Strong earthquake hits Pakistan, north India, Afghanistan

Saturday, October 8, 2005

The strongest earthquake (7.6) that South Asia experienced in the last century caused widespread damage across Pakistan, North India, and Afghanistan this morning. Strongest hit was apparently Kashmir. Tens of thousands of people are feared dead. The epicenter was close to Muzaffarabad, 138 km to the north of Islamabad, and also caused severe damage from both shaking and from landslides to Balakot, Garhi Habibullah and one village in Rawalakot.

Reports on fatalities are conflicting, but even the most conservative estimates put the toll as high as 20,000. Pakistani President Pervez Musharraf told the BBC he knew of 20,000 people that were killed but added: “I wouldn’t be able to make an accurate assessment for days.” He also asked for international help and specifically requested large cargo helicopters to supply remote areas. The US has come forward to assist by providing eight military helicopters. The communications minister for the Pakistan-controlled Kashmir, Tariq Mahmmod, said on Sunday, that “more than 30,000” died in his region alone. Aside from Kashmir most of the deaths occurred in the North-West Province of Pakistan and other northern areas. The estimated death toll has now reached 35,000.

Maj. Gen. Shaukat Sultan, a spokesman for Musharraf, said the scale of the devastation was the biggest Pakistan has ever seen. As emergency workers searched for trapped people and helped the injured, an international relief and recovery effort geared up.

A U.N. disaster relief team was due in Islamabad, the Pakistani capital, on Sunday. Britain, Germany, and the United States were among countries offering aid. India, Pakistan’s neighbour and longtime rival, also offered aid (details). A British team from the International Rescue Corps was assisting in the operation at Marghalla Towers on Sunday, equipped with heat-seeking detectors, portable oxygen bags, and advanced slab and metal cutters. According to Pakistan Television this meant that “rescue efforts are picking up pace, and lot of time is being saved.”

The tremors began at 8:50 am (03:50 GMT), and continued for two minutes, followed by several aftershocks over a period of ten minutes. Initial reports said that they were felt in Delhi, Islamabad, Lahore, Quetta, Kabul, Punjab, Jammu, Kashmir, and other areas. A magnitude 6.3 aftershock occurred seven hours later just to the northwest.

The earthquake caused several apartment buildings in Islamabad to collapse, trapping hundreds of people.

250 children were killed in Gari Habi Ullaha between Mansehra and Muzaffarabad when their school collapsed.

The Pakistani Interior Ministry reports that several villages were “wiped out.” Pakistan’s army has been directed to extend all out help to the civil population in the quake-hit areas. All civil and military hospitals have been directed to deal with the situation on an emergency basis. The President and the Prime Minister have appealed to the nation to stay calm in the face of the calamity, and asked the authorities concerned to carry out an immediate assessment of the extent of the damage.

The Pakistani Prime Minister Shaukat Aziz talked by telephone with authorities in four provinces and Azad Kashmir. He directed them to utilize all machinery, and make all possible efforts to help the victims. He said that the whole federal administration, civil and military authorities had been alerted and relief goods had been provided to them for the victims of the quake.

Most of the roads are closed in the Northern Sector near the earthquake, and some have been completely washed out, so the Pakistani army is flying supplies in by helicopter. Telephone and electricity connections have been cut to towns such as Muzaffarabad, making logistical operations much more complex. The heavy rains have also contributed to the suffering of the many thousands who are now homeless.

Across the line of control in Indian-administered Jammu and Kashmir, officials said Saturday that more than 465 people, at least 34 of them soldiers, were killed in the quake.

Worst hit in India was the town of Uri, close to the border with Pakistan, where four in five of the town’s buildings were leveled, and at least 120 people lost their lives. Officials in India have been criticised for the slow pace and lack of organisation in the relief effort[1].

