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BSE Sensex 17231.11 Ï 204.44 6.90% 2019 g-sec 7.38 Ï 0.04
S&P CNX Nifty 5118.20 Ï 63.95 Inter-bank call 3.28 Ð 0.63
Nifty Fut (Oct 09) 5114.85 Ï 55.35 US $ 46.14 Ð 0.36
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Nasdaq 2139.89 Ï 0.75 Gold (Rs/10gm)16010.00 Ï 80.00
Dow (DJIA) 9871.06 Ð 14.74 Silver (Rs/1 kg)28090.00 Ï 35.00
FTSE 100 5154.10 Ð 56.10 Brent crude ($/bbl)72.13 Ï 1.37
Nikkei 225 10060.21 Ð 16.35 Vol. 4 Issue No. 228 Mumbai, Thursday, October 15, 2009 LME copper ($/tn)6139.00 Ð 139.00

D A I LY NEWS & A N A LY S I . MONEY

Intel net beats forecast

Intel reported a third-quarter profit of
nearly $1.9 billion, or 33 cents a share,
trumping Wall Street estimate of 28 cents
a share. The company also lifted its rev-
enue forecast for the fourth quarter to
$10.1 billion.
Windfall for GMR, GVK
AP allows them to
JPMorgan Q3 net up sell 20% of power
Cap on trading margins up
JPMorgan Chase reported a $3.6 billion
third-quarter profit on Wednesday from
produced on 75%; PTC to benefit
strong trading results and a flurry of new merchant basis G Seetharaman. Mumbai
deals. Its net income rose to $3.59 billion,
or 82 cents a share, from $527 million, or K V Ramana. Hyderabad The Central Electricity Regulatory Commission (CERC) has pro-
9 cents, in the same period a year earlier. posed raising the cap on inter-state power trading margins by 75%
GMR and GVK seem to have hit to 7 paise per kilowatt hour (kWh), according to a draft notice on
Page 26 a jackpot with the Andhra its website.
Pradesh government giving its The notice, dated October 12, said margin cannot exceed 7
straws in the wind green signal to the gas-based
power firms to sell 20% of their
paise/kWh if the cost per kWh is over Rs 3 and 4 paise if the cost
is equal to or less than Rs 3.
generation in the open market CERC had in January 2006 capped trading margins at 4
HINDALCO PUTS ALLOY WHEEL for about 15 years. paise/kWh. State-owned Power Trading Corporation (PTC) India,
BUSINESS ON SALE The state did so by giving its which has a 45% market share, is tipped to be the biggest benefi-
no-objection to the companies’ ciary of this move. Turn to Page 24
As part of a move to application seeking merchant
exit non-core business- sale of power late on Tuesday. approval next. “That is just a news for us. Luckily we are with one of the producers on The Andhra order allows tami units, which have 220 mw
es, Hindalco has put
Till now, the companies were formality,” said a source in the getting continuous gas supplies the condition of anonymity. GMR to sell power from its and 464 mw capacities, respec-
its alloy wheel plants
not allowed to sell anything on know. as of now. Most of us (power Gas-based power plants in Vemagiri power unit, which tively.
based in Silvassa,
a merchant basis. According to analysts, GMR producers) are planning the state have been operating currently has an installed ca- These units have been
Dadra Nagar & Haveli
The Andhra Pradesh Elec- and GVK are expected to start expansion. This order means at higher capacities after gas pacity of 370 mw. incurring losses since 2005 due
- which generate rev-
tricity Regulatory Commission merchant sale from December. a significant improvement supplies from the Krishna-Go- GVK is allowed to sell power to non-availability of gas.
enues in excess of Rs
400 crore annually —- (APERC) will have to give final “This is definitely a good in cash flows,” said an official davari basin rose. from its Jegurupadu and Gau- Turn to Page 24
on sale. All machinery,

RIL to expand
which have a capacity
to produce 300,000
tonnes per annum, at the facilities are being Relief for Daimler trucks
sold, but not the land. The company will also
Kampani as delayed by
refinery anew
sell the brand ‘Aura’ under which it sells al-
loy wheels. Aura is an original equipment
manufacturer for Maruti, Tata Motors, Hon-
da Siel and Ford. Aura has a 40% share in
the aftermarket segment.
HC stays 18 months
SEBI ON TRANSACTION proceedings Mike Gavin & Neha Rishi.
Frankfurt/Mumbai
Says the 29 mtpa unit is refining more
crude than the older 33 mtpa one
CHARGES K V Ramana. Hyderabad Daimler AG will postpone the
The Securities and Exchange Board of India start of truck production in In- Sreejiraj Eluvangal. New Delhi The unit has been running
(Sebi) has directed stock exchanges to ensure The tribulations of Nimesh dia by as long as a year and a around 12% above capacity
that the recent cuts in transaction charges Kampani seem to be lessen- half because of a drop in de- Mukesh Ambani promoted since it started functioning in
by bourses does not create any artificial de- ing, finally. mand, Handelsblatt said, citing Reliance Industries (RIL) December, Reuters reported
mand for shares, and irregularities in the On Wednesday, the Andhra Marc Llistosella, head of the plans to increase the capacity Maurice Bannayan, senior

