Indian Stock Market

ITC has announced a Bonus share issue in the ration of 1:1

The board also approved increasing the authorised share capital of the company from Rs.500 crore to Rs.1,000 crore.

The board recommendations, however, have to be approved at the company’s annual general meeting slated for July 23.

Date of issue of bonus shares and other details are not available yet

ONGC, the country’s largest state-owned oil company, and Hungarian oil major MOL are production opportunities in third countries.“We are exploring the option to expand ONGC’s relationship with MOL for pursuing overseas opportunities,” an ONGC official involved in talks with MOL told ET. If talks fructify, the two companies could consider joint bids for a few oil and gas blocks coming up for grabs in the markets in central and eastern Europe, CIS countries and the Middle East. MOL, Hungary’s largest oil company with a considerable presence in Central Europe, the Middle East and CIS countries, is in the process of picking up a 35% stake in ONGC’s onshore exploration block in Himachal Pradesh.

companies completing all formalities and the Details of expanding the scope of the present discussed during a recent visit of a Ficci-led Indian business delegation to Hungary. A MOL official told ET in Budapest that the company would take a decision to expand its partnership with ONGC after completing its investments in the Himachal Pradesh block. It makes sense for ONGC to partner MOL as it would get it access to certain E&P opportunities in Central and Eastern Europe where the company has limited presence. The markets in CIS, Middle East and North Africa could also be used by ONGC to make its own investments. ONGC could also hope to participate in MOL’s operational ventures in countries like Kazakhstan, Russia, Yemen, Angola, Egypt and Syria. MOL is a fully integrated oil company with presence in oil exploration, refining and retailing activities in domestic and overseas markets. The group’s 2008 revenues were in excess of 13 billion Euros. “ONGC could gain a lot from MOL’s experience as it could supplement its own efforts to get oil and gas acreage in overseas markets,” said the ONGC official.

ONGC Videsh OVL has got 33 oil exploration blocks across the world. It operates 21 of the 38 oil and gas blocks in which it owns a stake. Its recent prized buy has been £1.4 billion acquisition of Imperial Energy.

Reliance diary will start selling Milk branded as Life in non reliance retail shops .

Nestle , amul will be facing a big competition now .

Reliance Dairy Foods, a subsidiary of Reliance Retail, is muscling into the country’s branded milk product market with a new brand that will take on established players such as Amul, Mother Dairy, Nestle and Gowardhan by offering higher margins to retailers and 10% extra milk to customers. and 10% extra milk to customers. The Mukesh Ambani-controlled company will sell its new milk brand, Life, through general milk distributors, while its existing Dairy Pure brand is sold only through Reliance Retail stores. The Life brand milk will be available in Haryana, National Capital Region (NCR) and Himachal Pradesh, a Reliance Retail spokesperson told ET. extension of our product portfolio.” Reliance’s according to industry sources, the dairy foods space offers high margins on limited initial investment. offers high margins on limited initial investment. In fact, existing companies such as Nestle India and Parag Milk Foods too have drawn up big investment branded milk distribution business that’s growing 10-12% a year. 12% a year.

Analysts say the sector sees high margins of 10-12% need to make one-time investment for setting up processing units and supply chain units with cold storage facilities. Pune-based Parag Milk Foods, owner of the Gowardhan this year to expand capacities for processing 20 lakh liters of milk daily. “We are witnessing 15% growth every year in our annual milk retailing business in Maharashtra and now with new investments, we’ll further expand it to states such as Tamil Nadu, Andhra Pradesh and Karnataka,” said chairman Devendra Shah. India is the world’s largest milk producer and, according to a study jointly published by the Central Ministry of Food Processing Industries and Federation of Indian Chambers of Commerce and Industry, about 35% of total milk produced in the country is processed. 35% of total milk produced in the country is processed. annually while the unorganised sector processes about 2.2 crore tonnes. This study, prepared by consulting firm Ernst & Young, says there are currently 676 dairy plants in the organised sector that combines cooperative, private and government sector units. India’s total milk production totals 10.28 crore tonnes.