  • Magnitude: 7.6
  • Region: North India, Pakistan, Afghanistan
  • Time: (UTC) Sat Oct 8 03:50:38 2005 (08:50:38 local time)
  • Epicentre: 80km (50 miles) north-east of Islamabad, Pakistan
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Horse Color Genetics What Color Will I Get? (Part 1)

By Lydia K Kelly

Whether it is your first time breeding, or you have had many foals at your farm one of the most exciting things is not knowing exactly what you will get when the baby arrives. There are so many variables that it is impossible to predict how big your foal will be, whether it will have good conformation or whether it will have the potential for the discipline you bred it for. One question that always has owners guessing is what color the foal will be.

Interestingly enough, you can actually predict the likelihood of the foal turning out a specific color. While color prediction is not always 100% accurate, there are some color combinations that will give you a guaranteed outcome. How can we be so sure of this? Its all in the genes.

Horses have two basic color genes; black (B) and red (b). All horses carry a combination of these two genes in a pair. The red gene is recessive to the black gene. This means that whenever you get a combination of black (B) and red (b) genes the black gene will express itself. So, a (BB) gene combination will result in a black horse; a (Bb) combination will also result in a black horse and a (bb) combination will result in a red horse.

If that is the case you may wonder why we dont only have black and red horses. In addition to the base color genes there are special genes that modify color. If one of these genes are present it will cause the base color to be modified and the horse will turn out a different color.

The most common modifier is the Agouti gene. When the Agouti gene is present it modifies the black gene. A black horse with the Agouti modifier will fade leaving its points black and its body brown. This is of course the classic bay horse.

Other modifiers include the grey gene, the roan gene and the cream gene. Each of these genes causes the horses coat to change according to the instructions written into the DNA code. Because this complicates matters for now lets stick with the basic black (bay) and red genes. To simplify things for now I will use the term black to include bay horses. We will discuss the Agouti gene further in the next installment.

So how can you apply this to actual breeding? Lets start with a simple scenario. You have a chestnut stallion (bb) and you breed it to a chestnut mare (bb). In this case both the stallion and the mare have two red genes. No matter which way you mix and match those genes the resulting foal will also have two red genes (bb). The resulting foal from this breeding will always be a chestnut.

(b) (b)

(b)

(bb)

red

(bb)

red

(b)

[youtube]http://www.youtube.com/watch?v=m-t9PQzQYsQ[/youtube]

(bb)

red

(bb)

red

To make things a little more complicated we will now breed a black mare (BB) to a chestnut stallion (bb). Because both the mare and the stallion must contribute one gene the resulting foal will be (Bb) carrying one black and one red gene. The foal will be black in color but will have a recessive red gene.

Now lets pretend that we breed the foal from the first scenario (bb) to the foal from the second scenario (Bb). Use the following diagram to see how the genes relate:

(b) (b)

(B)

(Bb)

black

(Bb)

black

(b)

(bb)

red

(bb)

red

As you can see from the diagram there are two color possibilities in this cross. When the foal receives both a red gene (b) from one side and a black gene (B) from the other, the foal will be born black (Bb). This means that you have a 50/50 chance of the foal being a chestnut or a black.

If you cross a homozygous (meaning that it has two copies of the B gene) black horse (BB) with a heterozygous (meaning that it has one copy of the B gene and one of the b gene) black horse as you might expect there would only be one possible color for the foal, black. This is because all of the color combinations would include at least one dominant black (B) gene.

(B) (B)

(B)

(BB)

black

(BB)

black

(b)

(bB)

black

(bB)

black

Of course this leaves one more combination, the (Bb) x (Bb) combination. In this case both the mare and stallion carry a recessive red gene but are black in color. While at a glance you might expect all the foals from this breeding to be born black this is where you get the odd surprise foal that is a bright chestnut. In fact 25% of all foals from this cross will be chestnut in color. That is because of the possibility of the foal getting a pair of red genes, one from each parent.

(B) (b)

(B)

(BB)

black

(Bb)

black

(b)

(bB)

black

(bb)

red

So now you can see where the basics of color genetics come into play when breeding horses. You now know that you will always get a chestnut foal when you breed two chestnut horses together. You also know that when you breed two blacks together you just might get the odd chestnut foal that crops up.

