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Sep 8, 2009 0

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If you have ben reading for the Nielsen report for the Country’s top urban centers, this one’s even one step ahead in mapping the affluent consumer centers in the coming decade. take a look. it’s mostly Bangalore, Ahmedabad and some surprises:

India’s 10 Fastest Growing Cities
M. Tharini
Thursday, 29 January 2009 00:00
A lot has been commented about India’s vigorous economic growth with economists forecasting a bright future for the country. But some know of the growing Indian cities that are feeding to the nation’s growth. So which are the country’s fastest growing cities? Read on to find out.SURAT – Growth rate 11.5% – Surat is Gujarat’s 2nd biggest city with a population of 4 million. It is the fastest growing Indian city in terms of economic prosperity. The city has met an annualized GDP growth rate of 11.5 % over the past 7 fiscal years, as per the data computed by economic research firm Indicus Analytics. Popular for its thriving diamond and textile industry, Surat is located on the banks of the Tapti River. Over 90 % of world’s diamonds are cut and shined here. These 2 industries have hugely shared to the city’s growth as the economic powerhouse of India. Though always affected by floods and earthquakes, the city has often come out on top. Enhanced infrastructure has been significant to Surat’s quick rise. A number of elevated roads and flyovers have contributed the thriving diamond and textile business of the city. The city’s Varachcha flyover is claimed to be India’s longest. Surat with its low unemployment rates, high job rates and one of the highest per capita small business Credit is the best land for jobs and business. It is told that if you wish to make money, Surat is the place to be in.

BANGALORE – Growth rate 10.3% – What was knows as the Pensioners’ Paradise 10 years back, has emerged 10-fold now and a study states that the rupee millionaire club in Karnataka’s capital is the most crowded in India. Bangalore also boasts of owing the largest number of households with an annual income of Rs 10 lakhs (Rs 1 million) or more. With an estimated population of 6.5 million, Bangalore is 1 of India’s most populous cities. How has this city which was more popular for its gardens and laid-back lifestyle modified so much in character? The 2 reasons that come to every Bangalorean’s mind are: the start of the IT industry, and subsequently the boom in real estate prices. Unlike other cities in India, Bangalore’s main activity is information technology and information technology-enabled services. Being the prominent contributor to India’s IT industry, the city is always referred to as the Silicon Valley of India. Software majors Infosys and Wipro being headquartered in the city, Bangalore contributed 33 % of India’s Rs 144,214 crore ($ 32 billion) IT exports in 2006-07. Businesses comprising large corporate that are either multinational companies or Indian firms dealing with or serving to MNCs recruit a very large workforce in Bangalore. And although the city’s infrastructure has been unable to stay pace with the fast growth of the city, Bangalore still remains one of India’s boom towns.

AHMEDABAD – Growth rate 10.1% The – Ahmedabad region, comprising Gandhinagar, of Gujarat is the biggest inland industrial centre in western India and has been a significant base of commerce, trade and industry. With a population of 56 lakh (5.6 million) Ahmedabad has kept great prosperity because of its proximity to Surat and its access to the hinterland of Gujarat. Though dusty roads and bungalows used to cover the city once, Ahmedabad is now evident a major construction boom and a rise in population. In recent years, the city has seen an important rise in information technology and scientific industries. Apart from these, chemicals and pharmaceutical industries share to the state’s economic growth, with 2 of the biggest pharmaceutical companies of India — Zydus Cadila and Torrent Pharmaceuticals being based here. Ahmedabad also forms the corporate headquarter of the Nirma group of industries and Adani group. Of late, several foreign companies have plan up their units here. Among them, Bosch Rexroth of Germany, Stork and Rollepaal of Netherlands deserve valuable mention.

