Public Relations
The Sensex is moving steady and is now at 17,053, up 204 points. The NSE Nifty is at 5,062, up 66 points.
The year 2010 will start on a promising note as we have held on to the gains of 2009, even if it means consolidating for the first few months of the year, says Sundaresan Naganath, chief investment officer at DSP Blackrock mutual fund. After having worked with Credit Suisse Asset Management New York and Merrill Lynch Asset Management Hong Kong, Naganath oversees some of the best performing funds such as DSP Blackrock Equity and DSP Blackrock Top 100. In an interview with Vandana and Neha Pandey, he says challenges that markets face are more external than domestic. Excerpts:
The stock erased all its gains and slipped into the negative terrain to touch a low of Rs 1,005. The stock finally ended at at Rs 1010, down 1% from its previous close. The counter clocked volumes of 136,077 shares as compared to the two-week daily average traded volumes of 147,279 shares on the BSE.
The government has cleared nine proposals that will bring in foreign direct investment (FDI) of Rs 524 crore, more than half of which would be contributed by Japanese Mitsui and Company in setting up warehousing and container freight stations in the country.
The Foreign Investment Promotion Board (FIPB) has rejected a proposal from German firm EADS Deutschland GmbH and Larsen & Toubro (L&T) for setting up a joint venture company for manufacturing, distribution and marketing of products pertaining to electronic warfare, military avionics, radars and defence-related mobile systems. This was done after taking up the matter in six of its previous meetings
Over the next month, Prime Minister Manmohan Singh is expected to review the performance of his ministerial colleagues in their first six months in office. This review exercise could be a precursor to a Cabinet reshuffle, the first since the United Progressive Alliance (UPA) government entered its second term in office.
The market is likely to be volatile on the last day of the expiry of the December series as rollovers in index and stocks futures on the penultimate day were substantially lower than the same time last month.
The Nifty faced resistance above 5,200 and closed below the trend-line resistance level of 5,182 on profit-booking at higher levels. The market will remain closed tomorrow and on Monday. Rollovers in the January futures were substantially lower at 10.22 million shares, with only three trading sessions left for the expiry of the December series. So we may see strong carry forward of positions.
The Centre has indicated that it would consider giving direct cash subsidy to state-owned oil marketing companies this year, instead of bonds, to compensate them for selling cooking fuel at lower than market price.
A section of Air India (AI) employees, owing allegiance to the Air Corporation Employees Union (ACEU), has threatened to strike work from December 22 to protest the management’s proposed move to withdraw some facilities from January 1.
A crucial meeting of the Air India (AI) board tomorrow is likely to take decisions on several cost-cutting measures such as a proposal to scrap the productivity-linked incentives (PLI) to its management cadre, and adopt the financial accounts for 2008-09.
The Joint Action Committee(JAC), spearheading the Telangana agitation, received a boost today with Telugu Desam leaders from that region agreeing to join it, even as Congress ministers demanded a ‘time-frame’ for the formation of a separate state.
Expects to earn Rs 3,000 crore each year from new venture.
National air-carrier, Air India (AI), today said it targets to save around Rs 800-900-crore, following the implementation of its fuel efficiency programme, started in 2008.
The private carriers would continue to provide ground handling services inside the airport terminal, along with airport operators, Air India (AI) and other selected specialised service providers, under the policy approved by the government today.
Jharkhand Mukti Morcha (JMM) supremo Shibu Soren is set to become the chief minister of Jharkhand with the support of the Bhartiya Janta Party(BJP) and the All Jharkhand Students Union (AJSU).
In Jharkhand politics, it’s sometimes all in the family. Take for example, Jharkhand Mukti Morcha (JMM) chief Shibu Soren, who is a Lok Sabha member. His daughter-in-law Sita Soren, widow of Durga Soren, won the elections from the Jama Assembly seat. Soren’s younger son, Hemant, contested the Assembly polls from the Dumka seat and humbled former deputy chief minister Stephen Marandi. Sushila Hansda of the JMM, who was a sitting party legislator in the last Assembly, was not in the fray from her Litipara constituency this time, but her husband, Simon Marandi, contested on JMM ticket and won the seat.
FMCG company Hindustan Unilever (HUL) has introduced a new water purifier called Pureit Autofill priced at Rs 3,200 that shuts the inflow of water once the container of the said gadget is full.
