article. But salient points out of that are as below.

1. Why Load Shedding ?
Electricity demand in Maharashtra (MSEDCL’s area) has been rising at a very high rate in the last two years. In 2004-05, the peak demand went up from 11357 MW to 12749 MW over 2003-04 which is a jump of 12.26% as compared to earlier average increase of 2.74%. While the demand has been increasing, the generation capacity has remained steady with maximum availability of 9300 MW. This had resulted in a peak gap of 3449 MW in 2004-05. In 2005-06, the peak demand recorded in May 05 was 12987 MW which is again a jump of 238 MW over the previous year. This had resulted in a shortage (load shedding) of 3687 MW in May 05.

2. Sudden Jump of Demand in October 05
In the month of October 05, the peak evening demand which had come down to 10,000 MW in September has in the last ten days gone up to 12,200 MW. This is a jump of 2,200 MW in a period of 7 to 8 days. Over and above this is the requirement of Mumbai in which Tata Power had been drawing MSEDCL’s power in peak hours increasing the load shedding in MSEDCL’s areas.

3. Why availability has not increased in proportion to the drawl?
Closure of the Dabhol Plant of 2150 MW in 2001 and subsequent non-start of Bhadravati (1082 MW) and Patalganga (447 MW) IPP Projects is the main reason behind non-increase of availability of power. Because of the closure of Dabhol plus non-start of IPP Projects and seeing the increase in demand in 2003, MSEB decided to go in for Parli (250 MW), Paras (250 MW) Projects and Ghatghar (250 MW Peaking/Irrigation) Projects. Any thermal project takes from 3 to 4 years before commissioning. These projects are thus expected to become available in 2006-07 and will thus provide major relief against load shedding.

4. Why can’t load shedding be done during the day time instead of the evening ?
The peak deficit between demand and supply is the highest in the evening hours (6.00 p.m. to 10.00 p.m.). As electricity can’t be stored, the maximum load shedding has to take place in the evening hours.

5. What are the steps which can be taken by the citizens to reduce load shedding ?
The citizens can go in for Akshya Prakash Yojana in rural areas and Voluntary Urban Load Reduction Scheme in Urban areas as mentioned above. Citizens can also contribute by using less electricity during the morning peak (6.00 a.m. to 10.00 a.m.) and evening peak (6.00 p.m. to 10.00 p.m.) Steps like avoiding the use of ACs, ironing and other three phase usages during these time periods can bring a relief in load shedding.

So now having read this .. Read following !!

Maharashtra State Electricity Development Corporation (MSEDC) obviously doesn't practice what it preaches. When entire Bhandup reels from the daily three-hour power cuts, MSEDC zonal headquarters here has uninterrupted supply -- air-conditioners buzz, fans whirr and all lights are on.

The number of hours of load-shedding were recently increased by an hour to four hours in Bhandup along with Mulund, Thane and Navi Mumbai and consumers are now asking why MSEDC, which lectures all on the need to conserve energy, is sparing its own offices from power cuts.


In Executive Engineer Santosh Wahane's office, located on the first floor of the building, there were four ceiling lights on as was a lamp on the wall just to illuminate a calendar. This despite the fact that there was adequate natural light coming into the room through a large window. The air-conditioner in the room was on full blast. The excuse given by MSEDC was that the headquarters houses the sub-station which needs constant supply of electricity. The officials, however, had no answer when asked why the rest of the office should receive uninterrupted power supply when the entire neighbourhood is put through a four-hour power cut.

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So what is happening around us? Are we happy with it? or we just don't have any choice? Who's mistake was Dabhol & conspiracy involved in it? Are they suffering with this load shedding? If not .. Why us?
We understand that the industry needs power & society needs Industry... but why society is only imposed with load shedding? Definately Industrialist will not want to suffer the losses they will face because of load shedding. This must be bringing a lot of pressure on the government. Government depends more on the Industrialists than society :)

well.. enjoy the load shedding.. I know you do.. otherwise Load Shedding wouldn't have been there !!!

- Mumbaikar

Are Birlas answering Tatas?

It's only 2 weeks or less when Tata announced the biggest ever takeover worth $12 billion, Kumar Birla have announced that his company Hindalco Industries, India's largest aluminium producer, has agreed to buy its US-Canadian rival Novelis for $5.9bn (£3bn) in an all-cash deal.

