Mahindra Utility

New world order ?

I was just going through the monthly report of one of the Legendary investment managers... What i found interesting was how the global trade - changing patterns is a reflection of the new era the world is entering.

He cites a few points

• Brazilian exports to China have surpassed those to US in 2009
• Global crude oil demand of NON OECD countries has surpassed the OECD demand in 2009
• Semi condutor sales in Asia (Ex Japan) have surpassed the sales in western world
• Chinese exports to emerging market economies have grown to 48%, If Middle eastern, central Asian economies are included then this percentage goes up to 60%
• Emerging nations have 4.5Tr USD worth of Forex reserves vis a vis developed nations with 3Tr USD

What this highlights is - gradually the acceptance of the fact that the leadership of the global economy is changing over to the developing world....

It then leads to lot of positive as well as unintentional consequences - like strenghtening of the currencies of the developing nations... blah blah .... stopping with it since this is not an economics blog....

But you get the picture ! And the recession gone by has just fastened the particular process.

Interesting times .... we live in....

The M&M family globally is a learned lot.

Must have been thinking about the recent happenings last week. Dubai was at the eye of the storm, ensuring that markets across the world atleast remember the Lehman fiasco again this year.

Imagine - Dubai's GDP is $50bn and Dubai world alone has a debt of $80bn on the balance sheets.This single government owned entity has the economy on its toes tripping with uncertainty.

Personally - I think we as a family have weathered the storm very well. See the results in this quarter of the comapny - we have outperformed the industry and Industry as well has done very well - above expectations.

Dr.Goenka termed the quarter in the quarterly communication as almost a perfect quarter. However - all is not hunky dory.

2010 is going to be very challenging year for the world economy, again. I beleive - we again would see risk aversion on the horizon but comapanies like M&M in automotive business that have strong balance sheets, have not cut down upon the product development in pipeline will emerge as winners.

Cheers

We are back...

No we are no aspiring terminator in Indian dhoti disguise....Nor are we a celebrity that comes back from the haunted retirement due to the demand of fans.... Nor are we representative for global economy - where even Bernanke says we are back from the brink....

But madam Anita Beri - had met the service guys here in India and people asked her why have we stopped writing this blog? The reason because we thought that we might not be adding any value to you guys out there representing M&M brand.

But after a rough & tough discussion - we are starting the engines again.

Although I warn you it would take time to warm this engine up and we need participation from all you guys and gals.....

Someone .....