Government has given "in principle" approval for the establishment of 12 greenfield airports for public use in various parts of the country, the Rajya Sabha was informed today.
The Airports Authority of India (AAI) raised Rs 380 crore till September this year through short loans for funding various development projects but the borrowings will not lead to increase in passenger fares, the Rajya Sabha was informed today.
The Sensex is now at 17,710, up 24 points. The NSE Nifty is at 5,285, up eight points
The Sensex opened at 17,719 and touched a high of 17,790 on mixed cues from global markets. However, it has slipped and is now up 40 points at 17,726.
The Sensex is now at 17,664, down 23 points. The NSE Nifty is at 5,268, down nine points.
Birla Kerala Vaidyashala (BKV), a joint venture between the Yash Birla group and Kerala Vaidyashala, plans to open a store in Malaysia this month, in addition to entering other countries this fiscal, a company official said.
US markets ended flat on Tuesday.
The proceeds from selling treasury stock will add to RIL’s cash and help its big acquisition plans.
Gujarat Urja Vikas Nigam Limited (GUVNL) is aiming to enter into a long-term power purchase agreement (PPA) with Gujarat State Petroleum Corporation (GSPC) for its upcoming power units.
A fresh $1-billion (nearly 4,600-crore) loan from the World Bank under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), to be routed through the Union government, would be linked to cities adopting certain efficiency parameters.
Government today said the Delhi and Mumbai airports achieved service quality ratings of 4.24 and 4.05 respectively on a scale of five in third quarter of the current fiscal and were aiming at reaching 3.75 at the end of stage II of their development.
ds for the development of four regional airports in Andhra Pradesh under public private partnership would be called for the second time. A proposal to this effect was approved by the state Cabinet here on Tuesday.
Corporate awards normally go to the sultans of success and the purveyors of good news. The cautious CEO who worries about bad times and steers his ship away from choppy waters is rarely rewarded. So, it is not surprising that the same high-profile jury of a media group that rejected the name of former RBI governor YV Reddy for an award two years ago, on the grounds that he was an excessively cautious and conservative governor, has now chosen him for this year’s award for saving the Indian banking sector from the ravages of the global financial crisis.
The current outlook is poor and how the future will look is critically dependent upon government policy on spectrum and on allowing mergers and acquisitions.
You can use it to outguess the market.
To announce ‘anchor’ person for the fund ‘at the right time’
Fortis Mutual Fund today announced a 10 per cent dividend in its Fortis Equity Fund. The record date for the declaration of this dividend is September 9, the company said in a statement here.
The Planning Commission today expressed optimism that economic growth during the current year will exceed 7 per cent, up from 6.7 per cent recorded during 2008-09.
Fast moving consumer goods (FMCG) major Dabur is scouting for overseas acquisitions, particularly in West Asia and Africa, in a bid to increase its market share in the personal care segment.
US medical devices maker Boston Scientific Corp today said it will pay $1.73 billion to settle three patent disputes with healthcare firm Johnson & Johnson (J&J).
The Sensex opened at 17,365 tracking mixed global cues and then soared to a high of Rs 17,492. The index is now at 17,481,up 137 points.
The Foreign Institutional Investors (FIIs) were net sellers of Rs 278.37 crore in futures and options segments on Wednesday.
Canon, the Japanese imaging and printing firm, has grown its revenue from the government vertical by 25 per cent and will end end this calender year with a revenue of Rs 850 crore. The sector was just 15 per cent of its business in 2008. “Although our growth was down to 18 per cent in the first quarter 2009, we will close the fourth quarter with a growth rate nearing 30 per cent. This growth has come from timely remodeling of our India strategy,” said Alok Bharadwaj, senior vice-president, Canon India.
New tax rules on perks need some smart changes in what you claim.
With an expected rise in the key lending rates the government should continue with the stimulus measures to support exporters, an industry body said today.
The new rules on perks make it better to use the company car than to get usage reimbursed.
ICICI Merchant Services, the newly-formed joint venture (JV) between ICICI Bank and First Data Corporation (FDC), plans to expand its Point-of-sale (PoS) terminal network to 500,000 over the next five years, according to a senior FDC executive.
The National Bank for Agriculture and Rural Development (Nabard), has extended its financing scheme through Joint Liability Groups (JLGs ) to the non-farm sector, to cover the micro entrepreneurs and artisans among others. The scheme was earlier available to small and marginal farmers and tenant farmers and small farmers cultivating land without possessing proper title of their land.
