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An effort by Stockyard in association with Mantra Consultancy Group

10th April 2008 Issue 2


www.stockyard.infinites.net
Incredible India
towards….

A Business Magazine by Business Managers


From Editor’s Desk

Towards….Incredible India
This is an attempt to seek a path….Path for a Himalayas stand whose north, and the great
nation which is at the cross roads….Millions of ocean touches whose feet, the land is called India,
years old culture, 10,000 years old history, Bharat and its children are Indians, bharati”. And
thousands of years of legacy, 50 years of still we have not emerged as nations….We still are
Independence ….and we are still young…Millions a loose tie-up of 30 odd states that are dieing to
of inventions, epics, myths, discoveries, saga, show-off their regional identities surpassing India
explorations, adventures and frontiers of as a nation. We are still first Kannadiga, Tamil,
knowledge…and we are still Confused….. Malayali, Maharashtrian, Bihari, Punjabi, and
Bangali…..and finally when time permits...Which
One of the oldest social institutions, political will never ever happen, we are a secondary
system, saga of patriotic epics and probably the citizen of a loose federal system called India. So,
most ancient national identities…one that used to we are the most confused nation, race and
say, I quote “uttarasya yat Himalayat, society ever existed on this planet and probably
dakshinechav samudraye, varsham tad naam
towards….?

most confused compared to any other


bharat, bharati yasya santati” The great contemporary nation or society.
So…..towards-----is a quest to find the path…..

And this issue of towards…? Has been dedicated to one road….or one dream…..An incredible India….

It is for you to weave this dream deep inside region…Lets forget we belong to our states, or
you…Let’s dream together, let’s breathe languages or races or religions...Let’s call for
together...For One India…There is a famous sukta Oneness…Amen.
in Rgveda, I quote :sangadwachham,
samvadatwam, samani mansa jaantaam, yatha So...What is this incredible India..?Go to your
bhawe deva purve, yagyahotre samdwitham” streets, go to remote frontiers…villages…suburbs,
which means “We walk together, we speak alike, gulli-muhallas….go to Nagaland, Assam,
our minds be emphatic to each other…we explore Mizorem..Laddakh…a village in Bihar, Bengal and
together…like the GODS who take our offerings in Orissa…..Tanjaur, Mannaar, Rameswaram….and
Yagna and strengthen us”. places where, perhaps we have forgot our
Indianness..And somewhere left behind our true
This is the same belief that binds us together and identity…..
would make one nation India...Which is still
somewhere lost in so many hullabaloo...And Lets create Incredible India…India of One billion +
sloganeering of petty political parties and stupid, people…..that talks different languages but one
ugly leader with their head less followers..Vedas theme…that eats different cushions but one
are calling you…not for religion …but for people flavor..That has different habits...but one
who are so apart to each other…they all almost feeling…that knows only one place India..From
look different nations in themselves. Call for one Kashmir to Kanyakumari..From Kutchh to Namchi
nation...One India……Our India…with no Barua….that is one..Rock solid one nation…
compulsions of caste, creed, language or
towards….? …with an answer “ Incredible India” is in your hands.With the first issue,we have received
many responses ,most of them encouraging and with genuine suggestions…and finally we are here with
this second issue…

This issue starts with social re-engineering...Our readers might think that we are probably over-
emphasizing one this one topic...But we believe we need a social reawakening and we give this utmost
importance.

World economy this fortnight continued to be in tail-spin although the pace seems to be slowed now...A
new wave of confidence building seems to be spreading in world economy and Financial
Markets…though this phase of stagnant downturn is slow enough and can not be termed as reversal of
global weakness in economy ..at least at this point of crisis..we believe NO BAD NEWS IS THE GOOD
NEWS. With this spirit ,we have covered the latest IMF report on World economy.We have tried to sum-
up some of the key inputs from the report with our bit of analysis.Thiss report has scrutinized various
factors of global economy.

In our section of Indian Economy,we have analysed credit and monetary scenarios with the inputs on
monetary conditions from HSBC report.Our coverage on External sector and Inflation try to present the
real-time economic environment in the country. In the wake of global financial crisis, our team has tried
to find out the implications of this turmoil on Indian economy. We have also reported on banking sector
as banks are the guardian of economic growth as well as symbolize the health of monetary and fiscal
environment.

In the same spirit of focusing on economy, we have presented a whole report on Indian economy in a
futuristic perspective. This report tries to sketch a projected picture of the economy in coming days with
inputs and logical evidences from concurrent variables.

With this feeling…the issue is in your hands…..

Something that I have just learned from…some one….With his blessings…I am just putting those
things….Mahabharat…..the name given by Maharshi Vedvyas was actually not intended to name just a
war…but it meant something else…

Actually the war was for unification...Rather creating a united India…Krishna..The great visionary of all
times…wanted a united India..which would entail a greater synergy of vivid potentials hidden in various
sects, cultures and cults..It was meant not just for political but also a demographic unification...He
purposefully eliminated all strong warlords…Be it Jarasandh,,Sishupal,Kansh…Drupad..Sakuni(
Kandhahar..now Afganistan)….He united all Zanapadas and brought everything in just one fold….& That
is what Vedvyas called MahaBharata..The Great India……

And perhaps this was the first reference of India….

With Love & Affection…


towards….. Social re-engineering
Are you concerned?
weaker being beaten up on the streets of Mumbai
What you look for when you scroll through news and nasik, helpless….When I saw Tibetan people
channel? What news attracts you or better to ask weeping and screaming for their long standing right
what news you seek to know? News about how and against atrocities done against them…..When I
your country performed in recent cricket match? see some politicians going their long way to pursue
How your Dhoni, Sahwag or may be Pathan scored? their malicious way overcrossing national interests.
Or do you seek to know more what is happening in And many more times….i can’t just number
the lives of Rakhi Sawants, Sahrukhs, Aish-Amitabh, them….and at all such times I felt so helpless….
Saif-Kareena or you seek to know what is the latest
gossip buzz in Bollywood? Or But are we helpless…I thing we are NOT…
may be Formula one race, And I also believe..there are many
Farrari, or latest in fashion who share this anxiety with
world? And if I may add, things me….There are millions…who are
which are so-called trendy, upset of not being able to stand up
frenzy, stylish or fad? Or is against these acts to divide
there something in between humanity…barbarism…acts of
these so-called important news clips that moves dividing the nation on any A,B,C lines.
you? Is there something in between, that concerns
you, bother you? And here starts a revolution….I believe…James
Watt, the one who invented the steam Engine…the
I believe if your answer is that YES….there is steam pressure is just being built up…right
something that bother you…something that takes here,,,right now….The only necessity is to stir up
away the sleepiness of your nights…if something more minds….to bring more people in this zone of
that stirs you from deep within to revolt…to stand DISCOMFORT….more people dissatisfied with the
up and change…to take the responsibility and
then…finally you realize.oofs you are so weak…You present state of affairs……
know there is something seriously
wrong…something that should not have been
done..Something so-called civil society should have I know..it sounds ….stupid…..BUT ARE YOU
stood against…but it didn’t dare to……and finally READY TO REMAIN STUPID FOR A WHILE ?
this wave of thoughts dies down….

Has it ever happened with you?


Hope I could convey..What I wanted to…
With me…YES…Many times…When I heard Gujarat
Riots…When I saw….poorest of poors, weakest of With Love and Affection….

