September 01, 2012.

How forthcoming Dwarka Expressway has given a boost to Gurgaons real estate market
Connectivity to any real estate project always acts as a pull for the buyers and investors. If we look around, properties that have come up near highways or expressways have seen a tremendous response. Nowadays, perception of people buying properties, in terms of distances, has changed as people want to live in well planned projects, which have rapid commuting infrastructure. It is easier to attract customers to projects located on expressways, as they provide good connectivity to nearby areas. This has led to the development of many sectors around expressways in Gurgaon and the latest options available here are the areas around Dwarka-Gurgaon Link Expressway (Northern Peripheral Road or NPR). Much like the NH-8 , which gained popularity in the 1990s, the Dwarka-Gurgaon Link Expressway is receiving the same, in fact, more attention today. The road starts from Dwarka and crosses Bijwasan, New Palam Vihar, Kherki Daula, and finally joins the NH-8 .

Developers line up festive offers in bid to push up sales

In response to the increasing demand of homes, Pune's residential realty market recorded the highest number of launches in the country, according to a latest report. Pune was among the few cities that witnessed an increase in number of launches in the second quarter of 2012. As the festive season sets in, the market sentiment also seems to be looking upbeat. In this regard,developers have also lined up festive offers for the buyers to pick and choose from.

According to Vishal Jumani, Director , Supreme Universal, for Indians purchasing a home has a lot of spiritual sentiment. "Home seekers usually prefer festive season and more particularly if there is an auspicious day during that time. The sale generally during the festive season is very positive and upwards." The festive season beginning with janmashtami and stretching until the year end is characterised with joy, enthusiasm , positive vibrations, high levels of socialising, and religious fervour . Therefore, a significant trend in India is that of buying property during festivals or auspicious seasons, especially during navaratra and Diwali , observe realty experts. "Since time immemorial, most Indians tend to link property acquisition with auspicious dates. People believe that the festival season is an auspicious time to invest in real estate. We generally find that at this

festive time of year, the atmosphere and mood of the public is positive and outlook is happy," says Ashok Kumar, Principal and MD, Cresa Partners. During the festivals, everyone is feeling good and the sentiments of the realty market especially are at its best. Hence this is a great opportunity for developers to encash on the consumer inclination to make purchase during this period with the right value proposition. "The festive season is considered a time of good investment. Thus activity levels in the property market increase substantially during this period . This festive season may prove to be a turning point for real estate market as pent up demands are piling up. Developers are likely to address the festival season as an opportunity to enhance sales and offer lower prices/freebies under the guise of festival discounts. In Indian real estate industry, one third of the annual sales happen during Diwali. On an average, the festive season stokes up real estate transactions by 25-35 %. To approach the Indian market one has to be mindful about social realities," says Kumar

How IMT-Faridabad will be a catalyst to real estate developers growth

IMT-Faridabad is over 1,750 acres and is being developed by the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC). Infrastructure development On the connectivity front, Reliance Infrastructure bagged a road project of over 66km on highdensity traffic zone. It involves four-laning of the Gurgaon-Faridabad road and improvement of Ballabgarh-Sohna road on build-operate-transfer basis.
The Metro link is to be extended to this area with a feeder service to the Regional Rail Transit System; this will cater to the increasing intra-city urban transport needs. The opening of the Badarpur flyover has removed the congestion at the Badarpur border and is according a hassle-free journey to Faridabad, as many corporates head to this place, given the high rates in Delhi.

SC interim order on VAT on sale of properties a relief for developers and buyers
The Maharashtra state government's decision to levy 5% of Value Added Tax (VAT) on sale of properties during the period of 2006-2010 has become a pain-point for the realty sector. However, the good news is that a division bench of the Supreme Court passed an interim order on August 28, extending the deadline for paying the same by two months for developers in Maharashtra, providing some relief.

The Supreme Court passed the interim order while hearing a Special Leave Petition (SLP) filed by the developers' representative organisation MCHI-CREDAI challenging the Bombay High Court order dismissing the writ against the State Government in the VAT case.

With this, developers are allowed to pay VAT by October 31, 2012 and register themselves with the Sales Tax Department by October 15, 2012. The apex court also granted MCHICREDAI relief against coercive steps by the Sales Tax Department for recovery of tax, interest and penalty. If the amount of taxes is paid by 31st October , then interest and penalty will be stayed.

Approval to GNIDAs master plan has breathed new life into the Noida Extension property market
As one drives 7km from Noida City Centre and reaches the main roundabout (with four statues of Buddha), which marks the start of Noida Extension, what grabs your attention is the numerous stalls of property brokers that have mushroomed along the way. The area around the roundabout is chock-a-block with them. As your car slows down, young men from these stalls rush up to you, waving project brochures. Only a month ago, when this writer passed by this area, it wore a deserted look. Clearly, the NCR Planning Board's approval of the Greater Noida Authority's master plan, which is go-ahead for the projects in Noida Extension, has revived this moribund market. Location advantage Though Noida Extension comes under the jurisdiction of the Greater Noida Industrial Development Authority (GNIDA), it derives its name from the fact that it is located adjacent to Noida. Despite Greater Noida's wonderful planning and sound infrastructure, its distance has always been a disadvantage (Pari Chowk is 22km from Amity Chowk). Noida Extension does not suffer from this handicap. Sectors 18, 32 or 62 in Noida are barely 5-15 minutes from Noida Extension, on a brisk drive. This means that residents who move into this area first (when its own social infrastructure is not fully developed) can depend on Noida's infrastructure in the early days.

Sept 02,2012

FIIs invest about 11,000 cr in August, highest in 6 months

NEW DELHI: Overseas investors pumped in close to Rs 11,000 crore in the Indian stock market in August - highest in six months - amid hopes of government initiatives on policy reforms and easing of monetary policy globally. Thus, FII investment in the country's equity market has reached Rs 63,070 crore so far this year, and Rs 24,518 crore in the debt market during the same period.

In August, Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs 48,136 crore, while they sold equities amounting to Rs 37,332 crore -- net inflow of Rs 10,803 crore (USD 1.94 billion), according to the data available with the market regulator Sebi. This was the highest net investment by FIIs in stocks since February, when they had infused Rs 25,212 crore. In July, they had pumped in Rs 10,273 crore. Market experts said that despite slowing economic growth and a high interest rate regime, foreign investors continued to prefer Indian equities on expectations that government would take fresh policy initiatives.

Sebi to ask companies, bankers for detailed basis of IPO price band
NEW DELHI: Market regulator Sebi may soon ask companies and merchant bankers to limit any business transactions amongst them to bare minimum and to provide investors with a detailed analysis of how they discover the IPO price range. The proposed steps are aimed at safeguarding the investors' interest and ring-fencing the Initial Public Offer (IPO) market from possible over-pricing of the public offers through a nexus between the company promoters and merchant bankers, a senior official said. The Securities and Exchange Board of India (Sebi) has already made it mandatory for the merchant bankers to provide a track-record of the offers managed by them, while it has also announced steps like stricter eligibility criteria for tapping the capital markets through IPOs.

Besides, a proposal is already underway to ask the promoters and merchant bankers to provide a capital protection guarantee for certain period to part of shares allotted to retail investors in IPOs through a mandatory 'safety net' provision.

Indian Bank revises FCNR deposit interest rates

CHENNAI: Public sector Indian Bank has revised its interest rates on Foreign Currency NonResident (Banking) term deposits across different maturities with immediate effect. For FCNR(B) Deposits, in USD, the interest rate has been fixed at 3.03 per cent for deposits of one year and above but less than two years as against 3.05 per cent, the Chennai-based bank said in a statement. For deposits of two years and above but less than three years, the interest rate remained unchanged at 2.42 per cent. The interest rates has been revised to 3.50 per cent from 3.48 per cent, for deposits of three years and above but less than four years. For deposits of four years and above but less than five years, the rate has been increased to 3.66 per cent from 3.63 per cent, it said. For deposits of five years, it has been hiked to 3.87 per cent as against the existing 3.79 per cent, the statement added.

