derrick 11th edition

8/7/2019 Derrick 11th Edition

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INDIA WITH $1,000 PER CAPITA INCOME READY FOR GROWTHMARATHON

It may have happened in the middle of2010. It may happen a month fromnow. Or, it may happen by the end ofthis year. The precise timing mattersless than the implication of theachievement, Indias per capita incomehas either just about or will soon crossthe $1,000-mark. In rupee terms, thistranslates into an average annualincome of roughly Rs 45,000 for everyIndian.

China reached this threshold in2003, and has since unleashed a consumption boom that the world is in awe of.

Today, its per capita income is at $3,400.

Whats so significant about the statistics of $1,000? After all, even countries likeGhana and Afghanistan too are close to achieving this figure. The figure is significantif it is accompanied by a few other things: an economy of the size of at least $500billion, a healthy and sustainable growth rate in GDP and a large population. Indiahas all the three pieces of this equation, and has them in plenty

It is the presence of all these factors together that makes both India and Indo nesiaexciting. We (India) will have to work really hard to mess it up, says Sinha.

Three aspects, timing, scale and speed, of India reaching the $1,000-per-capita-mark

makes it out of the ordinary. The three will act as a force multipier for each other. Themost obvious implication is the nature and size of consumption. India, like China inrecent years, will be a consumption powerhouse of the world.

Ahead of the global curve

This has huge implications for what Indians will consume in the coming years tocome and at what rate. Thanks to innovations in technology and business models,what consumers in the West, or even in China, started to consume at the per capitaincome level of $2,000 or $3,000, Indians would begin to consume much earlier. Thelower level of household debt will also influence the consumption pattern.

For example, in 2003, entry-level digital cameras cost around Rs 12,000 as againstRs 5,000 today. According to Alok Bhardwaj, senior VP, Canon India , in China,camera penetration moved from 3% to 15% between 2001 and 2010. India will makethis transition in half the time, between 2010 and 2015.

Progress is often

qual to the difference

etween mind and

indset.

NSIDE THIS

SSUE:

ROWTH MARATHON

ORPORATE watch

CONOMY watch

ACT OF WEEK

TERVIEW

ARGONOMICS

NTREPRENEUR

MELANGE 2011


2/16

THE DERRICK

CORPORATE WATCH

ONGC BOARD APPROVES STOCK-SPLIT, BONUS ISSUE

State-run Oil & Natural Gas Corporation announced that the company's board has approved the stock split

and issuance of bonus shares in the ratio of 1:1. "The members of the company through postal ballot have

approved the sub-division of the equity share of Rs 10 each into two equity shares of Rs 5 each, and

issuance of bonus shares in the ratio of 1:1, by capitalization of reserves," ONGC said in a filing to the

Bombay Stock Exchange (BSE). The company has fixed February 9, 2011 as the record date for

ascertaining the eligibility of the shareholders, who would be entitled to receive sub-divided shares and

bonus shares, it said in a separate filing to the BSE. Shares of ONGC were quoting at Rs 1,126.30 a piece,

up 1.06 per cent from previous close in the last hour of trade on BSE.

WALMART CHIEF WANTS TO HELP INDIA IN FIGHTING INFLATION

Walmart International President and CEO Doug McMillon stated that the Indian governments concerns

over allowing foreign direct investment in multi-brand retail were misplaced. The global head of the worlds

largest retail chain said inflation was another big concern for a retail chain like Walmart which is all about

lowering prices for customers. Saying the Indian retail opportunity was terrific, McMillon said the retail giant

was to make a case that we can help with inflation in India. WalMart was deliberately selling onions at

purchase price in India to address consumer needs. So, his pitch is simple. Allow Walmart to invest in

more stores and make more profits, so that it can plough money back into Indias food supply and cold

storage infrastructure, which, in turn, can help the retail chain keep prices low on essential consumer

products. However, Ahluwalia also said multinationals must understand the different pulls and pressures.

For example, he said the National Bureau of Economic Research; a US-based think-tank has just given a

report saying Walmart is not good for employment, as it distorts the local labour market. This didnt come

from any Indian political party. It came from a research body in a country which practices free market as a

religion, Ahluwalia said.

