Mutual Funds
Assets under management of JPMorgan and AIG Mutual Funds dwindle

Average assets under management of the 37 fund houses fell 5% in March; JPMorgan Mutual Fund plummeted 24% while Peerless and Edelweiss jumped 150% and 30% respectively

According to data available with the Association of Mutual Funds in India (AMFI), out of the 37 fund houses, the average assets under management (AAUM) of 14 fund houses witnessed an average growth of 18% while 23 fund houses saw their AAUM slipping by an average of 9% compared to February 2010.

Among the 37 fund houses, JPMorgan Mutual Fund (Rs3,541.36 crore), AIG Global Investment Group Mutual Fund (Rs1,137.81 crore) and Shinsei Mutual Fund (Rs367.41 crore) recorded the highest fall of 24%, 21% and 20% respectively. Data for Baroda Pioneer Mutual Fund, Goldman Sachs Mutual Fund and AEGON Mutual Fund was not available.

Peerless Mutual Fund gained the maximum AAUM of 150% at Rs302.60 crore compared to last month—followed by Edelweiss Mutual Fund (Rs149.28 crore) and DSP BlackRock Mutual Fund (Rs21,490.78 crore) which gained 30% and 8% respectively.

Fidelity Mutual Fund, Franklin Templeton Mutual Fund, and Escorts Mutual Fund remained flat. While the AAUM in February 2010 grew by 3% at Rs7,81,711.50 crore, March has disappointed the mutual fund industry with a 5% fall.

The total AAUM has recorded a fall of 5% at Rs7,43,950 crore in the month of March 2010 compared to Rs7,81,711.50 last month while the BSE Sensex gained 7%, closing at 17,527.77 points in March compared to 16,429.55 in February 2010.

Among the top fund houses, HDFC lost 7% (Rs88,779 crore), UTI gained 1%
(Rs80,217 crore), SBI (Rs37,417 crore) gained 4% and Reliance Mutual Fund (Rs1,10,412.70 crore) lost 5% AAUM in March compared to last month.

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COMMENTS

sunil papneja

7 years ago

this is v. imp. information . i am thankful to u.

A cement glut may flood the market

An analysis of the monthly dispatch figures and the newly-commissioned capacities indicates a clear annual over-capacity of a minimum of 36.27MT in the demand-supply situation

Over the past few months, the cement industry has been enjoying an upward momentum in cement prices due to the peak demand period. However, an analysis of the monthly dispatches and the new capacities commissioned paint a gloomy picture for the months to come.

According to Cement Manufacturers’ Association data, total installed cement capacity in India was around 219.17 million tonnes (MT) as on 31 March 2009. During FY2010, around 35MT of new cement capacity has been added. Thus, total commissioned cement capacity has gone up to around 254.17MT.

Total cement dispatches for January 2010 stood at around 18.15MT. Given that dispatches in January 2010 were one of the highest-ever recorded monthly figures, yearly dispatches can be calculated at a projected figure of 217. 89MT.

Thus, comparing a total commissioned capacity of around 254.17MT with a yearly dispatch of around 217.89MT, an annual over-capacity of around 36.27MT is expected in the demand-supply situation.

However, 36.27MT could be the least possible annual over-capacity figure, as January 2010 has been taken as the base. Again, recently-added capacities are likely to run on full steam in the months to come. In addition, analysts expect cement demand to decline in the future.

The onset of the monsoon season from June is likely to slow down construction activities, resulting in lower cement demand, much lower than the figures for January 2010. In addition, demand created due to construction activities for the New Delhi Commonwealth Games will start petering out by July 2010. This will impact the northern region in particular, pointed out an analyst.

Among the companies that have commissioned new cement capacities over the past one year are Madras Cements, Chettinad Cements, Grasim Industries, Jaypee Cement, UltraTech Cement, Dalmia Cement, India Cements, JK Lakshmi Cements, and Kesoram Industries.

