New FII norms will lead to reduced volatility

• SEBI has proposed to allow FIIs to use AAA-rated foreign government securities in lieu of cash for payment of margins against positions in derivatives.

• Margin payment is a headache in this business.. for all sorts of investors in futures and options.. They being FII s whose volume of transactions is huge its going to be a problem..

• Currently its a time for musings by various experts about the repurcussions of this policy move. In one such view - According to Professor Amit K. Barua, IIM Ahmedabad, in a debate in ET - this is what i can understand and present to you as per my existing knowledge base..

• its An appropriate beginning.

• This measure would allow FIIs to use their holdings in, sovereign Debts of foreign countries, eg. US government securities for investing in the Indian equity derivatives market.

• The 1st benefit will acrue from the outcome that FIIs will be able to change F and O positions without changing or shifting their cash market investment. So if a margin call comes from the exchange they can use their AAA grade US govt. securities as a margin without selling their cash market exposure to pay out the margins.

• Thus the volatility in the cash market of BSE and NSE that is caused by sudden withdrawal and infusion of funds by FIIs will decrease considerably.

• Result: This will make the entire process to happen in a phased manner. The reduced volatility in turn will make F and O prices cheap and make investment in to Equity options attractive plus hedging through options will also be attractive.

• The 2nd benefit will be seen in FOREX market. The exchange rate fluctuations due to the frequent entry and exit of FIIs' from the Indian equity markets will reduce.

• Result: The additional volatility in the market determination of exchange rates will die down as changes in FII exposure will not be drastic. The Forex Options will be cheaper AND will make hedging for "Exporters, IT Companies et all " cheaper against their risk of rupee apreciation against dollar etc.. and will be beneficial to whole indian economy.

• Currently there is a cap on the total value of the margin accounted for by foreign securities.

• This cap should be raised in a phased manner and can be removed also to reap the benefits in its entirety out of the current changes.

• If suddenly rupee apreciates then it will be difficult to realize the full margin value as foreign soveriegn assets are denominated in US dollar now so this adjustment should be accounted for in the margin requirement in advance.

• So, let us wait and watch how these new norms behave and how we digest their effects and hope for the best results for the Indian economy.

our sincere thanks to ET and the expert to enlighten us on this very important topic...

Rise of Nu-Power

Nuclear power's revival is most visible in America where power companies are preparing to flood the Nuclear Regulatory Commission with applications to build new plants. Finland is building a reactor, which is having the worlds largest capacity and british government is preparing the way for new planning regulations.

In india also there is the following breeze of activity other than the forthcoming INDO-US Nuclear Cooperation: These power plants are under construction in India.

• Rajasthan Atomic Power Project 5 & 6 - 2 X 220 MWe Capacity
• Kudankulam Atomic Power Project - 2 X 1000 MWe Capacity
• Kaiga Atomic Power Project 4 - 1 X 220 MWe Capacity

Also there is going to be an influx of new capacity and new construction as and when government allows private sector in to the arena....

Companies like L&T, GE, NTPC, Tata Power, Seimens, Areva T&D, ABB and many others are in the pipeline to enter this sector once it is libralized....

Current status of the nuclear industry globally:

1. 439 nuclear power plants in operation with a total net installed capacity of 371.671 GW(e)
2. 5 nuclear power plants in long term shutdown
3. 30 nuclear power plants under construction
   
   Advantages of Nuclear Energy:
   
   1. Nuclear energy is cleaner than oil.
   2. Nuclear energy is more secure than gas.
   3. Nuclear energy is more reliable than wind.
   4. Nuclear power stations are very cheap to run.
   
   Challenges of Nuclear Energy:
   
   1. Nuclear energy involves political risk.
   2. There is a risk of terrorist attack for stealing the nuclear fuel for preparing weapons.
   3. Chances of weapons proliferation.
   4. Nuclear reactors are hugely expensive to build.
   
   What is needed to be done ?
   
   1. Nuclear energysources do indeed deserve a hand from governments.
   2. Governments and nuclear industry are doing their best to limit the risks mentioned before and such risks are small enough to be worth taking in the interests of cheap clean energy...