While color is far from the most important thing to consider when breeding, it is certainly one of the most predictable. With the advances in genetic research we are always finding more color specific genes and can predict color variations with increasing accuracy.

About the Author: Lydia K Kelly is a writer for HorseClicks, classifieds of

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First arrests made in Singapore for possession of New Psychoactive Substances

Sunday, May 4, 2014

The Central Narcotics Bureau (CNB) of Singapore announced yesterday the first arrests made following the listing of New Psychoactive Substances (NPS) as Class A controlled drugs on Thursday, under the First Schedule of the Misuse of Drugs Act. The suspects, two unnamed male Singaporeans, aged 22 and 23, were reportedly arrested at a shopping center in Tampines on Friday evening for possession of synthetic cannabis, also known as “K2”. Authorities recovered 71.7 g of the drug from the suspects.

Under suspicion from the CNB that the 22-year-old suspect was engaged in trafficking of the illegal substance, a further search of his home yielded an additional 22.3 g of synthetic cannabis, raising the total amount of the drug confiscated following the arrests to 94 g.

Synthetic cannabis, listed as an NPS, and known as a “legal high”, is one of a group of designer drugs created to stimulate the effects of controlled drugs including cocaine, Ecstasy, methamphetamine, and heroin. The CNB has linked NPS abuse to symptoms including severe intoxication, hallucinations, paranoia, seizures, cadiovascular problems, renal failure, and death.

Typically having chemical structure very similar but slightly different from controlled drugs, these substances have been illegalized, and their possession, consumption, trafficking, and manufacturing now carry penalties comparable to that of controlled drugs. Last year, under the Fifth Schedule of the Misuse of Drugs Act, designed to study NPSs before their illegalization, they could be confiscated by authorities, but no further penalty would be levied.

The changes to NPS status follow increases over the past year in NPS trafficking and consumption, according to the CNB. Commenting on the move, a spokesperson for the CNB revealed the organization has reported at least thirty NPS seizures in the period from last May through this February. “Thus far,” the spokesperson noted, “synthetic cannabinoids and synthetic cathinones are the two more commonly detected NPS”.

Termed an “alarming new drug problem” by the United Nations Office on Drugs and Crime, its World Drug Report 2013 indicated an increase to 348 NPSs in 2013, up from 251 in 2012. Capitalizing on their legality — which no longer holds in Singapore — NPSs have been known as “legal highs”, “research chemicals”, “plant food”, and “bath salts”.

Commenting on the illegalization of NPSs, Ng Ser Song, the director of the CNB, had this to say. “The drug situation is challenging and the number of repeat drug abusers and young drug abusers remains a concern. With the abuse and trafficking of NPS on the rise, listing these new psychoactive substances as Class A controlled drugs signals our unequivocal stance that these substances are illegal and no different from other controlled drugs.”

Under the recently enacted First Schedule of the Misuse of Drugs Act, if found guilty of drug trafficking, the 22-year-old suspect may be penalized with a minimum of five years in prison and five strokes of the cane. The act also allows the possession or consumption of New Psychoactive Substances to be punished with a maximum of 10 years imprisonment and/or a $20,000 fine.

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Dairy cattle with names produce more milk, according to new study

Thursday, January 29, 2009

Giving a cow a name and treating her as an individual with “more personal touch” can increase milk production, so says a scientific research published in the online “Anthrozoos,” which is described as a “multidisciplinary journal of the interactions of people and animals”.

The Newcastle University‘s School of Agriculture, Food and Rural Development’s (of the Newcastle University Faculty of Science, Agriculture and Engineering) researchers have found that farmers who named their dairy cattle Ermintrude, Daisy, La vache qui rit, Buttercup, Betsy, or Gertrude, improved their overall milk yield by almost 500 pints (284 liters) annually. It means therefore, an average-sized dairy farm’s production increases by an extra 6,800 gallons a year.