Policybazaar to hire 500 people in next two months

NEW DELHI: Web-based Policybazaar.com, which enables consumers compare and analyse insurance products, today said it will hire 500 people in the next two months to ramp up operations as it aims to double revenues to Rs 50 crore this fiscal. At present, the company has over 800 people spread across functions like help desk quality of service, HR and administration. "We have about 600 employees assisting people make up their mind about the policy they want, while the remaining are in other administrative teams. With the growth that we have seen and are now targeting, we will have to ramp up headcount," Policybazaar Co-founder and COO Avaneesh Nirjar told PTI.

Founded in 2008, the website presents comparative analysis of the insurance and loan products based on price, quality and key features. It claims that more than 20 million unique users visit the portal each year to compare insurance offerings and close to 30,000 people every month make their insurance purchase based on inputs received on Policybazaar.com.

Why Ratan Tata wont actually retire

Society has come to recognise the leaders of modern corporations, among many others, as heroes," wrote Jeffrey Sonnenfeld in The Hero's Farewell: What Happens when CEOs Retire (1988). The premise of Sonnenfeld's work is that the leader's heroic "self-concept" leads up to four styles of departure. The Monarchs do not leave voluntarily; they will either die in office or are overthrown. The Generals leave reluctantly and then go on to spend much of their retirement plotting a comeback. The Ambassadors leave office gracefully but maintain an active and close, albeit low-key, connect with the enterprise they once led. And there are the Governors, who willingly leave office to pursue new interests.

September 03, 2012.

Investors can bet on MOIL as it can deliver good returns in the long term
MOIL, India's largest and the world's fifth largest producer of manganese ore, has shown the ability to deliver decent numbers even though the global manganese industry is going through a rough patch. MOIL's sales figures for the first quarter of 2012-13 have gone up by 15% on a year-on-year basis, and by 20% on a quarter-over-quarter basis. Though a 42% jump in volume helped MOIL boost its first quarter sales, the fall in net realisation due to the oversupply of global manganese ore has forced it to take a small cut of 9% in its first quarter net profit on a year-on-year basis. MOIL's decision to align the domestic manganese ore prices with the international prices may result in a short-term pressure on its margins. Yet, it was touted as a good move and has helped MOIL replace the manganese ore imports and increase its sales volume. Though the global manganese ore price trends may remain under pressure due to oversupply concerns, the declining inventory levels in Chinese ports, estimated to be around 2.55 million tonnes in June 2012, down from 4 million tonnes in April 2011, should provide it some support in the short term. The recent fall in the Indian rupee has also nullified the fall in the international manganese ore prices.

LIC launches micro insurance product Jeevan Deep

NEW DELHI: Country's largest life insurer LIC today announced launch of its third micro insurance product Jeevan Deep. This is an endowment assurance product with an added feature of guaranteed additions along with provision of loyalty addition, LIC said in a statement. The plan provides for a sum assured or risk cover ranging from minimum of Rs 5,000 to maximum of Rs 30,000 with an optional accident benefit rider, together providing for total benefit equal to double the sum assured, on death due to accident, it said. Flexible modes of premium payment have been provided ranging from monthly, quarterly, halfyearly and annually, it said adding a single premium payment option has also been provided.

How households can deal with inflation

A few friends of mine came together to start a new venture. They set aside a corpus to provide for their families before chasing their dream. It seemed like a good idea and they did quite well in the first two years. However, they closed down abruptly a few days ago just as they were poised to take off. The reason: inflation. Their families simply could not cope with the rising prices and uncertainty of income to allow them their entrepreneurial indulgence. They were comfortable, upper middle-class households, which, one would assume, are not hurt by the rising prices of milk, eggs and fruits. Inflation has manifested in the middle-class households in areas other than the bare necessities. The cost of education from pre-primary to college level has soared. Not only are private colleges and schools seeking exorbitant fees, most families incur additional expenses on coaching, extra study material, tests, subscriptions and books. The cost of buying a house across major cities is beyond the reach of most. They either pay a very high rent, or have taken loans to buy a house, mostly in the suburbs. The EMI is the biggest draw on a family's income. The next big drain is in the form of transportation expenses to commute to school, work and social outings. Several maintain multiple vehicles, from cars to a bike per adult family member.

RBI removes credit exposure limit for primary dealers in government securities
MUMBAI: The Reserve Bank has done away credit exposure limit for primary dealers in government securities (G-Secs). "...it has been decided that the ceilings on single or group exposure limit would not be applicable where principal and interest are fully guaranteed by the Government of India," RBI said in a notification issued today. As per its earlier guidelines, primary dealers were advised to adhere to a credit exposure limit of 25 per cent of their net owned funds to a single borrower and 40 per cent of their net owned funds to group borrowers. However, it said, primary dealers should adhere to the prescribed credit risk exposures limit in case of non-government securities investment including investments in mutual funds, commercial papers, certificate of deposits.

CLSA's top five mid-cap pic

NEW DELHI: The mood on the macro environment seems to have turned even more cautious in the past few months and the focus has now shifted firmly on company-specific drivers, CLSA has said in a note. According to the brokerage firm, midcap firms have underperformed the large caps by 3.3 per cent since the beginning of August. The CNX Midcap forward PE discount has also narrowed to 13 per cent, which is below its long-term average of 20 per cent.

"If we look at June quarter results of over 1400 midcap companies, we will find that revenue growth has slowed perceptibly and earnings continue to erode," the note added. Well, companies are facing contraction in demand and a revival of festive season might bring cheer to discretionary consumer companies. In the midcap space, CLSA prefers Yes Bank, Apollo Tyres, Ipca Labs, Havells and Oberoi Realty.

September 04, 2012.

ICICI de-rates Tulip Telecom on FCCB issue

MUMBAI: ICICI Direct has de-rated Tulip Telecom and maintained 'sell' recommendation after the company failed to redeem the zero coupon FCCBs, which were due on August 26, 2012. It has advised investors to avoid bottom fishing in the stock. "The default on FCCBs along with huge debt, inability of the company to find a strategic investor for its data centre in Bangalore and a poor operating performance amid a challenging macroeconomic environment continue to remain huge concerns for the company," the note said. "We have de-rated the stock to value it at 5x FY13E adjusted EPS to arrive at a target price of Rs 69. We continue to rate the stock as SELL and advise investors to refrain from bottom fishing in the stock. We will revisit our rating, if required, post the FCCB payment by the company," it added. The company had issued $150 million zero coupon convertible bonds in June 2007, which were due on August 26, 2012. The principal amount of bonds outstanding along with premium is $140.2 million prior to withholding tax.

Sony eschews cheap tablets as it pursues Samsung

TOKYO: Sony Corp on Tuesday said it won't be drawn into price competition on tablet PCs amid a plethora of cheap models from other makers as it pursues Android rival Samsung Electronics with a new tablet out this month. Sony will begin U.S. sales of its latest tablet, now under its mobile Xperia brand, on Sept. 7. The 16 gigabyte version will sell for $399 -- the same price charged by Samsung for its equivalent model with the same screen resolution. Apple Inc's 16GB iPad 2 also retails for the same price, with its latest high resolution model starting at $100 more. "We aren't considering competing on price in tablets," Kunimasa Suzuki, an executive vice president at Sony, said at a briefing in Tokyo.

When Sony launched its first models in April last year, Suzuki at the time said Sony was aiming to overtake Samsung to become the leading Android tablet maker within a year.