INDIA The New Hub for Wealth Management

• India is the world’s second fastest growing market for wealth management firms.... But i can assure you one thing that even posh or robust wealth management in india cannot buy you trust.......


• Why i am saying this ? ... Well traditionally Indian HNI's have been putting money under safe's built stealthily in their homes, or under the matresses or over the ceilings in pop... etc. etc.. also dont forget swiss bank, mauritian banks or schchheles like tax heavens... Again the Indian HNI's dont try to keep all their money under one basket of a firm.. so they dont even retain a firm consistently..


• Compare the analogy of Indian HNIs with global scenario.. In Europe, e.g. Wealth Managers even open a client's mails! thus you see people there retaining a Wealth manager for generations! can you hope to see that in India? i guess no...


• But India is a prime target of global wealth management firms like Merrill Lynch, Lehman Brothers, Citigroup, Morgan Stanley, UBS securities, Credit Suisse etc..


• Lets examine the deal in detail....
  

See these global facts & figures: (2006)

• 9.5 million people globally hold more than US$1 million in financial assets.


• HNWI wealth totals US$37.2 trillion.


• Wealth generation was driven by real GDP gains and continued market capitalization growth


• Singapore, India, Indonesia and Russia witnessed the highest growth in HNWI populations


• India has second highest Real GDP growth rate in the world at 9% for FY06 next only to China at 10.5%.


• Market Capitalization Rise & Returns chart:

To read the contents of the image properly click to open it separately in a new web page or copy it on your computer and open it from there.. its a safe file to save & open.. sorry due to technological limitation of not to open it here perfectly

Destination India:

• Thus India is clearly a sought after destination for wealth management companies......
  
• As of 2006 the number of HNIs in India is around 100,015 who are true billionaires..
  
• Bloomberg report of year 2005 showed that approximately $10 billion (Rs 40000 crore) in HNI assets were under management in India then.... Now it is estimated to be around $20 billion (Rs. 80000 crore) approximately as AUM of HNIs.

Points to Ponder:

• We believe the key to this market is the use of need based positioning and customization of services taking care of client perspective..


• Also one more asset in this business is The Relationship Manager. They are the life blood as well as heart of this business.....


• A Delloitte report of year 2006 also says that in banking industry this segment is the most profitable one owing to the HNIs capability of huge 1 time investment capability..
  
  

Winning the Hurdle Race:

• There is a dearth of Regulation in this sector....
  


• RBI has just recently only allowed individuals to invest upto $100000 dollars (Rs. 40 lakhs) per annum abroad...


• Also there is a misconception in India between Wealth Management and Private Banking. We must say here that Wealth mangament is private money management aimed as per the client's profile or needs..
  While private banking is a sort of retail banking or mass based affluent banking which caters to sell all range of products... Thus people in india mix private wealth management with private or previlege banking...


• One more cache here is that .. In India many a times Advisory & Distribution are not segregated...
  So you will find a wealth manager charging a client by investing in the mutual fund products sold by their AM company for which he will charge double fees.. 1. annual portfolio management charges and 2. additional charges for investing in their own MFs calling them Management fees....


• This is sheer cheating ! As in this case the wealth manager will always be keen to sell products rather than giving advice... Actually these people can't be called wealth managers at all....


• Also a lot of taxation related ambiguity prevails in India making the conventional billionaires even more circumspect and orthodox in approach.


• Thus a lot needs to be done on the regulatory field...

• But clearly this market segment has a potential being rich gettin richer and richer..
  


• So all those who are at the start of their career can surely aim at making their career in Wealth Management....
  


• Once again we congratulate india for becoming world's second fastest growing wealth management market

Source for the news article:– Bloomberg, Merrill Lynch, Capgemini, The Business World, The Economist Intelligence Unit, moneycontrol.com, the hindu etc etc.. we thank them providing us this great information source.

Business News 13-09-2007 ANW 99 Exclusive

• Unitech becomes the first Real Estate company to enter NIFTY 50 replacing IPCL, the company merging with Reliance Industries Ltd.

• April - August customs mop-up at Rs 40,571 cr, Up 18.7% Year on Year.