“Just as people respond better to the personal touch, cows also feel happier and more relaxed if they are given a bit more one-to-one attention,” said Dr Catherine Douglas, lead researcher of the university’s School of Agriculture, Food and Rural Development. “By placing more importance on the individual, such as calling a cow by her name or interacting with the animal more as it grows up, we can not only improve the animal’s welfare and her perception of humans, but also increase milk production,” she added.

Drs Douglas and Peter Rowlinson have submitted the paper’s conclusion: “What our study shows is what many good, caring farmers have long since believed. Our data suggests that, on the whole, UK dairy farmers regard their cows as intelligent beings capable of experiencing a range of emotions.” The scientific paper also finds that “if cows are slightly fearful of humans, they could produce [the hormone] cortisol, which suppresses milk production,” Douglas noted. “Farmers who have named their cows, probably have a better relationship with them. They’re less fearful, more relaxed and less stressed, so that could have an effect on milk yield,” she added.

South Norfolk goldtop-milk producer Su Mahon, one of the country’s top breeder of Jersey dairy herds, agreed with Newcastle’s findings. “We treat all our cows like one of the family and maybe that’s why we produce more milk,” said Mrs Mahon. “The Jersey has got a mind of its own and is very intelligent. We had a cow called Florence who opened all the gates and we had to get the welder to put catches on to stop her. One of our customers asked me the other day: ‘Do your cows really know their names?’ I said: I really haven’t a clue. We always call them by their names – Florence or whatever. But whether they really do, goodness knows,” she added.

The researchers’ comparative study of production from the country’s National Milk Records reveals that “dairy farmers who reported calling their cows by name got 2,105 gallons (7,938 liters) out of their cows, compared with 2,029 gallons (7,680 liters) per 10-month lactation cycle, and regardless of the farm size or how much the cows were fed. (Some 46 percent of the farmers named their cows.)”

The Newcastle University team which has interviewed 516 UK dairy farmers, has discovered that almost half – 48% – called the cows by name, thereby cutting stress levels and reported a higher milk yield, than the 54% that did not give their cattle names and treated as just one of a herd. The study also reveals cows were made more docile while being milked.

“We love our cows here at Eachwick, and every one of them has a name,” said Dennis Gibb, with his brother Richard who co-owns Eachwick Red House Farm outside of Newcastle. “Collectively, we refer to them as ‘our ladies,’ but we know every one of them and each one has her own personality. They aren’t just our livelihood, they’re part of the family,” Gibb explained.

“My brother-in-law Bobby milks the cows and nearly all of them have their own name, which is quite something when there are about 200 of them. He would be quite happy to talk about every one of them. I think this research is great but I am not at all surprised by it. When you are working with cows on a daily basis you do get to know them individually and give then names.” Jackie Maxwell noted. Jackie and her husband Neill jointly operate the award-winning Doddington Dairy at Wooler, Doddington, Northumberland, which makes organic ice cream and cheeses with milk from its own Friesian cows.

But Marcia Endres, a University of Minnesota associate professor of dairy science, has criticized the Newcastle finding. “Individual care is important and could make a difference in health and productivity. But I would not necessarily say that just giving cows a name would be a foolproof indicator of better care,” she noted. According to a 2007 The Scientist article, named or otherwise, dairy cattle make six times more milk today than they did in the 1990s. “One reason is growth hormone that many U.S. farmers now inject their cows with to increase their milk output; another is milking practices that extend farther into cows’ pregnancies, according to the article; selective breeding also makes for lots of lactation,” it states.

Critics claimed the research was flawed and confused a correlation with causation. “Basically they asked farmers how to get more milk and whatever half the farmers said was the conclusion,” said Hank Campbell, author of Scientific Blogging. In 1996, the Department for Environment, Food and Rural Affairs provided for a complex new cattle passport system where farmers were issued with passport identities. The first calf born under the new regime were given names like “UK121216100001.”