MERCEDES PLANS SMALL CAR FOR INDIAN MARKETGlobal auto giant Mercedes-Benz is looking at developing a small car for the Indian market. The

companys R&D centre in Bangalore, which supports the companys headquarters in Germany is likely towork on the small car project. Mercedes-Benz also plans to nearly double the headcount at its Bangalore

centre from the present 600, by next year. As a part of its business strategy, the German car-maker also

plans to set up brand centres with investment from its existing dealers, which would show-case around 20-

odd models

BAJAJ ELECTRICALS TO GLOW AHEAD WITH RURAL THRUSTBajaj Electricals would increasingly focus on penetrating rural markets in the coming years as it plans to

grow volumes for its electrical appliances and utility products. The firm, which makes appliances, lighting

products, fans, luminaires and is also into contracting of electrical projects, hopes to earn Rs. 2760-2800crore in revenue in FY11, while turnover target for FY12 is pegged at Rs. 3500 crore, Bajaj said. Soaring

raw material prices have also impacted the firm, but the company would continue to increase prices of

some of products like water heaters, air coolers and steam irons in phases.


3/16

PORSCHE SEES VW MERGER ON RIGHT TRACK, SHARES UPPorsches planned merger with Volkswagen is on the right track, a senior family member said on

Wednesday, sending shares in both automakers higher. Volkswagen and Porsche shares rose 3% and

5.2% respectively, partly on Porsches comments on the imminent merger. Porsche SE is to be subsumed

into the Volkswagen empire with shareholders trading in their holdings for stock in Europes largest

carmaker once their company is debt-free as part of a planned merger.

RIM SAYS CANT PROVIDE GOVT ACCESS TO CORPORATE EMAILSBlackBerry maker Research In Motion (RIM) on Thursday said there was no possibility of providing India

access to corporate emails on BlackBerry devices. India has demanded access to all BlackBerry services aspart of efforts to fight militancy and security threats over the Internet and through telephone communications.

The company has said it does not have a master key to decode emails, adding that each organization would

have the technical capability to grant access to its own encrypted enterprise email. The Canadian company

earlier this month gave India access to its messenger service.

PREMJI GETS PADMA VIBHUSHAN(CORPORATE WATCH)Wipro Chairman Azim Premji, ITC Chairman Y C Deveshwar and ICICI Bank Managing Director andCEO

Chanda Kochhar are among 12 industry leaders who have been conferred with the Padma civilian awards this

year.

While Premji (65) is the only industrialist who has been conferred the nation''s second highest civilian award

Padma Vibhushan after this year. Bharat Ratna is Indias highest civilian award . Eight others have beenawarded the Padma Bhushan. Three others, including a non-resident Indian havebeen conferred the Padma

Shri.

Besides Kochhar and Deveshwar, Padma Bhushan awardees include Dr Reddy''s Laboratories Chairman K

Anji Reddy, Infosys CEO and MD S Gopalakrishnan, NIIT Chairman Rajendra S Pawar,HCL co-founder Ajai

Chowdhary.

Max India Chairman Analjit Singh, GVK Group Chairman andMD GVK Reddy are also on the list of Padma

Bhushan recipients.

Ajim Premji is a electrical engineering graduate from Stanford University, USA. Premji has been leading Wipro

since 1966,when it was focused only in manufacturing of hydrogenated cooking fat.

ADANI, REDDY LEAD INDIA'S BILLIONAIRES IN $15 BILLION INDONESIAEXPANSION

Indian companies led by billionaires Gautam Adani and G.V. Krishna Reddy signed accords worth $15 billion

for projects including airports, steel plants, ports and railroads in Indonesia.

A GVK Power & Infrastructure Ltd.-led venture will spend as much as $4 billion to build two airports in

Indonesia and Adani Group signed a deal to build a railway and port worth about $1.8 billion, the companies

said separately yesterday. Indian companies including Tata Power Ltd. signed 18 agreements with Indonesia,

according to a government statement.

SAINT-GOBAIN PLANS RS 400-CR PLANT FOR SOLAR PV MODULES' GLASS

BASE

Saint-Gobain Glass India plans to invest Rs 400 crore to set up a facility to manufacture base glass for solar

photo voltaic modules. At present, the company imports glass from its parent company's plants located

overseas to cater to the domestic market. The company's second glass plant in the country, being built with a

budget of Rs 1,500 crore, is fast coming up at Bhiwadi, Rajasthan.The capacity of the new plant is expected to

be around 500 MW a year.The company is also planning to upgrade the Chennai plant.

