Companies & Sectors
Luxury cars: Scramble for cars

Luxury car makers struggle to survive, finds Veeresh Malik

Another German brand, in this case the Maybach version of Mercedes-Benz, is withdrawing from India in less than a year. As a matter of fact, Benz appears to be fading out globally also, but it has been a double whammy for it in India—after a previous launch, and withdrawal, a few years ago.

It would appear that some basic issues...

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Mukesh Ambani building media empire?

Ambani is in talks to buy Network 18, says Wall Street Journal. Earlier D E Shaw, (which has a joint venture with Reliance) bought 14% stake in NDTV

Mukesh Ambani, the chairman of Reliance Industries, India’s biggest private sector conglomerate, is apparently in talks to buy Network 18, the television and internet company, the Wall Street Journal said quoting people familiar with the situation. Network18 Media and Investments, the holding company for the conglomerate, has annual revenue of about Rs1,500 crore but makes losses.

The Network18 group is up to its neck in debt and is apparently talking with Thomson Reuters to sell a 26% stake in Newswire18, in real-time financial news agency.

The Network 18 group comprises a variety of television, print, web and entertainment properties most of which are losing money. Its main properties are collaborations with top media companies such as CNBC, CNN, MTV, Viacom, etc.

This would be the second move by Mr Ambani to acquire media control. Earlier, US-based DE Shaw, a private equity and hedge fund, entered into a joint venture agreement with Reliance Industries in India. Exactly around that time, DE Shaw acquired a 14% stake in New Delhi Television (NDTV) for Rs70 crore.  NDTV which is perennially losing money, operates three news channels—NDTV 24/7, NDTV India and NDTV Profit. Viewership of these channels is plummeting after competition in each segment intensified.

According to media reports, billionaire Mukesh Ambani, India’s richest person has also been holding talks with a host of media and entertainment firms, including Walt Disney’s Indian venture UTV Software, to acquire content for its upcoming telecom venture. US-based Walt Disney holds over 50% stake in UTV Software Communications and it is in process of acquiring the entire stake in the Indian firm. A deal with Walt Disney would give RIL’s telecom venture access to a host of games, entertainment and other children-focussed content solutions.

RIL has a 95% stake in Infotel Broadband Services, marking its entry into the telecom sector. Infotel is the only company to have pan-India BWA (Broadband Wireless Access) licence.

More than two decades ago Reliance had made a bid to enter the media by buying the Observer newspaper which it ran half-heartedly and closed down. Anil Ambani, the estranged and debt-strapped younger brother of Mukesh was leading that effort. The ADAG group controlled by Anil Ambani has large stakes in TV Today and other media companies.

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COMMENTS

Nagesh Kini FCA

6 years ago

Mr. Kumar, surely you are not legally advised by Sr. Counsel Salman Kurshid who has assumed the role of a guardian angel of the 'reputation' of India Inc!

S Kumar

6 years ago

Spreading fabricated, false and malicious information attempting to tarnish the image of reputed corporate. Such falsehood could damage India’s reputation as an investor friendly country.

Nagesh Kini FCA

6 years ago

Bennett Coleman have almost cornered the print media and with Times Now has a large presence in the electronic media too. Now if RIL jumps into the fray we are not sure of the quality of unbiased reporting.

Read Khushwant Singh's and Vinod Mehta's autobiographies to know how the so-called press barons shuffle their editors at will.

Balan

6 years ago

Ego. He should worry more about legacy

Power generation up 14% in November despite coal supply concerns

Although power generation increased during November, the coal supply situation is grim with 48 out of 89 plants facing sub-critical inventory levels

According to official data, power generation in November rose 14% across India on better fuel availability and impressive monsoon. However, coal-supply position remained a concern with only a gradual coal production ramp-up following severe monsoons with 48 out of 89 plants facing sub-critical inventory levels compared with 27 plants last year, said BRICS Securities in a research report.

During the month under review, energy deficit rose while peak deficit declined, thus bringing down the merchant rates slightly. Though energy deficit rose to 10.4% from 9.6% in October, peak deficit declined to 12.5% from 13.1% a month earlier, resulting in lower merchant rates.

Following the slowdown in coal output, 48 plants out of total 89 plants, reported sub-critical levels of coal inventory compared with a much lower 27 plants last year. “With Coal India (CIL) downgrading its production estimates and with lower production during first half of FY11-12, we continue to expect shortage in coal for the current fiscal. International coal prices have corrected 6% (year-on-year) to $103, but landed costs are still up around 10% due to rupee depreciation," said the report.

The coal ministry rejected Coal India’s proposal for bringing down its production target for FY11-12 to 448 million tonnes (MT) from an initial 452 MT. CIL had made the proposal after it missed the first-half production target by 20MT and produced 176 MT due to issues such as heavy rainfall and local unrest. CIL trade unions have demanded at least 50% pay hike in the forthcoming National Coal Wage Agreement-9.  The management has requested the unions to accept only 0% hike, considering the economic environment.
 
In FY11-12, the industry has added a capacity of 11,870MW, including renewable energy, which is 85% of the target of 13,918MW. For the 11th Five Year Plan spread between 2007-2012, the industry had so far achieved 67% of its targeted capacity, adding about 52 gigawatt (GW), including renewable energy, as against the target of 78.4GW.

During November, the capacity addition was at 2,807MW against the targeted 1,877MW. “We expect around 55GW to be added in the 11th Plan against the original target of 78GW, a shortfall of 23GW,” the brokerage said.

Coal generation increased 16% on capacity addition while hydro and nuclear power generation rose 15.5% and 9.8%, respectively, on better fuel availability and impressive monsoons. Gas generation also posted a growth for the first time in 12 months rising almost 8% on a low base during November.
 
According to the report, during the month, NTPC’s total generation increased 11%, driven by 11% growth in coal and 12% growth in gas generation. Adani, Reliance and JSW reported strong numbers due to capacity additions. Companies with gas-based plants such as GMR and GVK continued to see declines with gas supplies not going up, the report said.

The government circulated a draft Cabinet note proposing imposition of 14% duty, including 5% custom duty, 5% special additional duty and 4% CVD, on imports of power equipment, a proposal aimed at providing a level-playing field to domestic manufacturers like BHEL and Larsen & Toubro. However, the recent 16% depreciation in the rupee effectively nullifies any need to protect domestic industry. Additionally, purchases from overseas suppliers often come tied with supplier credit, which could be advantageous at a time when domestic banks may find it difficult lending to power projects, the report added.

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