Kumar Birla claims this to be India's largest acquisition of a North American company and is hopeful to catapult them into a Fortune 500 companies list.

Some facts about the deal!!
1. Novelis is the world's largest producer of rolled aluminium and its customers include Coca-Cola and the world's largest canmaker Rexam.
2. Novelis is headquartered in Atlanta, Georgia, but registered as a Canadian company.
3. Its shares are listed in both Toronto and New York.
4. The deal of $5.9 billion also includes $2.4 billion of debt
5. Based in Mumbai, India, Hindalco is a leader in Asia's aluminum and copper industries, and is the flagship company of the Aditya Birla Group, a $12 billion multinational conglomerate, with a market capitalization in excess of $20 billion.
6. Following the transaction, Hindalco, with Novelis, will be the world's largest aluminum rolling company, one of the biggest producers of primary aluminum in Asia, and India's leading copper producer.
7. Novelis is the global leader in aluminum rolled products and aluminum can recycling, with a global market share of about 19%.
4. Hindalco's shares were down 14% in Monday trading following the announcement.

About Novelis
Novelis is the global leader in aluminum rolled products and aluminum can recycling. The Company operates in 11 countries, has approximately 12,500 employees, and reported $8.4 billion in 2005 revenue. Novelis has the unrivaled capability to provide its customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America and South America. Through its advanced production capabilities, the Company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. Visit http://www.novelis.com.

About the Aditya Birla Group
The Aditya Birla Group is India's first truly multinational corporation, with a workforce of 85,000 employees belonging to over 20 different nationalities. Its 74 state-of-the-art manufacturing units and service facilities span India, Thailand, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China, USA, UK, Germany, Hungary and Portugal. A premium conglomerate, the Aditya Birla Group participates in a wide range of market sectors including, viscose staple fiber, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT services. Visit http://www.adityabirla.com.

About Hindalco
Established in 1958, Hindalco is currently structured into two strategic businesses, aluminum and copper, with 2006 revenues of approximately $2.6 billion. Hindalco's integrated operations and operating efficiency have positioned the company as Asia's largest integrated primary producer of aluminum and among the most cost-efficient producers globally. Its copper smelter is the world's largest custom smelter at a single location. Hindalco stock is publicly traded on the Bombay Stock Exchange and the National Stock Exchange of India Ltd. Its current market capitalization is $4.3 billion. Visit http://www.hindalco.com.

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Is this a beginning of an era of Indian industrialists? or it has already begun and we are going to see couple of more takeover to top it up? In underworld there is something called 'Gangwar'. When a mafia sees that somebody else is trying to overpower him.. he starts attacking the opponent & soon a war starts. Is this a similar phenomena in the corporate world?

Under the terms of the agreement, Novelis shareholders will receive $44.93 in cash for each outstanding common share. But Indian shareholders lost 14% of the sharevalue of their portfolio in 1 day. Same is the story about Tisco..it lost almost 20% its share value since the takeover announcement. Well.. it can be a part of consolidation in the Asian market...but as a major its a impact of the news that Hindalco is taking over $2.4 billion of debt in the deal.

So where are we going? Are we creating value or betting on money from Indian Investors? If you are a responsible investor & citizen, it calls for a comment.

- Mumbaikar

Want UK permit? Go Big Brother!!

Bollywood star Shilpa Shetty has been granted a work permit by the British government that would enable her to make money from lucrative personal appearances and media interviews in the country.

A covering letter for the permit application was written by NRI leader and former minister for foreign and commonwealth Keith Vaz who raised the issue of the alleged racist bullying endured by the actress on British reality show 'Celebrity Big Brother' in the House of Commons.

"Having originally raised the racism issue in Parliament and having met her, I was delighted to support her application to stay longer in the UK," Vaz told PTI from London today.

"Her fans in the UK, particularly in Leicester, wanted her to stay longer in the UK. I am disappointed she has gone back to Mumbai as she was keen to be with her family. I hope she comes back soon."

Vaz said he wanted Shilpa, who also won the TV reality show, to stay on in the UK to see the result of the investigation by watchdog Ofcom into the racism row.

"There were 40,000 complaints against the racist bullying she faced and the investigation is still on."

