FinXpress

Company in Focus:

Intel Corporation

2

StartUp in focus:

StarAgri

3

Markets this Week 4

News of the Week 5

CAN YOU SOLVE IT? 7

AUGUST 21, 2011

Sources of Data:

HDFCsecurities

Economic Times

The Hindu

Rediff Money

MoneyControl.com

Financial Express

Indiapetro

Inside this issue:

Institute Of Management Technology

Ghaziabad

About Intel : Intel was founded on July 18, 1968, as Integrated Electronics Corporation by semiconductor pioneers Robert Noyce and Gordon Moore. Headquartered in Santa Clara, California, Intel is the world's largest semiconductor chip maker, based on revenue. It is the inventor of the x86 series of microprocessors, the processors found in most personal computers. Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. The company was ranked 48 in the 2010 rankings of the world's 100 most powerful brands published by Millward Brown Optimor. Market Share : According to the latest stats from iSuppli, both x86 and x64 microprocessors as a group continue to take market share away from vendors peddling RISC, Itanium, and CISC processors in the general-purpose microprocessor market for PCs. Intel got 82.6 per cent of the revenue pie in the first quarter of 2011, a two point gain over the prior year. Intel still has a strong lead in mobile PC chips - such as those used in laptops - with a shipment share of 84.4 percent. Intel maintained its dominance in server processors, finishing the first quarter with a 94.5-percent market share. Latest Acquisitions : Mergers and Acquisitions has been one of the core strengths of Intel Corporation. Intel is expanding its business focus but has traditionally been the world leader in the microprocessor segment of the Semiconductor Industry. One could categorize Intel today as being the major company in the PC component business while recognizing that it is also in other segments of the industry. In 2010, Intel announced two major acquisitions. On August 19, Intel announced that it planned to purchase McAfee, a manufacturer of computer security technology, priced at $7.68 billion. Following the closure of the McAfee deal, Intel's workforce totals approximately 90,000, including 12,000 software engineers. The company also announced the acquisition of Infineon Technologies’ Wireless Solutions business. With the Infineon transaction, Intel plans is to use the company’s technology in laptops, smart phones, netbooks, tablets and embedded computers in consumer products, eventually integrating its wireless modem into Intel’s silicon chips. Intel won the European Union regulatory approval for its acquisition of McAfee on January 26, 2011. In March 2011, Intel bought most of the assets of Cairo-based SySDSoft and in July 2011, Intel announced that it has agreed to acquire Fulcrum Microsystems Inc., a company specializing in network switches. The company was previously included on EE Times list of 60 Emerging Startups. Intel Capital, the investment arm of Intel Corp , has invested $22 million in three Chinese technology companies - a digital security and surveillance company, a smart-TV company and a company which runs the fashion and lifestyle e-commerce website. The Future : Aimed at shaping the future of cloud computing and how increasing numbers of everyday devices will add computing capabilities, Intel Labs recently announced two new Intel Science and Technology Centers (ISTC) hosted at Carnegie Mellon University focused on cloud and embedded computing research. The company has invested $30M and has planned to invest $100M research and innovation in the coming years.

Page 2 FinXpress

Company in Focus : Intel Corporation

A post harvest management company, Star Agriwarehousing provides the services from procurement, handling, transportation, warehousing and collateral management. It claims to have one stop solution for farmers, the processors, the traders and millers. At current growth rate of 300%, it expects to grow almost 20 times in next 5-6 years, meaning a target of ` 300 crores. It has presence in states of Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh and Delhi and sooner, it is moving towards Eastern and Southern markets. It is contemplating to start private online portal for trading for farm-ers and traders and can act as the biggest private agri mandi in India. It is a major solution provider in agri-business by building the finest warehousing infrastructure across the country and delivering value to all stakeholders – farmers, banks, and buyers across the agriculture processing value chain.

It was founded by Suresh Goyal along with co-founders Amith Agarwal, Amit Goyal and Amit Khandelwal in 2006. Although the four promoters hail from different places of Rajasthan and have different expertise, their vision, passion, and experience in the agricultural sector was the same. It is a Self funded organization. Its major clients are KS Oils, Ruchi Soya and Adani Wilmar. StarAgri entered the Indian agricultural space with the holistic approach of providing all sorts of agricultural services under one roof and is presently yielding high.

Since the day of its inception through its journey till date, It faced many challenges like:

1. Forming a company with low initial investment requirement because of the use of private funding only.

2. Maintaining positive cash flow from the beginning, so as to avoid the risk of shut down in the initial days of operation due to liquidity problems.

3. Emphasis on word of mouth publicity than other sources because using other sources of publicity are far more expensive and less effective as compared to word of mouth publicity.

5. To maintain that a robust process and quality services should be the key to success.

6. Rather than taking any debt, investing entire profits for working capital as running a business on debt was never the policy of the founders.

Even after facing all these difficulties, it sprang up as one of India’s pioneering company in the field of agricultural commodity business with a unique business model of creating value in the agricultural supply chain with a top line of ` 17 crore.