Volkswagen India to launch high-end variants of Polo and Vento at lower prices
MUMBAI: With festive season round the corner, German car major, Volkswagen India plans to bring in the refreshed versions of Polo and Vento to bring in some excitement in highly suppressed buying environment. Aiming to offer, higher value to the customers, Volkswagen India will now be launching the top end, Highline variants of Polo and Vento at Rs 20,000 to Rs 50,000 lower, yet adding host of features like Bluetooth connectivity, alloy wheels, navigation system with rear view camera and RCD music system amongst others Arvind Saxena, managing director, Volkswagen Passenger Cars said, ""Both Polo and Vento have been in the market for close to three years, so we are refreshing them with an aim to offer value to the customers. The introduction of new features in Polo and Vento will further excite the customers as both the carlines will offer much more value now."" Volkswagen will start sales of the refreshed car lines by second half of September through all its 108 dealerships across the country.

Indian Bank cuts home, car loan rates by up to 0.5 per cent
NEW DELHI: State-owned Indian Bank has reduced interest rates on home and car loans by up to 0.5 per cent to increase disbursements in these segments. The Chennai-based bank tweaked interest rates of retail loans soon after Finance Minister P Chidambaram advised banks to keep EMIs at affordable level. "We have recently reduced interest rate on home and vehicle loans with an aim to increase credit disbursement in these segments" Indian Bank Chairman and Managing Director T M Bhasin said here today. In the housing loan segment, rates has been reduced by up to 0.5 per cent, while interest rate on car loan has been slashed by 0.25 per cent effective August 25. Housing loan up to Rs 30 lakh is now available at 10.5 per cent or base rate irrespective of the tenure of the loan. Similarly, rate has been reduced for home loans between Rs 30-75 lakh to 10.75 per cent or base rate plus 0.25 per cent.

The bank has also waived of processing or administrative charges on such loans. Besides, it has brought down the car loan from 11.25 per cent to 11 per cent.

Tata Motors launches new Xenon; price range from Rs 5.44-6.34 lakh
MUMBAI: Tata Motors, which today launched its premium pick-up Xenon here, said it expects the new product to push up its market share in the segment to 25-30 per cent. "We are quite bullish about the growth outlook in the pick-up segment, and with Xenon, our share in this segment can go up to 25-30 per cent," Tata Motors executive director for commercial vehicles Ravi Pisharody told reporters here. The new Xenon is priced in the range of Rs 5.44-6.34 lakh (ex-showroom Thane) Pisharody said, adding that company commands 20 per cent share in the pick-up segment now. Tata Motors had launched the Xenon three years ago in the global markets, and has so far sold 35,000 units in markets like southern Europe, South Africa, Thailand and Italy. In the domestic market, Xenon is now available in Maharashtra, Gujarat, Rajasthan and Tamil Nadu, and Punjab will be the next destination, Pisharody said. "The pick-up segment is growing rapidly and we see this trend continuing," he said. The company plans to ramp up production capacity to 1,000-1,200 units per month going forward. It may launch a few variants of the vehicle by December, said Pisharody.

September 05, 2012.

Top posts in BSNL, MTNL may be reserved for ITS officers

KOLKATA: The telecom department will shortly move a Cabinet note to "encadre" or permanently reserve about 1,100 top managerial slots in state-run BSNL and MTNL for Indian Telecom Service (ITS) officers to stop their exodus. At present, BSNL has medical officers and law enforcement executives in its seven telecom factories who are encadred officers of the Union health and labour ministries. DoT now plans to ring in the concept of encadred officers in BSNL and MTNL's highest echelons by permanently placing Group A officers belonging to the ITS cadre in key management slots in the ranks of DGM and above. All encadred officers will remain in government service till retirement and will earn in line with central pay scales, which is higher than PSU compensation. "The DoT is examining a proposal to encadre some 1,000-odd top managerial positions in BSNL and another 150-odd in MTNL for ITS officers to encourage them to stay back in these PSUs," said a member of a DoT panel looking into the ITS issue, adding that the government was hopeful since encadrement already existed in BSNL. The move, however, requires Cabinet approval as BSNL and MTNL were spun off into corporate entities from DoT through cabinet decisions in 1986 and 2000, respectively.

SBI cuts fixed deposit rates by upto 1%, other lenders may follow
NEW DELHI: State Bank of India today announced a cut of up to 1 per cent in interest rate for fixed deposits across maturities, a development which may prompt other banks to follow suit. "The new rates would be effective from September 7," State Bank of India, the country's largest bank said in a statement. When asked about the reduction, SBI Managing Director and Chief Financial Officer Diwakar Gupta said, "The bank has taken decision to cut interest rates on term deposits as liquidity is comfortable." The decision to cut fixed deposit rates would help the bank improve margins, he said.

For deposits between 241 days and one year, the downward revision is 1 per cent. The new rate would be 6.5 per cent as against 7.5 per cent. Of the total 9 maturity periods for fixed deposits, 0.5 per cent downward rate revision is for six categories. With the revision, the interest rate on 7-90 days fixed deposit would come down to 6.50 per cent, from 7 per cent. Similarly, term deposit 91-179 days would be down by 0.5 per cent, at 6.50 per cent and 180 days fixed deposits would also attract 6.50 per cent interest rate.

Aakash 2: It's challenging to make a quality tablet for Rs 2276, says Lenovo
TOKYO: Chinese PC maker Lenovo on Wednesday said it may look at the proposition of a participation in India's Aakash tablet project, though it would be difficult to produce a tablet with a great user experience at the proposed price of Rs 2276 ($41). "We are aware of the project and looking at that proposition. We don't disclose about tenders we are participating. In my personal view, it's very challenging to produce a tablet at that price, which can carry a great customer experience," said Keith Liu, Business Development Director for Mobile Internet Digital Home division at Lenovo across Asia Pacific & Latin America regions. Liu heads the tablet business for Lenovo, second largest tablet player in China after Samsung. "As a person who studies the tablet market closely, I can say that the bill of materials will be high if you want to produce a quality tablet. At that (proposed) price, you may have to make the tablet limited in certain ways and functions," Liu said. India's Aakash tablet project is envisaged by its Ministry of Human Resource and Development. It plans to distribute about a million tablets in colleges in the coming years, at a procurement price per tablet of Rs 2276 ($41). It has awarded a contract for 100,000 tablets to UK's Datawind, which is under testing phase at IITs since a year.

S Kumars, Kemrock, Glodyne: Stocks that witnessed sharp swings in August

MUMBAI: Equity markets are volatile even at the best of times- a case in point being Plethico Pharma whose stock price halved in four trading sessions, but rose over 50% in a few sessions last month.

ET Intelligence Group analysed the sharp swings in a few stocks in August to assess what went wrong, and what investors ought to do. None of the companies responded to ET's queries for this story. Kemrock Industries Valued at a comfortable over Rs 1000 crore just a couple of months ago, this fibre-reinforced plastic maker's market capitalisation has now been reduced to just Rs 203 crore. In the last 15 trading sessions, the scrip was consistently locked at lower circuit levels shaving off over threefourth of its worth. Apparently the trigger was the promoter pledging a large chunk of his holding in the company and a dismal June '12 quarter result. The company has long been weighed down by its debt burden, which it somehow has managed to service. To fund its growth it announced raising $100 million through FCCBs with a conversion price of Rs 529 in April '12. There have also been reports which have been unconfirmed about technical problems at its prized carbon fibre plant. The company does not appear equipped to address its debt problem summarily, which could put off investors. Glodyne Technoserve Heavy share pledging by promoters proved its undoing for Glodyne as lenders started selling those shares in the market. The result was 25 consecutive sessions marked by the stock being in the lower circuits. In the process, promoter Annand Sarnaik's stake fell by 360 basis points to 31% at the end of August 24, 2012 compared to the end of Jun '12. The company has reported double-digit growth in revenue in each of the last four quarters. It has won a few government projects in the recent past, which offers revenue visibility. A higher debtequity ratio of over one compared with 0.3-0.7 for peers raises some concern. The promoters may see their holding decline if the stock price continues to fall. On Monday, the company said in a press release that a majority of its lenders have agreed not to sell the promoters' shares. The arrangement covers 70% of the promoters' stake. The announcement reversed the share movement, which hit the upper 5% circuit in last three trading sessions. Ahluwalia Contracts It was a notice from the Employee Provident Fund Organisation or EPFO demanding Rs 55 crore which acted as a trigger for Ahluwalia Contracts which lost over a quarter of its value within a month. This notice, has come at a time when the small sized construction firm has been posting consecutive losses owing to slower execution and rising input costs. The company says it is studying the notice and plans to appeal to the competent authority. However, its fortunes are unlikely to reverse until it is able to renegotiate its existing contracts which can support its margins in the next few quarters. S Kumars Nationwide

