Biz People

Singh sets sights on rapid growth

Conditions are favorable for India to achieve and sustain economic growth of 9-10 percent, although this requires an increase in savings and investment rates, Prime Minister Manmohan Singh (right) said yesterday.

India has grown at an average of 8.6 percent over the past four fiscal years, and is poised to grow at a similar pace in the 2007/08 fiscal year which ends in March.

"It has been a good year for the Indian economy, for our working people and our entrepreneurs. The conditions are today favorable to achieve and sustain 9-10 growth rate," Singh said at a function for India's large expatriate community.

"The ambitious growth rate that we seek to achieve will require determined efforts to raise our savings and investments rates. The bulk of resources for India's development must come from home."

India's savings rate has reached 34 percent of gross domestic product and the investment rate has crossed 35 percent. The government expects these high rates to rise because of India's young population profile.

Singh was speaking at the government's annual "Pravasi Bharatiya Diwas" (Overseas Indians Day), which honors prominent expatriate Indians and also taps the community for investments.

Brewster quits Krispy Kreme

Krispy Kreme Doughnuts Inc said on Monday that President and Chief Executive Daryl Brewster (above right) had resigned for personal reasons after less than two years on the job and will be replaced by Chairman James Morgan.

Investors in the struggling doughnut chain, which has posted weak sales and persistent losses under Brewster's leadership, cheered the news and sent its battered shares up more than 10 percent in midday trading.

Morgan, a director of the company since July 2000, was most recently the chairman and chief investment officer of investment management firm Covenant Capital LLC, which he founded.

The company in a statement said Morgan's appointment is not temporary and that it expects him to serve as president and chief executive officer for the foreseeable future.

Sallie Mae gets new chairman

Student lender SLM Corp, known as Sallie Mae, on Monday named banking veteran Anthony Terracciano as chairman and said John Remondi would return to the company as chief financial officer.

The news sent Sallie Mae's beleaguered stock up more than 12 percent.

Albert Lord will continue as Sallie Mae's chief executive and has been appointed vice-chairman, the company said.

Terracciano previously held numerous bank executive roles, including president of First Union Corp, CEO of First Fidelity Bank Corp and chief operating officer of Mellon Bank.

Remondi joined Sallie Mae in 1999, but most recently was portfolio manager at Par Capital Management, a Boston-based investment management firm.

Sallie Mae is embroiled in a court battle with a consortium, led by private equity firm J.C. Flowers, that agreed to buy the company for $25 billion, or $60 a share, in cash last April, but later said it wanted to terminate the transaction.

Sallie Mae's shares plummeted as the buyout unraveled, closing on Friday at $16.67. Monday's news helped the stock rise $2.03, or 12.2 percent, to $18.70.

(China Daily 01/09/2008 page17)