A Small piece of news which has just flashed on TV this very moment……

Telgi (Fake stamp case fame) with 3 others were acquitted due to lack of sufficient evidence.
World Economy

IMF forecast of Global Economy:

economy is slowing down quite considerably. It


The IMF cut its forecast for global growth this gave a 25% chance that global growth will drop to
year and has estimated a 25% chance of a world 3% or less in 2008 and 2009, a pace the fund
recession. The world economy will expand 3.7% in described as equivalent to a world recession. The
2008, the slowest last time it happened was in
pace since 2002.In 2001.Fund has lowered its
January, the fund forecast for US economic
projected growth of growth to 0.5% below a 1.5%
4.1%. The reduction projection made in January.
is the 3rd from IMF
since last July when The Euro Zone will expand 1.3%
it had projected the in 2008 down from 1.6%, the
growth to be 5.2% earlier projection in January.
claiming that the The ECB has left its benchmark
world economy rate at a six-year high of 4% as
would cope with the inflation runs at 3.5%, above its
US credit squeeze. goal of 2% and almost the
fastest pace in 16 years.
The IMF urged Central banks to conduct policy as
flexibly as the circumstances warrant adding that The greatest risk comes from the still-unfolding
European Central Bank has room to lower events in financial markets; particularly the
borrowing costs. potential that deep losses on structured credits
related to the US sub prime mortgage market and
The financial crisis that originated in the US sub other sectors would seriously impair financial
prime mortgage market in August 2007 has system capital and initiate a global de-leveraging
spread quickly, and in unanticipated ways, to that would turn the current credit squeeze into a
inflict extensive damage on markets and full-blown credit crunch.
institutions at the core of the financial system.
The global expansion is losing momentum. Japan’s economy, the world’s 2nd largest, will
grow 1.4% in 2008, less than 1.5% the IMF
The world’s biggest financial companies have predicted in January. China will grow 9.3% this
reported about $ 232 billion in credit losses and year, slower than the 10% projection made in
write downs since the start of 2007.This is January.
prompting banks to stop lending to all but safest
borrower, undermining consumer spending and
business investment. The IMF forecast is below
the world economy’s longer-term trends and the
Volunteerism at CRY stems from our approach to child rights. We believe that no child exists in
isolation and that child rights (CR) are linked to human rights (HR). Thus to address issues of concern
wrt. children and their rights we need to take on a holistic approach. Volunteer Action division at CRY
aims to build public action for child rights and build a voice that reachs policy makers for pro CR and
HR action. For this purpose we enable volunteers to initiate issue based campaigns. We also mobilise
the public to build geographical public action groups towards demanding accountability from the
local administrations.
Volunteers in Mumbai are campaigning on the issue of child labour and education. If you'd like to
advocate for a holistic approach to address the issue of child labour, demand that every should be
in school and to receive quality education, join the campaign and help build a voice loud enough to
reach policy makers.
Volunteers in H west ward in Mumbai covering Bandra (w) Khar (w) and Santacruz (w), have initaited
a network of citizen's namely Mumbaites for Child Righgts (M4CR), to demand accountability from
the local administration on child rights and human rights issues. If you'd like to collectively act with

underprivileged people and mobilise the urban priviledged public to together fight for what is right,
join M4CR!And if you'd like to be part of the volunteer theatre group working towards building
the theatre collective and using theatre as a medium to grow M4CR and initiating public action for
child rights, join us.

We'll require you to attend a volunteer orientation meeting on the 2nd of May 2008 at 7pm,
Friday at CRY office [189/A Anand Estate, Sane Guruji Marg, Mahalakshmi e, Mumbai - 11, near
arthor road jail and behind punjab national bank.]. My colleague Ms. Havovi shall be orienting you on
CRY's child rights approach.
Industry Watch

Entertainment & Media Industry in India


Out-performing the economy
consumerism combined with technological
The Indian entertainment and media industry is advancements and policy initiatives undertaken by
witnessing a phenomenal growth and is slated to the Indian government. An added boost to the
grow at 19 percent to US$ 18 billion by 2010 from industry is reduction of personal income tax over
its current size of US$ 7.9 billion. The Indian the last decade. Two factors that will contribute to
Entertainment and Media (E&M) Industry has out- the growth of the industry are low media
performed the Indian economy and is one of the penetration in lower socio-economic classes and
fastest growing sectors in India………An Study by low ad spends..... But efforts to increase it even
FICCI and PricewaterhouseCoopers (PWC). slightly are likely to deliver much higher results. It is
a perfect blend of creativity and commerce and
The phenomenal growth in the E&M sector can be provides vast investment opportunities.
attributed to economic growth, rising income levels;
Cinema

India has the world's largest movie (film) industry, film producers by selling their digital rights to
which churns out around 1,000 movies a year. It mobile companies, satellite rights to TV
stands at an estimated $1.5 billion and is expected broadcasters and distributors (cable companies and
to grow around 20 per cent annually. It is projected DTH players) - are estimated to increase by 20 % a
to reach $3.4 billion by 2010. 1 The Indian film year. The home video households, which currently
industry has more than 3.1 billion admissions. With stand at three million, are projected to increase to
a strong appetite for movies and an upward about 13 million by 2010 - primarily because VCD
migration of household incomes in India, this and DVD prices are falling. Multiplexes - though
segment brings out several business opportunities only 250 compared with the estimated 12,000
in this segment. The industry realizes about 85 % of single-screen theatres in the country - are helping
its revenues from box office collections as the domestic box office revenues. In India, the
compared with the US film industry where the box share of foreign films as compared with the gross
office sales account for only 27 % of the revenues. box office collections of all films is relatively small at
Though the number of admissions is the highest in around 5-10 percent. Hollywood films are now
the world, when one compares the number of being dubbed in local Indian languages and
screens available for India's population, the average screened in cinema theatres. The dubbing industry
is relatively low as compared with other countries. has grown at 25-30 per cent over the last five
With around 12,000 theatres in the country that are years. In fact, almost 75 percent of the total
mostly single-screen, the average screen density international industry revenues are contributed by
works out to be only 12 screens per a million international content released in local languages
populations. Hindi language films command a 40
per cent share of the Indian film market today since
a large portion of the films made in India are
produced in the south and east regions of India in
regional languages. Ancillary revenues - earned by