Dr Douglas, however, counters that England doesn’t permit dairy cattle to be injected hormones. The European Union and Canada have banned recombinant bovine growth hormone (rGBH), which increases mastitis infection, requiring antibiotics treatment of infected animals. According to the Center for Food Safety, rGBH-treated cows also have higher levels of the hormone insulin-like growth factor 1 (IGF1), which may be associated with cancer.

In August 2008, Live Science published a study which revealed that cows have strange sixth sense of magnetic direction and are not as prone to cow-tipping. It cited a study of Google Earth satellite images which shows that “herds of cattle tend to face in the north-south direction of Earth’s magnetic lines while grazing or resting.”

Newcastle University is a research intensive university in Newcastle upon Tyne in the north-east of England. It was established as a School of Medicine and Surgery in 1834 and became the “University of Newcastle upon Tyne” by an Act of Parliament in August 1963.

The School of Agriculture, Food and Rural Development is a school of the Newcastle University Faculty of Science, Agriculture and Engineering, a faculty of Newcastle University. It was established in the city of Newcastle upon Tyne as the College of Physical Science in 1871 for the teaching of physical sciences, and was part of Durham University. It existed until 1937 when it joined the College of Medicine to form King’s College, Durham.

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Ricky Hatton regains IBF light welterweight title

Sunday, January 21, 2007

Ricky “The Hitman” Hatton regained the IBF light welterweight title belt he relinquished less than 12 months ago when he defeated Juan Urango in Las Vegas, Nevada tonight.

“The Hitman” won by unanimous decision, as the fight went to 12 rounds. Despite early match odds suggesting Hatton would dominate the fight, this was not the case. Each round was close, but most pundits and judges alike agreed that Urango only won 1 of the 12 rounds, with Hatton taking the other 11.

Despite the unfamiliar confines of Las Vegas, Hatton looked touched by the ringing of football fan-like chants, familiar in British boxing, that rang around the arena, as more than half of it was filled by traveling support from across the atlantic.

Many in the UK will hope Hatton has ended the “curse” that has seen names such as Frank Bruno, Naseem Hamed, Barry McGuigan and others fall short while headlining fights on “The Strip”.

From here, it is widely believed “The Hitman” will move on to fight Jose Luis Castillo in June, again likely in Vegas.

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Kosmala’s 2012 Games inclusion highlights Australian Paralympians’ longevity

Friday, June 8, 2012

Libby Kosmala’s selection in the Australian shooting team for the 2012 London Paralympics highlights age is not a barrier in the Paralympics. Celebrating her seventieth birthday in early July, expected to set a record for most appearances at her eleventh Games, Kosmala is likely to be the oldest athlete in attendance.

Her first Games were the 1972 Heidelberg Games competing in swimming and athletics events and winning a bronze medal in the mixed medley relay. Kosmala then switched to shooting and between 1976–1988 won nine gold and three silver medals.

At the 2008 Beijing Games she narrowly missed a medal, coming fourth in the Women’s Air Rifle Standing SH1. In 2011 at the IPC Shooting World Cup, her level of competitiveness was highlighted by finishing fifth in the final of the Women’s 10m Air Rifle Standing SH1. Kosmala is looking forward to the London Games saying: “It’s very exciting. I’m looking forward to it. In over ten Paralympic Games, my greatest success was at Stoke Mandeville in 1984, so I’m looking forward to competing in London again for Australia”.

Kosmala loves beating athletes half her age: “Competition brings out the best in you. I’m old enough to be their grandmother for a lot of the players, but they really are lovely”. Kosmala’s training involves physical training, three shooting sessions per week and mental relaxation training. The London Games will be her swansong but she will still keep shooting. She puts her longevity down to steadiness and a keen eye. Ashley Adams is to join her on the shooting team, attending his fourth Games, as will newcomers Luke Cain, Jason Maroney and Bradley Mark.

Russell Short, a vision-impaired thrower and the Australian Institute of Sport’s first athlete with a disability scholarship, in 1988, has been selected for his seventh Games. Another athlete likely to attend his seventh Games is Kieran Modra, a vision impaired cyclist. Selections for the cycling team are yet to be confirmed.