An increase in the level of pledged shares by the promoters pledging their shares coupled with a weak June '12 quarter proved to be undoing for this textile retailer. Apart from the slowdown in topline and bottomline during the June '12 quarter, a rise in interest costs also was a cause of worry. So is the slowdown in the US and European markets.

Poor infrastructure, costly realty forcing manufacturing industry to pave way for service sector in Andheri East
Andheri East, -once, a manufacturing stronghold in the city, is now finding it difficult to survive in the region. Faced with economic slowdown, ghosts of infrastructure handicaps, high cost of realty and power continue to haunt the manufacturing units of Andheri East. They are fast being replaced by the service sector. Manufacturing sector has been going through a bad phase. According to the Reserve Bank of India's annual report, slow growth, high inflation and widening fiscal and current account gaps marked Indian economy's performance in 2011-12. The economy grew at its slowest pace in nine years with manufacturing, mining, and construction dragging the growth down. Weakening of both domestic and external demand contributed to the slowdown, the report stated. MANUFACTURING UNITS REPLACED The outcome of the RBI report is being reflected clearly in the manufacturing industries of Andheri East. According to Pranay Chulet, CEO & Founder of Quikr - Andheri East-based leading horizontal classifieds company, his portal Quikr has received hundreds of entries from the region seeking to lease out their industrial galas. "The region is now up for malls, service apartments, hotels, real estate and such others," says Chulet. Industrial galas in Andheri East are fast making way for commercial hubs. For instance, the Mehta industrial estate - a three-storey building, which had different manufacturing units operating from the building, now has a coaching centre running on all three floors. The Maharashtra Industrial Development Council (MIDC) too has plush restaurants in its premises. Borosil Glass Works Ltd was a known name in the region. The factory building was an important landmark in Marol, Andheri E. But the famous glassware manufacturers have now given up their 17-acre land, and made way for a residential township, Sheth Vasant Oasis, a deal cracked by Sheth developers in 2010. Though the company said that it decided to unlock value from the sale of the Mumbai property, however, labour shortage was reportedly one of the core reasons for the company to take the step.

September 06, 2012.

Honda Motorcycle & Scooters India aims 30% sales growth this fiscal
NEW DELHI: Honda Motorcycle & today said it expects sales to grow by 30 per cent this fiscal to touch 27.5 lakh units. The company, which is currently undertaking wage settlement negotiations agreement with its workers at the Manesar plant, also said it expected the process to be completed soon.

"In last financial year, we sold 21 lakh units of two wheeler and our this year target is 27.5 lakh units, which will be a 30 per cent jump," Honda Motorcycle & Scooters India ( HMSI) Vice President and Marketing Yadvinder Singh Guleria told reporters here. Speaking on the sidelines of the annual convention of Society of Indian Automobile Manufacturers ( SIAM), he said the company's two plants are running on full capacity. "Our production capacity is full at this moment and we are expecting good growth in the festive season. With our two plants in operation we have a capacity to produce 28 lakh units annually," Guleria said. The company's plants are located at Manesar, Haryana and Tapukara in Rajasthan. The third plant in Bangalore will be operationalised by April-May next year and it has an installed capacity of 12 lakh units, he added. Commenting on the ongoing wage negotiations with its Manesar plant employee workers, Guleria said: "Discussions are on between the management and the union. The labour department has also has been informed. It will be finalised very soon."

IFFCO gets land in Canada to set up $1.2 bn urea plant

NEW DELHI: Fertiliser major IFFCO today said it has identified land in Canada for setting up a gas-based urea plant at a cost of $ 1.2 billion and expects the facility to be operational in the next five years. Early this year, IFFCO had announced setting up of a urea plant in Canada with a capacity of 1.27 million tonnes via joint venture with a local partner there.

"Much progress has been made in Canada. Land has been ear-marked in Quebec government's Becancour Waterfront Industrial Park. We are hopeful of getting environment clearance in 2-3 years," IFFCO Chairman and Managing U S Awasthi told reporters. The IFFCO has also tied up with a company for shale gas supply and is doing feasible study for seeking environment approval. After the green nod, production should start from 2017-18, he said. In July, the IFFCO and and Canadian firm Pacific Gateway Energy, Canada formed a JV firm "IFFCO Canada Enterprise Limited" in Quebec, he added. The proposed Canada plant will be IFFCO's fifth ammonia urea plant. It has three plants in India and one in Oman. The 2-million-tonne urea plant in Oman called OMIFCO is a joint venture between Oman oil company SAOC, IFFCO and Kribhco. For the Canada plant, Awasthi said that the IFFCO will invest at least $ 100-200 million and the rest will be raised through equity and debt. "There has been good response from investors in India and abroad for the proposed JV company. The cooperative is in talks with some investors," he said.

Mission to promote electric vehicles to be launched this month

NEW DELHI: A mission plan to promote electric and hybrid vehicles in the country is expected to be formally unveiled by the government by the end of this month. "In the next fortnight, I hope, I am sure, that the Prime Minister will officially launch the National Electric Mobility Mission Plan 2020, " Minister of Heavy Industries and Public Enterprises Praful Patel said here today. The government wants to promote electric and hybrid vehicles in the country. According to industry, the government will save Rs 30,000 crore in fuel by providing Rs 14,000 crore in subsidy to industry for manufacturing electric vehicles. The industry contribution would be about Rs 8,000 crore. The plan lays the vision, sets the targets and provides the roadmap for achieving significant penetration of efficient and eco-friendly electric vehicle (including hybrids) technologies in India by 2020. The country has set a target to produce six million green vehicles by 2020, of which four to five million are expected to be two-wheelers. At present, there are only about 1,500 electric fourwheelers and about four lakh electric two-wheelers.

The National Council of Electric Mobility ( NCEM), which is a government body for making recommendations in these matters, held its first meeting on August 30. On the proposal to levy additional tax on diesel cars, Patel said, "Talks on this issue are ongoing. If such talks will happen before the next Budget, we will again put our views to them (Finance Ministry)." While the Finance Ministry had been mulling imposing additional levy on diesel vehicles to discourage consumption of subsidised fuel by personal vehicle owners, the Department of Heavy Industry was opposing the proposal saying it would hurt the industry.