1
Source: (FICCI-PWC)
Cable and television

India is the third largest television market in the Companies to watch in E&M Space
world today. From having one public service
HT Media Ltd.
broadcaster to over 350 channels available today, Cyber Media (India) Ltd
the Indian television industry has come a long way Zee Telefilms Ltd.
and is poised for even higher growth. Around 50 Sri Adhikari Brothers.
new channels are being added each year. This has G V Films Ltd.
given rise to the serious demand for content for Crest Communication Ltd.
these 24-hour channels. Television broadcasting Radio Mirchi
companies are continually scouting for content Cinevistaas Ltd.
Dainik Jagran
software companies and due to this imbalance, the
Sun TV Ltd.
programming costs are raising in an un-
Jain Studios Ltd.
proportionate manner. This is a potential
Shringar Cinemas Ltd.
opportunity which still needs to be tapped to its Prime Focus Ltd.
fullest. There are over 119 million television PVR Cinemas
households, which comprise only about 60 per
cent of the total households in the country. Of
these 119 million television households, about 50 will jump to $7.2 billion from $3.6 billion by the
million receive cable television services, leading to a end of the decade, a study by MPA showed. Direct-
penetration of only about 42 per cent cable TV to-Home (DTH) satellite television service, hitherto
households to total TV households and 25 per cent the domain of Zee Group's Dish TV and
cable TV households to total households in India. Doordarshan through its free-to-air (FTA) channels,
These low penetration percentages show that there is seeing increased interest on the part of large
exists a huge untapped potential for growth in this business houses and has emerged as a major
industry. Television homes are growing at a challenge to the established cable TV. DTH has seen
staggering rate of 4 percent per annum - it is no the Tatas, along with Star, launch Tata Sky last
wonder that today in India, the number of month and even the Reliance-ADAG Group and Sun
television homes far exceed the number of TV have announced their intention to enter this
telephone-connected homes. India is set to become segment. From the current market size of around
Asia's leading cable market by 2010, the largest 3.5 million connections, by 2015, DTH will reach
satellite market by 2008, and the most lucrative pay 30-35 million. The increasing popularity of DTH
television market by 2015, according to estimates services will stir up not only growth within the
by Hong Kong's Media Partners Asia (MPA). segment, but also in the cable TV system. Cable
Turnover for multichannel video--including cable, operators, especially multi-system operators
satellite and Internet protocol television (IPTV)-- (MSOs), are gearing up with their offering of digital
cable to compete against the DTH services.

Music

Indian Music sector, dogged by problems of piracy, the market analysts, the music sector is estimated
could see a revival of sorts with the growth of to be about US$ 149 million in legitimate sales of
'mobile music' and licensed digital distribution music cassettes and CDs and is pegged to grow at 3
services. The sector with a size of $155 million per cent over the next five years. Exact figures are
would grow to $165 million by 2010 with a CAGR of not available on account of the piracy.
merely 1 per cent. According to another section of
Radio

Indian radio reaches out to 99 percent of the industry with 22 per cent growth and
population and is currently the most cost-effective rationalizations of the license framework will treble
mass communication medium in the country. The its size to about US$ 145.9 million by 2009. India's
segment is estimated to be a $67 million industry. It private FM radio sector is expected to get foreign
is estimated to garner a share of about two per cent investments of US$ 111 million in the next 12 to 18
of the total ad spending in India. As many as 338 FM months. Worldspace, the only player in the satellite
Radio licenses are now available for bidding for the radio sector, has about 47,000 subscribers in India
private players. These cover about 91 cities, most of (globally, it has around 115,000 subscribers). In
which till now were being serviced only by the State India, its target was 100,000 by March 2006.
Broadcaster. There will be a boom in the radio
Print Media

The market highly fragmented with approximately significant potential of the print media market in
1900 news publications for a circulation figure of India. The print media with current size of $1.5
just 200 million. As per the latest readership survey billion is gradually opening up to foreign investment
NRS 2005, the reach of the print media (dailies and due to a booming Indian economy, growing need
magazines combined), as a proportion of the for content and government initiatives. The sector
reading population (i.e. 15 years and above) is only with a CAGR of 12 per cent is estimated to grow to
27 per cent. The global average readership is $4.3 billion by 2010.
estimated to be over 50 per cent. This highlights the
Animation

National Association of Software and Services $285 million in 2005. It sees the opportunity rise to
Companies (NASSCOM)'s Study on Animation and $950 million by 2009. The total cost for making a
Gaming Industry in India, released in December full-length animated film in America is estimated to
2005, estimates the global opportunity in this sector be $100 million to $175 million. In India, it can be
at $55 billion today, with the Indian market taking made for $15 million to $25 million.
Advertising

Indian Advertising spending, as a percentage of GDP billion by 2010. The size of the radio market in India
is only 0.34 percent, which is way below the is currently estimated at US$ 53 million and is
percentages for both developed and developing expected to have the highest growth at a CAGR of
countries. This provides an immense potential for 22 per cent in the coming years. With an estimated
growth since advertising revenues are key to every 28 million Indians already hooked on to the
segment in the Indian entertainment and media internet, internet advertising in India is presently
industry. The television advertising market in India worth $22 million. With the broadband slowly
today is estimated at about US$ 1,067 million. becoming popular, the segment would show a
Advertising revenue for cable television was $1.02 compound annual growth rate (CAGR) of 50 per
billion in 2005, and is forecasted to grow to $1.8 cent.
Animation Sector
Animation industry is nascent at $285 millions. The animation industry, along with gaming and
VFX, is projected to grow at the CAGR of 25%,second only to online advertising in the
entertainment and media industry, for the next 5 years, according to FICCI-
PriceWaterHouseCoopers report. The animation industry was pegged at Rs 1,300 crore in 2007,up
24% from the previous year’s Rs 1,050 crore.
FM Radio Business

The radio business is poised to grow much


ahead of the 24% growth rate that has been
estimated by PWC. According to Mr Prashant How is future? With over 700
Pandey………………..CEO, Radio Mirchi, If the million people below the age
TRAI recommendations to allow broadcasting
of 30 and a middle-class of
on radio and to allow broadcasters to operate
over 300 million, huge
multiple channels in a city are implemented,
potential audience has
there could be at least one year of 100%
brought all major M&E
growth for the radio industry in Fiscal 2009-10.
More niche channels would be introduced companies to India. SONY,
operating multiple channels within a city. The Paramount, Disney, Fox and
Indian media and entertainment industry is one Time-Warner all establishing
of the fastest growing sectors of the Indian their operations here. With
economy. It has benefited from the economic high ROI, 100 percent FDI on
growth and rising income levels in the country, automatic basis, co-production
and is in a crucial phase of transformation. The treaties, vast opportunities for
year 2006 was a good year for the industry and investing in theatre/ multiplex
it was characterized by consolidation, infrastructure, increasing
realignment and growth in most segments of number of cable & satellite
the industry. Further, the industry is expected homes and opening up of
to grow faster than India's GDP growth and foreign investments even in
consequently more expenditure is expected in the print media, this segment
media and entertainment. The whole industry is all set to script its own
is expected to grow at the rate of 18% each
blockbuster in the days ahead.
year through 2011. The Indian entertainment
These are being driven by the
and media industry will touch $27 billion by
spectacular growth of the
2011.
television industry, the new
formats for film production
and distribution, the
privatization and growth of
Despite the impressive growth rate, the size of the radio in the country, the
Indian entertainment and media industry will be the gradually liberalizing attitude
smallest among BRIC countries at $27.09 billion of government towards the
within the next three years. The advertising- sector, easier access to and for
supported sector of entertainment in India international companies. With
recorded the fastest growth of 22 percent in 2007 a host of factors contributing
was would experience a major shift, as digitally to the double-digit growth of
interactive mediums gain popularity. The report the industry and an added
estimated that Internet advertising would hit $104 easing of the foreign
million in 2008 to touch $272 million in 2012, while investment norms, the E&M
the film industry will top $4.35 billion from $2.37 Industry in India thus is a
billion during the period as players discover new sunrise opportunity that
revenue streams. The television industry, that
presents significant avenues
attracts the most foreign investment, is forecast to
for investment.
grow from $5.59 billion to $14.8 billion in the
period as it undergoes major transformation with
digital distribution networks.
Script to Watch: M&E