Two athletes who extended their Paralympic careers by changing sports have been selected; Greg Smith, who previously took part in track and field events, will be competing in wheelchair rugby. This is to be his fifth Games. Liesl Tesch, a former Australian wheelchair basketball player and captain, will be competing in sailing for her sixth Games.

Contrasting Australian Paralympians with their Olympian counterparts, the Australian Olympic Committee recently selected sporting shooters Russell Mark and Michael Diamond for the London Games; this to be their sixth Olympics and equalling the participation records of rower James Tomkins, sailor Colin Beashel, and equestrian Andrew Hoy.

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Tips Before Buying A Car In Quebec

By Todd Herman

Consumers in need of a used car in Quebec have a range of resources in order to buy an inexpensive car. Now it is possible to shop online in the comfort of your home for a used car for sell. But buying a second hand car remains nonetheless a risky venture.

It is easy to find a used car for sale on the internet and the net is covering several cities as well as countries. But now, more scammers are trying to trick you with a used car for sale in Quebec and they have more tools to earn profits on the backs of uninformed clients. On top of that before you shop, it is good to think about what kind of used car that fits your budget and then stick to two or three brands to know them better. After, you can research to find out the price range of spare parts that you can easily get in your region. In addition, you must take into account the fuel consumption and the insurance costs.

There are several specialized websites about used cars in Quebec such as CAA. Some are accredited by organization you can trust. They offer comparison charts of costs and performances about car for sale. Then there are some blogs written by individuals that can guide you in your efforts to buy a used car. It is recommended to choose a used car for sale that is a reasonable distance from your home so you can easily get your transaction done.

[youtube]http://www.youtube.com/watch?v=2JU_YeLbvZY[/youtube]

Here are some additional tips to guide you while your looking for a used car in Quebec. First, always deal in person to visually inspect the used car for sale and then have it checked later by an independent mechanic before giving a deposit. Dealing with a car dealer that sells second hand car have many advantages such as getting a warranty and you can check them with Better Business Bureau.

On the other side, if you still want to buy a used car from an individual is that you can count on some tricks to find out about the wear and use of the vehicle. You can first look at the maintenance bills of the used car for sale. But the most important thing to check in a car for sale in Quebec is the identification number located on the windshield and to contact the Socit de l’Assurance Automobile du Qubec about its history. Then you must perform a visual inspection outside of the used car for sale in order to detect rust or leaks. Then get inside the vehicle and look at the condition of the seat belts and possible rot under the carpets.

Finally, it is the road test of the used car for sale preferably on a main road. Begin using the accessories such as ventilation and lights. During the ride in the used car, listen in silence the noise coming from the engine or the bodywork and test the brakes.

Finally, if you still want the car for sale in Quebec then take an appointment with a expert from a specialized garage who will give you the final green light in order to buy it.If you are looking for affordable and reliable Quebec cars for sale, you have to get to a reliable auto dealer where we have the most affordable, reliable cars in the industry.

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Magnitude 7.0 earthquake hits New Zealand

Friday, September 3, 2010

The USGS says an earthquake of magnitude 7.0 occurred in the Canterbury region of New Zealand’s South Island at Saturday 04:35:44 AM local time (Friday 16:35:44 UTC). Officials in New Zealand say the magnitude was 7.1. The earthquake occurred at a depth of 10.0 kilometers (6.21 miles). The epicenter was located 40 kilometers (25 miles) west of Christchurch; 190 kilometers (115 miles) south-southeast of Westport; 295 kilometers (185 miles) southwest of Wellington; and 320 kilometers (200 miles) north-northeast of Dunedin. New Zealand’s Civil Defence Minister John Carter has declared a state of emergency in Christchurch and Selwyn District.

Widespread damage extending beyond Christchurch has damaged infrastructure, including substantial disruption to the power and water supply. Two people were reported seriously injured, and local residents have also reported that chimneys have fallen in through roofs, ceilings cracked and brick walls collapsed. Several aftershocks were also felt as far north as New Plymouth.