MUMBAI – Growth rate: 8.5% – The commercial capital of India is one of the world’s top 10 trade centers. The city aids 25 % of industrial output and 70 % of capital transactions to India’s economy. The city response for about 1 % of the total population in India but has a per capita income which is almost 3 times that of India. Mumbai accounts for 14 % of India’s income tax collections and 37 % of the corporate tax collections in the country. The city is the berth of important financial institutions like the Reserve Bank of India, Bombay Stock Exchange and the National Stock Exchange of India. One of the biggest special economic zones in India is being set up in Navi Mumbai, to be sprawl over an area of around 50 square kilometers. Many corporate and multinational companies have their headquarters in the city that earns migrants from all around India. The city provides countless employment opportunities and is famous for its interesting and high standard of living. The city, with a population of 19 million, is also called as the Indian seat of entertainment as it is the home to the Hindi film industry, the biggest in the world. Most of the city’s inhabitants depend on public transport to commute. Transport systems in Mumbai comprise the Mumbai suburban railway, also known as the lifeline of Mumbai, BEST buses, taxis and auto rickshaws.

NEW DELHI – Growth rate: 8.4% – Though it can’t match Mumbai in terms of contribution to the growth of the Indian economy, the capital of India, is no pushover. Delhi’s, (comprising its 9 districts and adjoining Noida, Ghaziabad, Faridabad and Gurgaon) total GDP stood at Rs 1,60,739 crore (Rs 1,607.39 billion). It shares 4.94 % to all-India GDP. Connaught Place, one of northern India’s biggest financial centres, is situated in the heart of Delhi. Being a vital commercial centre in South Asia, Delhi has a per capita income of Rs 53,976, which is more than double the national average. Delhi’s main service industries, supported by as strong and well laid out infrastructure, add hotels, banking, IT, telecommunications, media and tourism. In recent times, Delhi’s manufacturing industry has emerged considerably and consumer goods industries have established manufacturing units and headquarters in and around the capital. Construction, health, power, telecommunications, community services, and real estate form the backbone of Delhi’s economy. The capital’s retail industry is 1 of the fastest growing industries in India. Public transport in Delhi includes buses, auto rickshaws, taxis, suburban railways and metro rail.

HYDERABAD – Growth rate: 7.8% Hyderabad, the financial capital of Andhra Pradesh, is also called as the city of pearls. With an estimated population of 7 million, the city is the biggest contributor to Andhra Pradesh’s gross domestic product, state tax and excise revenues. As per 2006 statistics, the per capita income of Andhra Pradesh was at Rs 25,625 (less than Rs 200 of national average). The city, which utilized to be primarily a service city, is presently the seat of several businesses, adding trade, communication, transport, commerce, storage, and lately IT. Like Bangalore, Hyderabad also has witnessed a real estate boom in recent times, mainly because of the growth of IT and retail business in the city. Major pharmaceutical companies such as Dr Reddy’s Laboratories, Matrix Laboratories, Aurobindo Pharma Limited and Vimta Labs are landed here. Hyderabad has also done considerable results in the field of bio-technology through initiatives like Genome Valley and Nanotechnology Park. For the advancement of infrastructure in the city, the Andhra Pradesh government is building a skyscraper business district at Manchirevula

PUNE – Growth rate: 7.4% – The growth of this major industrial city, situated roughly 150 km east of Mumbai, has turned the topic of discussion these days. Right from automobile majors such as Tata Motors, DaimlerChrysler, Pune will soon house units of international biggies such as General Motors, Volkswagen, Fiat, et cetera. A number of significant engineering goods industries like Cummins Engines Co Ltd and Bharat Forge Ltd, electronic goods companies like LG, Whirlpool, food companies like Frito Lay and Coca Cola are also put here. Of late, Pune’s software industry has grown by leaps and bounds. IT parks like Rajiv Gandhi IT Park at Hinjewadi, Magarpatta Cybercity, MIDC Software Technology Park at Talawade, Marisoft IT Park at Kalyani Nagar are seats of technology that the city can boast of. To face the demands of this explosive economic growth in Pune, the state of Maharashtra is planning a 1,000 MW power plant to uniquely service to the requirement of Pune. MIDC is the lead agency for the project.