Sanra Soft: Animation and Gaming Company


ENIL
Total Income: Rs 237.6 crore against Rs
Firm is planning acquisition of studios in India and 138.9 crore last year. A growth of 71%.
Abroad. Received a SEBI approval for a GDR issue of upto EBITDA: Rs 45.3 crore against Rs 40.8
$27.5 million. Plan to set aside $10-15 million for crore.
investments to make one or two strategic acquisitions in EBITDAM= 19 %.
gaming and animation space. Company is looking at PAT Rs 25.1 crore against Rs 21.2
expanding its services business with participation in crore.PATM= 105%
international trade conferences and forging marketing MCap on 30th March 07 Rs 1577 crore.
tie-ups with overseas companies. Company has received Financials
orders worth $ 3 million recently and would expand its
business to around $ 6 million next year. Two full length Equity 47.6 crore
animation movies are expected to be completed by 2009, Reserves 243.9 crore
one in 3D and another in 2D format. It earned Rs2.8 crore Net worth 291.5 crore
in 2006-07, and expects to finish FY08 with revenues of Rs Loan 113.8 crore
15 crore. The company currently has 150 persons on the Income 170 crore (OI 33 crore).
rolls at its Chennai and Bangalore centers, and plans to EPS Rs 6.11
ramp up the headcount to 500 in the coming financial
year. It expects a CAGR of around 40% and is looking at The company has 50 to 60 % market
achieving a turnover of around Rs 100 crore in the next 4- share in all the cities, it operates. It
5 years. Company, has signed a memorandum of currently operates in around 32 Cities.
understanding (MoU) with the University of Portsmouth The industry (E & M) is expected to grow
in the United Kingdom to deliver two new media courses at a CAGR of over 18% for next 5 years.
starting October this year in Creative and Cultural Currently the industry is of Rs437 billion
Leadership (M.A. degree) and Creative and Cultural ($10.92 billion). The low advertising to
Entrepreneurship (B.A. degree), according to a press GDP ratio, currently at just 0.4%
release (compared to other developing countries
. like China at 0.6% and Malaysia at
0.9%) indicates that the advertising
industry is likely to outgrow the GDP
for several years to come. Radio was
Raj TV the fastest growing segment within the
Planning to launch 3 overseas channels (Malaysis, advertising industry. The radio industry
US, UK), three 24 hr news channel in different recorded a growth of nearly 58% in
languages and 1 music channel soon. Company is 2006. This took the share of radio up
also planning to enter into film making by from 2.4% to 3.1% of the total
producing a Tamil movie. The company is advertising industry. This is further
planning to invest around Rs 300 crore on expected to increase to 5.5% by 2011.
expansion and movie production. The company The radio industry, as per a
has tied up with Nokia, BSNL and BigFlicks. a part PriceWaterhouseCoopers report is likely
of ADAG, for its content – sharing requirements. to grow by more than 3 times from its
RAJ TV is also setting up a studio at a cost of Rs current size of Rs. 5 billion to nearly Rs.
20 crore on 26,000 sq ft close to its corporate 17 billion in 2011.
office in Chennai.
Goldstone Technologies:
IT services company Goldstone Technologies has a monthly rental of Rs 50.The charges for video in
tied up with BSNL, television channels and demand will be Rs 39 per movie. The company has
production houses to launch Internet protocol conducted a pilot project in 7 locations in
Television (IPTV) services to all BSNL customers in Hyderabad. The services will be offered in other
India. A similar tie up is on the cards with MTNL. cities in the state within four months. Another 10
The Hyderabad based company has invested about TV channels will be added by the year end. TV
$8 million in India and abroad on IPTV business. channels and movie content production houses that
Over half of the projected revenues of Rs 500 crore have tied up with Goldstone will be paid per access.
for the current fiscal will be from IPTV services, a The company also plans to include advertisements
key driver for growth. The company has launched within the movies to generate revenue. Goldstone
IPTV services in Thailand and is now looking at tie- currently has about 2,000 Indian movie titles, 3,500
ups with telecom companies in 11 European and Hollywood titles. Another 5,000 Indian titles will be
South East Asian countries. The company is added this year. Company is also set to invest about
confident of marketing the services as its IP $20 million on its media division that converts black
technology can stream videos at a low internet and white movies into color in India and abroad.
band-width of 600 kilobits per second The company has 275 people working with IPTV
(kbps).Company believes that their’s is the best division and another 200 with Media division. It
technology available in the world compared to that plans to raise the headcount to over 750 in the next
of the Microsoft ,which can stream the videos only few months. The company’s revenue stood at Rs
at 1.2 megabits per second internet bandwidth. 100 crore in 2007-08 and expects revenues to cross
Goldstone’s streaming is more suitable to the Rs 500 crore this fiscal. Income through the IPTV
bandwidth available in India. Goldstone plans to services will contribute to 50% of the revenues.
offer the services through subscription model About 20% will come from Biometric services and
wherein about 50 TV channels will be transmitted the rest will be from Media services.
through a set top box. The customer will be charged

Full Year (200703) TTM (200712) NP - Latest 4 Qtrs

LQ-
FV BV Div(%) MCap NP EPS P/E NP EPS P/E LQ LQ-1 LQ-2 3

10 24.4 0 380.3 7.8 4.2 48.2 8.98 4.78 40.23 2.5 2.14 2.33 2.01
Company on Radar Screen

Nagarjuna Construction
A robust order, consistent operating margins of the company find its source in the new order
and diversification in new verticals along with book. The company is venturing into new areas
the growth in the infrastructure sector seem to of business to safeguard against any single
be working in the favour of the company. The sector exposure and downturn. Company is
company currently has an order book of Rs currently into new verticals like irrigation (26%
10,000 crore. Total inflows during the year so order book), roads (24%), power (T & D, 6%),
far have been at Rs 6000 crore. 46.4% revenues buildings (22%), oil and gas, and plant.

P E Player in Company: Blackstone

On account of the high estimated order intake impact the company’s operational
during FY08, the construction company’s OPM performance. Company is planning to put up
would remain under pressure as initial costs on capital for its core construction business as well
new projects would be high and over a period as BOT ventures and real estate. This would
of time would cause the company’s margins to bring about a necessary cushion to the interest
remain subdued during that period. Higher costs, considering the fact that the company is
depreciation costs and interest charges would planning to put up capital and not debt.
OPM as on December07 was 11% and NPM is
5%, Sales Rs 779 crore, PAT Rs 39 crore.

