Arrow Energy gets dirt in India

ARROW Energy International (AEI) has acquired two coal bed methane (CBM) blocks in India, as the company moves towards its listing as the separate entity Dart Energy on the ASX.

 AEI CEO Simon Potter says the two blocks awarded by the Indian Cabinet Committee on Economic Affairs (CCEA) have high CBM resource potential with good opportunities for early commercialisation if explorations are successful.

 “These blocks are highly prospective and are well located in the energy hungry Indian market,” he says.

 “The upcoming work on the blocks will allow us to further build on our existing reputation and excellent relationships in the country.”

 Arrow will hold a 60 per cent working interest in the Assam block in conjunction with Oil India and an 80 per cent interest in the Satpura block in a partnership with Tata Power.

 Tata plans to build a power station in Saputra using gas from the project with Arrow.

 After a shareholder vote AEI will likely separate from owner Arrow Energy Limited (AOE) to be listed as Dart Energy, with Potter continuing his role as CEO.

 Dart share forecasts have ranged between $0.60 and $1.60.

Is walmart retailing in India?

CHANDIGARH: Can’t forget your shopping experience at Walmart on your recent trip to the US? Pity, you can’t pick up anything from their stores though its right in your backyard in India now. Or, maybe you can? 

 Industry watchers are equally puzzled — though India is yet to allow FDI in multi-brand retail, fingers are being pointed at the latest entrant into the space — Walmart — for allowing "retail sale in the garb of B2B business". At present, Walmart is only allowed to sell to bulk consumers through the cash & carry format. 

 If Metro Cash & Carry came under attack from other wholesalers after it started operations in Bangalore in 2003 — for allowing people to access the store to buy items for personal consumption — the clamour against Bharti Walmart, which began its India operations in May 2009 in Amritsar and now has two more stores, is also growing louder. 

 Those keeping a close watch on the operations of Best Price Modern Wholesale — the brand under which Bharti Walmart stores are being run — say that "the JV is carrying out retail business in the garb of wholesale". It’s not as if it is always the fault of the retailer — some times even enthusiastic consumers find a way to beat the system to get that bargain. 

 The wholesale giant, on its part, claims that only registered members are entitled to buy goods from its stores and membership is given to businessmen against proof of sales tax registration. 

 But, it’s now under fire as there are allegations that it may not be checking the credentials and the type of business of those who are being given cards to buy from their stores. Many say that even its system of providing two complimentary cards for every business or institutional membership is up for abuse. The stores in Amritsar and Zirakpur, near Chandigarh, have over 35,000 and 20,000 members respectively while the third store at Jalandhar, which was launched on Wednesday, had a primary membership of over 20,000. 

 Industry sources, who did not wish to be identified, told TOI that all sorts of businessmen — ranging from property dealers to cloth merchants — have taken membership of these B2B stores and their families are indulging in retail buying. With the store selling only to businessmen, shop-owners and institutional buyers, who hold cards furnished against their sales tax PIN, there are allegations that PINs are even acquired illegally to qualify for the famed Walmart card. 

 When contacted by TOI, Raj Jain, MD and CEO, Bharti Walmart said that it only sells to its members and there is a proper system in place to provide memberships on the basis of business registration proof from the government. "Moreover, we have a clause of minimum ticket size of Rs 500 per billing. Even then, if someone gets a fake business registered locally, we do not have a policing system to cross-check," he said. Jain also claimed that there are bulk packets for many of the goods at their B2B stores, which cannot be purchased for household consumption. 

 The trade, however, feels otherwise. "The best price store is doing a lot of retail sale, though not openly. Government should strictly monitor such stores so they restrict themselves to wholesale business. We will take this matter up with the Centre," says Chandigarh Beopar Mandal chairman Charanjeev Singh. The mandal represents 362 small and big business houses and traders. Leading grocery chain owners in Chandigarh allege that providing two complimentary cards with one membership card is another way of encouraging retail buyers. These customers with complimentary cards mostly do retail buying. "There is no bar on buying half a kg of vegetables, a single packet of noodles or a single television set," said the owner of a small chain, on the condition of anonymity. 

 It’s not as if this is the first time these issues have been raised. Similar sentiments were raised when Metro Cash & Carry made its debut in India in Bangalore and had come under attack from other wholesalers almost immediately. The charge was that Metro was allowing people to access the store to buy items for personal consumption, or to buy items that were not part of their regular business requirements.

Queensland’s top 5 listed performers

A DELOITTE Queensland Index has shown the top five performances by market capitalisation of the state’s ASX listed companies over the past year.

 The top five were Lihir Gold Limited, Suncorp-Metway Limited, Macarthur Coal Limited, Campbell Brothers Limited and Flight Centre Limited.

During the 2010 financial year, the Deloitte Queensland Index (the Index) increased by $9.9 billion, or 21 per cent.

Out of the 190 companies currently listed on the Index; 126 companies posted an increase, 62 companies lost ground and the rest remained steady. The Index has outperformed the ASX All Ordinaries, which increased just 9.5 per cent in FY10

Deloitte Corporate Finance partner Robin Polson, says despite the multitude of negative global economic events over the past 12 months, Queensland listed companies have shown resilience in producing substantial outperformance.

“Our Index has demonstrated that companies who remain focused, and show resilience, can go on and produce substantial outperformance. Global financial markets faced significant uncertainty in recent times, particularly the resources sector, but the Queensland Index has performed well in the face of this,” he says.

In addition to a review of performance, the Index discusses key challenges facing Queensland companies through a number of feature articles. These articles include a discussion of resource taxation issues, investor uncertainty around energy generation, forensic contract investigation, talent management and innovation.

Following the downturn, talent management has become a key concern for companies.

Queensland office managing partner Tim Biggs, noted that as the Australian economy continues to recover, attracting and retaining the best people will become a major concern for companies.

“Retention of good people needs to be a major focus as companies around Australia prepare their talent strategies for the expected economic growth. Companies financial future will be strongly influenced by the actions which business leaders take in order to retain their best people over the next 12 months,” says Briggs.

Deloitte in Queensland has recently added an additional four new partners to their growing business; Julian Dolby (Consulting), Stephen Tarling (Assurance & Advisory), Shelley Nolan (Tax) and Jerry Sadlowski (Consulting); and staff numbers have increased from a base of 170 five years ago, to a total of 400 today.

The company will launch the 2010 Gala Edition of the Deloitte Qld Stock Exchange Index at the Queensland Art Gallery tonight.

More than 160 guests are expected to attend with economist Henry Ergas speaking about our medium term economic prospects, issues around mining taxation, as well as health and aged care.

Don't miss the September edition of Brisbane Business News when we reveal the city's top 50 private companies.