With their deep rooted bonding with farmers, agricultural enterprises, agricultural processors, financial institutors, banks, etc., the company secured a roaring business, which helped the company in creating a predominant position and presence in the agricultural business sphere.

Today with more than 300 employees, StarAgri has facilitated more than ` 7, 000 crore for warehouse receipts-based loan in collaboration with five different banks. The company has established 14 labs under the banner “Star Labs” for quality testing and certification of soil, water, food grains, oil seeds, spices, oil cake, tea, coffee, sugar, guar, etc. It can be said that the journey of the growth of StarAgri has just started and it has to go on and on in positive direction for the betterment of the country as well as for the company.

Page 3 FinXpress

StartUp in Focus : StarAgri

Page 4 FinXpress

Markets this week

The week gone by saw the markets sliding down further after taking a breather last week. While the Sensex lost 4.12% W-o-W, the Nifty shed 4.48% over the same period. Reflecting the weak sentiments, market breadth was negative in all the four sessions of the week. Markets remain in an Intermediate downtrend. The Nifty is however trading near the crucial supports of 4786. These supports are crucial because they correspond to the previous major lows of the Nifty made during the week ended 28th May 2010. A bounce back can be expected in the coming week if these supports hold.

The biggest gainer this week was J.P. Associates gaining 2.5% followed by DLF with 2.47% gain. The biggest losers were Infosys followed by Tata Motors losing 5.79 & 5.28 respectively.

Some Highlights of the week :

Rupee remained weak on Thursday as negative local shares and oil importers` dollar demand weighed. Rupee ended at 45.74/75 per dollar, weaker than Wednesday`s close of 45.41/42 per dollar. The euro has gained about 0.3 per cent against the dollar so far in August while the greenback has lost around 1.2 per cent versus the yen.

Gold prices climbed to fresh all-time high of ` 28,230 per 10 grams gaining ` 80 on sustained buying by stockists and investors amid firm global trend. In August, gold prices topped platinum in global markets for a few days. Silver spurted by ` 3,500 to ` 66,300 per kg on increased off take by industries such as electroplating and other consuming units.

Oil ended the day below $83 a barrel on Friday, finishing down about 4 per cent for the week, on fears that another recession could cut demand for energy. Benchmark West Texas Intermediate crude fell 12 cents to finish at $82.26 per barrel on the New York Mercantile Exchange after earlier rising as high as $83.55 per barrel.

At the request of Aegon Mutual Fund (Dutch financial services group ) , Sebi has cancelled the certificate of registration of AEGON Mutual Fund and has withdrawn the approval granted to AEGON Asset Manage-ment Company Pvt Ltd to act as the Asset Management Company.

Govt owes ` 3,500 crore to IT/BPO companies like Infosys, Mphasis, Wipro, in service tax refunds for the past three years

India’s annual food inflation declined to 9.03 percent for the week ended Aug 6, as compared to 9.9 percent in the previous week.

Reserve Bank of India governor Duvvuri Subbarao chose to be guided by his own judgement in going for an aggressive increase in interest rates in July rather than going by the advice of a committee on monetary policy in order to curb the headline inflation , which is over 9%. RBI raised rates by 50 basis points - higher than expected - surprising the market, which was betting on rates going up by 25 basis points.

Hewlett-Packard, based in Palo Alto, California, dropped $5.91, or 20 percent, to $23.60 at 4 p.m. on the New York Stock Exchange. The decline was the largest since October 19, 1987, the market crash known as Black Monday. The drop erased $16.2 billion from Hewlett-Packard’s market value since Aug. 17, the day before the company’s plans were made public.

Coal India pips RIL to be No.1

in M-Cap

Coal India ended Reliance Industries’ four-and-a-half-year reign at the top to emerge as India’s biggest company by market cap as soaring demand, high commodity prices and a monopoly position in the industry lifted its shares. Coal India, which was listed only last year rose 2.8% to end at ` 398 on BSE on Wednesday, giving it a market value of ` 2, 51, 328 crore.

Sahara partners Korean

firm to set up 6,000 MW

projects

Sahara India Power Corp Ltd will set up 6, 000 MW power plants in India in association with Korea East-West Power Co Ltd. The companies have entered into an agreement to jointly participate in tariff-based bidding for ultra mega power projects and other

Page 5 FinXpress

News of the Week

opportunities in India to add up to a total capacity of 6, 000 MW. The two companies are already setting up a 1, 320 MW power generating plant at Tilagarh in Orissa with an investment of about ` 8, 000 crore

Pay upfront, Bullion dealers

tell Jewellers

.As gold soars to new highs with increasing regularity, bullion dealers across the country’s gold markets are demanding upfront cash from small and mid-level jewellers to avoid a possible default in case prices crash. If a client books gold at a preset rate for later delivery and if prices fall in the interim, it could introduce the former to default, putting the dealer at risk. Gold prices hit a record ` 26, 416 per 10 gm on Tuesday in Mumbai, mainly because of a weaker rupee and a rise in the overseas gold rate.