NOKIA LAUNCHES AFFORDABLE MOBILE PHONE TARGETING YOUNGSTERS


4/16

Targeting youngsters who want to be connected to social networking sites, Nokia launched its affordable

mobile phone with QWERTY device in Gujarat. The new model is named Nokia X2-01 is priced competitively

priced with colourful design and optimised for messaging performance.This model is targeted at the

youngsters who want to be connected with internet and socialnetworking sites and want every information in

one go. The price fixed for this is Rs 4459.Among mobile phones QWERTY category of phones are the fastest

growing segment where messaging and acceesing emails could be faster

SINGAPORES OLAM TO ACQUIRE BRITANNIA FOOD

Olam international which is owned by a singapoor based Indian businessman, Mr Sunny Verghese.They

announced to acquire 100 percent stake in Britanniia Food Holdings (BFI)And Britannia Storage

Distribution(BSD) for a value of 33.5 million (approximately $50 million). Initially it would acquire 85 percent

of the equity capital in BFI and 100 per cent of BSD and then acquire remaining 15 per cent interest in BFI

within next 3 years at a preagreed valuation.

THE DERRICK

ECONOMY WATCH

BLACK MONEY TRAIL: INDIA DRAINED OF RS 20 LAKH CRORE DURING 1948-

2008In a season of swindles, kickbacks and scams,here is some more on the mother of them all. Black

money the popular moniker given to the billionsseeded by dirty deals and whisked away abroadfrom the taxmans prying eyes has receivedmuch attention in recent years.

The opposition never tires of screaming foul at thegovernment. The government, for its part, is atpains to say it is doing all it can to track down theillegal stash.

Despite the cacophony, an estimate of the scadsof black money in secret bank vaults overseas has

long been one big unknown, resulting in a great deal of speculation and glib talk around the subject.

Finally, some help is at hand. A new study by an international watchdog on the illicit flight of money fromthe country, perhaps the first ever attempt at shedding light on a subject steeped in secrecy, concludesthat India has been drained of $462 billion (Rs 20,556,848,000,000 or over Rs 20 lakh crore) between1948 and 2008.

The amount is nearly 40% of Indias gross domestic product, and nearly 12 times the size of the estimatedloss to the government because of the 2G spectrum scam . The study has been authored by Dev Kar, alead economist with the US-based Global Financial Integrity, a non-profit research body that has longcrusaded against illegal capital flight.

Mr Kar, a former senior economist with the International Monetary Fund, says illicit financial flows out ofIndia have grown at 11.5% a year, debunking a popular notion that economic reforms that began nearlytwo decades ago had tempered the creation and stashing away of black money overseas.


5/16

Outflows accelerated after reforms

If capital outflows were a child of the independence era, the problem came of age in the years after thereforms kicked in. Nearly 50% of the total illegal outflows occurred since 1991. Around a third of the moneyexited the country between 2000 and 2008.

WTO TALKS MAY GET PUSH

Trade ministers of key WTO member countries, including India and the US, will meet in New Delhi tomorrow to

review and give a push to the stalled Doha talks for a global trade opening deal. The meeting, convened by

Switzerland, will take place on the sidelines of the annual World Economic Forum (WEF) meeting. At the last

meeting of the G-20 in Seoul in last November, leaders of the worlds most influential countries, including the

US and the EU, Brazil and India, had pressed for concluding the WTO talks for a multilateral agreement in

2011. Doha round of talks under the aegis of the World Trade Organisation (WTO) started in the Qatari capital

in 2001 for achieving a global trade deal, but a breakthrough has not been reached upon yet. Differences

between rich and developing nations have been a stumbling block. As per the WTO estimate, successful

conclusion of Doha talks could boost the global trade by up to $200 billion in a year.

INDIA RAISES INDIRECT TAX COLLECTION TARGET BY 7%

Boosted by higher revenue mop-up during April-December 2010-11, the government on Thursday said it has

upped indirect tax collection estimates by 7% for this fiscal, from the Budget target of Rs. 3.15 trillion. In the

Budget 2010-11, the government targeted a collection of Rs. 3.15 trillion through indirect taxes -- from

customs, excise and service tax. Customs duty collection has increased by about 68% during April-December2010-11 from the corresponding period last fiscal. Similarly, the year-on-year growth in excise duty and service

tax collections increased by 33% and 18%, respectively. GST would further improve tax collection.

INDIA SIGNS MOU WITH EGYPT FOR RENEWABLE ENERGY PROJECT

India will implement a pilot project on renewable energy in Egypt to enhance bilateral cooperation and

encourage the Indian private sector to participate in developing wind and solar energy sectors in the

country.The two sides also signed a MoU during the ongoing visit by the Minister of New and Renewable

Energy, Mr Farooq Abdullah. He said partnership with Egypt in renewable energy is a win-win situation.Mr

Abdullah, who is on a visit to the country from January 19 to 23 at the invitation of Egypt Minister of Electricity

and Energy, Mr Hassan Younes, is accompanied by a 14-member strong business delegation consisting of top

companies engaged in wind and solar energy fields.The Indian Ambassador to Egypt, Mr R. Swaminathan,

said that the MoU includes training programmes, local manufacturing of equipment as well as exchanging

information, policy formulation and joint research and development. According to Mr. Swaminathan this will

increase Indian private sector participation in Egypts programme of achieving 20 percent of its energy from

renewable energy sources by the year 2020.