After a year long slump due to global meltdown, first year students of elite B-schools are back in the radar of companies in finance and banking sectors which are now hiring them for summer internship programmes.
The National Bank for Agriculture and Rural Development today said it has sanctioned Rs 121.05 crore as loan to Karnataka to build rural infrastructure projects like roads and bridges, minor irrigation structures, secondary schools, anganwadi buildings, rural godowns and markets and fish jetties in various districts.
Cadbury Plc, the confectioner that rejected Kraft Foods Inc’s bid on Monday, may attract suitors ranging from Nestle SA to Hershey Co and sell for as much as $21 billion, according to analysts.
Two global lenders--JP Morgan and Bank of America (BofA) are preparing to lend US chocolate maker Hershey about $7 billion to bid for British confectionery major Cadbury, says a media report.
Matthew Lynn / October 7, 2009, 0:33 IST
Welcoming the Indian government"s move to infuse equity in Air India, the IATA today said such support should be a "one-time shot" that should be followed up by an effective restructuring programme to ensure that the airline comes out of red.
Strong portfolio capital flows into stock markets and direct investments will continue to push the rupee up against the dollar in 2010.
The auction of 3G spectrum is on track and the empowered group of ministers (EGoM) will take a decision on the number of slots to be sold, Telecom Minister A Raja said today.
Former Cuban leader Fidel Castro accused the United States of seeking to "eliminate" Venezuela"s leftist government and amass power in South America through its military deals with Colombia.
A big controversy on procurement of Rs 35,000-crore worth of equipment by telecom behemoth BSNL is brewing, with the position taken by the two government nominees on the board threatening the expansion programme of the state-owned telecom major.
Paris, Sept 16 (AFP) British Prime Minister Gordon Brown expressed confidence that an agreement would be reached at next week"s G20 summit after talks with French President Nicolas Sarkozy, who wants to curb bankers" bonuses.
Competes with Mercedes, BMW, Porsche, Audi and Accura
Frank Sieren & Andreas Sieren / August 18, 2009, 0:22 IST
Toyota Motor said today that global sales of its hybrid vehicles had topped the two-million mark since their launch in 1997, led by the Prius — Japan"s top-selling car for the past four months.
Private equity player, India Equity Partners (IEP) Fund Advisors Pvt. Ltd. is planning to invest around Rs 100 crore in the industrial water segment in the state of Gujarat. The company is in talks with one of the industrial water services player in Gujarat.
There is little doubt that public private partnerships have contributed to infrastructure-building, but if the lay public perceives them as one-sided, most politicians will be reluctant to promote them.
Kumbakonam-based City Union Bank (CUB) is planning to raise Rs 300 crore through the qualified institutional placement (QIP) route.
With the rupee appreciating by nearly 4 per cent against the US dollar, Indian information technology service providers are expected to see flat to negative revenue figures in rupee terms for the third quarter (October-December 2009).
Vanita Kohli-Khandekar / New Delhi October 27, 2009, 0:52 IST
Vijay Mallya-promoted United Spirits is focusing on football as platform for promoting McDowell"s Celebration rum.
Kolkata-based FMCG company Emami today said it aims to increase its turnover to Rs 5,000 crore in the next five years.
Tata aims to create disruption in the water purifier market with the low-priced Swach.
The stock market could see 17-18 such issues next year
The apex body of state-run firms SCOPE welcomed the Cabinet decision to grant Maharatna status to four CPSUs, saying it will enable them to take major financial decisions quickly and compete globally.
The financial institutions in the state have identified 1690 sick industries for revival as per the guidelines of the Reserve Bank of India (RBI). While 667 units have already been revived, seven such proposals are under consideration. The rest 1016 sick units were later found to be not in a position to be revived and hence, have been left out of the process, said industry minister Raghunath Mohanty.
Consequent to the sharp run up in markets in 2009, investors will have to be careful in picking stocks while lowering their return expectations
Ten years ago, a survey had projected that the life insurance industry would see its premium income grow at a compounded annual growth rate (CAGR) of 18.9 per cent.
A host of companies plan to cash in on the spending boom.
Citibank today launched CitiHome One, a first-of-its-kind universal mortgage product, that would enable customers to get a home-loan as a combination of a conventional term-loan and credit line.