Transocean offers double

the market price for Aker

Drilling

World’s No.1 oil drilling contractor Transocean is paying double the market price for Aker Drilling to refresh its ageing fleet of Norwegian drilling rigs and boost f lagging orders. Transocean, the owner and operator of the Deepwater Horizon rig at the centre of last year’s Gulf oil spill disaster, is

paying $ 1.43 billion, or 26.50 crowns per Aker Drilling share. The deal $ 1 billion of contracts to Transocean’s books and is earning enhancing.

Japan’s Q2 numbers beat

expectations, Yen holds key

Japan’s economy shrank much less than expected in the second quarter as companies made strides in restoring output after the devastating earthquake in March, but a soaring Yen and slowing global growth cloud the prospects for a sustained recovery. Analysts expect the world’s third largest economy to rebound in July - September, probably expanding at the fastest rate among major industrialised nations. GDP fell 0.3% in Q2, less than a median forecast for 0.7% contraction and a 0.9% decline in January-March.

DLF slapped a fine of ` 630

crore by CCI

Realtor DLF was slapped a hefty fine of ` 630 crore by the Competition Commission of India

or the CCI. They found DLF guilty of taking undue advantage of its market dominance and grossly

violating the consumer rights. DLF, in one of its residential projects named Belaire, was found to have started its work without proper approval, increasing the number of floors midway of the project and forfeiting booking amounts paid by buyers for the flats. The strict order threatens to bring out in the open the so far isolated war between the flat buyers and DLF and consequently hinder the growth prospects of other realtors.

ManU planning IPO in

Singapore by year-end

The English Premiere League champion club, Manchester United plans a $ 1 billion IPO in Singapore by the end of this year, according reports of IFR this week. The IFR report also mentions Morgan Stanley and few other players as probable winners of mandate for the IPO. Earlier, there had also been speculation of ManU getting listed in Hong Kong which has become a destination for brands like the fashion company Prada Spa and cosmetic company

Page 6 FinXpress

News of the Week continued...

L’Occitane. The South Asian region, home to almost two-thirds of ManU’s fan base, offers the perfect growth prospect for the loss making club.

Arbitrage opportunity

standing before banks

Banks are currently facing a unique arbitrage opportunity between the repo rate and the certificate of deposits or CDs. The one-month certificate of deposit has appeared to be beneficial for the secondary mar-kets with yields crossing 8% thus, making the market attractive for investments into CDs. The banks are planning to raise amounts through the repo window of RBI. Certificate of deposits are primarily tools using which the banks can raise funds for each other on a short term basis.

Inflation drops to 9.22% yet

rate hike possibility persists

The wholesale price index or the WPI has dropped to an eight month low raising hopes that the

inflation may have finally peaked and thus, the rate of price rise may mellow down. Despite the drop, the monetary tightening policies of RBI are expected to persist, according to experts. The WPI was up 9. 22% in July from a year ago. The June figure for the WPI was 9.44%. According to the Finance Minster Pranab Muk-herjee, a good monsoon may have a complementary affect and thus help in reigning in the rate of price rise.

G o o g l e a n n o u n c e s

acquisition of Motorola

Mobility

Google announced its acquisition o f m o b i l e h a r d w a r e manufacturer Motorola Mobility on Monday. Google is acquiring the independent mobile manu-facturing company for $ 12.5 billion thus making a foray into the telecommunications market. Motorola manufactures cell phones which run on Google’s Android software. The major implication of this deal, however, is that it pitches Google as a ma-jor competitor of Apple and RIM, both of whom produce hardware which ironically use services of Android. Google, through the deal, will also become the owner of 17000 patents which it can use to offset several of patent charges lined against it.

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Solve it Now!

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First 3 right entries will be given exciting prizes courtesy Pizza Hut, as well as get their name featured in the next issue of FinXpress. So hit the quiz fast & get yourself visible among 1000 odd in the campus.

Set A The Brand Quotient :

Brand Company

1) Vanish Pepsi Co.

2) Kaya Skin Clinics HUL

3) Minute-maid Reckitt Benckiser

4) Gatorade Marico Industries Ltd

5) Pureit Coca-Cola

Set B Ident i fy the Brands and what is common between them

1) 2) 3) 4) 5)

CAN YOU SOLVE IT ?

Feel free to write to us at : Drop in your suggestions to the editorial team :

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LAST WEEK’S FIRST 3 RIGHT ENTRIES WERE FROM

Pramod Vemuri Ankit Kheria Raghvendra Vaidya

OTHER RIGHT ENTRIES

Tushar Gautam Deepti Kanodia Anshul jain

Ashish Sarolia Swati Goel Parag Jain

Poonam Khaitan Karnica Gupta Abhushan Sarraf

Himanshu Tyagi Megha Bhalla Pankaj Singh

LAST WEEK’S ANSWERS

Set A -

1) Germany

2) Brazil

3) China

4) South Africa

5) Russia

Set B - IIP - Index of industrial production

GICS - Global Industry Classification

Standards