BARDHAMAN – Growth rate: 6.6% – Located nearly 100 km north-west of Kolkata, Bardhaman is headquarter of the district of the same name. With about 58 % of the population gaining their livelihood from agriculture, Bardhaman has received the name of ‘granary of West Bengal’. Rice grown in the area is supplied to different parts of India and also exported to the neighboring countries. Though predominantly an agricultural area, Bardhaman also houses a number of industries supported mainly by rich mineral sources available in the area and also imported from the neighboring Indian states of Bihar, Orissa and Assam. The industrial belt of Bardhaman has mainly developed embracing the Asansol and Durgapur sub-division. 2 most pioneer industrial units of the area are Durgapur Steel Plant and Durgapur Alloy Steel Plant. Other industries that thrive in the area consisting coal-based industries, chemicals and power plants. The Damodar Valley Project has gone a long away in getting the irrigational need of the region. Indian Iron and Steel Industry (IISCO) form the economic backbone of Asansol area. It is the oldest pig iron and iron casting unit in India. Chittranjan Locomotive, a government undertaking, supplies locomotive parts all around India. Many cottage industries have also developed in the area that support the area’s rural economy.

KOLKATA – Growth rate: 6.3% – Often termed lovingly as the cultural headquarter of India, the capital of West Bengal has a population of 5 million. Like its several other metropolitan cousins, Kolkata incurred from economic stagnation in post-independence India. However, since 2000, the city has evidenced an economic rejuvenation, thanks to the development of IT industry in Rajarhat in Greater Kolkata. The city’s IT sector is developing at 70 % annually – double that of the national average. The city has seen a surge of investments in the housing infrastructure sector. Many new projects have come up in recent times. Some reputed companies are headquartered here. Of them, ITC Limited, Birla Corporation, Bata India, Domodar Valley Corporation deserves special mention. Opening of the Nathu La in Sikkim as a trade route has put Kolkata in a beneficial position. Like other metropolitan cities of India, Kolkata continues to struggle with problems such as poverty, pollution and traffic congestion.

CHENNAI – Growth rate: 6.2% – The capital of Tamil Nadu, the 4th largest metropolitan city in India, has an estimated population of 7.5 million. The economy of the city is aided by industries like automobile, technology, hardware manufacturing, and healthcare. As per recent report in The Hindu, economists have forecasted that Chennai’s per capita income would rise from $468 in 2000 to $1149 in 2015 and $17,366 in 2050. The city houses India’s major automobile companies and happens to be India’s second-largest exporter of information technology and information-technology-enabled services, after Bangalore. Buses, trains, and auto rickshaws are the most general form of transport within the city. To counter traffic congestion, the state government of Tamil Nadu is building a number of flyovers at significant intersections.

[Tags India Infrastructure, Retail Lifestyle, Lifestyle Economy]

[Category India, Lifestyle]

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OIL Exploration – follow up comparison | AK57.in

FROM Sh Arun Kejriwal’s Blog

Whenever one talks of OIL, ONGC comes to mind. Very clearly ONGC is the big brother of OIL and from the table below it can be seen that by and large ONGC is ten times the size of OIL. Broadly speaking on parameters of efficiency, earnings and performance the similarities are more than striking and one could say that they are identical. In terms of size there is a clear cut difference and ONGC is about ten times in size.