• Why metal prices are going down these days? is it the cyclical downtern due to the said impacts of the LME - London Metal Exchange prices due to supply & demand factors. Is there excess capacity then the demand?

Hindalco cuts aluminium prices by Rs 5,000/t

Hindustan Zinc cuts Zinc prices by Rs 8,800/t (7.4% Cut)

• In what is seen as Lobbying for permitting holding company for banks like SBI & ICICI, The Indian Banks’ Association (IBA) would suggest to the Reserve Bank of India (RBI) that it permit banks to set up intermediate holding companies as an interim measure with stipulations that would provide comfort to the regulator.

• Tata Motors is considering IPO for its ancillary subsidiaries-HV Transmissions and HV Axles. The company may also consider a strategic stake sale in ancillary units before IPO. This will help them unlock value & also help demerging this business from parent Tata Motors.

• The US stocks at latest time 12 oclock IST midnight are trading firm & high - DJIA (NYSE) is trading at 13437.32 up 145.67 points and NASDAQ trading at 2605.62 up 13.55 points. Hope they are having the effect of The Indian Markets which closed today in green!

• Lukoil the company 20% owned by ConocoPhillips, is refining more crude at home to meet rising demand and is looking for more oil abroad and has posted record profits!!!!! The second largest russian oil producer has second-quarter profit rising 8.4 percent to a record level, propelled by higher refinery sales and rising crude prices.

• hey people wait and watch for a new section that is going to be started by none other than me!!!!! from tomorrow...... and yes its going to be global..

do come for it tomorrow...... I have Christened it as ....

ANW99 Business MOVERS & SHAKERS !!!!!!!!!

We are greatly thankful to all the sources available in the business news segment for all the great information.

Business News 07-09-2007 ANW 99 Exclusive

some brisk news first

• Bank of England keeps interest rates unchanged at 5.75%

• China raises Bank's Reserve Ratio requirement by 50 bps to 12.5%

• April - August direct tax mop up at Rs 61,030 Cr, Up 42% (YoY). This is the clear result of higher corporate tax realizations and continued or moderately increased individual tax realizations!

• What ??? Steve Jobs Apologizing ? yes in case of what is termed as the technologically superior or far superior but featuristically inferior iphone as inferred from expert reviews... He apologised to iPhone customers and offered a $100 store credit, following Apple's decision to cut the gadget's price by $200 just two months after its release. All hype cant be the resource for expected success.... They will learn from the mistakes and we are surely going to see iphone part II very sooooooooon.... Also Apple Inc. introduced a new range of ipods with WiFi & a Touchscreen !!

• Intel Unveils Xeon Quad Core Processors, for servers. These are capable of multitasking and are similar to 4 processing brains packed on a single micro chip... They are also compatible with their new 45 nano meter manufacturing technology....

• This is why Venture Capitalists & PE firms mean Business!! They are the masters of the game.... Cerebrus Capital Mangament LLP, yes the proud 80.1% owners of Chrysler Corp. have shown their executive luring ability from rivals!!! They hired Long time Toyota Motor Corp. North America chief executive Jim Press as V. chairman & president. This is the 2nd executive they snagged from Toyota. First a marketing head of Lexus Ms. Deborah Wahl Meyer was hired as CMO now Mr. Press. Also this is the PE firm who appointed Mr. Robert Nardelli ex. controversial CEO of Home Depot Inc. as CEO of Chrysler some time back..... They mean business and are on track for revival of chrysler as visible as per their recent deeds !!!!!

• Remember the controversy on GSPC gas find about the actual gas reserve size of the well ? NOw GSPC has tasted its success in KG-8 gas well Appraisal drilling which will substantially increase the reserve size from DGH (upstream regulator & more or less most controversial figure in exploration of oil & gas in india) estimated 1.38 trillian cubic feet.... Remember that GSPC was of opinion that the gas find was economically valued at around $50 Bn then !! Even if this increases the valuation by some modest estimates even then it will be a sizeable gas find after reliance KG gas find or even may topple its record!!! who knows !