Bob Parker, the mayor of Christchurch, told the New Zealand Herald that he is “thankful there has been no loss of life but there had been considerable damage across the city and outlying areas.” “We are very happy and blessed that no one died,” Prime Minister John Key said; he further pledged that “we are here to support them. We are not going to let Christchurch suffer this great tragedy on their own.”

People in the Christchurch area have been told not to enter the CBD, and a curfew has been established there from 7pm to 7am. Other towns have also had parts closed off to be inspected for safety. The NOAA’s evaluation of the situation predicts that significant damage will not progress beyond New Zealand: “Based on the earthquake magnitude, location and historic tsunami records, a damaging tsunami is not expected along the California, Oregon, Washington, British Columbia, and Alaska coasts. At coastal locations which have experienced strong ground shaking, local tsunamis are possible due to underwater landslides.”

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Cash Crunch Leads To M&Amp;A In E Retail}

Submitted by: M&A Critique

At a time when start-ups are finding it difficult to secure more funding to run their business, consolidation is increasingly taking place in the online retail space. This year alone, there have been 15 mergers and acquisitions (M&As), double that of last year and if the funding pipeline doesnt show any improvement, the dream run of online retail may come to a naught.

Apart from cash crunch, most of the business models lack differentiation in the way of their working. As their working models are becoming very repetitive, big-ticket funding is drying up and valuations of most the e-commerce companies have taken a hit. This year, 10 companies raised $520 million only, a drastic fall from $2.3 billion raised by 14 e-commerce firms last year. Cautious investors have pruned the size of deals as the average investment ticket size in Series A and Series B levels dropped over 50%.

This trend of M&As will continue and grow in the next few years as big companies are always on the prowl to acquire those companies that complement their offerings or add new segments that could help them with incremental growth. Moreover, given the current tight funding scenario, smaller startups wont be able to raise funds like they did before and are open to the idea of getting acquired.

Buying for customer acquisition, vertical addition, and cost rationalization all in non-cash deal

Big companies in the e-commerce business acquire smaller ones to consolidate their position in the high growth cash-intensive sector. Also, they wish to further boost their capabilities, with the right technology and talent. Flipkart, which has so far raised $3.19 billion, is the most funded company, followed by Snapdeal ($1.76 billion) and Paytm ($950 million). With larger players like Flipkart and Snapdeal on a high after having received record-breaking investments last year, they are looking to add more power to their company through strategic acquisitions. The objective is to expand their portfolio and increase their customer base. In the first major M&A activity in the e-commerce space, Flipkart picked up a stake in the marketplace and auctions startup WeHive Technologies Pvt. Ltd. This acquisition will help Flipkart increase its market dominance by scouting for mobile-focused companies.

[youtube]http://www.youtube.com/watch?v=TES–a-N5c4[/youtube]

However, while e-commerce companies raised lot of money in the past, especially the countrys most valuable one Flipkart, there has been a rapid markdown in the valuation. Mutual Fund Morgan Stanley marked down Flipkarts valuation to $5.58 billion. The US-based firm marked down the value of Flipkart for the fourth time in a year, lowering the value of its shareholding by 38% on a quarter-on-quarter basis. It comes at a time when the Indian e-commerce giant has been struggling to raise funds at a valuation higher than or equal to $15.2 billion. Two other investors too, Valic and Fidelity, who earlier marked up the value of their shares in the company, marked down their shares in Flipkartby 11.3%, and 3.2%, respectivelyfor the quarter ended August.

Snapdeal too made its next big kill when it acquired MartMobi, a Hyderabad-based mobile technology startup for an undisclosed amount. This helped Snapdeal strengthen its mobile platform for merchant partners. Chinese e-commerce giant Alibaba is also looking at acquisition of Indian e-tailers that have a large customer base as well as a robust network of merchants. Snapdeal too has clearly demonstrated this intent by acquiring other companies that can add more to its existing capabilities.