Petrol costlier in India than US, Pakistan and Sri Lanka

NEW DELHI: Petrol in India costs more than it does in the US as well as neighbouring Pakistan and Sri Lanka, but is cheaper than in Europe. Diesel rates on the other hand are the cheapest in India. Petrol in the national capital costs Rs 68.46 per litre as compared to Rs 53.32 a litre in Pakistan, Rs 61.56 in Sri Lanka and Rs 62.25 in Bangladesh. Nepal, which imports all of its fuel from India, sells petrol at Rs 74.77 per litre, Minister of State for Petroleum and Natural Gas R P N Singh said in a written reply to a question in the Lok Sabha today. Petrol in US costs Rs 50.44 per litre. But in Europe, the fuel is much costlier - Rs 105.10 in France, Rs 111.03 in Germany, Rs 114.42 in United Kingdom and Rs 119.69 per litre in Italy. On the other hand, diesel price of Rs 41.32 a litre in the national capital is lower than Rs 59.56 in Pakistan, Rs 41.36 in Sri Lanka, Rs 49.08 in Bangladesh and Rs 57.91 in Nepal. In the US, diesel is priced at Rs 54.55 per litre, while it costs Rs 77.84 in France, Rs 83.36 in Germany, Rs 99.38 in UK and Rs 93.11 in Italy. "Whereas the price of petrol in India is comparable to many of the countries, the price of diesel in India is lower in comparison to the neighbouring and European countries," Singh said. The difference in rates of petrol and diesel is most due to tax structure - while the government levies Rs 14.78 per litre excise duty on petrol, the levy on diesel is just Rs 2.06 a litre.

Two-wheeler industry faces first sales fall in 42 months

NEW DELHI: Sales of two-wheelers fell for the first time in 42 months in August as a combination of surging petrol prices and high interest costs forced customers to cut back on purchases. Two-wheeler companies such as Hero MotoCorp and Bajaj Auto posted a sharp drop in sales while overall industry numbers declined 5 per cent for the first time since January 2009 to 1.07 million units. Only Honda Motorcycle & Scooter (HMSI) and Suzuki bucked the trend with a robust rise in numbers. The decline, coming weeks ahead of the festive season, is a rude jolt for the industry, indicating flagging demand just when the economy needed a booster shot with higher consumption. "The future depends on the coming months and we expect retail sales to rise during the upcoming festive season. The past two months have been really tough. We have seen a drop in retail sales and our stocks are rising. We are betting on the festive season to revive the market," said Hero MotoCorp MD & CEO Pawan Munjal. Industry executives blame the fall on petrol prices that have risen sharply in recent months, and high interest rates, which are at 24 per cent compared with 10-12 per cent for cars. Unlike cars, twowheelers don't have the cheaper fuel option of diesel.

September 07, 2012.

Hindustan Zinc outperforms peers, but upside limited

MUMBAI: Hindustan Zinc has outperformed its peers in the past one month. But given the downtrend in commodity prices, there is little room left for further appreciation from current levels. Its stock has given returns of 8.15% compared with a 6% decline in the BSE Metal Index. Incidentally, out of the 11 stocks that comprise the BSE Metal Index, it is the only stock, apart from Coal India and NMDC, which has given positive returns. It currently trades at 9 times its trailing 12 months per share earnings. Due to the downturn in base metal prices, the near term prospects are not very encouraging for the stock. But the longer term prospects remain strong given the company's low cost structure and strong balance sheet. The impact of the fall in the prices of industrial metals - Zinc and lead was visible through the drop in revenue Hindustan Zinc reported during the June 2012 ended quarter. But profit increased by six percent over the same period last year on account of its silver operations. Silver is obtained as a by-product while purifying lead and hence does not have any additional production cost. The company currently debt free and has a cash pile of Rs 5255.32 crore, which bodes well its expansion plans. According to Bloomberg data, 36 out of 46 analysts recommend buying the stock with a target price of Rs 139. The stock closed at Rs 128.65 on the Bombay Stock Exchange, Friday.

US online job demand rises in August

NEW YORK: A monthly gauge of online labor demand in the United States rose in August from July, led by jobs available in the agriculture, forestry, fishing and hunting industry, the operator of a job search website said on Friday. Monster Worldwide Inc, an online careers and recruiting firm, said its employment index rose 4 per cent to 156 points last month from 147 points in July. The index was also up 6 per cent from the same period a year ago. The index saw annual growth in 18 of 20 industries monitored and 19 of 23 occupational categories compared with August 2011. The number of industries and occupational categories showing growth also improved month-over-month in August.

The agriculture, forestry, fishing and hunting industry grew 13 per cent year-on-year in August and topped the industry sector rankings with an index reading of 228 points. Transportation and warehousing also grew by 13 per cent. Manufacturing and wholesale trade recruitment each rose 11 per cent, while administrative support rose 10 per cent. Contraction in recruitment occurred in public administration, down 16 per cent. Educational services industry recruitment fell 3 per cent. The report offered another look at the jobs market ahead of the US government's non-farm payrolls report due later on Friday. Washington releases the August employment report on Friday, which economists think will show only modest hiring, with non farm payrolls expected to rise 125,000. The unemployment rate is seen holding at 8.3 per cent. Monster tracks recruitment in 28 metro areas. Houston and Dallas were the areas with the biggest annual recruitment growth rates in August at 15 per cent each. Orlando, Chicago and Indianapolis followed close behind with annual growth of 14 per cent each. The Monster Employment index is a monthly analysis based on a selection of corporate career sites and job boards. The margin of error is about plus or minus 1 per cent.

Reserving jobs for ITS officers illegal, says DoT

KOLKATA: The telecom department said any move to reserve about 1,100 managerial slots in BSNL and MTNL for Indian Telecom Service officers would be illegal and flout government regulations. "The option of encadrement of roughly 1,100 managerial posts in BSNL and MTNL for ITS officers is not legitimate or an available option within the policy guidelines of the government of India," said a DoT official.

18,000 mobile phones using same IMEI number found

NEW DELHI: Two cases of more than 18,000 mobile phones having the same 15-digit unique code, IMEI, on telecom network have been detected, Parliament was informed today. Such instances make it difficult for security and law enforcement agencies to identify the actual user.

"Two cases have come to notice wherein same IMEIs has been used in more than 18,000 cell phones," Telecom Minister Kapil Sibal said in a reply to Rajya Sabha. Department of Telecom on April 29, 2009 had directed telecom service providers that calls from mobile handsets without International Mobile Equipment Identity (IMEI) should not be processed and rejected from June 30, 2009. Further directions were issued on September 3, 2009 to bar communication from mobile handsets with any IMEI number which is not available in the latest updated IMEI database of global association GSMA from November 30, 2009 onwards. Also, this direction instructed telecom operators not to process communication from mobile phone not having IMEI number or just zeroes, the minister said. Similar instructions were issued for CDMA handsets without the unique code Electronic Serial Number (ESN) or Mobile Equipment Identifier (MEID). The Minister further said that Ministry of Commerce has already banned import of GSM mobile handsets without IMEI or with all zeroes IMEI as well as CDMA handsets without ESN or MEID or with all zeroes ESN or MEID. Sibal, however, said it is difficult to differentiate between original handset and duplicate handset with same IMEI number. "Department of Telecommunications is examining the issue to find out possible solutions to resolve the issue of illegal IMEI and use of same IMEI in different cell phones," he said.

Risks to Indian financial system have worsened: Anand Sinha, RBI deputy governor
The stress in the Indian banking system has increased in the past few months as a slowing economy squeezes corporate profitability. Policy inaction at the government level has also resulted in many incomplete project, leading to defaults by corporates. Also, the unsolved European sovereign credit crisis could have a contagion effect if the monetary union breaks up. "The NPA levels have become higher than what they were a while back," Sinha told reporters later. "So, there is definitely a stress in the system. The amount of restructured assets has gone up. Restructured assets, whether you call it standard or substandard, the fact is even if they are standard, they represent stress in the system." He said the damage could be contained by close monitoring.

In a situation where there's an increasing evidence of deterioration of asset quality at banks, while macroeconomic situation may certainly have an impact, this can still be contained by substantially upgrading the credit management systems so as to be able to contain slippages and improve recovery,'' Sinha said.

September 08, 2012.