• In a recent move SEBI has pushed for Waiver of Entry Load in all Mutual fund investments... But all the leading Asset Management Companies have opposed this move !!!!! Keep watching what happens ultimately ??

• Kai Nargolwala joins Credit Suisse as Chief Executive Officer for APac - Asia Pacific. He is joining CS from Standard Chartered.

• LIC - Life Insurance Corporation, India's no. 1 insurer is partnering GE Money, Corporation Bank, LIC Housing Finance & LIC Mutual Fund for starting its Credit Card venture. Good News Now they should start giving credit cards to all the policy holders of LIC and as the number of policies increases with amount of insurance they should give credit limit..... so this will help us keep at BAy the companies like ICICI & SBI etc. who charge exhorbitant interest rates in some cases in excess of 40% and help LIC take over a sizeable market share.... But they must keep revolving credit interest rates moderate!!!!!!

• Securitization Market or the market for structured finance has made an estounding come back in India after the slump of the past year. As per Moody's data the total transactions in this year's H1 half year part the deals totalled around $5.5 Billion. Last year the full year deals were just about $6 Billion!!

• Stora Enso, A finland based World's Largest paper maker in an write off of its assets removed charges or value worth $2.4 Billion from its books!!! The reason being higher wood costs & the worsening outlook for magazine papers! They did this restructuring and still this work continues!! Magazine paper selling problems -- people this may be the result of growing popularity of online edititons may be ??? who knows?

we really thank all the news sources for the wonderful and knowledge enhancing insights they have provided us.

Thanks for reading!!!

Business News 06-09-2007

• NTPC is in a 50-50 JV with TN Elec for thermal power project - the cost of the whole project is estimated to be Rs. 5400 crores. What we see is that NTPC as a company doest not want to loosen its capacity expansion drive seeing the delay in the policy allowing them to enter in to the Nuclear power sector. They will try to build on the capacity through the conventional sources amidst the increasing shortage of power in the country.

• Tata Motors has said that they will announce exact price of Rs 1Lk car closer to Launch! we see a hype being built around the launch! good even they can now market them proactively!

• SBI's follow on public offer is thought to have been delayed due to the market volatility & the better valuation expectations & the government dictat. But the bottomline is that the country's number 1 & largest public sector bank is facing a cash crunch ! ! They need capital replenishment so SBI is looking to make rights issue before end of 2007. plus write now immediately State Bank of India will raise about Rs 1,500 crore through a bond issue this week. The core issue to be set at Rs. 1000 crore plus Rs. 500 crore over subscription option. This is a part of Tier II capital. FM sir please take a call on SBI FPO fast or infuse new govt. funds if it wants to maintain its number 1 position.

• Hurrray ! SEBI eases de-listing norms for Small companies. The new de-listing norms approved by the SEBI Board state that companies with paid up capital of Rs 1 crore don't need to make public announcement to buyback shares from investor. They could privately contact shareholders and they are also exempted from the reverse book-building process for fixing the price. The promoters could directly negotiate with investors for buying back shares. So now penny stocks, small non existent companies can easily delist and stop clogging our stock exchanges!!! This is not a reprieve for bigger companies like i-flex, Alfa Laval & BESF who want to delist themselves.

• Come 2011, if everything goes well in the phase 2 combination trials of a new Anti Malaria Drug - then we may see Ranbaxy yes our own Ranbaxy to become 1st Indian Pharma company to launch a NEW CHEMICAL COMPOUND (NCE) globally !!! over a million people die of malaria worldwide and only 2 new drugs have come in last 30 years if everything goes well this could prove to be a boon to patients worldwide in developing countries.

• The Complete Man - Raymonds will now even dress Women. They launched a range of female designer apparels named ColorPlus. They are going to invest in the brand handsomely going forward around Rs. 400 crores! good now we can see even a complete Women!

• Boeing expects that the first of its 787 jetliners alias Dreamliners will be delivered on time in May 2008, although the initial test flight of the aircraft has been pushed back another two months.

• Global Advisors have shut down two two commodity Hedge Funds Due to the losses in all the Markets globally !