The pilot project in renewable energy will be implemented in an Egyptian village. The project is to be equally

funded by both sides.


6/16

GOVT WILL LOOK BEYOND MONETARY TOOLS TO REIN IN INFLATION

Planning says that government will look beyond monetary tools to rein in

inflation. He says investors have not been deterred from India, but are

guessing the environment.

The overall assessment of India is very positive. Any investor always

watches every sign of slippage. So, I think that they will be looking at

whether we are handling our macro position well because the rise of

inflationary pressure is not an India specific story, but inflation is higher

in India than it is in many of these countries. So, I think they will be

watching us, they will be watching the macro and thats good. Puts us

under discipline because thats exactly our own view, that the future

control of inflation has more to do with getting the macro under control

and getting good supply responses than simply relying on monetary

policy.

I think we have done a good job on monetary policy because in the short run you did need to use monetary

policy. But you cant keep doing that. I think that is the governments own view. I think Finance Minister has

stated that we are going to be on budget target this year for 2010-2011. Its not right for me to speculate about

the next budget, you will know by the end of February. But the Finance Minister has given a clear signal that he

wants to keep to the targets that he has set which means a further reduction

THE DERRICK

INDUSTRY WATCH

MOBILE NUMBER PORTABILITY: SWITCH THE OPERATOR

The much-awaited mobile number portability has finally become a

reality, empowering consumers to change mobile operators

conveniently while retaining the same number. Experts view it as a

great step forward for the consumer, as it enhances the choice andbrings in more competition and better services

The consumer-friendly service was mooted over two years ago and

was planned to be implemented by the end of 2009. However,

implementation had to be deferred several times owing to reasons

ranging from lack of preparedness of operators to delay in

appointment of an agency to oversee MNP execution. All that is

required is Rs. 19 and the consumer can start using the new network.
http://www.moneycontrol.com/tv/display_show.php?prg=indianbusinesshour&dt=2011-01-27&utm_source=Article_Vid


7/16

TELECOM SPECTRUM TO BE GIVEN ON MKT DRIVEN PRICES: SIBAL

Telecom Minister Kapil sibal today announced the broad contours of the

new National Telecom Policy, which has been in the works for several

months. Addressing the press today, Sibal said that a directional shift in

policy was required post the break-out of the 2G scam.

Expressing confidence in the new policy, Sibal said it would create a level

playing field for operators in the telecom space. He said the new policy

will not be introduced with retrospective effect. Sibal said the objectives of

the 1999 Telecom Policy have been well served as Indian telecom is now

the fastest growing sector in the world.Speaking on the need to ensure

that adequate spectrum is required to go around, Sibal said that operators will be provided adequate spectrum

going forward. He said licences would not be bundled with spectrum on a fixed-fee basis.

Further, he said, cancelled licences will be re-allocated under the new policy. For a fixed amount of cancelled

licences, any amount of additional licences will be allocated under the market pricing mechanism. There would

now be a uniform rate of revenue share to be paid by the operators as spectrum charge to the government.The

reforms in policy is expected to have a direct impact on existing telcos like Bharti,Idea,Vodafone, and R

Com.Spectrum held beyond 6.2 Mhz will be charged on the basis of market driven prices.No licence in future

will be issued with an initial or start-up spectrum of 4.4 Mhz and will be separately charged. Existing operators

including from the public sector will now have to pay for additional spectrum. BSNL and MTNL will be the worst

hit as both the public sector entities have large amounts of spectrum over and above 4.4 Mhz in most of the

circles that they operate in.He also said that the ministry is contemplating an M&A policy for the sector.The

TRAI is expected to submit its recommendations on the new pricing mechanism over the next few days.

PHARMA EXPORTS MAY TOUCH A RECORD RS 50,000 CR IN 2010-11

The export revenue of the Indian pharmaceutical industry may touch Rs 50,000 crore for the first time ever,

thanks to an estimated 20 per cent growth during 2010-11 over last years annual sales of Rs 42,092

crore. The growth estimates turn significant as the medicine exports from India had registered near-muted

growth in value terms during 2009-10, an indirect effect of the global economic slowdown that saw companies

exhausting their inventories instead of making fresh orders the previous year, says Pharmaceutical Export

Promotion Council (Pharmexcil) officials.

The expected growth is primarily linked to the fresh contracts from key export markets in North America and

Europe.