Commercial real
market. Stock exchanges are advised to en- Pradesh High Court granted company’s Indian commercial of its new refinery 21-24% vice-president, RIL as saying
sure that the revised fee structure is uni- stay on “all proceedings” vehicles unit. over the next 6-8 months. in the UAE on Wednesday.
formly applied to trades of similar nature against the beleaguered in- The plant, originally sched- RIL acquired the “Currently it is
and is imposed in a fair and transparent vestment banker in the Na- uled to start operations by late refinery soon after running at 650,000

estate stirs back

manner, Sebi said Wednesday. The capital garjuna Finance Ltd (NFL)
market regulator also said exchanges should case.
ensure their system is capable of handling Meaning, the stay would
additional load, does not affect the existing include the lookout notice is-
risk management system, and does not sued across airports.
favour selective trades or selective category
of investor. From October 1, National Stock
Exchange reduced transaction fees on equity
trading, while Bombay Stock Exchange in-
troduced a new transaction fee structure for
equity cash market from October 7.
STIMULUS TILL FISCAL END:
RANGARAJAN
India will maintain its economic stimulus
through this fiscal and the RBI is unlikely to
change its “accommodative” monetary poli-
cy now, C Rangarajan, chairman of the
Prime Minister’s Economic Advisory Coun-
cil said. RBI may opt to mop up excess mon- Legal experts said the or-
ey from the financial system as inflation ac- der would not automatically
celerates in the coming months and may not
raise benchmark interest rates, he said,
render defunct the lookout
notice. The Central Bureau of
adding, it may also discontinue its open-mar- Investigation has to intimate
ket debt purchases.
the Interpol about the court
development and only then
nobody’sbusiness can the lookout notice be kept
in abeyance.
Kampani has been living
by Manjul
outside India for the last nine
months —- he’s rumoured to
be operating out of Dubai —-
to avoid arrest in the NFL
case.
The order, however, does
not mean cases against Kam-
pani have been dropped, legal
experts said.
On Wednesday, the public
prosecutor arguing on behalf
of the police did not show re-
sistance when the judge
asked him about the need for
Kampani’s custodial interro-
Job market has certainly improved. Last month I gation.
was fired by 5 companies only to be hired again. Turn to Page 24
● Big firms signed lease deals last quarter
● Developers also selling portions of projects
to generate cash
Pooja Sarkar. Mumbai
The commercial real estate busi-
ness, which had seen a slump for
most of last year owing to the
economic slowdown, is showing
signs of a revival, although
growth is nowhere near as steep
as in the 2007 cycle yet.
Some big corporates have en-
tered lease deals for top-level of-
fice space of late, albeit at lower
rates.
Last month, Samsung took 1.7
lakh square feet (sq ft) on lease at
Gurgaon and Noida. Sutherland
and First Source also inked a
deal for a 1 lakh sq ft property in
Chennai. Many other interna-
tional firms are in talks for sim-
ilar deals.
DLF, the largest developer ac-
cording to market capitalisation,
leased 2.1 lakh sq ft last month
across the country.
“Leases are happening but the
market has not fully recovered,”
a DLF spokesperson said.
Anshuman Magazine, chair-
man and managing director, CB
Richard Ellis, South Asia, said
full recovery will take time. “Del-
hi NCR region and Mumbai are
really active and Bangalore is
also picking up. Supply of office
2010 in Chennai, won’t go into its completion barrels per day, we
production until early- to mid- through a merger are planning to do
2012, Llistosella said. of subsidiary Re- some consolida-
He said plunging truck de- liance Petroleum tion that will be
mand in India in the past year (RPL) with itself. up to 700,000 or
accounted for the delay, Han- The move made it 720,000 (barrels
delsblatt said. The plant would the owner of the per day) in 6-8
have an annual capacity of largest single-loca- months,” Ban-
70,000 units.
A Daimler India spokesper-
tion refining capac-
ity in the world, at
nayan told the
news agency.
space is up, but rentals would re- son said he could not respond around 1.2 million barrels of RIL did not comment on the
main competitive.” immediately. crude per day. statement.
Sanjay Dutt, CEO-business of The Daimler move looks The new refinery has a de- The new refinery, in fact, is
real estate consultancy, Jones counterintuitive to the market sign capacity of 580,000 bar- processing more crude than
Lang La Salle Meghraj, expects trend at this juncture as sales of rels per day, or 29 million RIL’s older refinery, which
demand to pick up from the third medium and heavy trucks have tonnes per annum (mtpa), and has a capacity of 660,000 bar-
quarter of the fiscal. been recovering, primarily rid- is capable of juggling produc- rels per day (33 mtpa), but has
“At present, there is a lot more ing on the ramp-up in industri- tion between different crude lower secondary-processing
supply than demand and thus al production. Turn to Page 24 distillates as petrol and diesel. ability. Turn to Page 24
pressure on value remains.”
Getting better
Last month, Samsung took 1.7
lakh sq ft on lease at Gurgaon
and Noida
Sutherland and First Source
inked a deal for a 1 lakh sq ft
property in Chennai
DLF leased 2.1 lakh sq ft across
the country last month
Analysts say most of the deals
signed are those that have been
on the backburner since last Oc-
tober. “The leases are those that
were negotiated earlier. It will be
another six months before new
deals happen,” said an analyst
with a domestic brokerage.
In the peak of 2007, corporates
leased 40 million sq ft of top-lev-
el space. This has fallen to 35 mil-
lion sq ft in 2008 and to 25 million
sq ft in 2009. Turn to Page 24