India to ink $11 billion MMRCA deal with Rafale by next month: Indian Air Force official
BANGALORE: India plans to sign the $11 billion MMRCA (Medium Multi-Role Combat Aircraft) deal with French Rafale by the end of this month-end or next month, a senior Indian Air Force official said today. "I find no reason why it shouldn't be signed by the end of this month or next month", Air Officer Commanding-in-Chief, Training Command, IAF, Air Marshal Rajinder Singh said. He indicated that negotiations are currently on with regard to pricing for the 126-aircraft deal. "There is money....this thing here and there (pricing being finalised)". The Air Marshal admitted to "some problems" (on pricing) but asserted that it's not unusual in such big deals. "It should come through", he said, adding that the first aircraft under the MMRCA deal would start "flowing in" in 2017. The Air Marshal dismissed reports quoting Russian and German officials who had claimed that the deal is not final yet and that it's still up in the air. "Nothing of that sort", he said, pointing out India had already declared the lowest bidder -Rafale -- for the MMRCA deal. Vyacheskav Dzirkaln, Deputy Director of Russia's Federal Service for Military Technical Cooperation,was recently quoted as saying:"I wouldn't say that MMRCA tender is a closed issue. We have information that the tender is still up in the air". The deputy chief of the ruling CDU-led coalition's parliamentary committee in Bundestag (lower house of German Parliament) for foreign and defence affairs, Andreas Schockenhoff, reportedly said recently the last word had not yet been heard on the MMRCA deal. Russia's MiG-35 did not make it to the MMRCA shortlist, which also included Eurofighter Typhoon,designed by a European consortium in which Germany is a part, besides Rafale.

Air India gets its first Dreamliner

NEW DELHI: The advanced Boeing 787 Dreamliner of Air India touched down at Delhi's IGI Airport today, ending an over four-year wait of the struggling national carrier to add this nextgeneration airplane in its fleet.

The plane, painted in red and yellow livery of Air India, landed at the main runway of the airport at 1705 hours and was given water-cannon salute as it taxied to the bay. After parking, a small religious ceremony was conducted to welcome the aircraft in the presence of Air India CMD Rohit Nandan and senior Civil Aviation Ministry and airline officials. The Dreamliner took 15 hours of flying time from Boeing's Charleston factory in South Carolina in the US to Delhi, plus a 90-minute stopover at Frankfurt for re-fuelling, the commander of the aircraft, Capt A S Soman, said. "It was a very smooth flight. It has a very quite cabin and there is much less fatigue (for the pilot). It is both a pilot and passenger friendly airplane," he said. Air India, which ordered 27 Dreamliners six years ago, would get two more of these planes in the next few weeks. A total of eight of them would arrive by March next year, including five by December, while the national carrier would get six more in the 2012-13 fiscal. The aircraft would ultimately become the mainstay of Air India's global operations and is key to its turnaround plan. For Air India, the plane has been configured to have 256 seats -- 18 full-flat Business Class seats and 238 in Economy. It features a host of sophisticated technologies, including mood-lighting inside the cabin and large LCD display screens for in-flight entertainment.

Gold hits new high of Rs 32,450 on firm global cues

NEW DELHI: Tracking strong global cues, gold today soared by Rs 540 per ten grams to fresh all-time high of Rs 32,450 in the national capital. Prices of gold (99.5 purity) in Kolkata increased by Rs 620 to Rs 32,425, while rates in Chennai rose by Rs 710 to Rs 32,325 per ten grams. In Mumbai, the precious metal's rates surged by Rs 605 to Rs 31,955 today. "The domestic gold prices are rising purely due to global development. After the announcement of potentially unlimited bond-buying by the European Central Bank (ECB) and unfavourable non-farm pay roll data of the US, international gold prices shot up," SMC Comtrade Chairman and Managing Director D K Aggarwal said. Global prices rallied as poor non-farm employment data indicated serious job problems in the US and its weak economic situation, traders said.

The US data also brightened chances of announcement of stimulus package by the US Federal Reserve in its forthcoming meeting, Aggarwal said, adding that these developments are driving prices of gold and silver. Gold prices in New York shot up by $34 to $1,735.30 an ounce, its biggest single-day gain since February 29. Aggarwal said there is not much of physical demand of gold in the country. However, jewellery demand is expected to pick in the wedding and festive season. Echoing similar views, All India Sarafa Association General Secretary Surender Jain said: "Local gold price, which moves in tandem with global rate, is expected to see more peak levels in coming days." In the domestic market, silver prices also rose by Rs 2,100 to Rs 61,800 per kg on increased offtake by industrial units and coin makers.

Reebok scam: Staff exodus affects probe; process of tracing records slowed
NEW DELHI: The Serious Fraud Investigation Office is finding it difficult to make headway in the Rs 870-crore alleged scam at sportswear maker Reebok India because an exodus of employees has slowed down the process of tracing records. A senior official, who did not wish to be named, told ET that the agency is either unable to access documents or taking much longer than expected to get the relevant records from the company. As a result, it is likely to miss the deadline of September-end set by the corporate affairs ministry, the official said. In May, the company had filed a first information report with the Gurgaon police, accusing its India chief executive Subhinder Singh Prem and chief operating officer Vishnu Bhagat of irregularities. While both the accused denied the charges, the ministry handed over the case to the SFIO to scrutinise the company's accounts for misappropriation of funds, inventory diversion, and fictitious inflation of sales revenue. "We are still awaiting several documents as part of the verification process from the company. But, after the scam hit headlines, the firm saw a surge in employee exits and voluntary retirement schemes being taken up," the official said, adding that this has made the process slow and cumbersome. According to another official privy to the details, the documents remaining to be scrutinised by the SFIO include the Registrar of Companies report, the quarterly accounts and the annual reports.

A spokesperson of Reebok India, however, replied to an ET query, writing, "Reebok India is working closely and extending full cooperation to the investigating authorities. The VRS does not impact the ongoing investigations." The spokesperson added, "Employees have been offered the opportunity to participate in VRS which included career support and severance packages based on the time frame of their association with the organisation. In the past few weeks, we engaged with respective employees on a one-to-one basis. We will be able to share further details in the near future." The SFIO has faced several roadblocks in the case, with delayed and incomplete responses to many additions and deletions by Reebok in its submitted records, raising doubts about the veracity of the documents. "The case is mainly of misappropriation of accounts and we are concentrating on that," another ministry official said. Germany's Adidas Group acquired Reebok globally in 2005, but the integration process in India started only in 2011.

Post Manesar unrest Maruti Suzuki executives learn self-defence techniques

NEW DELHI: Maruti Suzuki has hired a combat trainer to teach self-defence techniques to its executives. Company officials confirmed this, saying all executives at its two manufacturing plants, Manesar and Gurgaon, would get training in such techniques. Maruti's Manesar plant witnessed massive labour unrest on July 18. India's largest carmaker shut the plant for more than a month before reopening it on August 20.

Thirty-four-year-old Anuj Sharma, chief instructor at Delhi-based Invictus Survival Sciences, who conducted "the first round" of a preliminary, four-hour training in self-defence for 30 employees at Maruti's Gurgaon plant, said, "Our methods are a mix of (martial art forms) krav maga, kaap, systema, defendo, ground fighting and grappling techniques." Immediately after the July 18 riot at Manesar, executives who had eye-witnessed the incident were offered "psychiatric and spiritual therapies to ward off negativities that come up following such a traumatic experience", said another Maruti official. "First, physical injuries were attended to. And then the mental anxieties of executives were a cause for concern for us. It is an issue that needed the right amount of attention," he added. A Maruti senior manager who had witnessed the labour unrest of July 18 and attended a "healing session" at the Brahma Kumaris' Om Shanti Retreat Centre in Manesar said, "I was deeply

disturbed. But the two-day meditation session at the retreat centre helped me get back to normal. Until then I was suffering from chronic fear," he said, asking not to be named. Sister PK Ranjana, who coordinated the meditation sessions at the Om Shanti Retreat Centre, said, "At the outset, we asked all of them (Maruti employees) to speak about their (traumatic) experiences. That helped them give vent to their fear and insecurities. That helped. Then we trained them in Raja Yoga meditation." Maruti also approached psychologists for help. Dr Rachna Singh, a Gurgaon-based counsellor at Artemis Hospital, told ET: "This was the first time I was seeing so many people with a similar stress-related issue. The violence left a lot of scars in them and their experience was very grave." Singh added many of them are supposed to return for the next round of psychotherapy sessions.