ONGC Group	OIL India Limited
Production – approx. 448 MBOE	Production – approx. 40 MBOE
Turnover – Rs 109000 crs or 1.09 trillion	Turnover – Rs 7100 crs or Rs 71 billion
Profit After Tax Rs 19700 crs	Profit after tax Rs 2200 crs
Equity – Rs 21.38 billion	Equity – Rs 2.14 billion (pre-IPO)
Earnings per share (FY 09) Rs 92.35	Earnings per share (FY09) Rs 101
P2 Reserves – Oil – 5247 million barrels	P2 Reserves – Oil – 577 million barrels
Gas – 628 bcm = 3831 mn barrels	Gas – 63 bcm = 387 mn barrels
Oil + Gas = 9078 mboe	Oil + Gas = 964 mboe
Return on net worth 25 %	Return on net worth 23%
MBOE = million barrels of oil and oil equivalent BCM = Billion Cubic Metres

NHPC has just listed a few days back and very clearly the listing of the same was a disaster considering the overwhelming response the issue garnered. HNI’s had invested Rs 35000 crs in an issue where shares worth Rs 580 crs were to be offered to them. There cost of funds was in a range of Rs 6.75 – Rs 7.25 per share and each one of them has either booked a loss or is holding on to a huge loss, hoping that the price improves. In this scenario the question that comes to mind is should one invest in OIL by applying for the issue and if yes at what price?

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OIL India Ltd – The India Energy Demand solution

India’s energy situation in short is that it needs four times more oil than it produces, and thus domestic production has been a focus in India’s Infrastructure story since 2005

The OIL IPO band at Rs 950-1050 just ensures an IPO size of Rs 5000 Crores ($1.02 billion) from 11% new shares and 10% sale of existing stakes of the Government, thus brining the post issue government stake to 78%, very close to the ideal target of 75% promoter stake for listed companies and allowing the government to take down further ownership at a later stage based on market determined prices. The government will further sell another 10% of its stake to IOC (5%), BPCL and HPCL. The IPO monies would thus finance the company’s Cpex requirement for the next 2 years across its exploration contracts in Assam, Rajasthan ( new fields in management contract with Cairn – the first Production Sharing Contract) and even its overseas bids in Libya and Venezuela, not the ones in Nigeria.

OIL is the newest entrant in India’s energy story, following on the footsteps of ONGC Videsh and ONGC while it has purportedly on paper, more market friendly organization values and has reserves of $500 billion in the new NEPC VI fields. However, It has relinquished interest in North Cachar and other Assam fields award in 2004.

In keeping with India’s Infrastructure story’s imperatives and as per the ever increasing financing gap of $384 billion at 2005 prices and $475 billion at current prices (as per EGOM estimates, India Infrastructure Report 2008, IDFC, 3i network) the issue has been super-sized. Unfortunately SEBI has still not uploaded any revised prospectus/offer document since the last one was filed for an issue half the size in December 2007. Since then, while India’s Oil subsidy bill has soared to over INR 100000 crores for both 2008 and 2009, OIL has managed its exploration and distribution activity safely to become profitable and is looking to fund the completion of its exploration projects through this issue.

OIL will be critical to the FTSE India Infrastructure 30 index introduced in 2007 and ETFs around the same will be in high demand once the listing of these shares is completed as Institutional appetite for Indian public sector infrastructure stories will continue to be robust for the more than $10 billion to be raised in the six months since July 2009 and another $20 billion that may be raised in 2010.

With Oil prices currently ruling at $70-75 and OPEC targeting an increase to $100, we are back in an inflationary situation where exporting 20% of our domestic reequirment though cash accretive is still not enough to bring down our costs, while increasing our domestic production remains slow and torturous. OIL remains immune to the imbalance however and will be free to purchase and sell at market prices using more efficient trading mechanisms than currently practiced by the consequent coalitions and thus its financials are likely to be strong. However, they are unlikely to be on par with a private sector Cairn Energy or Reliance in terms of these efficiencies. OIL does share the subsidy bill as under recovery, but it is still likely that because of it being a new corporate, itwill suffer only minor losses on the said account and IOC and HPCL wil maintain primacy with regards to paying the bills

The LNG/LPG situation however in the market today can be easily capitalized by OIL, where neither $4.20 or $2.34 is a fair price, global markets ruling currently at $3.45 ( mid-August 2009) It has reserves of 77 billion cu. mtrs of Gas including contingency reserves primarily in the Rajasthan basin

