JSW forays into electrical steel

JSW Steel is planning to set up an electrical steel manufacturing facility of 0.6 MTPA capacity at its integrated steel works in Vijayanagar.

JSW Steel is now foraying into the manufacture of electrical steel. The company is planning to set up an electrical steel manufacturing facility of 0.6 MTPA capacity at its integrated steel works at Vijayanagar. Initially, this facility shall produce 0.4-0.5 MTPA of cold rolled non-grain oriented grade electrical steel. Implemented in a phased manner, JSW envisages becoming the largest electrical steel producer in the country.

JSW and JFE signed a strategic collaboration agreement in the year 2010. The collaboration is now being extended to electrical steel. JSW aspires to fully equip in order to adhere to the stringent quality standards required in electrical steel with the support of JFE.

The present demand of electrical steel is about 0.5 MTPA and it is expected to double by the year 2016-17. The demand is expected to grow at a CAGR of 15%. JSW expects to cater to the growth by scaling its manufacturing facilities.

In the early afternoon, JSW Steel was trading at around Rs755.35 per share on the Bombay Stock Exchange, 1.06% up from the previous close.

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Indian media to be worth Rs1,457 billion by 2016: FICCI KPMG report

Digital film distribution has helped wider film releases and helped control costs in 2011. However, Reduced ad spends had resulted in a slower growth rate for both television and print

The Indian media and entertainment industry is expected to register a CAGR (compounded annual growth rate) of 15% to touch Rs1,457 billion by 2016, says the latest FICCI KPMG report. And there is a high possibility that this growth may come on the back of digital technologies.

According to Yash Chopra, veteran filmmaker and chairman of FICCI Entertainment Committee, “2011 was clearly the year where digital technologies began to deliver on their promise. Digital film distribution has helped wider film releases and helped control costs. In television, the digitization of cable will transform business models of all stakeholders and offer consumers more choice and convenience. Even as digital generates new opportunities, it also brings with it challenges that the industry must solve more urgently than anticipated.”

While television is still the dominant medium in this sector, gaming, digital advertising and animation are also steadily increasing their footprints. Animation, VFX, etc recorded a phenomenal growth of 31% and touched Rs31 billion in 2011. Online media or rather ‘new media’ also showed a spectacular growth of 40% over the earlier year.

The FICCI KPMG report says that in 2011, the media and entertainment (M&E) industry registered a growth of 12% over 2010 and touched Rs1,457 billon. Reduced ad spends had resulted in a slower growth rate for both television and print. Advertising spends across all media accounted for Rs300 billion in 2011, contributing to 41% of the overall M&E industry revenues. Advertising revenues witnessed a growth of 13% in 2011 as against 17% observed in 2010.

Television is estimated to be worth Rs329 billion in 2011, and is expected to grow at 17% CAGR, and touch Rs735 billion in 2016. Radio is also expected to register healthy growth on the back of Phase III auctions due this year. Print, the second most prominent player, grew 8.4% from Rs193 billion in 2010 to Rs209 billion in 2011.

The film industry is supposed to grow at 10.1% CAGR from Rs93 billion in 2010 to Rs150 billion in 2016. The music industry registered a 5% growth over the previous year and touched Rs9 billion in 2011. The outdoor media sector was hit the hardest by the economic turmoil and saw a growth of 7.6% in 2011 over 2010.

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Industrial growth rebounds to 6.8% in January

During the month, 13 out of 22 industry groups witnessed growth. Output of basic goods went up by meagre 1.6%, as against 7.7% in the year ago period. However, intermediate goods witnessed a contraction of 3.2%, as against 7.4% growth in January last year

New Delhi: Showing signs of recovery, industrial production gathered pace and grew 6.8% in January, over the previous month, mainly due to improvement in the manufacturing sector, reports PTI.

Growth in factory output growth, as measured by the Index of Industrial Production (IIP), was however higher at 7.5% in January 2011.

IIP growth for December has been revised upwards to 2.5% from the provisional estimates of 1.8%.

Output of the manufacturing sector, which constitutes over 75% of the index, rose 8.5% in January compared to 8.1% in the same month last year, according to the official data released on Monday.

Besides, output of consumer goods grew 20.2% in January, as compared to 8.3% in the same month last year. The production of the non-durable consumer goods segment has shown signs of improvement and grew by 42.1% in the month under review.

However the capital goods sector witnessed a contraction of 1.5%, as against a growth of 5.3% in the same month last year.

Mining output too contracted by 2.7% in January against 1.7% growth in the year ago period.

The power generation witnessed a slow growth of 3.2% in January, compared to 10.5% in the year ago period.

During the month, 13 out of 22 industry groups witnessed growth. Output of basic goods went up by meagre 1.6%, as against 7.7% in the year ago period. However, intermediate goods witnessed a contraction of 3.2%, as against 7.4% growth in January last year.

During the April-January period this fiscal, the IIP growth stood at 4%, as against 8.3% in same period in 2010-11.

Earlier last month, the Central Statistical Organisation (CSO) had estimated that the Indian economy would grow at a slower pace of 6.9% this fiscal, as against 8.4% in 2010-11.

The overall slow growth of IIP at 4% during the April-January period may prompt the Reserve Bank of India (RBI) to cut short term lending and borrowing rates in the mid-quarterly review of the monetary policy on Wednesday, especially in view of easing inflation, experts said.

Industry officials have blamed the slowdown in growth to the high interest rate regime that has made borrowings costly and curbed consumer spending.

Prime minister’s economic advisory panel chief C Rangarajan has said that the policy rate cuts by RBI would depend on inflation movement.

Overall inflation has started showing sign of cooling off as cheaper food items pulled it down to a 26-month low of 6.55% in January.

The apex bank in a surprise move had slashed Cash Reserve Ratio (CRR) from 5.5% to 4.75% on Friday, to infuse Rs48,000 crore to ease the liquidity crunch in the financial system.

RBI had last reduced CRR by 0.5 percentage point on 24th January as well, injecting Rs32,000 crore into the system.

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