News: Fidelity exits Indian Mutual Fund business, L&T Finance is a new owner

Accumulating losses, higher costs and gloomy business outlook resulted in the exit of Fidelity …
·        Consider at fund of fund, Fidelity which manages over $200 billion internationally, sold its Indian Mutual Fund business to L&T Finance
·        Higher cost structure resulting in losses coupled with gloomy business outlook for overall industry triggered the exit of Fidelity from India
·        Fidelity has about Rs. 8,800 crore worth of assets under its management out of which equity accounts for Rs. 6,000 crore
·        L&T finance bought the business at about Rs. 500 - Rs 550 crore. Post acquisition of Fidelity, L&T Finance would become 13th largest MF player in India
·        Since the imposition of new regulatory framework on entry load structure, Indian Mutual Fund industry is  witnessing difficult time
·        Most of the individual MF distributors have either stopped selling MF products or reduced their efforts resulting into huge decline of new fund inflows for the industry
·        Lack of level playing field compare to insurance policies such as ULIP is considered as main culprit
·        If corrective action is not taken, industry fears many more such exits in near future


India Wireless Telecom Market: January 2012

Source: TRAI
India mobile subscriber base touched 903.73 million in January 2012 …
·         Indian wireless telecom market ends January 2012 with subscriber base of 903.73 million with addition of 9.88 million, monthly growth rate of 1.11%
·         Overall mobile teledensity stands at 74.89% (Urban – 162.06%, Rural – 37.13%)
·         Urban to rural subscriber ratio is 65.41% to 34.59%
·         According to VLR data, India had 659.97 million active mobile subscribers. Hence, actual wireless teledensity in India is 54.69% by January 2012
·         In January 2012, about 3.55 million subscribers submitted Mobile Number Portability (MNP) requests which is about 0.39% of total mobile subscriber base in India
Top 5 mobile telecom players account for 82.3% of overall subscriber base ….
·         Bharti Airtel has maintained its leadership position with 24.4% market share in India
·         Idea has largest proportion of active mobile users at 93.18%
·         Top 5 players in Indian wireless telecom industry accounts for 82.3% market share in terms of active subscriber base
·         Uninor (25.21%) added highest amount of subscribers in January 2012 followed by Idea (17.68%), Bharti (13.17%), Reliance (9.60%) and BSNL (8.85%)

Maharashtra remains at the top as U.P. (East) pushes hard ….
·         Maharashtra with 54.46 million active mobile subscribers is leading closely followed by U.P. (East) with 54.20 million active mobile users
·         Andhra Pradesh (50.45 million) is third followed by Tamil Nadu (49.97 million) at fourth. Bihar with 44.27 million active mobile subscribers is the 5th largest market wireless telecom market in India
·         U.P. (East) added highest number of new mobile connections during January 2012 - 1.15 million followed by Karnataka (1.01 million) and Bihar (0.90 million)