Vaz said: "I write hundreds of letters to help people, particularly from India and Asia. I have also taken up the case of highly skilled migrants from India who are forced to go back because of changes effected in the immigration law."

Farhath Hussain, Shilpa Shetty's agent said the work permit was done in the normal course. "A work permit normally takes two days. This one took two days," he said.
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Looks to me quite a plot to maximise the gains!! Covering letter by NRI leader who once upon raise the racism issue is nothing but an well planned activity. Shilpa shetty is hitting it hard when it is hot. Well nothing wrong. Its the best use of the opportunity. Even I would have done the same.

So aspiring to work in UK? Try getting into Big Brother! What do you say ?

-Mumbaikar

Let's get back to our business

Here is the list of most influential Indian businessmen !!

The Tatas : Jamshedji Tata, JRD Tata, Ratan Tata.
The Birlas : GD Birla, Aditya Birla, KK Birla, Kumar Mangalam Birla
The Ambanis : Dhirubhai Ambani (1932-2002), Mukesh Ambani and Anil Ambani
The Hindujas
The Godrej's
The Kirloskars : Shantanu Laxmanrao Kirloskar
The Bajajs : Jamnalal Bajaj
The Wadias : Nusli Wadia
The Sassoon's : David Sassoon, Albert Abdullah David Sassoon

Every name in the list surely has a story behind it & we will try to bring these stories for you. but not through mumbaichaupati.blogspot.com

Somewhere it was felt that the theme of mumbai chaupati is getting lost in these stories. But the topic of stories of these legends is truely inspiring. I would definately like to spend some more time on this topic & I will be back with a new blog dedicated to this topic ... only to this topic !!!

Let's get back to spirit of mumbai chaupati... Yes.. Let's get back to our business.

Have you used Orkut? Well .. Can I ask you for what? Yeah yeah.. for sure for social networking ..and that's what was the purpose of this site.. but netizens also use it for flirting.. browsing somebody elses' scraps & snaps too. Netizens have also discovered a new word 'Orkuting'...for most of the people its a way to keep intouch with their lost friends..but for others its more than a passion. But students of Mumbai university have made a innovative use of 'Orkut'.

It all started when the final exams of B.Sc. (IT) have been advanced by two months leaving the students in a lurch, as most of colleges have not completed the syllabus and the project work. The students got together through Orkut and have forwarded a protest letter to examination controller, Prakash Wani of Mumbai University. When the change in date was announced, students sent an SOS message through Orkut, to which 100 students responded from 60 different colleges, which offer the course, and the protest spread like wildfire.

The university had changed the date to March so that assessors would be available in the month of April and the results would not be delayed. But the students definately have a point as this exam is the deciding factor where if they get less marks in this they will loose their assured placements.

The controller’s office has received the letter, however, no action has been taken as he was on leave. Wani, who resumed office yesterday, said, “We will consider their demands and will hold a meeting with officials to see if they are justified.”

The colleges that have joined the signature campaign include KC, National, SIES, Elphinstone, Swami Vivekanand, Sathaye among others.

Reading this story I believe students are definately aware how they should be making best use of all the available channels & that really made me happy to share this story with all of you.

Do you know any of such stories.. please feel free to add them as a comment. We all are waiting to read that.

- Mumbaikar

Facts about Tata's Corus Deal

This blog will soon come out of Ratan Tata shadow, as their are many other things to cover. Life seems to be too short to cover everything :)