Another top M&A deals of this year is Myntras acquisition of Jabong for $70 million. Firstcry acquired Mahindra Retails BabyOye for $54 million and Titan acquired CaratLane for $53 million. In the last three months, for example, online fashion retailer Voonik acquired four startups, and Craftsvilla, an online store for ethnic products, made three acquisitions. So, in Indias e-commerce industry, it is just not customers who are scouting for deals, even companies are peers are looking for cheap deals to acquire and grow.

Jabong-Myntra M&A deal

The online fashion retailer Jabong was shopping around the idea of a merger and was in talks with several competitors, including Chinas Alibaba Group, Kishore Biyani-led Future Group. Snapdeal and Aditya Birla Group also may make a bid for Jabong. Finally, Myntra acquired Jabong.

The buzz about Jabongs acquisition started two years ago. In 2014, news reports had suggested that Amazon was in talks to acquire the company for $1.2 billion as it looked to counter Flipkarts acquisition of Myntra. The negotiations failed as the two companies could not reach a consensus on Jabongs valuation. Jabong was among the two top online fashion retailers in India competing closely with Myntra. However, over the last two years, the company has lost steam as a source of funding dried up. While Myntra continued to get a massive funding infusion from Flipkart, Jabong could not manage to attract funds to support its business and eventually got acquired.

M&As – growth enable

M&A in the e-commerce sector have been on the rise as it is the only way for gaining competitive advantage. The growing penetration of technology facilitators such as internet connections, broadband, and third-generation (3G) services, laptops, smartphones, and tablets will drive the e-commerce eco-system. Also, to capitalise on the benefits offered by the unique Indian consumer base, e-commerce companies have been innovating with policies traditionally not available in a brick-and-mortar store.

The primary motivation for most mergers is to increase the value of the combined enterprise. Synergistic effects can arise from four sources: For one, operating economies take place from economies of scale in management, marketing, production, or distribution, which help the company to grow. Secondly, financial economies will gain such as lower transactions costs and better coverage by stock market analysts. Thirdly, differential efficiency, which implies that the management of one firm is more efficient and that the weaker firms assets will be more productive after the merger; and lastly, there will be increased market power due to reduced competition.

Industry surveys suggest that e-commerce industry is expected to contribute around 4 percent to the GDP by 2020. In comparison, according to a NASSCOM report, by 2020, the IT-BPO industry is expected to account for 10% of Indias GDP, while the share of telecommunication services in Indias GDP is expected to increase to 15 percent by 2015. With enabling support, the e-commerce industry too can contribute much more to the GDP.

Deals in potential sectors

The Indian cab market is reporting a host of M&A deal as most players are looking a pie in this huge sector given its immense potential. The sector is worth close to Rs 50,000 crore, with only 5% in the organized sector. As the city traffic is increasing every day, the number of customers relying on a taxi for their transportation has also increased significantly. Ola bought TaxiForSure for $200 million in a cash-and-stock deal. TaxiForSure was actively looking out for a big investment to keep up with the cash-rich Ola Cabs and Uber. This acquisition added value both on the supply and demand side, for Ola. Apart from a huge customer base, TaxiForSure added 15,000 cars to Olas fleet of more than 100,000 cars.

Food is another area where in e-commerce which is throwing a lot of opportunities. Countrys online food-ordering platform Foodpanda acquired its biggest rival Just Eat India four months after acquiring Pune-based competitor TastyKhana. After closing the deal for an undisclosed amount, Foodpanda is now present in over 200 cities in India and partners with over 12,000 restaurants.

On their path towards expansion, e-commerce players in India are looking out for potential M&A deals in order to expand their businesses. The consolidation drive in the e-commerce industry follows from the fact that foreign direct investment will not happen much and domestic players to grow the pie and expand their business share on their own.

About the Author: M&A Critique is the only magazine, News published from India which gives M&A News, Mergers and Acquisitions News, Analysis, Restructuring, Takeovers, and JV.Read More on:

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