KS OILS

KS Oils has acquired 20,000 hectares (50,000 Indonesian palm plantations are among the
acres) of palm plantation in Indonesia, where it most efficient and productive plantations
will invest Rs 230 crore over a period of three across the world. Keeping the spiraling
years. The plantation will yield 80,000 tonne of commodity and raw material prices it seems to
palm oil annually. The acquisition will help it be a prudent strategy to de-risk in the long
secure raw material supplies and avoid global term. KS Oils, is among the top 5 edible oil
price volatility. KS Oils imports palm oil to companies and the largest processor of
refine and sell in north and east India along mustard seeds in India, is headquartered in
with mustard oil, its main product. The move Morena in Madhya Pradesh. Company is
will substantially bring down the raw material backed by private equity firms CitiGroup
costs for the company. The investment in the Venture Capital that own 10.38% and Baring
plantation has been routed through the Private Asia 6.81% equity stake.The company
company’s wholly owned subsidiary in reported net sales of Rs 1,373 crore and net
Singapore. The plantation yield of 80,000 tonne profit of Rs 82 crore for the 9 months ending
represents 2.5% of India’s palm oil imports that December.
stands at 3.6 million tonne annually.
BEML

BEML pegged its growth on the


booming business of mining and Sales (provisional) for fiscal 2007-08, 15.5% higher
construction. Expects its contract sales of Rs 3,005 crore
mining foray to fructify during the PBT Rs 350 crore up 11% YOY.
current fiscal with 2-3 blocks Announced 55% interim dividend.
coming to its joint venture. Order book Rs 3,795 crore
Company’s M & C business, its Expects 18-20 % growth during the current year
traditional focus, has grown 10 % With sustainable potential for business growth in all
over the last year to nearly Rs business segments, in particular mining –
1,800 crore and is poised to grow construction and rail and metro,BEML Ltd is poised
further with contract mining. A to achieve 18 to 20 % growth on yoy basis
2007 McKinsey report on The It has a 50th year target of reaching a turnover of
Indian Earth moving industry has Rs5, 000 crore by 2013.
forecast a six-fold growth in the The company is expected to sustain a net profit
equipment business from $2.3 growth similar to the 9.6% growth it saw in the
billion to swell to $15 billion by previous year ended March 31, 2007.
2015. The company has signed a Planned Capital Expenditure Rs 450 crore for 3
MoU with SAIL to supply mining years
equipment worth Rs 400 crore for It has invested Rs 250 crore and the remaining is in
3 years, including a maintenance the pipeline for machinery upgradation and others.
and repair contract (MARC) Exports grew 132% to Rs 257.72 crore.
The same MARC model would be
replicated for coal and other contracts. Its strategy of having 21 mining equipment dealers across
the country had paid off with sales of Rs 275 crore for 717 equipment, almost doubling sales yoy.
Company is planning to tap the huge market of mine blocks allocated to some 80-100 PSUs and is
in the process of JV with some of them. It hopes to have 2-3 blocks to coming to its JV with
Midwest by 2009.

Growth Area:

The rail and metro business, its second growth area, grew 159 % to Rs 272 crore and has an order
books at Rs 1700 crore. The Delhi Metro Rail Corporation has placed an Rs 1366 crore for 192
coaches.BEML has forayed into railway spares with orders worth Rs 102 crore. They expect to be
supplying for the Bangalore, Mumbai, Kochi and Hyderabad projects. We are very bullish on the
metro rail sector and expect to touch Rs 500 crore this year, quote Mr. V.R.S.Natarajan, CMD.
Beml, makes the Tatra trucks for the armed forces and has taken over the tipper business from
Tatra Vectra, Hosur, and will make and sell the Hemang brand of tippers and engines from its
Mysore facility-which contributes 25% of the turnover.
The News Section

Indian Railways raised the Rs may reach a decade high of 38.61 a dollar by June 30 as the
freight rate for iron ore by nation's interest-rate advantage over the U.S. attracts investors,
as much as 4 percent according to Morgan Stanley. The currency has rebounded
starting today, the Financial almost 1.5 percent from a six-month low touched on March 17
Express reported, citing as the Federal Reserve cut its benchmark rate further, widening
officials it didn't identify. the differential to 5.5 percentage points, from 2.5 percentage
The railway ministry also points in early September. The central bank is likely to allow
imposed a congestion gains in the rupee to rein in inflation that reached a 10-month
surcharge of 100 percent on high. The local currency may advance almost 4 percent by the
iron ore to be transported to end next quarter, Morgan Stanley forecasts. In carry trades,
the ports, it said. The levy is investors get funds in a country with low borrowing costs and
much higher than the 60 invest in one that offers higher returns, earning the spread
percent congestion tax so between the two. The risk is that currency fluctuations can erase
far charged on such traffic. the profit. Japan's benchmark rate is 0.5 percent and the Fed's
Freight costs for iron ore will 2.25 percent, compared with India's 7.75 percent. A 12.3 percent
increase by 15 rupees a ton rally in the rupee last year, the most since at least 1974, helped
to about 185 rupees a cool inflation to a five-year low of 3.07 percent in October. A
metric ton. surge in commodity prices, including crude oil, has prevented the
Reserve Bank of India from cutting the interest rate. Policy
makers will meet next on April 29.

India's manufacturing grew at


the slowest pace in eight
Inflation Break-up for Week ended March 22, 2008
months in March as demand for
goods eased because of high WPI 22-Mar 15-Mar % change
costs, a key gauge showed. ABN Primary articles 234.6 230.5 1.8
Amro Bank NV's Purchasing Fuel,power 341.4 341 0.1
Managers' Index fell to 57.5 last Manufactured proucts 195.4 195 0.2
month from 59.5 in February,
Food products 201.4 200.2 0.6
according to a report released. A
Edible oils 197.6 194.5 1.6
reading above 50 indicates
Cement 221.2 221.2 unchanged
factory output gained.
Pulses 245.7 242.2 1.4
Vegetables 200.2 190.8 4.9
ECB cap to be relaxed: The Minerals 594.8 430.5 38.2
government and RBI are
Total 224.8 223.6 0.5
expected to raise the ECB ceiling
for the current fiscal year from
$22 billion to $ 28 to $30 billion.
Automobile Industry: Rising input cost
Since December, the input
costs such as steel, alloys,
crude oil, copper, Auto Sales in March 08
aluminium among have
2006-07 2007-08 Growth %
sharply increased. Rise is Maruti Suzuki India 6,35,629 7,11,818 12
most likely to dent the TATA Motor 2,26,893 2,14,758 -5
operating margin of General Motor India 66,543 38,857 71
automakers in the current HONDA Siel Car India 62,802 61,325 2.4
quarter.Prices of alloy March07 March 08 Growth %
Maruti Suzuki India 64,556 64,421 -0.2
steel has gone up by 8-12
TATA Motor 25,760 24,737 -4
% (nearly Rs 7,000 per General Motor India 4,542 6,836 51
tonne) Aluminium by 18% HONDA Siel Car India 8,487 8,895 4.8
to $2,842 per
tonne(Rs113,680),Copper
up to record high of $
8,890 per tonne(Rs 355,600) up by
31%. A 10% rise in steel price may
result in around 2% rise in overall
cost of small car.To make matters I mpact of 6th Pay Commission on PSU’s profit margin
worse,metal players expect a surge
of around 15-65% in prices of Employee cost as % Employee cost as
of EBITDA % of PBT
steel,iron,coking coal,copper.
MTNL 169.6 478.3
BEML 106.7 114.2
Two Wheeler:
Engineers India 102.8 107.6
BHEL 59.3 65.2
Hero Honda registered a growth of
SAIL 47.4 55.3
15% in sales in March at 3, 20,594
There are many PSUs where employee cost accounts for
units. Its total sales in FY 07-08
ENDED FLAT AT 33, 37,142 a small proportion of their operating profits. GAIL,
UNITS.TVS Motors, posted 16.83% NALCO, PFC, IDBI and CONCOR are a few companies in
dip in sales in March at 60,908 this category.
units. Sales of Honda Motorcycle
and Scooter India Ltd. Grew by 5%
to 79,944 units in March.