Quick facts about Tata-Corus deal
1. Corus Group plc, normally referred to simply as Corus, is one of the world's largest producers of steel, headquartered in London. It is listed on the London Stock Exchange (where it is a constituent of the FTSE 100 Index), Euronext Amsterdam and the New York Stock Exchange.
2. Group turnover for the year to 31 December 2005 was £10.142 Billion. Profits were £580 million before tax and £451 million after tax.
3. On January 30, 2007, Tata Steel, part of India's Tata Group, has purchased 100% stake in the Corus Group at 608 p. per share in an all cash deal, cumulatively valued at (USD 12.04 Billion).
4. Tata's bid is 49-percent above Corus's closing share price on October 4, the day before Tata Steel first revealed its interest. It is also a third higher than Tata Steel's first bid of 455 pence a share and 18 percent above CSN's bid of 515 pence a share
5. Corus shares jumped 7 percent to near the bid price, and shares in other European steel stocks also rose, with Arcelor Mittal (MTP.PA) hitting a new high of 36.32 euros, Germany's ThyssenKrupp (TKAG.DE) up 1.3 percent and Finland's Outokumpu (OUT1V.HE) up 3.2 percent by 1050 GMT.
6. Tata Steel shares, however, closed down 10.7 percent, their biggest daily fall for 8 months, on fears it was overpaying for Corus
7. The deal will triple Tata Steel's capacity to almost 28 million metric tons a year, from 8.7 million now, at half the cost of building new plants.
8. The most expensive rating previously put on a steel company was when Mittal bought Arcelor last year for $32 billion. Mittal paid 6.2 times Arcelor’s earnings. For Corus, Tata is paying nine times earnings.
9. According to Jitesh Gadhia, of the investment bank ABN Amro, adviser to Tata, It makes more sense to look at the enterprise value (equity plus debt) paid per tonne of steel production capacity. For Mittal /Arcelor it was about $670 a tonne, and for Corus slightly above $700 a tonne.

- Mumbaikar

Ratan Tata on F-16 !!

A News in a leading Indian Newspaper
Bangalore: Literally scaling new heights, Tata Group chairman Ratan Tata today took off in a multi-role combat aircraft F-16 at the air show here for a 35 minutes sortie.
Tata, 69, undertook the flight in co-pilot's seat, which was commandeered by Paul Hattendorf, the test pilot of Lockheed Martin, the manufacturer of the aircraft.
The jet belongs to Bloc 50 of the US Air Force. F-16, also known as Fighting Falcon, is in the race for Indian Air Force's mega plans of acquiring 126 multi-role combat aircraft. Lockheed has been lobbying hard to sell its jet to India.
With this, Tata has now become the oldest Indian to fly the American-made aircraft.

What is F-16 & Lockheed?
The F-16 Fighting Falcon is a multi-role jet fighter aircraft developed by General Dynamics in the United States. Designed as a lightweight fighter, it evolved into a successful multi-role aircraft. In 1993 General Dynamics sold its aircraft manufacturing business to the Lockheed Corporation, which in turn became part of Lockheed Martin after a 1995 merger with Martin Marietta. To find out more read this
F-16 on wikipedia

Who is Ratan Tata?
hehehe.. who asked that question by the way?? :) Well.. everyone must be knowing that Ratan Naval Tata (born December 28, 1937, in Bombay) is the present Chairman of the Tata Group, a leading Indian conglomerate established by earlier generations of his family. But do you know ....... ?
He was instrumental in setting up the Tata Foundation which, through varied and extensive programmes, sponsors a multitude of social causes.
He has done his graduation from Cornell University with a degree in Architecture and Structural Engineering
Now a proud moment for those working with 'IBM'. Ratan Tata turned down his job with IBM following J.R.D. Tata's advice & joined Tata group. He still says that he came back to India because her grandmother was ill.
He began his career with Tata in 1962 with Tata Steel (yes the one which bought Corus some time back). Apart from that he held following positions in his career.
a. 1971: Director-in-Charge of Nelco
b. 1975: Advanced Management Program from Harvard Business School
c. 1977: Empress mills, a Textile business under control of Tata's
d. 1981: Chairman of Tata Industries
e. 1991: Tookover as Group chairman from J.R.D. Tata

Some Facts about Ratan Tata!!!
1. The Tata Group has the largest market capitalization in the Indian Stock Market.
2. Under him Tata Consultancy Services went public. Do you have TCS stocks in your portfolio? I am sure if you do... then there must be a big smile on your face now!!
In his career, Tata Motors was listed in the New York Stock Exchange.
3. His dream is to manufacture a car costing Rs 1 lakh ($2200)
4. In 1998, complete indian car 'Tata Indica' was launched. (I am proud it was my first car)
5. Ratan retired from his in 2003 after turning 65, as per the rules he set.
6. On 31st of January, 2007 Ratan Tata successfully pulled out one of the biggest acquisitions in Indian corporate history. Corus Group - an Anglo-Dutch steel and aluminum producer, was acquired by Tata Sons for an astounding £6.7 billion ($11.3 billion) at the rate of 608 pence per share against a Brazilian steel company that bidded for 603 pence. With the merger, Ratan Tata has become the most successful personality in the Indian corporate business culture. The merger is the fifth largest steel producing entity in the world.