September 09, 2012.

Kingfisher Airlines crisis: Some curious numbers that depict the sad plight
In 2010, Vikram S Pandit, the India-born CEO of Citigroup, which was nearly blown away by the global financial crisis, rejected a lucrative compensation package. Instead, he took home a salary of $1 for a second straight year. The previous year, he had pledged before a Congressional hearing that he would continue to accept the token amount until he steered the bank back to profitability. Pandit was not the first CEO nor the last to take a pay cut as companies lurched from one crisis to another. Actually, examples are legion. As recent as this August, Andrew Miller, the chief executive of Guardian Media Group, agreed to a 10% pay cut and waived a 174,000 bonus in the year to end March after the company reported a pre-tax loss of 75.6 million. Kazuo Hirai, the Sony CEO, received 'only' $1.45 million in salary, stock options, and benefits, which was 24% less than his pay in the same period a year earlier. Some CEOs such as Johann Rupert of luxury goods maker Richemont SA chose to take a pay cut even when the company posted record sales and profits. Back home, the remuneration of Azim Premji, chairman and managing director of IT company Wipro, fell by nearly a third to Rs 1.9 crore in the last financial year. Other top executives of leading IT companies such as SD Shibulal, Vishnu R Dusad, Arvind Thakur and NR Narayana Murthy too opted for pay cuts as their companies grappled with tough market conditions. A notable exception to the raft of CEOs opting for lesser pay is Sanjay Aggarwal, the chief executive of Kingfisher Airlines. Aggarwal's pay has actually nearly doubled in the year to end March from a year earlier, according to the company's 2011-12 annual report. The sharp rise in his compensation is surprising on many counts - the airline has been struggling to stay aloft for more than a year and the company has not paid many of its employees. He could not have been rewarded for his performance because on his watch, Kingfisher's net loss has doubled to Rs 2,328 crore from Rs 1,027 crore in the last financial year. Maybe, Aggarwal was paid for the trouble of explaining to authorities the turnaround plans for his crisis-racked airline (the company did not respond to queries).

After a 4-year wait, Air India takes delivery of its first Boeing 787 Dreamliner

NEW DELHI: Air India's four-year-long nightmare came to an end on Saturday 5 pm when its first B-787-Dreamliner aircraft-touched down at the Indira Gandhi Airport at New Delhi and was welcomed with a traditional water cannon salute and a puja later. Air India was supposed to get the first of the B-787s in 2008, after it ordered 27 of them in 2005 from American aircraft maker Boeing. However, the national carrier could not get the firstmover advantage on international routes as planned for not being able to induct the planes on time. The Dreamliner is a twin-aisle 250-seater aircraft made of composite materials, which make it lighter and is considered 17-20% more fuel-efficient compared with an Airbus 330. They cater to the mid-market range, defined as carrying more than 200 people. The mid-size plane has four variants, with the longest-range one capable of flying over 15,000 km non-stop. The aircraft for Air India has been configured to accommodate 256 seats - 18 fullflat business class seats and 238 economy class seats. It features a host of sophisticated technologies, including mood-lighting inside the cabin and large LCD display screens for inflight entertainment. Air India now plans to start new routes between India and the US, India and Europe and India and Australia with the help of these aircraft, eight of which will join the airline's fleet by March. As per the operational and financial turnaround plan of Air India, 14 Dreamliners are supposed to be inducted into the AI fleet by 2013-14. "Our balance sheets would have looked different had the B -787s arrived in May," an AI executive said. Initially, the aircraft would be flown on routes such as Delhi-Dubai on the international sector and Delhi-Kolkata, Delhi-Bangalore and Delhi-Amritsar on the domestic segment till OctoberNovember for the trained crew to practise more landings and take-offs. So far, 65 pilots have been trained to fly this plane. The next two 787s would fly out of Boeing facility in Charleston, South Carolina in the US in the next two weeks. Meanwhile, the airline has sought compensation running into millions of dollars from Boeing on the grounds of loss of opportunities, business and market share, inability to use more fuelefficient aircraft, leasing of jets at high cost, and additional interest burden on pre-delivery payments it made for the planes. However, now Air India's deal with Boeing for these planes is turning out to be a windfall gain for the struggling carrier as the airline could be eligible for an additional compensation of at least $80,000 per plane per annum if the machines don't match up to the performance standards claimed by the American manufacturer. One of the performance standards is fuel efficiency, which for the first few aircraft is assessed to be way lower than promised because the planes are heavier by about 7.5 tonnes due to reengineering. This amount would be in addition to a few hundred million dollars in compensation that Boeing is supposed to pay Air India anyway for delaying delivery of these aircraft by almost four years.

On 3 August, the cabinet committee on economic affairs permitted Air India to commence taking delivery of the Dreamliners it had ordered by approving a compensation settlement agreement for the aircraft. In addition, Air India is also planning to sell and lease back the first few B-787s, through which it will gain $15-17 million per plane.

Electric car revolution: New technology to wirelessly transfer electricity from road to cars
Physicists are working on technology to wirelessly transfer electricity from the road to electric cars, using magnetic fields to send the power from one place to another and provide the cars with an unlimited range. Today's most advanced electric cars have a range of little more than 160 km (100 miles). The system in development at Stanford University, California, would allow vehicles to be charged while they are driven, with copper coils beneath the road surface transferring electricity to identical coils under the car. Computer models of this magnetic resonance coupling technique have shown that, if the coils are positioned correctly, 10 kilowatts of energy can be transferred to a coil nearly 2m (6ft 6in) away, and that the metal of the car's body would not interfere with the exchange. Shanhui Fan, associate professor of electrical engineering at Stanford, is leading the research and says his team has proved that the physics works. In his system, an alternating current passes through copper coils in the road, producing an oscillating magnetic field. The coils under the car detect this field and convert it back to electricity. Other systems for wirelessly transferring electricity to vehicles have been developed but, crucially, the Stanford team says their system would allow electricity to be transferred over longer distances, so vehicles would have to be driven so accurately above the coils. A key consideration will be safety ensuring the electromagnetic radiation generated by the coils in the road does not affect the car's occupants or the car itself. "What we have not done is to build a road and test transferring power to a moving car, but that is part of our vision," says Fan. "If you ask me when we are going to see a highway that is equipped like this going from San Francisco to Los Angeles, I would have a difficult time giving you an answer. What we are working on is designing the electromagnetic field so it is confined away from the car."

Will the new US visa system lead to delays and higher costs?

The new visa processing system announced by the US embassy in India recently aims at standardising rules and simplifying fee payment and appointment schedules through a new website. While announcing the new system in Delhi, US head for consular affairs, Julia Stanley, said that from September 26, 2012, US visa applicants in India will be able to pay application fees via electronic fund transfer. For the first time, applicants will be able to schedule their appointments online or by phone. Further, the new system will also allow companies and travel agents to purchase multiple fee receipts for group travel. Visa applicants will be able to have their questions answered via telephone, email, or online chat. The new system will also allow companies and travel agents to purchase multiple fee receipts for group travel. However, questions are being raised over the likely delays which could result from strict laws on data transfer from the offices of offsite facilitation centres, run by outsourcing partners of the US embassy and consulates. Under the new system, visa applicants will have to make two appointments. The first one prior to their visa interviews at the offsite facilitation centre to submit their fingerprints and a photo and the second at the embassy or consulate for the visa interview.