Crude oil rose for a third day in New York as U.S. gasoline supplies fell more than forecast and
refiners cut production on lower processing profits. New York gasoline futures rose to a record
yesterday after the U.S. Energy Department said inventories fell 3.29 million barrels to 229.2 million
barrels last week. A 2 percent cut in refinery runs potentially means a 10 percent gain in prices.'
Imports dropped 6 percent to 8.9 million barrels a day, the lowest since March 2007. Crude oil will
average $92.30 a barrel this year, according to Sanford C. Bernstein & Co., as declining reserves
increase extraction costs.

Iraqi Prime Minister Nuri al-Maliki gave militants loyal to Shiite Muslim cleric Moqtada al-Sadr 72
hours to surrender as fighting in the southern oil city of Basra and Baghdad left more than 60 dead.
Indian Economy

Credit Growth:
HSBC Report: Rs to touch 36 against US$ by 2009
With the RBI indicating that
steps would be taken to curb
inflation, banks are expected
HSBC Global research projects the Indian rupee to touch Rs 36 against
to witness a sharp slowdown
the US$ during CY 2009. During the period Oct -8 to Dec 08, rupee is
in credit growth. Credit grew
expected to slip to 39.5 though is likely to remain at the level of 40.5 for
at about 21% in 2007-08 and
period April-Sep 08.According to JP Morgan, US$/Rs will stay under
may witness a deceleration
pressure owing to likely weakness in the capital inflows. It expects $/Rs
in the current financial year
to remain at a level of 40-41 range in the very near term with a
as interest rates are set to
possibility of breaking above 41 if foreign equity outflows persist.
rise. Credit growth in 2006-
Partly based on expectations of improvement in the US in the second
07 was at 31%. Growth in
half, it maintains that Rs will strengthen thereon.The report notes that
credit could drop to a level
the peak of the investment/capital goods cycle is behind and therefore
of 15-16%, if RBI decides to
one could see a gradual softening through 2008 even as the export
take stringent monetary
downturn and lagged effect of the higher interest rates begin to take
steps to rein in inflation.
their toll.The report also notes that, small caps and mid cap firms are
Infrastructure and exports
expected to see their net incomes clock a growth rate of 34.8% and
are likely to drive credit in
32.5% respectively. The 12 month forward P/E is pegged at 8 and 10.2
2008-09.The demand for
for the small and mid-caps respectively while for large caps it is 14.2 and
real estates and consumer
the BSE-500 as a whole it is kept at 13.4 times with a net earnings
durables will decline.
growth rate of 25.9%.
Export

India’s export grew 35.25% in dollar terms to $14.23 growth of merchandise trade in the April-December
billion and 21.7% in rupee term to Rs 56,569 crore, period of 2007-08 was marginally higher than that
the fastest in 4 months. This was partly due to in the corresponding period last year, service sector
depreciation in Rupee from 39.4 to 39.9 at February exports decelerated by nearly a third to 17.1%. The
end. Various sops dolled out by the Government overall export shortfall was less neutralized by a
have also aided fast pace recovery. In January, 42.5 % increase in remittances. The current account
exports grew 20.5 % gain. Exports accounts for deficit rose by 14.5% in dollar terms. Net inflow
about 15% of Indian economy. For April 07-Feb 08 went upto $81.9 billion in April – December period
was at $ 138.43 billion as against $ 112.63 billion, a far overshooting $ 30.1 billion same period last
growth of 22.9% in dollar terms and 8.94% in rupee year. Foreign Exchange reserve increased by $67.2
terms over the same period last year. However, billion in 9 months. Outward FDI from Indian firms
export will fall short of $160 billion target as is stand at $ 10 billion range.
expected to stand a $ 155 billion. While the 24.6%
External Sector
Net foreign exchange earnings from software Net software export contributes $ 2.4 billion.
and other services rose by nearly 50 % in the Private transfers from individuals and corporate
quarter ended December 07 compared to the entities showed a similar near 50% rise.
same period last year (from $6.167 billion to Portfolio investment $14.56 billion ($ 3, 56
$9.270 billion). billion last year same quarter)
FDI Investment in India

FDI inflow in February 08 was $ 5.67 billion (up and UK $3.4 billion (7.8%). The service sector
by 712%). FDI in April- February 2007-08 were $ (both Financial and Non-Financial) received the
20.13 billion (up 70% from $ 11.88 billion in the maximum FDI worth $8.9 billion (19.84%)
same period a year ago). The $ 20.13 billion is during April 00-Dec 07), followed by computer
the highest FDI in the country during any year. software and hardware sector with $7 billion
From August 1991 to December 2007, the total (15.65%) during the same period. In February
FDI received by the country was worth $ 67.32 2008, China received $ 6.928 billion worth FDI,
billion. Mauritius has been the top source of an increase of 38.31% over the same month
FDI with it accounting for around 45% of the last year. In January and February 2008, FDI
total FDI inflows and $20.1 billion worth FDI flowing China was $ 18.12 billion. The actual
coming into India from that country from April FDI inflows into China on a YOY in January was
2000-December 2007 period. USA is the next $112 billion, an increase of 109.78%.In 2006-
with $4 billion (9.12%) during the same period 07,China got $ 63 billion worth FDI.

Inflation in India

If one dissects the inflation numbers, the rally is contrast, the price index of food articles has
lead by basic metals, alloy and metal products gone up only by 0.3%. Government has lowered
group, which rose by 6.7%,due to higher prices the import duty on edible oils from 75% to 27%
of blooms and billets and slabs(30% each),wire on most of the refined oils, and to 20% for
(all kinds 25%), skelps (23%), oromild steel and crude oils.
tensile plates(20%),crude oil(19%),etc. In

Global financial turmoil and impact on Indian Growth

The effect of tighter domestic monetary policy and Asian economy owing to lesser integration and
rupee’s outsized and sudden appreciation against exposure to variations in global growth dynamics.
the UD$ and an already mature stage of economic We have a far lesser Export/GDP ratio compared to
cycle were poised to set the stage for a mild other Asian economies. However local equity
slowdown in economic activity. The recent markets are heavily influenced by changes in global
intensification of the global economic and credit risk appetite and FII inflows. Some Indian banks
woes has further increased the downside risk to have reported losses on credit derivative exposures
India’s growth outlook. Full year GDP growth in necessitating more capital provisioning. Hence
2008-09 is poised to moderate to be in the 7-8% credit flow to non-blue chip borrowers like SMEs
range, after averaging slightly less than 9% annually will be hit. Credit growth is already slowing down.
in last 4 years. India is likely to be least affected
Possible RBI defense:

Options to RBI against this credit crunch are unwinding the MSS bonds

Keeping dollar inflow unsterilized


Reducing CRR
Relaxation of curb on External Commercial borrowings.
Infrastructure investment and large corporate capex being largely unrelated to interest rates should
continue. However all EMI related consumer demand like housing, automobile, housing materials, white
goods and construction and other services are would slowdown.

The unfolding global economic woes will probably fail to derail the Indian growth momentum. At worst,
India will experience a brief slowdown in the upcoming fiscal year, and recover in the subsequent year.
…& when storm settles down…would Indian elephant still be dancing..?