Public sector lender Bank of Baroda (BoB) is the seventh-largest foreign lender in the United Arab Emirates (UAE) with loans of $1.63 billion, while global banking major HSBC Bank leading the chart with $17 billion exposure.
India"s exports fell by 28 per cent in July, for the tenth month in a row, due to the ongoing global downturn, Commerce Secretary Rahul Khullar said today.
Mobile telephone subscribers would have to wait a little longer to change their service provider without changing their numbers. The introduction of mobile number portability (MNP) across the country would be delayed by about two to three months, as some of the operators are not ready, said a senior official of the Telecom Regulatory Authority of India (Trai).
The Orissa Power Transmission Corporation Limited (OPTCL) will execute projects worth Rs 2,000 crore for improvement of the power infrastructure in the state on a priority basis.
The signs of global economic recovery have given new life to the Indian diamond processing industry, with export orders rising sharply by 20 per cent for execution on the occasion of Christmas and New Year.
Small price difference with Maruti causes customer attrition and back-outs.
Nakheel PJSC, the real estate company of debt-laden conglomerate Dubai World, has reported a loss of 13.4 billion dirhams ($3.65 billion) in the first half of this year.
China"s top 500 companies outperformed their US counterparts for the first time last year, a survey conducted by a business group has revealed, as the financial crisis wreaked havoc in the United States.
Indian Railways will be paying a higher dividend of Rs 5,479 crore during the current fiscal despite over Rs 3,000 crore dip in cash surplus on account of higher wage bill following implementation of the Sixth Pay Commission award.
In advanced discussions with many domestic lenders, including SBI, Axis Bank and IDFC for raising the debt.
The withdrawal of stimulus measures by central banks globally may send stocks tumbling next year, predict India’s money managers.
10 companies to be penalised, Reliance General attracts biggest penalty.
State-owned Indian Overseas Bank (IOB) is planning to foray into the venture capital business.
Finance Minister Pranab Mukherjee today said the RBI"s move to keep almost all rates unchanged is line with the discussions he had with the apex bank"s governor and the government"s thinking on fiscal and monetary policies.
FMCG company Jyothy Laboratories today said its net profit surged by nearly three-fold to Rs 14.11 crore for the quarter ended September 30 against the same period last fiscal.
Corpus may touch $500 mn if infrastructure included
A status quo on “title and possession” is to be maintained on four properties that were owned by the late patriarch of the Ranbaxy family, Bhai Mohan Singh, and his wife, according to an order of the High Court here. Further proceedings will be taken up in March 2010.
Asian stocks climbed, lifting the MSCI Asia Pacific Index to its best year since 2003, as commodity prices rose and China pledged to maintain a “moderately loose” monetary policy.
The rupee today appreciated by 2 paise to 45.69 a dollar in early trade in line with other firming Asian currencies.
The recent surge in domestic sugar prices along with a strengthening rupee has made imports viable once again. About 400,000 tonnes of raw and refined sugar is estimated to have been contracted over the last two weeks. For last couple of months, millers had stopped contracting imports due to lack of price parity.
The rupee today rallied by 42 paise to close at a 16-month high of 45.34 against the US dollar on heavy selling of the American currency by exporters and banks amid flat local equity markets.
The Indian bourses opened in the positive at 17,604 but soon slipped into the red owing to lack of buying activity and no major trigger to boost the sentiment. The index exhibited lacklustre movement for major part of the trading day. The benchmark index towards the end slipped deeper into the red to touch a low of 17,509, down 149 points from the day"s high.
ICICI Merchant Services, the newly-formed joint venture (JV) between ICICI Bank and First Data Corporation (FDC), plans to expand its Point-of-sale (PoS) terminal network to 500,000 over the next five years, according to a senior FDC executive.
The Foreign Institutional Investors (FIIs) were net sellers of Rs 899.75 crore in futures and options segments on Thursday.
Former Haryana DGP SPS Rathore, against whom fresh cases involving serious charges have been registered, was today granted interim bail till January 7 by a local sessions court hearing the Ruchika molestation case.
Financial services firm Wells Fargo & Company has said it will repay bailout funds worth $25 billion to the US government.