Also, it had initially suffered losses in production in the Dikom fields with 2007 production being 2.23 million barrels, less than half of its 1999 production. Still, in the face of global competition it has secured 21 of the 46 fields awarded by the government till date under NELP. The Rajasthan fields that it operates under PSC cover nearly 4000 sq. kms. They are a first step in diversification of OIL’s over dependence on Asssam and the single 1220 km pipeline from the terrorist infested areas there in. Of its last known turnover of $1.2 billion, costs include 20% royalties for crude oil and 10% royalties for natural gas and offshore oil, and underrecovery from crude supplied to public sector refineries which is 80% of the company’s revenue. they also pay approx 5% of this revenue to the Assam government in taxes on oil bearing land. Apart from owning the pipeline from Assam ( 44 million barrels in 2007) it also owns 26% in NRL and 10% in BCPL refineries. the current Capex includes exploratory wells and 2D and 3D seismic data acquisition in the fields being developed of the 38000 sq kms awarded to OIL till date ( 75% thru NELP )

[Tags India, India Infrastructure, IPOs, OIL, ETF, EEM, Emerging Markets, Russia, China, Energy]

[Category India, India Infrastructure]

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The "currentcy" of Capital Markets

A. Flash Trades/High Frequency Trades: High-frequency traders often confound other investors by issuing and then canceling orders almost simultaneously. Loopholes in market rules give high-speed investors an early glance at how others are trading. And their computers can essentially bully slower investors into giving up profits — and then disappear before anyone even knows they were there.

High-frequency traders also benefit from competition among the various exchanges, which pay small fees that are often collected by the biggest and most active traders — typically a quarter of a cent per share to whoever arrives first. Those small payments, spread over millions of shares, help high-speed investors profit simply by trading enormous numbers of shares, even if they buy or sell at a modest loss (@nytimes)

So one can find a trending share and buy in flash trades to offload to the regular joes at day trading terminals at a higher price

B. Trading Pools: Stock Exchanges are too evolved and too public, program trading can be limiting thus global banks look for exclusive clubs that do large OTC deals in any trading security in these black pools, unhindered by public trade, even better than high frequency trading where they get a 0.03 sec window into others’ buy orders for a fee.

C. Algorithmic trading at $GS and $UBS? : Investing algorithms figure out such artificial arbitrage opportunities and market-making forcing small profitable trends. Other algorithms just ride on available trends and risk capital markets only when market wide trends get accelerated by 50-100 times because of these monster machines!

Look out for more detailed treatment or write to me if you are interested..

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Tweets from the Market – July 24, 2009

Do remember to validate picks at http://socialpicks.com/zyaadakairaada/portfolio $AMZN is down 8% as we speak

Facebook at 77 million visitors, Amazon 64 m, Craigslist at 47 m, Wordpress at 26m and Twitter at 20m compared to Goog at 157m in June09

about 2 hours ago from TweetDeck

So $AMZN makes $1.75 bn per month from 64 million visitors

5 minutes ago from TweetDeck

That is more than $27 from every single visitor! $AMZN

3 minutes ago from TweetDeck

If Twitter made 10% of that they would have sales of $54million to start with ( based on June comscore)

2 minutes ago from TweetDeck

China’s new loans may surge to a record 11 trillion renminbi ($1.6 trillion) this year as the government refrains from tightening lending rules to protect economic growth

just now from Tweetdeck

Goldman /Blankfein paid a 23% return on the govt’s TARP investment, paying $1.1 billion for the warrantshalf a minute ago from TweetDeck
Also Buffet sold a third of his stake in Moody’sjust now from Tweetdeck

China’s state construction giant raised a $7.3 billion in IPO4 minutes ago from TweetDeck