Macro Economic Environment in India:

India is growing with a rate of 8.5 % for past 4 of 87GW capacity is needed in next 5 years. In
years, second only to China.1 billion + country has terms of steel consumption, India stands among the
an economy of the size $913 billion. India needs last in world, a mere 37 kg steel per capita
around $500 billion in 11th plan and further $350 compared to 247kg in China and 400kg in
th
billion in 12 plan in order to support its economy developed nations. Country is expanding very fast in
keep growing at a rate of 8%+ in next 10 years. This terms of capacity expansion, employment
amount has to be spent only on infrastructure generation, inclusive growth, infrastructure
expansion and capacity up gradation for sustaining development and industrial production. These
growth. It leads to huge growth in sectors like road initiatives, on the line of PPP model are supposed to
transport, freight transport, Electricity, yield results resulting in very high growth and
communication and other basic amenities. India has standard of living.
huge demand –supply gap of electricity. An addition
India is currently facing problem of high inflation and infrastructural bottleneck:

Reasons for high inflation are:

A very slow Agriculture sector contributing 18% of Another reason of higher inflation is the higher
GDP and growing by mere 2.7%.We believe, one mineral prices which challenge productivity and
more green revolution is needed in the sector. growth in infrastructure, capital goods and
Eventually, consequent to high food inflation and manufacturing sector very heavily by making
higher value realization per unit of food in India and several sectors and industries unattractive. As
also globally, farm sector would start attracting Indian corporate is hunting globally, this could tam
bigger players, corporate and farmers back to the raw material prices. China, which is often attributed
farm sector expansion. Farm sector in India holds to high mineral consumption, thus driving their
immense potential in it and is about to show prices in world market, has already started showing
dramatic changes. We believe, more and more signs of a slowdown. Chinese steel industry is
investment is about to follow farm sector and in already producing more than domestic demand and
medium term, within 2-3 years, the face of Indian country is cooling down from nearly 11 % growth
agriculture is about to change. We are expected to rate to 9.5% in last year.
see more productivity and investment in farm
sector which would not only cater to domestic Hence a reduced demand for industrial inputs from
demand, but also likely to earn export profits in China will ease off price pressure of minerals and
terms to farm goods. One more lucrative sector metals in world market, making them cheaper for
would be food –processing and cold-storage. next growth driver, i.e.India.

Monetary Outlook of India:

Benchmark Interest rates in India are at all time cool off in about 2 quarters. Global easement of
high at 7.5%.All the rates, like REPOs, Mibor, CRR, prices of core commodities, both farm and
SLR and other are at their peak. This show, RBI and industrial, as predicted by IMF, in 2-3 quarters,
the Government has kept monitory discipline very slower demand from China and USA, supported by
tight. This is very significant in a way that, a better farm production in India will automatically
consequent to various fiscal and monitory policy ease down inflation in India
initiatives, Inflation, the prime concern is likely to
.

Two tricky steps taken by Government here are very crucial.

They are Fiscal expansion and monetary contraction.

Policy makers in India are aware that growth as well to fiscal steps, it gives a greater head-room to RBI
as Inflation control is two equally important factors keeping its monitory tools in tact for a later part of
for India’s economic health and sustainability. By economic expansion. A virtual scenario is expected
fiscal expansion, Government tries to increase wherein; inflation could be cooled off without much
public and private expenditure, more investment, tinkering with interest rate.i.e keeping rates high. If
capacity and infrastructure expansion and easy the economy sustains a growth rate of 7.5+
borrowings. As a monetary contraction, RBI is trying percentage point in a scenario of world slowdown,
to regulate money flow in the system, managing the and higher inflation with a nominal interest rate
foreign inflows to optimum level and also handling 14.75%+…it is in deed a very promising scenario.
Rs against US$ to a level which eases domestic
inflation with farm import in short term …and also We believe, after taming inflation to a comfort zone
making key export unit competitive by providing of 5% around, RBI will cut rates to boost economic
subsidies and incentives. RBI is well placed in the growth to higher level. This is expected to be done
monitory scenario to handle any downside risk in in the 3rd quarter of current fiscal where global
the country in the wake of global slowdown. Now, commodity prices will show a downward
while the inflation control measure mostly related movement.

Reasons to believe that global commodity prices will cool down by year end:

Global economic slowdown will start showing its be increased. This is because our per acreage
anti-inflationary effect by the end of year. Crude oil output in India is much below the world average
rates, one of the most important factors for Indian and developed countries. Consequent to food
economy will settle to 85-90 US $ per barrel.US, EU shortage, country is supposed to take initiative to
and Chinese slowdown will ease demand pressure increase its productivity per acreage. The same
on crude. Better refining capacities and new phenomenon is to be observed in all developing
installations will add to supply boost. Already above countries where a poor per acreage yield indicates
average prices, fueled by speculations will come to that farm output can be substantially increased
equilibrium levels. Higher usage of alternative and without increasing agricultural land. There is a 3rd
renewable energy along with better prudence on important observation to be made in world, in the
energy savings will also add to lower fuel prices. last part of CY08.US dollar will substantially devalue
Newer capacities in Brazil, Canada, Venejuela, compared to major currencies of the world. In
Australia and Russia will substantially increase the Indian scenario, it means a lower cost of import;
supply. Global food prices, however pose a great especially crude oil import. This has already hedged
risk and challenge. However, provided proper to an extent the rising crude prices in Indian
policy initiatives taken in India, there is a good Scenario.
chance that, in India, farm output can substantially
Guest Column: Nav Bhardwaj (Equity Analyst)

Investment in the Indian Market today:

These capital market for miles together had begun to


“Somewhere ages and ages words believe in this dictum of unprecedented
hence: Two roads diverged have unimaginable irrational gains on the very first
in a wood, and I—. I took inspired day of listing!!! Until the bubble burst and the
the one less travelled by,. many a coach suddenly turned into the pumpkin!
And that has made all the men,
Coming down to our very own stocks........
difference. ...”- Robert who
Where research analysts used to be
Frost 1920. ventured
acknowledged for predicting the top, suddenly
into the
became hero’s if they would predict the
wilderness where many wouldn’t dare and
bottom!! On the other side of the table said
proved a point that immortalized their names
somebody..!!!!
in the annals of history.
The Price/ Earnings ratios are on getting
But I wonder if Mr Frost (God rest his soul)
corrected to newer levels. Estimating (guessing)
would state the same thing if he were in the
the correct levels are the name of the game.
present financial fiasco in our Indian markets.
Valuations are getting to more realistic levels.
When caught in a stampede it won’t be
2008 has robbed close to 30% of the markets
categorized as bravery if we choose to run
sheen. While the indices are nothing but a
against the mob!!
gamut of 30 to 50 stocks, but the ones outside
The SENSEX closed 490 points down and the this gamut have been behaving no different. As
NIFTY’s 124 in the red, but nobody is actually the market prices plummet, while some stocks
scared to death (as the case would have been a come down to their real value, others
year or two ago). Volatility is the name of the depreciate only to be available at a discount to
game. While traders and punters go short or the real value..... Diamonds in the dust I would
long on the drop of a cue from the international call them!
markets! While orders accumulate through the
But, doesn’t it seem to be a little simple that all
roof as soon as the trading hour begins! The
one needs to do is hunt for these ‘diamonds in
market does everything to prove the average
the dust’ put your capital into it and watch it
local sentiment wrong and a lot of money is
grow! On the contrary this is where the
lost.........
frustration begins!
Talk of the IPO market...... Does anybody any
A lot many factors go into deciding the destiny
longer even read the prospectus before
of the stocks. If you are reading this article
investing (read betting!!!) his money on the
probably you already know a lot about these
nascent scrip? I doubt it..... IPO’s had become a
external factors influencing the `Current/
sure shot money multiplying mechanism and
Future Market Price’ of the stock.
anybody and everybody not related to the
The FII’s – today’s market makers and diamond in the dust..... Buy it and ape `Rip
breaker’s. We should certainly watch out for Van Winkle’ (who went off to sleep for
what their international monetary pressure twenty years!!!).well may be if twenty sounds
they are facing. The monetary policy of our a bit too long wait for a year at lest by then
central banks, the demand supply scenario, the dust would have settled and your
the levy’s and duty cut changes an industry diamonds shall certainly be shining. And if
faces..... all this and much more..... you are still not convinced about anything
and stand confused depending on your risk
But what I would suggest is that if you have
appetite go for an apt debt equity mix and
done your due diligence and find your
simply wait till the dust settles!!!
towards….. Political awareness