NASSCOM LISTS 652 FIRMS LEADING THE INDIAN PRODUCT SOFTWARE CHARGE

Third wave of local IT products hits shore

C Chitti Pantulu. Bangalore
Call it the ‘Nanofication’ of
the Indian software sector if
you will, but the lumbering
elephants of the industry are
waking up to the new reality
of nimble, fleet-footed prod-
uct startups that are giving
them a run for their money.
Apex industry body Nass-
com has identified 652 such
companies in the country that
are at the forefront of what it
calls the third wave of Indian
product software and is seek-
ing to put in place an ecosys-
tem that supports them and
takes the Indian software sto-
ry forward.
Long dubbed a failure, the
Indian software products sto-
ry has suddenly turned hot.
If pure-play products play-
ers such as iFlex, Subex and
Tally, and some products such
as Infosys’ Finnacle were the
first wave of the Indian prod-
ucts story, the second wave
had a clutch of 100-odd ven-
ture-funded startups, which,
too, failed to make a much of
a mark on the scene.
It is now time for the third-
wave players, which are rid-
ing the cloud, the great tech-
nology leveller that has un-
leashed new concepts such as
platform-as-a-service (PaaS),
software-as-a-service (SaaS)
and is opening up new possi-
bilities.
“In the cloud, you can hire
the horsepower if you have
the brainpower to generate a
new class of applications,”
says Sharad Sharma, former
Yahoo India CEO and now en-
trepreneur in residence with
Canaan Advisors Pvt Ltd.
For the first time, the cost
of customer acquisition is
falling while cost of product
development has plummeted.
Hardly surprising then
that unlike the IT biggies,
none of the companies identi-
fied by Nasscom as the poster
boys of the Indian product
story is venture funded or has
spent huge amounts of mon-
ey to market itself. Moreover,
only 15% of these players are
Nasscom members.
As per Nasscom’s Outlook
for Indian Software Product
Businesses, prepared by man-
agement consulting firm Zin-
nov Management Consulting,
the Indian software product
industry, which witnessed a
CAGR of 44% over the past
three years, is projected to be
$11.6 billion over the next six
years from $2.3 billion in 2008.
The global addressable mar-
ket opportunity for the Indian
products industry will be be-
tween $290 billion and $315
billion in the same period
across 10 verticals.
Questions remain on how
much of this will be tapped by
Indian companies. But, clear-
ly, the startups are beginning
to prove their mettle. And
even the big daddies of the In-
dian IT services industry are
now beginning to call for
their services.
For instance, in a bid to
speed up the execution of a Rs
1,200 crore government proj-
ect, Wipro Infotech, the India
and Middle East IT business
of Wipro Ltd, commissioned
Chennai-based startup Or-
angeScape’s rapid application
development tools to roll out
ERP system across 750 loca-
tions with 15,000 users.
Turn to Page 24