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COMMENTS

Deep

7 years ago

Good article. Further analyis on capacity utilization levels in industry as well as inventory (channel and company) would help

‘Consumption patterns are changing rapidly’

DV Ram Kumar, vice president-Food & Agri, Spencer’s Retail Ltd, spoke with Moneylife on the issues facing the food retail business and his company’s growth plans

Pallabika Ganguly (ML): Is inflation going to rise in the coming months?
DV Ram Kumar (DV):
Since the past four to five months, inflation has been settling down. But it is a fact that inflation is going to remain. This is not only due to the mismatch in the supply-demand scenario, but also due to the rapid change in the consumption pattern of consumers. The consumption pattern is changing rapidly in India—particularly in rural areas and Tier II & Tier III cities.

ML: What kind of changes do you see in food consumption patterns?
DV:
Customers are upgrading very rapidly. We are noticing changes in eating patterns in every three to six months. People are getting more exposed (to various foods) and their awareness levels are changing. Aspiration levels and consumption habits are changing. Consumers are looking for fast food (like pizzas and burgers) and also for healthy products (with less cooking oil). As an industry, if we do not prepare for such kind of changes, we will suddenly have to find a way to meet the new requirements of customers. In the next four years, we will have to face a different set of customers with different needs. We are on our toes to understand these changes, introduce new products and keep up with customers.

ML: Is poor infrastructure leading to wastage?
DV:
Productivity and wastage are the two major issues in the fast moving consumer goods (FMCG) segment. There is huge wastage in dry commodities as well as fresh products. This is mainly due to lack of infrastructure. Products like wheat and pulses are rotting despite the money invested in logistics. There is a lack of warehouses and cold chains in the country. Distribution is not happening in an equitable way. That is why some areas in India have a surplus and the others suffer a shortage. 

We need to address this factor. Annual wastage in perishable goods is almost 38%-40% and in dry commodities at least 21% gets wasted annually due to lack of storage (facilities).

ML: India is facing an acute water-shortage problem. What will be its impact on the FMCG sector?
DV:
We need sustainable agriculture. We must soon get into drip irrigation and adopt other kinds of technologies for agriculture which use minimal water. Drip irrigation has been around for a long time, but the utilisation of the technology has been minimal. Equipment (for drip irrigation) is available only in a few pockets in Maharashtra and Punjab, and equipment costs have to come down.

We as corporate houses have a big role to play in spreading awareness about such technologies. We have to take steps to educate farmers, explain to them the benefits of the technology and also spread awareness that using these technologies will boost production. {break}

ML: How did Spencer’s perform during this financial year?
DV:
The FMCG sector went through some stress during the slowdown. But going forward, we foresee good growth in this sector. At Spencer’s, we have done a lot of innovation, particularly in value engineering. We worked on inefficiencies to cut down costs. We vigorously optimised freight costs, tightened operational expenses, cut down on rents and power bills (our Mumbai stores shifted from Reliance Infrastructure Ltd to Tata Power), we closed down a few distribution centres and unnecessary warehouses. Overall , we reduced inefficiencies by 8% to 10%.

We closely looked at our efficiency parameters—this helped us to produce decent results. This is not a one-time job. We need to be on our toes to keep a tight grip on inefficiencies. Now consumption is coming back. On a month-on-month bases, we are seeing 6%-7% increase in consumption. We hope to see double-digit growth in same-store sales growth.

ML: The Union Budget has proposed 10% service tax on rented properties. How much will this proposal affect retailers?
DV:
It is a challenge. We need to represent our views and find a way to get relief on the same; in the current scenario, the industry is not ready to take this kind of enhancement (in taxes). (The service tax of) 10% is a big number, because in the first place, we are struggling to meet revenue targets versus our expenses.

ML: Can you elaborate on your expansion plans?
DV:
We are looking at expansion, but I cannot give you a number. Expansion will happen responsibly. We are situated across India—Delhi, Bengaluru, Chennai, Hyderabad and Kolkata. We are going to add more stores in these places. We are not looking at opening standalone stores in new places.

We are also planning to add more exclusive standalone non-vegetarian food item stores (under the brand) Spencer’s Fish & Meat. We are (still) at the pilot stage. We have launched three standalone stores in Kolkata. It is a complex category which needs proper back-end facilities. We will expand these stores to other cities where we are already present. We are looking at opening such stores in Bengaluru, Chennai and Hyderabad.

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