India, China and Left


A difference between US and THEY…is not just what for…and will definitely ask us the answers…Answers
WORLD is observing now. This is also not what we to questions which neither I and you have nor our
as mute captives of farcical democracy, are being people ,at the helm of affairs,have.People
witness to….But rather this is the difference…our like,Prakash Karat,Pranab Mukharjee or National
future generations…our fore-children will pay Security Advisor Mr. M.K.Narayan has…..
What is the difference….?

The difference between two countries…India and scolded about the lame position, this country of 100
China…..I am not talking about the differences on billion has.It also gets reflected when our
development or economic grounds. Though they government takes all the pain and brutally to
are also part and parcel of it…This difference is what suppress the rightful demand and peaceful protest
made a Chinese to call our ambassador at 2.30 of Tibetan just to appease the Chinese God Fathers.
A.M.in the night, summoned and being harshly
And what in turn New Delhi gets in return…

Arunachal Pradesh in the official map of land, that too very sensitive, strategically, in
China….C.M.of Sikkim and Arunachal Pradesh not Siyachin to China. China is the one country, which
being allowed in China. A large 32,000 square has opposed, vociferously, India’s entry to Security
Kilometers of Indian Territory. All this just because Council.
we are weak..Much much weak country than
anybody on the planet. Let me put few facts here. One more crucial input….Chinese Congress of
China has for years armed, trained, supplied and Communist Pary of China,the apex body has passed
supported logistics to armed militants in Assam, a resolution that talks about the word….”Aksaai
Nagaland, Manipur and Mizoram. According to a Chin”..The meaning of this word is Greater
report from our own internal affairs ministry China,that typically includes entire north-
documents. There are strong evidences that China East,Bhutal,Nepal,Mongolia in Northern front,part
supports, arms and trains all the Nexal groups in of Myanmar and far –eastern islands.And this is not
India. They are funded and trained to run naxalite just a theoretical concept…China is moving
movements in the country to de-stabilize Indian strategically and tactically to the Aksaaichin
homeland. This is the report of Internal Affairs ambition.To know the ground realities you can talk
Ministry based on RAW and IB documents. China to people in the border areas, how each day China
has long given political asylum to many militant is moving ahead into Indian Territory and is eating
leaders in North-East. China has never accepted up our crucial lands and posts without our
Jammu and Kashmir, an Indian territory. In fact Government in the Air-conditioned Parliament and
Pakistan has given thousand of kilometers of Indian power corridors to even take a pinch of.

Now the bigger question….Is Tibet a Chinese territory?

No… if you go by the Historical evidences….Tibet British colonial rule. It has always maintained its
has never been a Chinese part…It is as an independence and exclusivity in the world political
independent nation as Nepal or Bhutan would map..
be…..It was not even a Chinese territory in the
Now, is Tibetan independence important for India?

Yes…Strategically an independent Tibet is very Himalayan region.Bottom line is to understand


crucial and important for India. It would act as a that Chinese ambitions and intentions are very
natural cushion to India diplomatically. It is also lethal and dangerous for the sovereignity and
important for India from ecological point of view as existence of India.We need to
well. Our important river glaciers, Gangotri, strategically,economicall and even militarily
Yamunotri and other, are in Tibetan region. As prepare ourselves against Chinese might.China is
statistics says…China can any day create ecological the most important danger India faces
disturbances in the region whose repercussions today…..And China is never your friend…it can
would be felt on India. I and you can not even never be….It has always seen India as a competitor
imagine the scale of damages to entire Northern ,through skeptical eyes.It has already taken
Indian gangatic plane where any ecological strategic and military advances in the nearing
disturbances in Glaciers region can collapse our regions covering whole of Indian territory.It has
agriculture and bring in huge flood and damages to tie-ups with Myanman,Nepal,Pakistan and even
entire north India. Do not take these things as day Bangladesh…and these are diplomatic as well as
dream as already China has shown ,few indications military.It has its huge fleet in Bay of
of these sort by building a road to Mount Bengal..covering India through sea as well.
Averaest,through ecologically, extremely sensitive
So what our Government is doing..literally nothing as usual… Now comes our Glorious
LEFT..CPM..Communist Party of China…opps ,sorry Communist Party of India, Marxist. On not a single
occasion they have shown their solidarity for India nation. You know..why there are two parties..CPI and
CPM..Actually there was only one party CPI, before Chinese invasion in 1962...After invasion, one side…and
the bigger side..Has supported China..Literally against India…Now that is CPM

They are the one, who were the only creed to oppose Pokharan bomb blast in 1974 and in 1998.Now they
are the same, who are championing the cause of national sovereignty against nuclear deal with USA and
NSG. The underline..China, their Godfather, which not only ideologically feeds them but also funds them,
does not want India at the
nuclear map of We are a country…which used to give our the world. They
are the people land,,jewels,,daughters,,and money to appease the intruders who always have
been against through ages..Tamoor, Zanjess, Gazanies, and most recently Israel in Palestine,
USA in britishers….And we are probably repeating the same..trying to Afghanistan and
Iraq and on appease china number of
occasions have vociferously cried
against USA, West or any other nation, for that matter. And what is their response, when it comes to
atrocities against Tibetans by China..We can understand where their human rights and equity goes, when it
comes to their Ideological homeland-China. And to make the History, little brushed up in your minds…Indian
Communists were the only creed in the world that supported China against massive killing of more than
10,000 students in Thiamine square.

I quote Mr Prakash Karat and Sita Ram Yechuri… “Happenings in Tibets are an internal affair of China. India or
Indians must not meddle with the issue against China” Mr Prakash Karat

“ Dalai Lama must not speak against China from Indian Soil. He should learn to behave himself” Mr SitaRam
Yechuri..
This article is personal opinion of Mr Akshar Prem and he is sole responsible opinions/views stated herein.
Magazine may, or may not vouch his ideas and views.
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concern to named individuals.

To reach the editors…. aksharprem@yahoo.co.in & chandra5911@gmail.com


Drop a mail to get Ad-Space at stockyard.forum5@gmail.com

Secure your Subscription by joining www.groups.yahoo.com/group/stockyard

Disclaimer: This magazine is being published and circulated on behalf of Mantra Consultancy
Group and Stockyard by Mr.Akshar Prem and Mr Chandra Prakash .All the liabilities and issues
concern to named individuals.

To reach the editors…. aksharprem@yahoo.co.in & chandra5911@gmail.com