SMART PLANET

Result Overview: Net Profit Increase 40%

Bajaj Auto sprang up a surprise when it has reportedly registered a 40% increase in its net profit in the third quarter that culminated on December 31, 2010. With this unexpected jump, the Indian two wheeler giant has pocketed a net profit of Rs.667 crore.

The company with its impressive performance has wronged the speculation of the trade pundits. Analysts now believe that the remarkable growth is hugely motivated by the success of company’s popular brands “ Bajaj Discover” and “Bajaj Pulsar”.

Latest financial results show that the turnover of the company has grown by 28% to Rs 4,277 crore. The official statement issued by Bajaj Auto Limited confirmed that the last financial quarter saw overall progress in the input costs. The statement further told that the company remained focused towards achieving excellence in the production of high quality motorcycles. This focus allowed the company to uphold great margins in addition to 20%.

During the third quarter, the company sold more than 8.38 units of motorcycles. This figure marks a growth of 18%. Domestic sales increased by 23% to about 6 lakh units while exports increased by 7% to more than 2.39 units. Company’s flagship bike segment “Pulsar” registered a record-breaking quarterly sale that reached the magical figure of 2.62 lakh units.

Breaking News:  ITC Limited  India Giant’s Expansion Plans

The new paper manufacturing unit  which would come up in Khammam district, Andhra Pradesh is expected to consolidate ITC’s domination over the fast-developing paper and paperboards market in the nation.

Presently, ITC, one of prestigious business conglomerates in the country, owns 4 paper manufacturing facilities which account for the production of 5.5 lakh tonnes of paper and paperboards. The company has been playing leadership roles in the supply of specialty papers used mainly for printing, writing and packaging purposes.

The plan to set up new paper manufacturing unit has received on-paper consent from the state government. It is expected that the Union Ministry of Environment and Forests would extend its approval for the project within the next 6 months.

Pradeep Dhobale, the executive director of ITC Limited, informed that the projected paper manufacturing unit would cover an area of 1,000 acres with expected production capacity of about 300,000 tonnes per annum. This capacity would make the plant highest paper manufacturing facility in the country.

Industry analysis suggests that the paperboard demand in the country stands around 1.8 million tonnes annually. This demand is increasing at the rate of 8 to 10 percent every year. ITC alone captures about 22% of the domestic paperboard market.

The company’s Bhadrachalam unit, located in Andhra Pradesh, is also in the process of expansion. The company plans to invest Rs 1,100 crore in this unit as part of its capacity extension plan.

Do negotiate in the following circumstances to get the best possible deals.

1.     Credit Card Rates

This is especially important if you are negotiating a lump sum payment. Speak to the call center and if the representative you are speaking to you does not help you, ask to speak to a manager or a supervisor.

2.     Home Loan Rates

This is a huge competition in the market and banks are fighting with each other to lure customers. Hence, bargain hard and try to play two banks against each other and chances are you will walk away with a much lower rate of interest.

3.     Home Improvement

The recession has made us cautious and people do not want to spend money on something that can be avoided. Speak to a few contractors and you are bound to get extremely low rates.

4.     Home Appliances and Electronics

Speak to store managers and try to get a lower price as there is a lot of competition in the market and people understand that a discounted deal is better than no deal.

5.     Cars

Always negotiate when you buy a car as this is one place where negotiations have been factored in while calculating the price. The best way is to pit two dealerships against each other and make them lower the price.

6.     Medical Bills

Health care companies are usually open to negotiations and the smart consumer takes full advantage of it to get the best deal.

Always remember that you should negotiate at all times to get the best possible deals. In certain cases a discount of 10% also makes a huge difference in the price. Also, keep in mind that the worst that can happen is that you will get no as an answer and hence there I no harm in trying to get a better deal.

Oil Trading

Everyone in the civilized world is affected by the increase in the price of crude oil. As oil is mostly available in a selected few countries, we are almost completely dependent on their whims and fancies. Whenever the price of oil goes up we tend to pay more for our fuel bills and also for different commodities. The only way to make money even if the price of crude oil goes up is to indulge in oil trading.

How to trade in Oil Futures Online in India

The main aim of any person who invests in anything is to make money and this is one place where it is extremely difficult for you to lose money. The major oil reserves are controlled by a handful of countries and hence the way the prices will move is easy to decipher. There are various methods of indulging in oil trading and some of the most popular are as follows:

• Spot trading – It involves inspection of the commodity to be purchased and the delivery is done almost immediately. This is more common in wholesale markets and in commodity markets certain standards are agreed upon and hence there is no need to see a product.
• Forward contracts – In this scenario the price for a future date is decided at the present for a certain amount of commodity. When the date arrives, the purchaser pays the price agreed and picks up the goods. Profits are made depending on whether the price of the commodity has gone up or come down during the time period.
• Hedging – This is a method that kind of insures the seller against a poor delivery by hedging the funds.

A number of websites and organizations provide live data about the changing oil prices and experts are available at hand that advice whether the prices will be going up or down. Anyone with a logical mind can see the train of events and invest at the correct time. Agreed the profits are not as huge as they are in the financial markets, but the truth is that even losses are minimized. Over the last few years more and more people indulge in oil trading.

Tata Coffee Sign MOU with Starbucks

With the inking of the non-binding collaboration deal with the Indian Coffee giant, Starbucks Coffee Company has announced its entry into the Indian market. The US-based Starbucks Coffee Company has global reputation for ethically sourcing and roasting top quality of Arabica coffee.

The MOU is being termed as a strategic alliance between the two coffee producing giants. Experts are hopeful that the deal would create new avenues of collaboration between both of the companies in the production of premium quality coffee beans in the Tata Coffee producing facility located in Coorg, India. Apart from it, the involved companies are also expected to find out development and expansion options of Starbucks retail outlets in related retail stores and hotels.

The alliance also acknowledges mutual commitment of Tata Coffee and Starbucks towards dependable business values. According to the MOU signed, both the companies would collaborate with each other for promoting reliable agronomy practices which include initiating training programs for local farmers, agronomists and technicians. These efforts would improve and enrich the milling and coffee growing skills among the professionals.

Future Plans and Strategies

Tata Coffee owns huge expertise in the production and processing of coffee beans with firm focus on quality. The company has won world-wide appreciation for its wide range of premium coffee brands. Its Arabica coffee producing base is stretched over various South Indian districts. In the past, the company has provided top-quality coffee beans to Starbucks. The strategic alliance would enable both the companies to enter into a new phase of long-term relationship.

Initially, the business collaboration would enable the companies to explore further options in the fields of coffee beans sourcing and roasting. It is expected that both the companies would attempt towards green coffee procurement from the Tata Coffee estates. Then, they would use the roasting facilities owned by Tata Coffee presently.