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# TEXT - S&P sees limited acquisition benefits for Reliance- Reuters ...
# Orissa probes illegal mines, halts operations- Reuters ...
Expect home loan rates to remain stable: GIC Housing...
Air India saves Rs 400cr through restructuring
Published on Tue, Nov 24, 2009 at 18:24 | Updated at Tue, Nov 24, 2009 at 18:31 | Source : CNBC-TV18
Air India has saved Rs 400 crore in six months of restructuring, reports CNBC-TV18, quoting sources. Full international bookings for December-January are also helping the beleaguered public carrier.
Route rationalisation, aircraft leasing, inventory management, fuel saving contracts are also helping, sources say. The renegotiation of catering contracts is also helping the airliner.
Air India`s load factor has gone up to 72%. It is also likely to receive Rs 800 crore equity infusion by January, which is to be used for fleet replacement.
Meanwhile, Aviation Minister Praful Patel says the Group of Ministers has decided on financial package for Air India. He added that the airliner has taken initiatives to turnaround the company. Air India`s cost reduction and revenue enhancement target is Rs 1,500 crore and Rs 1,200 crore, respectively.
Here is a verbatim transcript of Mehak Kasbekar’s comments on CNBC-TV18. Also watch the accompanying video.
Sources say that infact of all the hiccups the airline has managed to save about Rs 400 crore in these last six months of restructuring, the turnaround plan was announced six months ago.
The route rationalization, leasing out of aircrafts, entry management, fuel saving contracts, renegotiating catering contracts has helped the airline to reduce costs upto Rs 400 crore. The biggest cost reduction that they are expecting which will come in till January is about Rs 300 crore in just human resources. That remains to be seen whether they can cut down this Rs 300 crore cost.
The other things we`ve picked up is that international bookings for December and January for the airline are full. Money is coming in from that as well has helped the airline save these costs and the load factors are up to atleast 72%.
Also, Air India is scheduled to get its first tranche of equity infusion in January which will be around Rs 800 crore. What we have picked up from sources is that the first tranche of equity will be used for fleet replacement. Atleast Rs 10,000 crore will be used for fleet replacement. That is the first thing they will do with the equity infusion coming in. But definitely the restructuring plan is helping Air India....
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Essar Oil has approached the Nepal government for supplying petroleum products. If the proposal is accepted, it will break the monopoly of Indian Oil Corporation, which retails petroleum products in the land-locked country along with the Nepal Oil Corporation (NOC). Nepal is not a very big market and is estimated have an annual demand of 720,000 tonnes of diesel and 1,40,000 tonnes of petrol. Essar currently supplies only small quantities of fuel oil to Nepal...
# Senator urges Adidas to keep NBA uniforms in USA- AP ...
12:00 pm : Materials stocks continue to grapple with stiff selling, which has taken the sector to a 0.9% loss. It is not alone there, though; financials are also down 0.9%. The financial sector`s weakness stems from pressure against diversified banks (-0.8%), but especially from losses among diversified financial services stocks (-1.5%). Regional banks had been grappling with considerable pressure, but during recent action they managed to turn losses in excess of 1% into a more modest decline of 0.4%.
Meanwhile, telecom stocks have more than halved their gains. The sector is currently up 0.5% after sporting a gain of roughly 1.3% at its session high. Still, integrated telecom (+0.8%) continues to show strength.DJ30 -45.20 NASDAQ -12.01 SP500 -3.28 NASDAQ Adv/Vol/Dec 788/868 mln/1794 NYSE Adv/Vol/Dec 1027/374 mln/1870 ...
With Reliance Industries Ltd (RIL) stating in court that gas from its D6 block will be available for only 11 years, NTPC wants the empowered group of ministers (EGoM) to give directions to RIL for supply of gas to its Kawas and Gandhar expansion projects. The company wants the directions to be given under clause 21.6.2 (b) of the production sharing contract for supply of 12 million standard cubic metres a day for 17 years.
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United Spirits has jumped on distillery acquisition: The company has acquired the entire share capital of Tern Distilleries for Rs 13.42 crore. The move has been taken to augment its primary distillation capacity over the next two-three years. USL, the country’s largest spirits company (and third in the world), currently owns two units in Andhra Pradesh, both in Hyderabad. It also has four other contracted facilities within the state.
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The Sensex opened 51 points higher at 17,231 on the back of smart gains in the US markets. The index, however, could not move any further higher as subdued cues from the Asian markets coupled with anxiousness ahead of the impeding derivatives expiry this Thursday weighed on the market sentiment.
The index soon slipped into red, and dropped to a low of 17,028 - down 203 points from the day`s high - in early noon trades. Steady buying in auto stocks and some pull back in select banking and IT stocks saw the index cut losses towards the close.
The Sensex finally ended with a loss of 49 points at 17,131.
The NSE Nifty touched a high of 5,113 in early trades, and then dropped to a low of 5,054. The index settled with a loss of 13 points at 5,091.
The BSE Auto index moved up 1.4% to 7,056. The FMCG index was down almost 1% at 2,887.
INDEX SHAKERS...
Tata Steel was the major loser today. The stock dropped 2.8% to Rs 557.
Reliance Infrastructure and ITC slipped over 2% each to Rs 1,069 and Rs 264, respectively. Sterlite, too, shed nearly 2% at Rs 855.
ICICI Bank, ONGC and BHEL declined over 1% each at Rs 905, Rs 1,173 and Rs 2,235, respectively.
HDFC and Reliance were down nearly 1% each at Rs 2,813 and Rs 2,176, respectively.
...AND THE MOVERS
Maruti surged 2.7% to Rs 1,599, and Mahindra & Mahindra moved up 2.4% to Rs 1,067. Hero Honda too rallied over 2% to Rs 1,688.
Bharti Airtel gained over 2% at Rs 282. Hindalco was up 1% at Rs 135.
The market breadth was neutral - out of 2,826 stocks traded, 1,368 advanced, 1,371 declined today.
MOST ACTIVE COUNTERS
Reliance Industries topped the value chart with a turnover of Rs 152.70 crore followed by SBI (Rs 146 crore), Tata Steel (Rs 137.77 crore), JSW Steel (Rs 136.37 crore) and debutant Den Networks (Rs 124 crore).
Dena Bank led the volume chart with trades of around 12.44 million shares followed by Unitech (8.13 million), Suzlon (7.91 million), Den Networks (7.73 million) and Mahindra Satyam (6.72 million....
India, US can join hands to counter N-proliferation: PM 24-NOV-09
Supporting President Barack Obama`s goal of an atomic arms free world, Prime Minister Manmohan Singh has said India and the US can work together on efforts to reduce global risks of nuclear proliferation and prevent terrorists from gaining access to technologies related to weapons of mass destruction.
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Anil tops pay chart; Mukesh biggest dividend earner 24-NOV-09
It`s Ambanis all the way in the Indian corporate world in terms of pay package or dividend earnings.
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The ‘hopeless businessman’ plans a comeback as a cool CEO who has learned his lesson the hard way.
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