Pharmaceutical exports had grown only 4.13 per cent in 2009-10 as drug exporters were the last to be

affected by the global economic slowdown. Things have changed and drugs worth Rs 15,161 crore were

exported during the April-July period in 2010-11, Pharmexcil Executive Director P V Appaji said. The revenues

during the April-July period was 14.16 per cent higher than Rs 13,280 crore recorded during the same period a

year before.

According to Appaji, the current growth percentage is about 20.

Incidentally, US market had shown strong growth trends even when the overall growth dipped to 4.13 in 2009-

10. The fall was primarily led by decline in revenues from the European Union, which is Indias second-biggest

medicine export market after the US. Africa, Latin American countries and countries that were part of the

former Soviet Union had also showed decline in growth during this period.
http://www.moneycontrol.com/video/business/telecom-spectrum-to-be-givenmkt-driven-prices-sibal_517027.html?utm_source=Article_Vid


8/16

The growth projections, however, are not based on arevival in the business fortunes in these regions.Industry analysts say the growth will be driven by theUS revenues, where $36.7 billion worth drugs areexpected to go off-patent in 2011.

Even if there is a 90 per cent price erosion, Indiandrug companies will be gaining market access worth$1.27 billion or Rs 16,500 crore in the US once thesepatent protection over these drugs expire this year,said Ranjit Kapadia, vice-president (institutional

sales), HDFC Securities.

According to Kapadia, Indian pharma exports will see about 25 per cent growth this year due to increasedsales in the US. The growth will continue for the next two years as the revenue opportunities arising out ofpatent expires will spill over to the next financial year, he added.

THE PHARMA STORY: A DECADE OF TRANSITION

The last 10 years were a crucial transition period for the Indian pharmaceutical industry. The next 10 years will

be more crucial, predict industry experts.

The period between 2000 and 2010 witnessed Indias top 10 drug companiesgrowing from sales turnovers, ranging between Rs 500-Rs 800 crore, to

professionally-run multinational generic companies with turnovers ranging from

Rs 3,500 crore to over Rs 7,000 crore. If most of these companies earlier relied

on bulk drug supplies, small exports to unregulated markets in Africa and Asia

and formulation sales in the domestic market, the last 10 years saw them

aggressively tapping regulated markets of the US and Europe and penetrating

into newer and emerging markets. If the Indian industry had filed only three

marketing applications with the US Food and Drug Administration (FDA) in

1998, that number swelled to 148 in 2009.

Indian companies countered the new product patent regime since 2005 by setting up global standard facilities

and entering into regulated markets. This gave them confidence to take on global generic companies and went

ahead to acquire numerous overseas units to enter newer markets, says D G Shah, secretary general of

Indian Pharmaceutical Alliance (IPA) and a leading industry advisor .

India enforced process patent, in early 1970, which allowed domestic companies to legally copy and

manufacture patented drugs. To comply with TRIPS agreement, India decided to enforce a product patent

regime since 2005, which banned copying and selling of patented drugs launched after 1995.

To face this, the Indian drug companies also increased their spend on research and development. The lastdecade saw 20 fold jump in spend on R&D, he adds.

If the Indian drug industry grew at a compounded annual rate of 9 per cent between 2000 and 2005, the latter

five years saw the growth propelling to 13 to 14 percent every year, says a report from McKinsey & Company.

From a market size of $12.6 billion in 2009, the Indian pharmaceutical market will grow to $55 billion by 2020,

with the potential to reach $70 billion in an aggressive growth scenario. In a pessimistic scenario characterised

by regulatory controls and economic slowdown, the market will be depressed and is expected to reach $35

billion, the McKinsey report says.

The industry is likely to maintain a growth rate of 15-20 per cent annually in the coming decade, says variousother reports.

Monthly Analysis of Drugs, Pharmaceuticals & Finechemicals (Rs/cr)

Month 2009-10 2010-11 Growth rate (%)

April 3208.84 3510.64 9.41

May 3008.81 3714.87 23.47

June 3458.02 3304.04 -4.45

July 3604.29 4631.37 28.5

Source: Pharmexcil


9/16

THE DERRICK

FACTS OF THE WEEK

1. Aumotive components maker Amtek Auto ltd formed joint-venture with South Korean auto maker Autech

Corporation.2. Anchor group which sold Anchor switch brand to Panasonic in 2007 for Rs. 2000 crore, will soon launch

Greatwhite switches.

3. RISHAD Premji, wipros new strategy chief, has been given additional charge to lead companys Merger

and Acquisition pursuit.

4. India will develop coal-fired ultra super-critical plant; BHEL, NTPC and IGCAR are joining hands for the

project.

