Indian Oil Corporation ( IOC ) to raise petrol prices in India

Indian Oil Corporation, India's largest oil firm, may increase petrol prices all throughout the country. The exact increase that can happen is not known currently. Average per liter price is Rs: 65/- in India +- Rs:4/- according to the various cities. It is estimated that IOC makes a loss of about Rs:7/- per liter currently. Add tax to it and it makes about Rs:7.50/- loss considering the current price. If the prices are increased by anything more than Rs:5/- per liter than that is going to disturb the environment nationally. Prices are regulated by the government and common public in India blames the government for any fuel price rise without knowing that global prices are actually very high than what we get in India. The government and Indian oil companies always try to keep a balance but oil companies just cannot keep making losses, some or the other time the burden has to pass to the people who are actually using the vehicles.

IOC was losing Rs 297 crore per day on selling diesel, domestic LPG and kerosene at the government controlled rates. IOC is losing about Rs:18/- per litre on diesel, Rs 28/- per litre on kerosene and whooping Rs:315/- per LPG cylinder (14.2 kg domestic cylinder). The total debt of IOC was around Rs:53,000/- crore at the end of March, 2011 and is growing at the rate of Rs:5,000/- crore per month! This cannot continue forever! Price rise is the only solution.  Is there any else?

Mukesh Ambani becomes first non-American to come on board of Bank Of America

Mumbai(India): Mukesh Ambani, chairman of India' most valuable oil company Reliance Industries(RIL) and highly recognized businessman comes on the board of Bank of America - one of the oldest and largest financial institutions alive in US. Surprising it may sound, why an Oil company tycoon is been invited on board of one of the world's largest banking and financial institution, but that's the truth. Mukesh brings a lot on board. Mukesh Ambani is a multi-billionaire who is listed on Forbes billionaire list in top 10. Reliance Industries run the world's largest oil refinery at Jamnagar, Gujrat and has a total market capitalization of more than $70 billion! Reliance Industries has revenues more than $40 billion - more than what Facebook and Google have combined together (Google has about $24 billion and Facebook around $2 billion at the max.). Reliance Industries and various companies under the 'Reliance' belt Mukesh and his brother-cum-business rival Anil Ambani own have tremendous influence on various sectors of the Indian business market including oil, retail, electronics and telecommunication, finance and mutual fund industry etc. India is a thriving market and Mukesh Ambani understands India and Indian market at granular level, I'm sure Bank of America has some serious business plans in India.

Sharp employment increase in India!

The year 2009 saw loss of jobs all over US and Europe. India was not hit by the recession as hard as US but it also went through a phase of stagnation in term of employment opportunities. The new openings were very very rare throughout India in the first 3 quarters of 2009. But as the clouds of recession seem to be clearing ( or at least everyone feels that way..) Indian companies have again started hiring in bulk!

The retail industry, metals and manufacturing industry along with IT has seen a wave of new job openings in the past 2 months. The stabilizing of retail industry in US is aiding the textile industry in India to win some orders and thus is also making some significant hiring. In the previous quarter the textile sector witnessed maximum loss of jobs of about 1.52 lakh followed by IT which was around 0.38 lakh. 

It is expected that India will have about 5 lakh+ job openings in the first quarter of 2010 itself. And year 2010 will be opening new jobs and added perks to the people who are already in jobs. More jobs in the economy drives everything as more jobs means more work and more work means more profitability!

Great Reading - THE INDIAN ELECTIONS!

This is what The NewYork Times is speaking about Indian elections.... it's very well said...please read.

It is truly the greatest show on Earth, an ode to a diverse and democratic ethos, where 700 million + of humanity vote, providing theirsmall part in directing their ancient civilization into the future. Itis no less impressive when done in a neighborhood which includesde-stabilizing and violent Pakistan, China, and Burma.

Its challenges are immense, more so probably than anywhere else, particularly in development and fending off terrorism -- but consideringthese challenges and its neighbors, it is even more astounding that themost diverse nation on Earth, with hundreds of languages, all religionsand cultures, is not only surviving, but thriving.