• Mergers and acquisitions could set a world record of more than $3.57 trillion this year without a megadeal from the kings of leveraged buyouts. so forget Blackstone or Kohlberg kravis roberts i.e. forget Stephen Schwarzman and Henry Kravis !!!!!! Even amidst subprime crises M&As are booming and the Takeover Fees earned to the advisors are really approaching record amount without the big hitters!!!!!!

• Mahindra & Mahindra has said that it has invested $ 6 to 7 million in developing its new army off roader 'Axe' primarily developed for selling it to Indian & Israeli Army

We really thank all the sources for these detailed knowledge enriching news and information

The Indian consumer market

According to McKinsey global research, it is estimated that Indian consumer market will be fifth largest in the world by 2025, provided the economic growth remains steady at the same pace as of now.

Currently the Indian consumer market stands at the 12th rank. Indian incomes will almost triple over the next two decades and India will climb from its position as the 12th-largest consumer market today to become the world's fifth-largest consumer market by 2025. It is believed that the Indian middle class will expand from the current size of 50 million to an approximately ten times larger size of 583 million. 291 million people are expected to move from below poverty line to a comfortable life. Moreover, it is expected that 23 people in India will be among the richest people all over the world.

Conditions:

Indian incomes will almost triple if
· the government forges ahead on a systematic reform program
· promotes competition
· contains the fiscal deficit and inflation
· invests in infrastructure, healthcare and education.

Our work with developing economies shows that such concerted actions are instrumental in boosting productivity, reducing poverty and providing people with more sustainable lifestyles.

The smaller cities will also contribute highly to the Indian growth and Urbanization is the major future happening, which will change the scenario. The spending power will increase considerably resulting in the increased growth. By 2025 food, beverages and tobacco will still be the biggest category, although its share will have dropped from 42 per cent to 25 per cent, and this will be followed by transport and health care. Communications, which account for only two per cent of spending today, will be one of the fastest expanding categories with growth of over 13 per cent a year (on an aggregate basis). Apart from this, transport, personal products and services, health care, and education and recreation will all see over eight per cent annual growth and these categories will evolve into sizeable markets. India's relative share of world markets will rise in virtually every product and service category.

BUSINESS NEWS 19-08-07

• Finally for week ending 4th August, Inflation ended at at 4.05% Vs 4.45%.

• The US markets ended this Friday in Green - a hefty 233 points DJIA & 54 points Nasdaq + US Fed reduced their discount rate which is similar to our Bank Rate by 0.5% to 5.75%. So are we going to see a rise in Indian Markets this Monday ?

• After going through a lot of turmoil on increasing fertilizer subsidies & the increasing shortage of fertilizers felt in our country, GOI off late, now is mulling coming out with a policy for fertilizer sector investments. This sector will give huge potential profitability to the early movers! Entrepreneurs where r you ?

• A report on Steel Industry says that they are going to add 70 million tonnes of capacity in 5 years through an investment of Rs. 2,80,000 crores in India. Are we seeing bullishness in Indian Steel Markets or they are just betting on oversees shortages in capacity & cost constraints or they have to potential to increase per capita indian consumption of steel from approx. 35kgs. per annum now - in future ?

• June infrastructure output up 5.3% Vs 7.7% (YoY): NW18 - though u might have heard about the industrial output reduce this month year on year, a few days back.

• Pharma companies facing a herculian task of revival. They are going through increased new compound research costs & lack of drugs in their product pipeline! Sanofi Aventis SA, GlaxoSmithkline Plc & Wyeth for instance are facing FDA DRUG Rejections - over Side-Effect Concerns in World's Biggest Pharmaceutical Market - The United States! The FDA new Drug Application Rejection has increased after the famous or infamous Viox fiasco & congressional interventions thereafter.

• An Indian company - Taurian Resources Private Limited, a Rs 300 crore company, has won a contract that gives it Exclusive Uranium Exploration & mining rights over 3,000 sq km of the Sahara Desert - in Niger, Africa. This is the first ever such achievement by any indian company abroad and it has happened at a time when India is just about to clinch a deal for Uranium Supplies with Australia!