A V Rajwade / New Delhi November 09, 2009, 0:05 IST
Anil Ambani-controlled RNRL told the Supreme Court today that Mukesh Ambani’s RIL had put it in a disadvantageous position in terms of price, quantity and tenure in their Gas Supply Master Agreement (GSMA).
Companies in dire straits often roll the dice in a bid to stave off bankruptcy. The problem is that last-ditch efforts to raise new funds or restructure often come at the expense of bondholders. Struggling companies, their advisers and lenders should think twice about such strategies after an almost $700-million judgment last month against Citigroup Inc, Bank of America Corp, Wells Fargo & Co and other lenders, in connection with the bankruptcy of home builder Tousa Inc.
Financial service major Citigroup is planning to relaunch Citi Alternative Investments, a unit that contains its hedge fund operations, a media report said.
While many of his fans, particularly in the US, appear disappointed, I, for one, believe that Mr Obama has had an extraordinarily successful first year as president.
The country’s foreign exchange reserves fell by $144 million for the week ended December 25, 2009, mainly due to revaluation of currencies. The rupee ended the week at Rs 46.65 to the dollar as against Rs 46.73 at the end of the preceding week.
India"s forex reserves declined by $144 million to $283.499 billion in the week ended December 25 as compared to $283.643 billion in the previous week, the Reserve Bank of India (RBI) said in its weekly report.
Bloomberg / October 27, 2009, 0:05 IST
The Reserve Bank of India (RBI) stepped in this evening to soothe market sentiments after the government’s intention to borrow over Rs 4,00,000 crore during the current financial year pushed up bond yields.
The markets have extended their early morning gains on the back of strength in energy, power and IT stocks. The Sensex is quoting at 16,958, up 266 points, and the Nifty has regained the 5k mark at 5067, up 81 points.
Kalpataru Power Transmission closed at Rs 1151, weaker by Rs 19 or 1.64%, on the BSE.
Over 15 senior executives of the PricewaterhouseCoopers (PwC), whose Bangalore-based arm audited accounts of scam-hit Satyam Computer Services, have quit and would be joining PwC"s global rival KPMG.
Power producer JSW Energy, which raised Rs 2,700 crore through initial share sale last month, will list its shares on the bourses tomorrow.
Societe Generale SA, France’s second-largest bank by market value, said third-quarter earnings doubled as its investment-banking unit returned to profit.
Nine years after it exited the business, Premier Auto is making a comeback in passenger cars. The Doshi family, promoters of one of India’s oldest car companies, known for the once-ubiquitious Premier Padmini, are set to launch a compact sports utility vehicle (SUV).
A section of Air India employees owing allegiance to ACEU has threatened to strike work from December 22 to protest the management"s proposed move to withdraw some facilities now available to them from January 1.
JSW Energy, the first company to be listed on the bourses in 2010, today said it plans to invest around Rs 40,000 crore in developing power projects of 8,000 MW.
Realty developer Godrej Properties will be listed on the Bombay Stock Exchange (BSE) on January 5.
The year 2009 ended on a high note, with benchmark (BSE & NSE) indices registering best yearly gains in the last two decades and touching fresh 19-month peaks. The year, however, will be most remembered for the Sensex and the Nifty hitting the upper circuit for the first time.
Business Standard / New Delhi December 29, 2009, 0:14 IST
Trapped by the Inca! For violating the sacred temple! Tied to stakes atop a pyre which will soon be lit by the rays of the sun, concentrated by a lens! But why does Tintin look so calm? Ah, it is because he knows something these colourfully dressed Incas don’t: there is going to be a solar eclipse. Tintin calls out to the sun to hide his face, and lo and behold! the god obeys. Tintin and his friends are saved; nay, they are treated as demigods by the hapless Incas.
That the new direct taxes code is proving embarrassing for the government is obvious, it’s just that one didn’t realise the government felt the same way as well. At one point the code says, “A business shall be distinct and separate from another business if there is no interlacing, inter-dependence or unity ‘embarrassing’ the two businesses.” Now that’s embarrassing.
Jindal Power Ltd, a part of Jindal Steel and Power Ltd (JSPL), today said it plans to raise Rs 7,200 crore from its initial public offer (IPO).
JSW Energy’s track record and high revenue visibility are some clear positives, but the IPO leaves little to gain from in the short-term.
The average size of IPOs rose by nearly half in 2008 over 2007, though the financial meltdown may have scared away many from the primary capital market, bringing down the number of IPOs to about one-third, the Economic Survey said today.