(Green Shoots?) Both American Express (AXP) and Capitol One (COF) reported earnings that were quite weak (seekingalpha dot com)2 minutes ago from TweetDeck
$CIT looks in line to become smaller, selling its comml business and most likely losing its aviation lending and rail finance biz profitablyhalf a minute ago&amp
;amp
;nbs
p;from TweetDeck
BTW, we continue to be short on both $AXP and $COF and bullish on the market ( same as before act. results came out @zyakairahalf a minute ago from TweetDeck

<-> twitter @blrmoneytalkz

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Adani Power – Will Infrastructure Finance get Public Participation

Adani Power is coming out with the next Public Issue that will be closely watched in two weeks and with 30 crore shares on offer, it could easily mop up 3000 Crores for its 13.5% post IPO stake on offer. For a total projects of 6600 MW in Mundra, Dahej and Tiroda, the company estimates a cost of Rs 29000 Crores or $ 5.8 b which is a little under Reliance’s estimate of $1m per MW. The promoters are doing a lot of jugglery between the projects as they also own Mundra port et al but they do have preliminary PPA arrangements with Haryana ( Mundra Ph IV) , MP (Tiroda) and Mundra Port, Gujarat, Maharashtra (Mundra, Dahej). these are big ticket issues and one mis-step in the market could easily derail the infrastructure engine for 12-18 months

Adani Power has done some private placements in Mar and even in June and most are at par, with some at a premium of Rs 90, which seems to make for a really large shareholder base and may dilute premium for others? Does that mean they anticipate a weak response to the market? Probably, it is just the cost of long term venture equity. Interestingly out of the @180 million shares post issue, 1450 million would have no lock up or lock in ( lock up) period of less than one year. For the Mndra project, Phase I&II was financed by a consortium of Public Sector Banks borught together by ICICI Bank for Rs 3200 Crores ( $640 m)

[Tags India, India Infrastructure, Power, Indian Economy, Mundra, Ports, SEZ, Financial Markets, Reliance ADA]

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More Capital for Reliance ADA Grp

At its RNRL and Reliance Capital AGMs today, Anil Ambani announced new Capital raising plans for its Insurance and Infrastructure companies including the Western Freeway Sealink, utilizing the current buoyancy in the markets to “unlock value” Thus efforts continue to overcome challenges to RNRL from the new legal action by customers and Government for actioning RIL PSC (Production Share Contracts)

Reliance ADA Grp made plans public for spending Rs 10000 Crores ($2b) to add 20MT pa capacity in Cement making apart from reiterating its earlier plans for Insurance ( That would be a large 1000 cr, $200m issue before QIP). Reliance also announced that it would be diversifying into Investment Banking later this year. They have recently floated a Domestic Investor focussed Private Equity fund and will obviously learn from previous aborted ventures of Rel Capital when it was more a shared concern of the two brothers as also a direct support line for Grand Ambani plans

In related news, Yes Bank has also organized a $250 m QIP while, IDFC has added 40K ESOPs to its capital and IFCI has acquired Rs 300 cr ( $60m of MCX from the software team at FTIL) The iron is hot, and ADA has always been the more financially literate and savvy teams.

[Tags India, India Infrastructure, IPOs, Infrastructure, Indian Economy, Reliance ADA, Anil Ambani]

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The First Divestment: NMDC

The NMDC Divestment should proceed smoothly for a 5% stake if approved. Other DRHPs filed include Godrej Properties and Indiabulls Power which may do well despite not very strong management and doubtful assets ( Godrej has most of its land bank in JVs with partners , while Indiabulls Poer is moving into an unrelated field after a not so successful RE and NBFC run) for NMDC if a 5% divestment comes through it would raise around 750 crores at current market prices which already seem to be around their average 6 months value in anticipation and seem like a good starting point for the Divestment to roll.

NMDC is India’s single largest iron ore producer and exporter, presently producing about 30 million tons of iron ore from 3 fully mechanized mines viz., Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State) and Donimalai Iron Ore Mines (Karnataka State) which are awarded ISO 9001-2000 certification.