• RADG - Reliance Anil Dhirubhai Ambani Group - has lost its application for an SEZ in NOIDA, Uttar Pradesh on the grounds of non compliance with central government directives. Now we all must know that UP government is under Ms. Mayavati. Let RADG get some power to tackle such hostility & may they build a repo with this government too.

• Today the EGOM is going to meet on gas pricing - this is happening in the back drop of Left & Right leaders pitching in to the debate of gas pricing formula!

• India Post to trade in forex soon + they are also goinng through a makeover ! Who knows when all these things along with a Banking entity status for India Post become a Reality ?

• In a Forbes survey Tuck School of Business Dartmouth tops as the top B School in US, 2nd comes Stanford & then came Harward !!!

• ICICI gets permission to sell stake in Financial Services unit from Foreign Investment Promotion Board - FIPB finally.

• According To RBI REport - GUJARAT has outpaced other States in Industrialization coming 1st in this years investment committments from corporates. Andhra Pradesh came 2nd in this list. While MAHARASHTRA primarily due to MUMBAI came 3rd which had to share its place with TAMIL NADU.

• Reliance Money is in its expansion drive and eying now 10000 outlets in 5000 talukas. The company is promoted by Reliance Capital owned by Reliance Anil Ambani Group.

• Maruti Offers Rs 7000 to 30000 discount on select models Till August 31 for boosting sales

• Talk of Market Segmentation for creating or carving a niche for itself --> Well ZEE DTH service Dish TV - owned by Mr. Subhash Chandra is going to launch its DTH services available in SUV's - yes high end Sports Utility Vehicles! All of Kingfisher Airlines fleet will have Dish TV DTH service installed in them by next year !!!!

• Is it good News for Ranbaxy or it is wait & watch for now striking a first blow ? - Pfizer, yes drug major Pfizer has lost initial bid to reissue patent 2011 for LIPITOR, WORLD'S Blockbuster anti cholesterol Drug. The patent office of US has given a "non final" rejection to Pfizer's application as per the patent office website. Though this is not a final verdict and still a lot will happen!

• TRAI sees cooperation in price among GSM players seeing their raise in prices, although they said that they dont see the possibility of cartelisation out here.

• Dabhol power station owned by Ratnagiri gas company was shut down after Petronet LNG Ltd. the countries supplier of 25% of gas demand stopped supply pending a court order.

• More than Rs. 1,00,000 crores worth of Shares are locked in to DEMAT accounts which are FROZEN because of them not supplying the Mandatory PAN - permanent account number! A union government minister said this.

We thank all the news sources available on this globe for enriching our knowledge and providing insightful information to us.

Thanks for Reading people!

Vinod Khosla’s New Ghosla-Energy sector

Vinod Khosla has been called the best venture capitalist in the world by both Forbes and Red Herring. He has been a partner at blue-blooded venture capital firm Kleiner Perkins Caufield and buyers.

His success has been phenomenal while he failed less spectacularly compared to his peers.



In 2004, he founded Khosla Ventures, which advices entrepreneurs and invest in his latest area of interest: the clean energy technologies that might replace the burning of coal and oil.

• He finds tough & important problems that are still manageable


• He feels that till now new energy technologies was done by governments & Big corporations.
  
• He feels venture capitalists have SOME opportunity left for Funding projects though funding rest will not be viable


• Vinod Khosla on solar energy:

He is very optimistic about it.

According to him, rather than concentrating on clean coal based energy, concentrating solar power is also a real option for large-scale, high-capacity, dispatchable power. Thermal underground storage of heat can be used for utility-grade power generation, too. If large-scale compressed –air energy storage works, then wind power will become scalable. So there will be a horse race between clean coal with carbon sequestration, wind with compressed–air energy storage, and solar thermal power generation with storage.

Efficiency of solar cells is worry for new entrants, Khosla believes that

• Leveraging the large investment in stem based power generation, can get 35 % efficiency at $ 500 per kilowatt

• But World needs multijunction thin film solar cells produced with cheap mass production technologies, and efficiencies above 30 %
  

About Bio Fuel

He says,

• It is nonscalable unless it can be made from biomass instead of seed product.

• He would not be surprised to see biogasoline either, initially made from corn and later from biomass.
  