5. Adani group will launch a $500-million foreign currency convertible bonds (FCCBs) issuance around mid

February.

6. Canon (Digital imaging firm)to merge sales network with Dutch company Oce.

7. Audi India will launch A6,A7 and A8 model in India.8. US billionaire Donald Trump will enter Indian real estate market.

9. RELIANCE ventures limited (RVL) and Infrastructure Leasing and Financial Services limited (IL&FS) have

made a tie up to jointly develop a model economic township and other infrastructure facilities at Jhajjar,

Haryana.

10. CIPLA, Indias second largest drug maker are in negotiations to sell their stake to a global buyer MERCK.


10/16

THE DERRICK

INTERVIEW

LOOKING FOR FURTHER ACQUISITIONS: ADI GODREJ

In an interview with ET Now, Adi Godrej , chairman,GCPL , talks about their quarterly performance, pricehikes and future plans.

Can you characterise the quarter gone by for GCPL?

We had an excellent quarter 3. Sales growth was around odd80%, consolidated profit growth was 40% and our earnings

per share growth was about 35%. So growth has been very

good. Across the board, we have had good results -

particularly in Godrej Household Products, which is a 100%

subsidiary, in our Indonesian subsidiary and in our hair colour

business. But across the board in many of our subsidiaries and in India, we have had very strong growth.

Could you also share the key highlights of your financial performance this quarter?

I do not have the exact numbers in each of our segments with me, but that is being published on our website.

But there was high growth, particularly in our household insecticides business which grew at about 28% - the

fear of dengue and malaria is creating a huge demand for household insecticides. Also, our Indonesian

business grew exceedingly well during this quarter.

What is your outlook on palm oil prices going forward because palm oil - as percentage of your total

raw material cost - is a very important ingredient?

The palm oil prices have risen a lot. We do not expect them to rise further. We have a good coverage at lower

prices. We are also increasing our soap prices. So we expect our margins to continue to be good. We expect

the 4th quarter to be even better than the excellent 3rd quarter we have had across the board in our

businesses.

Talking about the companies that you have acquired in the quarter gone by, what is the kind of

revenue growth that you are clocking in from each of those and can you give us an overseas

operations growth outlook as well as to how the overseas operations are now shaping up?

I would avoid making any forward looking statement, but our Indonesian business - up to now this year - has

grown by around 20% and we expect that to continue, strong growth to continue. Our businesses in South

America and Africa are also growing very well and we are looking to further acquisitions which could further

add to our growth. Currently, above 35% of the company sales come from our international operations. So in

this quarter, little more than one third of our sales come from our international operations.


11/16

Specifically about your UK operations, how are they shaping up?

If you look at our UK operations, the growth in terms of sterling pounds is higher than in terms of rupees

because the pound is depreciating to the Indian rupee. But on the other hand, our rupee growth in our

Indonesian operations and South African operations are higher than the growth in the local currencies because

the South African rand and the Indonesian rupiah have actually appreciated to the Indian rupee.

You are likely to take price hikes for the 3rd time around this quarter as your costs have indeed been

surging. Does this mean that raw material pricing is now going to see no signs of cooling off? Is that

what you are factoring in?

We do not expect further price increases in the raw materials, but currently we are consuming raw materials

which were bought earlier at lower prices. So as we start consuming higher price raw materials, we will

certainly raise prices. We have raised our soap prices further in early January and if necessary, we will raise

them further. So we will ensure that our margins are maintained.

For Godrej Consumer, 35% of the total net revenue is coming from exports and global businesses. Will

that number change going forward?

No, I would just like to mention that it is not exports. It is actual operations in those countries. So that accountscurrently for 35%. In quarter 4 also, we expect it to be around 35% of our total sales and it depends on further

acquisitions. If we make more acquisitions in India, then that percentage can come down. If we make more

acquisitions abroad, the percentage could go up. So it would depend on how our acquisitions span out.

Currently, our growth in both international markets and the Indian market is the same.

THE DERRICK

ZARGONOMY

Arrears: Amounts past due and unpaid.

Guerilla marketing:A marketing technique, the aim of which is to damage the market share of competitors.

Hyperinflation:very rapid growth in the rate of inflation so that money loses value and physical goods replace

currency as a medium of exchange.

Invisible exports:the profits, dividends, interest, and royalties received from selling a country's services

abroad.

sandwich lease :lease held by a lessee who becomes a lessor by subletting. Typically, the sandwich

leaseholder is neither the owner nor the user of the property.