NMDC has the only mechanized diamond mine in the country with a capacity of 1.00 lakh carats / annum at Panna ( Madhya Pradesh State ). The organization is under the charge of Ministry of Steel, which will continue after the divestment.

As of 31st March 2009, we had 5650 employees producing a profit of INR 6500 Crores ( $1.33 billion). It was categorized as a Navratna (Crown Jewel) in Nov 2008 in preparation for its public issue. The primary Bailadila Ore deposits are supplied to Essar, Ispat Industries and others replacing sponge iron because of their beneficial metallurgy. Others like Kudremukh and Khetri were handed over to third parties to run as independent legal entities ( public or private) the management links its fortune with that of the strong demand led growth of the Steel Industry.

The stock has recently moved from 300 to 375 on news of divestment and has also signed steel companies in Japan and Korea at a long term rate. they signed a JV with Rio Tinto in Aug 2008 to expand their exploration outside India and with South African company Kopana ke Matla for exploration in Africa/SA. The equity base of the company is Rs 396 crores ( $80 million) from a three fold bonus in FY09. NMDC also plans to own 51% of Kudremukh Iron Ore ( KIOCL) for INR 315 crores ( $63 million). NMDC paid a dividend of RS 1200 crores in FY09 ( $240 million)

NMDC is also working with Adani Power, Monnet Ispat and others to plan development of its coal fields. Interestingly, it has also announced plans for a downstream steel plant in Karnataka (10MT) and another in Chhattisgarh (3MT) according to the company MD Rana Som. t present, per capita consumption of steel in the country is 47-50 kg as against the global average of 180 kg. India exported 90 million tonnes of iron ore in 2005-06 out of which 68.5 million tonnes went to China and that exports account for about 60% of Indias iron ore production. (steelguru.com)

[Tags India, India Infrastructure, IPOs, Infrastructure, Indian Economy]

[Categories India Infrastructure]

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Facebook vs Twitter series 12/800: Twitter is down from FB hunting?

Sitting inside a conference room at Twitter, BlackBerry in hand, Kevin Thau is all business.In his first interview since taking charge of the San Francisco technology companys mobile business development a month ago, Thau is confident that cellphones will play a crucial role in helping the messaging service make money.

The four-year-old company, which has raised more than $35 million from Benchmark Capital, Spark Capital and others, offers its service free of charge, and hasn’t yet figured out how to generate revenues.

Thau, 36, says thats about to change. He says the number of text messages passing through Twitters platform has grown 1,000% in the last year. Add to that the fact that users are texting more substantive observations and opinions in real time, and the company has a valuable information database it can sell to businesses.

Thau says Twitter is developing a range of analytics and metrics products and services built around the information contained in “tweets,” the e-mail and text messages that pass through its platform. “We can measure the tweets,” he says. “Were trying to figure out what are the appropriate metrics around engagement and how to convey those.”

Thau, however, didnt say when Twitter plans to sell these services or how much it will charge for them.

Its an interesting business model, but can Twitter survive selling analytics and other services? “When it comes to enterprises, absolutely,” says Jeremiah Owyang, a social computing analyst with Forrester Research ($FORR ) . “I just got off a call with a client thats asking about how to engage on Twitter. There’s definitely interest.”

via ‘Forbes’

Posted via email from social networking and new markets

DJIA	10779.17	+45.50
NASDAQ	2391.28	+2.19
S&P 500	1165.82	-0.39
^TWII	7886.34	+0.00
^AORD	4874.90	-2.80
EEM	41.73	-0.32
PGX	14.07	+0.00
PBR	46.23	-0.62
KKE	0.00	+0.00
YESBANK.NS	249.55	+3.60
PFE	17.23	+0.02
HDB	129.66	-1.57
RECLTD.NS	250.45	+6.15
HBC	52.19	-0.78
ADBE	35.75	+0.26

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