A Confession !!
You know what... I was never concerned about who is doing what. I never worried where the world is going. I never noticed what is good or bad happening around me untill I was affected. I never cared if Ratan Tata bought corus or something else. (I was thinking that I need to by a new underware next month.. should it be Jocky or something Indian :p). I never thought I will be writting about Ratan Tata today. The topic of this blog was why it becomes a news when Ratan Tata took F-16 flight. During the course I searched the net and I admit that my views have changed. I am still self centric but I think I have got what I needed. INSPIRATION !!! For next coming days, I will be reading more about Business Legends & posting articles on this blog. If it's something interesting for you.. Do come back !!!

So to summarise ..!
Why it made a news when Ratan Tata took F-16? Well Ratan Tata & Tata group are truly legendary. F-16 is best exported fighter plane. When two best things come together, it makes a history & definately a news !! I wonder what Ratan Tata must have thought when he was taking F-16 flight. Was he scared of the supersonic speed or was he thrilled with the heights the flight was reaching or was he checking out dashboard to find 'Tata' logo on the components or was he thinking if Lockheed can make F-16 why cann't Tatas ? Well if You, Ratan Tata are reading this blog .. please leave your comments for sure. Our readers will love that. As I was saying to one of my american collegue 'Hope is the reason why world is still sustained' aka 'Ummeed pe duniya kayam hain'. But certainly if you are not Ratan Tata (never mind .. you are not any less than him) ...do leave your comments on what you have in your mind after reading this blog. It's just going to take 5 mins of your life. But may change life of someone in some corner of this small world.

'Click here' to read more about his career. Since Ratan Tata's career is not a small topic I am planning to dedicate a complete new section on my website. Revisit :)

Credit Cards : Part 2

Here we go .. the second and last part of credit card story. I had no intention to carry over my indian credit cards when I came to USA & don't you guys worry I didn't do it either. :)

I came to USA with $900 only & never knew about credit card system down here. It really took me a while to understand. After a month I got my SSN and my friend took me to Affinity Federal Credit Union to open a bank account. The lady down there explained me to about secure card. I was ready to open a savings account with $500 and have $400 in the secure card. The lady said it will help me to start building my credit and believe me I never understood what she was talking about. God knows why but she offered me with a credit card. I remember I was sort of flirting down there .. oh .. not real flirt...just a sweet one... now please dont ask me what's a sweet flirting ..we are talking about credit cards here :) !! My first credit card here in USA had a credit limit of $1500. The golden rule here is swipe the card for all the services & utilities. That covers apartment rent, bills for electricity, cable, water, laundry, mobiles, cable, internet, health insurance, car insurance, hospitals, grocery & daily shopping. But the mantra to build a good credit history is pay your bills on time. no matter if that is the minimum payment due on your credit card or any other utility bills that should be paid before a certain due date. It's also important to pay on time your debts like car loan, home loan or any other loan for that matter.

So what is credit history?
Well not a subject of this discussion... but certainly makes sense to talk about it as it's the most relevant subject here. But since I am not a expert on this, I will let Wikipedia to the rest of the talking. So check this if you want to read more http://en.wikipedia.org/wiki/Credit_report

And what's credit score?
Again as per Wiki, it is : a number typically between 300 and 850, based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person, which is the likelihood that the person will pay his or her bills. A credit score is primarily based on credit report information, typically from the three major credit reporting agencies.
May you want to know more, read this http://en.wikipedia.org/wiki/Credit_score

What happened to my credit card?
Yes .. after just a little diversio on the credit history & credit score..let's get back to the main story. After spending 3 months with $1500 credit limit, I started feeling the need of increased credit limit. I applied for a raise on the website of Affinity FCU. I asked for a credit limit of $8,000. But they politely refused it and gave me a limit of $2,000 & again after 3 months I asked for a revision and this time they helped me to feel better :). So far .. So good !!