Example:
http://www.allbusiness.com/glossaries/lease/4942484-1.htmlhttp://www.allbusiness.com/glossaries/lease/4942484-1.htmlhttp://www.allbusiness.com/glossaries/lessee/4942556-1.htmlhttp://www.allbusiness.com/glossaries/lessor/4942526-1.htmlhttp://www.allbusiness.com/glossaries/lessor/4942526-1.htmlhttp://www.allbusiness.com/glossaries/lessee/4942556-1.htmlhttp://www.allbusiness.com/glossaries/lease/4942484-1.html


12/16

umbrella policy : Insurance policy providing additional liability coverage over a basic insurance liability policy.

near money:cash equivalents and other assets that are easily convertible into cash. Some examples are

government securities, bank time deposits , and money market fund shares. Bonds close to redemption date

are also called near money.

YO-YO Stock :stock that fluctuates in a volatile manner, rising and falling quickly like a yo-yo.

COD :cash on delivery.,cancellation of debt.

FIDUCIARY:A person, company or association that stands in a special relation of trust, confidence or

responsibility and is responsible for holding assets in trust for a beneficiary

MARKETING MIX: An analysis tool that helps establish a companys competitive advantage by providing an

easy-to-read representation of the companys position in the marketplace based on the concept of the four Ps

of marketing--product, price, place and promotion.
http://www.allbusiness.com/glossaries/cash-equivalents/4950159-1.htmlhttp://www.allbusiness.com/glossaries/cash-equivalents/4950159-1.htmlhttp://www.allbusiness.com/glossaries/time-deposit/4942212-1.htmlhttp://www.allbusiness.com/glossaries/money-market-fund/4951125-1.htmlhttp://www.allbusiness.com/glossaries/redemption/4954320-1.htmlhttp://www.allbusiness.com/glossaries/volatile/4942665-1.htmlhttp://www.allbusiness.com/glossaries/volatile/4942665-1.htmlhttp://www.allbusiness.com/glossaries/redemption/4954320-1.htmlhttp://www.allbusiness.com/glossaries/money-market-fund/4951125-1.htmlhttp://www.allbusiness.com/glossaries/time-deposit/4942212-1.htmlhttp://www.allbusiness.com/glossaries/cash-equivalents/4950159-1.html


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THE DERRICK

ENTREPRENEUR

ADITYA JHAAditya Jha, LL.D is a Canadian entrepreneur and philanthropist

with active involvement in Canadian public affairs. He currently

manages a portfolio of businesses and also runs several

philanthropic initiatives, promoting education and nurturing

entrepreneurship to equalize the access to opportunity for

those not so fortunate. Jha takes special interest in nurturing

prosperity and financial independence amongst Canadian First

Nations(aboriginal) communities and individuals. He is the

National Convenor of the Canada India Foundation. He is

inductee to the '30 most influential Indo-Canadians Power List'

of India Abroad magazine (2009), and most recently received

the Honorary Doctorate of Laws degree from Ryerson

University - the highest honour conferred by Ryerson

University, Toronto, Canada. Aditya is also an official blogger

for the Toronto Star's "Your City, My City" series with focus on Toronto's Mayoral race.

Early life

Aditya Jha was born in village situated on border of India and Nepal. He was brought-up in a landed upper

middle class family of three brothers and two sisters. His father was lawyer by profession and practiced law indistrict court (Sitamarhi,Bihar, India). Upon completion of his secondary education in a village near Nepal India

border, Aditya went on to pursue post-secondary education in Delhi, India. After receiving a bachelors degree in

sciences from Hans Raj College Delhi University, he went on to do M.Sc. Mathematical Statistics at

Kurukshetra University and PG Diploma in Computer Science from Kurukshetra University. He further invested

four and a half years from 1979 to 1984 as a Research Scholar at the School of Computer and Systems

Sciences, Jawaharlal Nehru University before visiting Paris, France for Mainframe computer training with CIT

Alcatel for six months. He was recipient of University Grants Commission's Junior and Senior scholarship and

Research Associateship from Council of Scientific and Industrial Research. He was very active in student

politics and student union activities and worked underground with those who were working against when

Emergency measures suspending democratic rights in India were promulgated. He played leadership role withthe largest student organization in India as General Secretary for Delhi and Haryana state and was on the

National Executive of the national student organization when he was just 22 years old. His Mother tongue is

Maithili and he belongs to Mithilanchal,India.

