The Indian Economy - Page 8

Why Vyomesh Joshi is sitting on a high horse
HP printer chief vyomesh Joshi predicted 3 years 'go that the Internet will threaten consumer printing. He is remaking HP.The co. is best known for inkjet printers. Joshi has moved engineering and marketing away from smaller printers. He will link the ink and hardware businesses.
Joshi is under tremendous pressure from Mark Hurd, HP CEO due to this. He said most books, magazines and newpapers are created with traditional, analog presses which means HP has a huge market opportunity to convert thme to digital presses like inkjets. He is trying ot judgesuccess notby market share, but by the % of printed pages that come out of HP.
He has cut more than 2000 jobs in his division over tha past 2 yearsand hopes to boost sales of smaller printers by combining them with services and software. He said "EDS is going to be a big opportunity for us" which makes me scared because one of the most dear persons in my life works in EDS. Both my cousin and sister as well as brother, who targeted that company for years worked there.

Floods
Rescuers and workers helped 100000's of people stranded by monsoon floods in e. India. Floods destroyed bridges, highways etc. per Asim Dasgupta, W.Bengal govt that does not have rescue supplies. CFO. Food was air-dropped, and 300 soldires called to help.

Separately, some members of the Bombay stock exchange resigned. There was no detailed explanation from the chief of the bombay stock exchange, but one doubts the reasons as the present turmoil in the economy. Resignation decisions are made far in advance of such occurances. If anyones wants to know the names of the members, it can be announced.

Generic drug sales have greater reach per Daiichi/Ranbaxy
Daichi Sankyo Co. plans to buy a majority stake in India's biggest drug maker, Ranbaxy. The Jap co. will buy the entire 34.8% stake of the Singhs at 727Rs., 31% premium of 560 Rs! The japs need to gain majority of India's co., but the exact number will depend on the price it agrees with the Singhs. Ranbaxy produces amoxicillin and ciprofaxin, top products with net profit of 1.53 billion Rs. (from .43 b last year) and it's sales rose 3.8% with an excellant product line.
Ranbaxy is in a strong position and selling at a decent evaluation coming from a rich offer.

Read in the paper today tht inflation has reachd a 2 digit no in 13 yrs!

I wasn't aware that such meaningful matters were actually discussed on IF. Thank you very much Jagdu for the PM, this has all been so informative. I've just started my journey as an Economist (as geeky as that sounds) so most things have just gone over my head, but hopefully as times goes by I'll be able to join in with the discussions.

Orange county register communications, a Califonia paper is going to give Mindworks Global media of India a trial run to outsource work. Mindworks will handle the page layout for the community newspaper and provides high quality editorial and design services to global media firms, using top-end jounalistic and design talent in India.

The battle against inflation:
The central bank of India does not want to erode the gains made and keep the momentum on India's growth by staying positive. Economists want to keep the 10% growth that should also benefit the poor.
On June 24, it was raising it's key short term lending rate to 8.5% fro 8. Prior to June 11 that was 7.75%. The reverse repo rate is unchanged at 6%, when it borrows from other banks.
The other measure to check inflation was the cash reserves ratio banks must keep went up to 8.75%, up from 8.25 in order to make sure inflation does not go up.
Remember India is the 2nd fastest growing economy behind china. How did that happen? We consume faster, and foreigners like to Invest here. By march 31, 2008 the Indian economy grew 9%. The target is 8-8.5% in 2008.

Nuclear deal is delayed.
In order for the Nuclear suppliers group and US congress to provide uranium for our plants running at under 50% capacity, an agreement should have been thrashed between India and the US by now. Given all the challenges that the Indian economy is going through now, time is running out for the deal. The US promised increased business in India and also sensitive military and civilian technologies. Till then the chronic power shortages will continue.

ONGC net profit falls 2.1%
Higher expeses and depreciation charges caused the net to fall to Rs. 26.27($614.5million) billion from 26.82 billion last year. 42.34 billion Rs. was the expected profit for this quarter. ONGC had to pay a one time pay revision of Rs. 10.5 billion which affected the bottom line. Per D.K. Sarraf, CEO, last year the net profit was Rs. 4.75 billion and net sales rose 26% to 156.26 billion Rs. that was sharply lower than what the market expected for the Oil and Natural Gas Corp. Edited by jagdu - 15 years ago