The nation where Hinduism, Buddhism, Jainism, and Sikhism were born,which is the second largest Muslim nation on Earth; where Christianity has existed for 2000 years; where the oldest Jewish synagogues andJewish communities have resided since the Romans burnt their 2nd temple;where the Dalai Lama and the Tibetan government in exile reside; wherethe Zorostrians from Persia have thrived since being thrown out of theirancient homeland; where Armenians and Syrians and many others have tocome live; where the Paris-based OECD said was the largest economy onEarth for 1500 of the last 2000 years, including the 2nd largest, only200 years ago; where 3 Muslim Presidents have been elected, where a Sikhis Prime Minister and the head of the ruling party a Catholic Italian woman, where the President is also a woman, succeeding a Muslim President who as a rocket scientist is a hero in the nation; where abooming economy is lifting 40 million out of poverty each year and isexpected to have the majority of its population in the middle classalready, equal to the entire US population, by 2025; where its optimismand vibrancy is manifested in its movies, arts, economic growth, and voting, despite all the incredible challenges and hardships; where all the great powers are vying for influence, as it itself finds its place in the world.

Where all of this is happening, is India, and as greater than 1/10th ofhumanity gets ready to vote, it is an inspiration to all the World.

- V Mitchell, New York, NY

World Bank OKs $400 mln for small firms in India!

WASHINGTON (Reuters) - The World Bank on Thursday approved $400 million in funding to help small and medium-sized enterprises in India cope with the global credit crisis.

The loan will be made to the Small Industries Development Bank of India (SIDBI), which will make available financing to small and medium-sized companies that are finding it hard to get access to credit. It will also go toward refinancing banks and other institutions that lend to small and medium-sized enterprises, known as SMEs.

"This project is part of a larger program of support in response to the government of India request for funding in light of the financial crisis," said Roberto Zagha, World Bank country director for India.

"It is targeted particularly at SMEs, to help address the credit slowdown that has resulted from the financial crisis," he added.

Zagha said credit growth to SMEs has fallen over the last year, which has affected overall growth and development.

RBI: Deposits in Indian banks are safe, not to worry!

The Reserve Bank of India (RBI) has assured that the deposits of the Indian common man in indian banks are safe and not to worry at all. Due to the financial crisis in US and incertainity of the global financial markets everyone in the world is fearing about their hard earned money kept in their respective country's bank. As far as India is concerned RBI governer assured that Indian banks are not hit due to the sub prime crisis in US, which is the root cause of the financial turmoil seen in the world economy. All central banks of almost all countries are taking care of the their banks- Japan & S.Korea have promised unlimited cover to their banks. Even Indian central bank RBI is injecting about Rs:60,000 crore liquidity by reducing the CRR ratio.

Yes, we are witnessing worst time in the stock market industry, but this is just the result of fear and uncertainity in the global economy. So, the conclusion is not to worry about your deposits in Indian banks and just chill! If you are an indian stock investor you may find this article (What to do in such turbulent times? ) to decide upon your strategies to face the stock market uncertainities.

Nestle to spend about Rs: 600 crore in India

Nestle is one brand of chocolates which people of my age and even elder than me have grown up munching. On basis of last year's strong growth in revenue from India, Nestle will be investing about Rs: 600 crore in year 2009, which is almost double than that of last year.

We will be doubling our investments in India next year. There is no envelope to the number as long as it is strategically and economically sound investment,

said Peter Brabeck-Letmathe, chairman of Nestlé SA.

The inflation has also struck companies and the pressure of increased raw materials problem worries even Nestle. But the company officials said the solution for this will be planned soon and only consumers won't pay for that entirely. Currently, Nestle India accounts for 1.5% of total turnover of the company - pretty low according to me considering the number of young people and especially choco-crazy girls in India. Nestle India has already registered 25% growth in the first half of this year.

As a part of its special marketing initiative to serve the needs of the price-sensitive consumers in India, Nestle has dedicated its Uttarakhand plant for designing, formulating and packaging products under Rs 10 price point. Identifying the huge growth potential in developing markets, Paul Bulcke, CEO of Nestlé SA, said that the developing markets currently accounting for one-third of its business would grow significantly. The company also sees the recent Chinese milk scare as an opportunity to provide safer options for consumers rather than a threat to its sales.

The company will continue to grow from being an agri-based to a nutrition, health and wellness company with a focus on regional products.