To summarise
1. The credit card systems in both the countries are very different. In India it is more commercialised where as in USA it is in favour of customer's interest.
2. In India, there is a room to abuse the system by inappropriate use of either your own card or somebody else's card whereas here in USA they vigile customer from any misuse. There is a system called 'Fraud monitoring'. If your card gets swiped say more usual than often or for bigger amounts than you usually use for, the credit card company calls you and confirms if you wished to swipe or something wrong is happening with your card.
3. In USA, there is a centralised system where each individual and his credit history is tracked using his 'Social Security Number' (SSN). That leaves very less scope for frauds & scams. If you mess up your credit history, you need to pay higher insurance charges and you may not be eligible at all for new debts. In India, we lack such system and people who know how to make worst use of these deficiencies often take advantage.
3. Well ...still credit card frauds exist in both the countries. In USA, we are always warned not to accept 'Pre approved Credit Cards' as it might lead to 'Identity theft' or similar issues.
4. Interest rates for outstanding balance are high in both the countries
5. Credit cards are fancy in both the countries. American Express is my favourite card. The latest is mini card which fits in your keychain.



I heard from one of my friends that Japan has even gone further and they are using mobiles as a credit card. If anyone know about it please contribute to the post. We will be very much thankful.

Well... I guess you guys enjoyed reading my blog... please leave your comments... it will help me to improve. See you around... Happy Blogging !!

- Mumbaikar

Credit Cards : Part 1

It's an intereting topic for me to write on. As promised yesterday, I am going to compare two extreme realities : Credit card system in India & USA. Today I am going to share my experiences about Credit Cards in India. Yes, It's a big enough topic !! I have used credit cards in India for about 8 years & wonder how much the industry has earned on me.

My first Credit Card
We always remember the things which happen first time with us. No matter good or bad !! I remember, the first credit card I got was from Citibank when I was in collage and just earning 3,000 Rs as stipend. I was staying in hostel these days & one fine day a team of marketing executives came to our hostel. It was a sunny afternoon & I was sleeping happily in my room. Appearenly the guy knocked my door and I didnt open it thinking someone is there to take me to lectures. I would have been happy for years later, if I wouldn't have felt jealous that evening about my friend getting a credit card and not me. I remember next day afternoon I almost chased the marketing guy and got my application filled up. He was more than happy to offer me a card. Later I came to know those guys get almost 500 Rs for each application. The credit limit on my first card was about 28,000 Rs which I used in 6 months.

Ace of Cards !!
By the time when I got into my first job I never cared to close that card but in my first week of job I picked up about 3 more cards. I was crazy about those colourful cards & it were like proud moments every time I received a new credit card. As a fresher in my job, I used to usually get 'Standard' or 'Siler' credit card. But I always wanted a 'Gold Card' & at one point of time I paid 1200 Rs yearly fees to get a Standard Chartered Gold Card with a very less credit limit. Slowly I got the skills to negotiate for good credit limit and get rid of the yearly fees. Collectively I had a credit limit of close to 3,00,000 Rs at a point of time & almost all the major credit cards in my wallet.

Marketing skills learnt while attending marketing calls !
I wonder if I really would have bought these cards if 'Priya', 'Soniya' or 'Shweta' TYPE girls wouldn't have called up on my phone to sell those cards. Really don't know from where they used to get our numbers. Sometime we used to think they just know one phone number and then they try all the number in the serial order. Because if I used to hung up a call immediately the guy next to me used to get one. We often used to make fun of those calls. I remember we were attending a meeting on a technical subject in a conference room & the speaker phone in the conf room started ringing. Someone picked up the call & the girl started pitching ..and in a minute there was burst of laughter in the room. I became a marketing guy just by attending these calls. My negotiation skills improved. Well ...couldnt really negotiate with my boss for a better salary though. The most common situation was cancellation of the card. I used to have cards that I never used to swipe & after a year I used to get a card statement saying I need to pay 700 to 1000 Rs. I used to call the customer care and the sweet voice on the other end used to convince me why I should keep the card for another year as they were waiving off the fees. At times they used to offer me increased credit limits. I used to note the change in the tone of the girl on the other side. while offering a card she used to be so sweet & while cancelling it used to have a pinch of rudeness.