Demand for milk and milk products has increased in urban areas despite recent price hikes. Govardhan increased price of its milk products by 5% over the past two months due to increased prices of cattle food and below-average rainfall. two months due to increased prices of cattle food and below-average rainfall. Gujarat Cooperative Milk Marketing Federation, India’s largest food products marketing organisation and owner of Amul brand, hiked prices of brands such as ‘Taaza’ and ‘Slim and Trim’ by Re 1 per litre and by Rs 2 per litre for brands such as ‘Gold’ and ‘Shakti’ in Gujarat. per litre for brands such as ‘Gold’ and ‘Shakti’ in per litre for brands such as ‘Gold’ and ‘Shakti’ in Gujarat. The National Dairy Development Board, a nodal agency for the country’s dairy programmes, says that feed accounts for about 70% of the cost of milk production. “Prices of cattle feed increased by 20% compared to last year due to insufficient monsoon,” says Maharashtra Rajya Sahakari Dudh Mahasang (Maryadit) chairman Vinayak Patil. His organisation owns the brand ‘Mahananda’ and is planning to expand its network in Gujarat and Karnataka. Nestle India has also major plans to increase its Slim Milk, it mainly caters to niche segment and to the investment and on future plans.

Analysts say the move by companies is a reflection of the growing interest. “This time, players are more calibrated in their expansion plans and doing cost analysis while committing expansion plans, compared to 2007,” says Sangeeta Tripathi, a retail analyst with Sharekhan Securities.

Cadbury India will soon see it as kraft as kraft has taken control if cadbury worldwide

Kinky, one of the leaders in the South African hair business, is a 36 year old business set up by a family of entrepreneurs in South Africa

Godrej Consumer Products Ltd. (GCPL) has completed the acquisition of 100% stake in the Kinky Group (Proprietary) Ltd, South Africa (Kinky). The purchase price paid for the acquisition is about South African Rand 265 mn.

Adi Godrej, Chairman and Managing Director, GCPL, said, “We are very excited about this acquisition. It gives us the opportunity to enter into a new line of business and diversify our hair product portfolio. Through Kinky we can further expand our presence in South Africa where we are already present with our acquisition of Rapidol (Pty) Ltd.”

Kinky, one of the leaders in the South African hair business, is a 36 year old business set up by a family of entrepreneurs in South Africa and has trademarks registered in South Africa.

Kinky offers a variety of products which include hair, hair braids, hair pieces, wigs and wefted pieces. It also offers hair accessories like styling gels, hair sprays, oil free shampoo. The products are manufactured at plants Located in South Africa at Johannesburg and Durban and the final products are sold through cash n carry outlets and owned stores

JYOTHY LABS IPO Analysis : Subscribe to Jyothy Labs IPO

The NPM has increased from 8.4% in FY05 to 14.2% in FY07.

The ratio of operating expense to gross sales has decreased from 0.89 in FY04 to 0.71 in FY07.

Jothy Labs  has been  valued at 20 times the Issue Price compared to 30 times the peers are trading.

We recommend Subscribing to Jyothy Labs IPO not only for listing gains but also for Long Term.

This is a Must Invest Issue.

Jyothy Labs IPO : Jyothy Labs IPO opens on November 22

Jyothy Laboratories IPO – Jyothy Labs IPO has  been set a price band of Rs 620-690 

Jyothy Laboratories, the maker of household care and fabric care products including Ujala, has set a price band of Rs 620-690 for its initial public offering (IPO) of 44.3 lakh shares. This represents 30.52% of the post-issue paid-up capital of the company.

Shareholders selling stake in the IPO include South Asia Regional Fund, Canzone, ICICI Bank and CDC Investment Holdings. The remaining stake is held by founder chairman and managing director M P Ramachandran and his family.

The issue will be open between November 22 and November 27, 2007. Kotak Mahindra Capital and Enam Securities are the lead managers to the issue.

This will be the first FMCG IPO after a gap of two years. The last FMCG company to go public was the Kolkata-based Emami.

Jyothy Labs sales are pegged between Rs 400-500 crore. The company is said to have been valued at around Rs 1,000 crore

All other details about Jothy Labs IPO will be posted here.Will come soon with Analysis of Jyothy labs IPO.