"Power" seems to be the buzzword when it comes to big-ticket IPOs.
Titan Industries, a Bangalore-based watch and jewellery arm of Tata Group, today reported 41 per cent jump in its net profit at Rs 46.04 crore for the quarter ended June 30, 2009 compared to the corresponding quarter last fiscal.
Around four months ago, the new Boeing airplane for Prime Minister Manmohan Singh arrived in India. But the prime minister didn’t get an opportunity to fly in it because of the elections. Now, Singh has used the plane to fly to Thailand for the 7th India-Asean summit. The ultra-modern aircraft has a bedroom and a conference room for the prime minister apart from special chambers for his aides. It is equipped with security gadgets of the likes used in Airforce One to protect the US president.
Seeking to take forward the strategic partnership to new heights, Prime Minister Manmohan Singh today made it clear that India"s relations with third countries will never be at the cost of "time-tested ties" with Russia.
Overseas funds bought a net Rs 994 crore ($213 million) of Indian equities yesterday, taking their investments in stocks this year to Rs 77,410 crore, the nation’s market regulator said today.
Rajeswari Venkatesh, 26, a software professional, was looking to invest Rs 50,000. And while friends and colleagues suggested a plethora of stocks or mutual fund schemes, she wasn’t feeling very confident about taking a decision on their advice.
State-run gas utility GAIL India has sought $0.18 as marketing margin to make up for the effort it undertakes to sell natural gas, Petroleum Minister Murli Deora said today.
HINDUSTAN UNILEVER
The tri-nation gas pipeline between India, Bangaladesh and Myanmar may take shape in two to three years time, Myanmar Ambassador U Kyi Thein said here today.
Tech Mahindra has raised Rs 550 crore from Tata Capital and IDFC to fund its takeover of scam-hit Satyam Computer.
Non-banking finance company Tata Capital today announced the appointment of Jamshed Daboo, to the newly created position of head, of national sales and services organisation.
The outgoing chairman of the Company Law Board (CLB) S Balasubramaniam on Wednesday said that lack of qualified manpower at independent quasi-judicial body could impede its functioning in the medium-term, especially considering the delay in the implementation of the proposed National Company Law Tribunal (NCLT).
After a lull of over eight months when virtually no new endorsement deal of any significant value was signed, the Rs 400-450 crore celebrity endorsement business is back on the recovery path.
Garments maker Provogue India today said that it will open 17 more showrooms across the country in the current fiscal taking the total number of stores to 143.
Continuing its yesterday pullback coupled with strong cues fromm global markets, the Sensex opened with a positive gap of 110 points at 17,069. The index soon spurted to a high of 17,121 and thereafter exhibited firm trend till noon trades.
Indian telecom majors Bharti Airtel and Reliance Communications (RCom) have sought to build a fibre optic network in Bangladesh to get connected to the isolated north-eastern states, a report said on Sunday.
Unitech today said its telecom venture had earmarked a capital expenditure of Rs 10,000 crore for the next three years to roll out its services across the country.
The Initial Public Offer (IPO) of Satluj Jal Vidyut Nigam Ltd (SJVN), the state-owned hydro power producer, is likely to hit the market in the next financial year.
Costs govt Rs 315 crore in wireless and spectrum fees.
Sensex ends up 35pts
The government will sell 8.38 per cent of its stake in the mining major NMDC before March 31, 2010, generating Rs 14,100 crore from the process.
Offshore oil drilling and production services company Aban Offshore today opened bids for its Rs 1,000-crore qualified institutional placement (QIP) issue.
India"s largest retailer, Pantaloon Retail (India), today said it will raise Rs 500 crore by way of private placement of shares with qualified institutional buyers.
Development Credit Bank (DCB) today said it raised Rs 81 crore by private placement of shares with qualified buyers. After the qualified institutional placement (QIP), the promoter group’s — Aga Khan Fund of Economic Development (AKFED) — holding in DCB came down to 23.11 per cent from 26.22 per cent earlier, Development Credit Bank said in a filing with the Bombay Stock Exchange.
France’s Michelin, the world’s second largest tyre manufacturer, signed a memorandum of understanding with the Tamil Nadu government on Monday to set up a factory near Chennai. The project would attract Rs 4,000 crore investment over the next seven years.