Real Estate companies show interest in Maytas projects
Some real estate companies have shown interest in investing money and completing projects being developed by Maytas Properties. The firm is now planning to complete some projects including the Rs 1,100 crore Maytas Hill County project in Hyderabad with the help of other private companies, who will invest at the project level and not at the company level.
Many of the projects have been substantially delayed and Maytas Properties had made several unsuccessful attempts to scout for private equity investors.Bangalore based Shriram properties is among those who have shown interest the Company is interested in buying distressed assets with clear titles. These properties are over 15 percent cheaper. The projects in Hyderabad are going on 20 percent discounts as the markets are on downside.
Kobe Steel, SAIL to form joint venture
Japan"s Kobe Steel has entered into an agreement with Steel Authority of India (SAIL) for a joint venture to utilize the Japanese steel company"s innovative iron making process by building a Greenfield 0.5 million tonne plant in the country. The two companies has signed an agreement. The agreement will cover comprehensive strategic collaboration for projects in India and abroad as well as steel making technologies.
The proposed venture is estimated to be worth Rs 5,000 crore and slated to come up on a land belonging to SAIL"s Alloy Steels Plant at Durgapur. The new Kobe Steel technology, reffered to as ITmk3 can use iron ore fines and thermal coal for steel making.
Jyothy Labs targets 2 regional acquisitions
Jyothy Laboratories, the maker of Ujala detergent powder and blue, is targeting two regional acquisitions this year for Rs 300 crore. The one of the acquisition is likely to be made soon, while other is slated for January when the third quarter results will be declared. As per the Company sources, it is in talks with a few regional players in the fabric care domain. The firm is in talks with the Kolkatta-based Safechem Industries, maker of Safed detergent powder, for a buyout.
Acquisition of Safed will help Jyothy improve its footprint in the eastern region. The Company has been introducing a number of its in-house brands across India. In fabric care, the Company has been extending its detergent powders and stiffener under the Ujala umbrella.
Farm output drives GDP growth to 8.9 percent
The economy grew at its fastest pace in ten months, clocking a growth of 8.9 percent in the second quarter ended Sep. The numbers bettered industry and government expectations that GDP growth would run out of steam in the period. Growth was buoyed by a healthy increase in service sector and farm output.
The Central Statistical Organization (CSO), is also revised the first quarter growth figures from 8.8 percent to 8.9 percent on account of the new base year adopted in the calculation of Inflation and industrial output. As per government sources, GDP growth by end of this year will not be less than 8.7-8.75 percent. In the second quarter, farm sector recorded a growth rate of 4.4 percent a significant improvement over the 0.9 percent in the same period last year. It was also higher than the 2.5 percent recorded in Apr-Jun.
The recovery in agriculture is likely to have a positive impact on rural demand in the coming quarters and maintain the positive momentum in the economy. Manufacturing sector growth however fell to 9.8 percent from 13 percent in the first quarter this year.
However, it was higher than the 8.4 percent in the second quarter last year. The QOQ fall was mainly because of a drop in industrial output to 4.4 percent in Sep 2010.
(An article by DAS CAPITAL MANAGEMENT AND ADVISORS Pvt Ltd)