Energy V/S Energy

• Building wind turbines using coal power can vitiate their value as an alternative energy

• But Now venture capitalists invest more on advance technology based projects,Payback period is also decreasing.

• Technology is not static, and all newer technologies will improve, and the payback period will get faster and faster

Vinod Khosla-on Nuclear Energy

• Nuclear could have future. however he suspects about its dominance in future because of the political and regulatory risks and long time line to build plants.
  
  
• He says the need of the hour is to build a big, high voltage DC grid, and let nuclear, wind, solar photovoltaics, concentrating solar power, electricity from biomass and waste, and anything else innovators can think of get on grid . We need to kick-start the alternatives and let the competitive ones prosper.

On possibility of Hydrogen Economy:

• Hydrogen doesn't make any sense to vinod khosla.

• Because any technology that is far enough away, don’t make any real changes.

He is Interested to investing in microfinance

• He wants to connect microfinance to energy sector. If entrepreneurs use microfinance to make biomass.

• This will help to do more on poverty and biomass can be used to produce fuels, electricity, plastic and much more.

So friends, what do u say about this sector ???

The article tries to through some light on his recent press interviews & bring to notice his fiews & futuristic vision to help students & entrepreneurs.

Interview source : SPAN magazine (Published by US Embassay, New Delhi)

Business ExTras

• Can We believe that the world's number 1 billionaire is not Bill Gates & one from developing world. Yes thats true currently the market valuation of Earstwhile World's No. 3 Mr. Carlos Slim of Mexico is more than Mr. Gates by around $ 5Bn.

• Mr. Carlos Slim alias Mr. Monopoly has wealth of $60 Bn US. Which currently makes him the wealthiest businessman of the globe!

• Also Have you heard of A Company being in FORTUNE 500 GLOBAL LIST and Still Making Losses! ??

• We might wonder how can they survive even while making losses. But the truth is even for survival during losses you need size & cash flows visible in Revenue to survive those tough times !

• Yes there are such companies and not a single company in Fortune 500 Global list declared for year 2007 which made losses in year 2006. There are 17 of them in total who made losses! yes losses!

Ranks & figures as on 2007 List

1. The first being Ford Motor Company - Rank 12 ; Year 2006 loss - $12.6 Billion
2. Vodafone (World No. 2 by Subscriber numbers) - Rank 95 ; Year 2006 loss - $10.3 Billion
3. Delta Airlines (US no. 3) - Rank 429 ; Loss - $6.2 Billion
4. Delphi (GM auto part supplier) - Rank 253 ; Loss - $5.5 Billion
5. General Motors - Rank 5 ; Loss - $2 Billion
6. Coca-cola Enterprises (producer & Distributor of coca cola products) - Rank 354 ; Loss - $1.1 Billion
7. TUI Group (German Conglomerate + Europe's Largest Travel Company) - Rank 256 ; Loss - $1.1 Billion
8. Lear Corporation - Rank 407 ; Loss - $708 Million
9. CPC (Taiwan's biggest company + oil company) - Rank - 327 ; Loss - $429 million
10. Sanyo Electric (Japan) - Rank - 356 ; Loss - $388 million
11. Goodyear Tyre & Rubber - Rank - 348 ; Loss - $330 Million
12. Centrica (UK based electric utility based on Natural gas) - Rank - 218 ; Loss - $285 million
13. Hitachi Corporation (Japan) - Rank - 48 ; Loss - $280 million
14. Alcatel -Lucent (Telecom Equipment giant) - Rank - 410 ; Loss - $221 million
15. Tyson Foods of US - Rank - 264 ; Loss - $196 million
16. JAL or Japan Air Lines (National Carrier of Japan) - Rank - 358 ; Loss - $139 million
17. Tech Data (IT products & Software REseller - world no. 2 here) - Rank - 331 ; Loss - $97 million

So friends this is it for extrass this time. See you next time soon

As a food for thought you can go and study more on Mr. Slim or these companies as what is leading them to go on and on !!!!!!! And yes it is easy to research about them we just gave you a starting point much is yet to be done!

we really thank the news sources for giving such beautiful insights to business