How I used my credit card ?
For a couple of last years I consistently had a outstanding balance of almost 1,00,000 Rs or more. Well no magic !! I used to swipe the cards for almost everything. The scheme I liked the most was buy today and pay later in installments. I used to calculate but never could get my calculation right. I always felt they run those schemes for our benefit & no doubt I was wrong :)
I used to take even cash advane when I used to need quick cash while my savings account was empty. With so many dues & so many cards I used to miss the payments some times & they used to give me a chance to pay it next month but at the cost of late fees & heavy interest. The late fee usually was 100 to 250 Rs & interest used to be almost 2% on the outstanding. My family used to wonder where do I spend my salary and when they came to know about the credit card stories, my father helped me to close some cards with major outstandings. we often call it as 'Debt consolidation'. But in 6 months the balance again built up on another card. That was precisely when I got married :)

Why did I use Credit Cards?
In my case, it was often when I wanted to buy something for which I didnt want to wait for another month or two. Like I bought a TV during world cup time, Refridgerator when summer was getting hotter and my wife thought it was impossible to stay without drinking cold water, wanted to fly to mumbai when there was only 4 days holiday and train journey would have taken 2 days, throw a birthday party first for office friends, then for school mates , then for B.Tech friends & last but not the least for my girlfriend. At times I used to get attracted to the schemes they used to run. For example, Spend 30,000 Rs in 1 month & get a DVD free. I remember spending almost 50,000 Rs in order to get 6 piece travel set because I didnt want to spend any extra money to buy a suitcase when I came to USA. The travel set never reached me & I had to spend another 6,000 Rs to buy a VIP suitcase. :) Yes.. I swiped my card. I was sometimes crazy about the points and the gifts they used to offer when we redeem these points. But I remember i got just a so called leather handbag which was very dusty. But when my wife asked me about the dust, I said it was the texture and not the dust :). To whom I was fooling... Yes.. to me !!!

Credit Card Recovery Team... Fact or myth ?
All of us must have heard that the credit card companies treat their customers very badly when they go for recovery of the outstanding balance. I have seen it personally. I once went to the recovery office to close a credit card. The office had a tele marketing team usually young guys. I have heard these guys talking rudely to the customers like When are you going to pay ? Why didnt you think while spending ? Do you want me to come to your place and collect money ? This team must be getting incentives on how much they recover a day and that really makes them aggresive with their customers. I have seen such a guy who literally abused the customer using a faul language. I could negotiate in a very limited way with this office and had to pay a lumpsum amount to close the card. I have also seen a guy who used to run a company to recover car loans. He used to get a phone call from the bank with the car details of customer having defaulted payment. This guy had a network of people all over the city. He used to trace the car in half an hour and forcefully take away the car from the customer and give it to the bank.

Benefits .. Claimed to offer v/s actually on offer !!
The sales pitch of this credit cards often used to be with lots of goodies. Most common is personal insurance, accident benefits, travel coupons, discounts, free upgrade to business class with Sahara Airlines or Jet Airways & most recent was 10% money back. Lucky enough, I never used the insurance facility provided by the credit cards. Travel coupons used to have fine prints. Discount used to be on brands that I never dreamt of buying in India. Free upgrade to business class I somehow couldnt use. 10% cash back with participating stores and with special clauses like need to spend minimum 1500 Rs a day in the same store etc. Vitually may be 10% times I could enjoy the offers. 90% times I used to enjoy the colorful brochures they used to send with my credit card statement.

Lost your credit cards?
Just a week before I was flying to USA... I was doing a lots of shopping. On a fine evening we friends had a dinner and came home. On our way back I bought a bottle of Pepsi and unfortunately dropped my wallet there. I had all my credit cards in there. I realised as soon as I reached home. I immediately called the hotel where we had dinner. Fortunately enough, just 2 days back, I had written all the credit card numbers, expiry dates, address & information like that in my diary alongwith the customer care numbers. Within 30 mins I called up all the card companies and got the cards blocked. Within 1 hour, one of my friend called saying someone found my wallet. I went to pick it up.. it was a group of bachelor. Later I came to know they tried using my card but they couldnt since I blocked all of them. But after blocking all the cards, it was quite tough time for me thereafter. Luckily I had a debit card in my pant pocket while I lost my wallet.

So Credit cards was a wholesome experience for me. Tomorrow Let me share my experience about cards in USA. So do visit this place again.

- Mumbaikar