CAREER AND BUSINESS INTERESTS

He started his career in India and then subsequently worked in France, Singapore, Australia and South East

Asian countries. He migrated to Canada in late 1994 and joined Bell Canada, later becoming a General

Manager. After a career at Bell, he co-founded a software company, Isopia Inc.[ Isopia was a Canadian

success story acquired by Sun Microsystems for over $100 million. After his work at Isopia, Aditya startedOsellus Inc, another software firm with offices in Toronto and Bangkok, and diversified his portfolio through

acquisition of several businesses including a business from Allan Candy/ Cadbury Adams Canada. He renamed

the confectionery manufacturing business, to Karma Candy owing to his belief in the concept of Karma. After
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this acquisition, Aditya helped save more than 150 jobs who were to be laid-off owing to the imminent closure of

one of the oldest confectionery factories in Canada.

PHILANTHROPIC INTERESTS

Educational projects in Canada

Jha established a private Canadian charitable foundation, the POA Educational Foundation, to promote

education and entrepreneurship. Aditya has several scholarships at Canadian post secondary institutions such

as Ryerson University, Trent University, George Brown College and York University. The endowments at these

universities grant in total thirteen (13) scholarship awards ($40,000 annually) in perpetuity to students (large

focus on students from the aboriginal community of Canada). Additionally he has supposrted a research project

on Economic Value of Indo-Canadians (Ryerson University), Pathways Education Program for the inner-city

kids of Regent Park community in Toronto and funded York University for Canada-India research initiative.

Projects promoting entrepreneurship in Canada

Jha's Project Beyshick initiative nurtures prosperity and financial independence amongst First Nations

individuals by encouraging and mentoring entrepreneurial efforts. The project was launched with the support of

Nishnawbe Aski Nation (NAN) Grand Chief Stan Beardy and nephew Ashutosh Jha. The project has had

numerous life changing positive impacts on participants, putting them on a accelerated path towards successand personal growth.

Asked by a media house about his motivation for this initiative, he replied

"I wanted to give the Canadian aboriginal communities a vision for the future - and a sense of possibility. It is

the entrepreneurial spirit and success, which gives the rightful recognition to communities in the mainstream

world. It also allows the successful entrepreneurs to become role models for their community,".

He has also supported award for the Top 20 under 20 program (Entrepreneurship category) and the yearly

$15,000 Business Plan & $5,000 Career Plan Contest award for the First Nation individual participating inProject Beyshick.

Philanthropic work in Nepal

Aditya Jha donates laptops at NWFs Arya Tara School of Tibetan nuns outside Kathmandu,Nepal on October

16, 2008

Since Fall of 2008, Aditya has been involved with the One Laptop Per Child project. He has since then

distributed more than 100 laptops to rural village schools in Nepal, including Nuns' Welfare Foundations Arya

Tara School. This project is an addition to the hundreds of computers and printers he donated to dozens of

schools in Kathmandu valley in Nepal In 2001, Aditya proposed to develop and fund a world class Institute of

Information Technology Nepal (IIT-N) modelled after India's IIT. The institute was to be established within a

government sponsored IT Park in the Greater Kathmandu area (Banepa IT Park).[ Just before the parliament of

Nepal was set to approve the proposal, the government fell and proposal was delayed, and later withdrawn by

Aditya.

Philanthropic work in India
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Jha chairs the India AIDS Campaign within UNICEF Canada's Unite For Children, Unite Against Aids campaign.

"As part of the larger Canadian Unite for Children, Unite against AIDS campaign, a special India HIV and AIDS

Campaign has been established to support AIDS prevention, awareness and treatment projects for children and

youth in India.". Working with Canadian organization 'Aim for Seva', Aditya has donated a 50 student residence

for kids from landless families in Bihar,India.

Arts and culture

Jha supports the Canadian Youth Ballet Ensemble to promote dance education and training for young

Canadians, and the "Share the Music" program of Roy Thomson Hall to give Canadian aboriginal youth access

to best musical performances. He also supports Toronto International Film Festival group as Gold Patron. TheToronto International Film Festival Group is a charitable, not-for-profit, cultural organization whose mission is to

transform the way people see the world. Its vision is to lead the world in creative and cultural discovery through

the moving image. Jha also supports the Canadian Museum for Human Rights.

Awards, recognition and appointments

30 most Influential Indo Canadians, Rediff India Abroad magazine's Power List (published September 2009)

Winner, Top 25 Canadian Immigrants 2010

Honorary Doctor of Laws (LL.D.), Ted Rogers School of Management, Ryerson University, Toronto, Canada

Advisory Council of Dean, Faculty of Community Services, Ryerson University Chair, India HIV/AIDS Campaign, UNICEF Canada

Board Member, First Nations Financial Management Board (FNFMB), Government of Canada

Board Member, Ontario Investment & Trade Advisory Council (OITAC), Government of Ontario
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LE MELANGE 2011

derrick 11th edition

Documents