Creator of Amul, Verghese Kurien pioneered cooperative dairy movement in India

ANAND, GUJARAT: The architect of 'white revolution', Verghese Kurien, who led 'Operation Flood' to transform India from a milk-deficient country to the world's biggest milk producer, is credited with laying the foundation of the nation's co-operative dairy model. Hailed as the undisputed 'Milkman of India', who created the billion dollar brand Amul, Kurien, who passed away this morning at the age of 90, had received both national and international recognition. The Indian government had conferred on him the Padma Vibhushan while he was also the recipient of World Food Price, Ramon Magsaysay award for Community Leadership, CarnegieWateler World Peace Prize and International Person of the Year award from US. Born in Kozhikode, Kerala on November 26, 1921, Kurien had graduated in science from Loyola College in Chennai (1940) and obtained his degree in engineering from the Guindy College of Engineering in Chennai.

After a stint at TISCO, Jamshedpur, Kurien got the Government of India's (GoI) scholarship to study dairy engineering. Following specialised training at Imperial Institute of Animal Husbandry and Dairying in Bangalore, Kurien went to the United States where he completed his masters' degree in mechanical engineering, with dairy engineering as a minor subject, from the Michigan State University in 1948. On his return to India, Dr Kurien was assigned to join Government Creamery located at Anand in Gujarat to serve his bond period. By the end of 1949, Kurien got release orders from his job at the creamery. Kurien joined Kaira District Cooperative Milk Producers' Union Limited in 1949, on the request of Tribhuvandas Patel, the then dairy chairman. The dairy was formed at the initiative of Sardar Vallabhabhai Patel

September 10, 2012.

Diesel models of Tata Indica, VW Polo, Maruti SX4, Ritz available at discounts
NEW DELHI: The long waiting period and premium pricing for diesel cars are becoming history on weak consumer sentiment. In fact many diesel variants are now available off the shelf at discounts. Off late, sales have muted forcing distributors to offer discounts on Tata Indica, Volkswagen Polo, Ford Figo, Maruti SX4 & Ritz, Fiat Punto, Nissan Micra and Verito. In some cases, the discounts are as high as Rs 50,000 a car on select models. "We are offering discounts on diesel models in-line with the market competition. The slowing demand curve has affected sales of diesel cars too and these rebates are expected to keep the sales ticking," said Ford Motor India president & managing director Michael Boneham. Diesel models gained massive sales momentum in the past few months on dual benefit of higher mileage and lower running costs of cheaper priced fuel. But with demand tapering off in recent times not all models are enjoying the same customer demand. However, popular models such as Maruti's Swift and DZire models, Hyundai's i20 and Verna, and Tata Indigo CS still enjoy waiting of up to 6-8 months for their diesel variants across markets.

In fact, Maruti customer bookings swelled to over 1.25 lakh for the Swift and 65,000 for Dzire as its Manesar plant was out of production for more than a month due to an industrial lockout. The

company now plans to produce these cars simultaneously in both the Manesar and Gurgaon plants to increase supplies.

Eight tips to make financial decisions with limited effort

Simplicity is an understated virtue. Managing money needs a good dose of simplification. Most of us think that finance is complex, while some are intimidated by the number of choices and decisions. Others do not like calculations and numbers. Our bewilderment leads to inaction. Routine management of personal finance can be rescued from the perils of indecision.

First, recognise the bank account as the primary book of account in personal finance. Streamline income into one, at the most two, bank accounts. This helps in explaining all income sources to the taxman, understanding how it has grown over time, and deciding how to fund expenses and investments. The case for multiple bank accounts has weakened considerably after PAN has become the identifier in financial transactions. Given the benefits of NEFT, resist your employer's demand to open an account with its bank when you change jobs. Second, set up your routine payments through your bank account. It is easier to pay bills, utilities, EMIs, taxes and insurance by giving standing instructions to your bank. You can take charge of your finances only if you consolidate the charges on your income in one place. If you have to juggle too much, you may have stretched yourself in terms of EMIs or insurance. Take the time to read your bank statement to see how your income is apportioned. It is possible to export your bank transactions into applications that can analyse your income and expenses. There is a lot you can do with tools that help you set up spending limits for various heads, alert you when you cross the limit, and automate your monthly budgeting exercise. Third, reduce cash in your life. When you transact with your debit or credit card, your expenses are documented for you. Your bank statement or credit card bill will tell you how you have spent your money. If you want to take charge of your finances, you have to make three realistic estimationsthe adequacy of your income, the limit to your expenses, and the consistency of your savings. Your ability to take charge will be seriously limited if your data is incorrect or incomplete. The cash only shows up as withdrawal and affects your accounting efforts. Fourth, reduce the number of advisers and intermediaries with whom you deal. If your stocks are bought by a broker, your investments done by a financial adviser, insurance by an agent, loans are with your bank, and taxes with your accountant, you are dealing with too many people. If, to this list, you add the 30 stocks you hold through four trading and demat accounts, 10 fund houses you have invested in through multiple folios, and the bonds and saving certificates you have, you lead a complicated financial life with limited control. It is better to seek financial advisers, who will consolidate and help outsource the functions they cannot perform, than have multiple entities managing your money.

Fifth, reduce the number and type of products in your portfolio. Holding too many variants of funds, insurance, stocks and bonds does not help. It seriously undermines the ability of your holdings to impact your wealth since your portfolio is too fragmented. If you hold more than 30 itemsacross stocks, bonds, deposits, funds, saving schemesin your portfolio, you have too much. Choose a few reputed firms with good track records, and they are most likely to have all that you need. You don't need a new tax-saving fund every year, nor do you require four variants of Ulips or infrastructure funds.
Sixth, consider the merits of passive investing, that is, choosing products that don't require constant monitoring. Pick diversified large-cap stocks, index funds, bonds of large AAA issuers, government saving schemes or deposits of well-known banks. These investment choices may not have the excitement of a multi-bagger, may score low on fad quotient, may not have novelty value, but will save you the heartburn of wrong decisions. You will also save your wealth from neglect and inaction when you fail to sell them after the 'exciting' investment choices are past their peak. Choosing simple and time-tested products saves you the bother of monitoring and grappling with decision-making dilemmas. Seventh, avoid dealing with investment cash flow when you don't need it. If you have a regular income and are building a portfolio to generate long-term wealth, pick growth, cumulative, reinvestment or accumulation options. You will save yourself the trouble of monitoring the flow into your account and making another decision to re-invest them. If you buy a tax-saving fund, there is no need to redeem when the lock-in period is over; the money can stay invested. So can the deposits which get renewed on maturity, and interest reinvested on payment. Many of us intend to review and reconsider our investments periodically, but fail to do so. It is a good idea to keep the money deployed, not idle.

Maharashtra's new textile policy aims to attract Gujarat powerlooms

AHMEDABAD: Shortly after the Gujarat government announced its textile policy, Maharashtra has come to lure Gujarat's entrepreneurs to set up powerlooms in that state. A Rs 40,000 crore package under the New Textile Policy of Maharashtra 2011-17 aims to attract cotton processors from Gujarat. "Although Maharashtra grows 90 lakh bales of cotton, mere 20% of it is processed, the rest goes to neighbouring states with processing capacities. Now, we are keen to fill this weak link in the value chain," said textiles minister of Maharashtra MA Khan. He was here with a delegation to attract investment in his state. Maharashtra promises to put textile projects on fast track once they are approved by the ministry of textiles under TUFS. "We are aspiring to increase our processing capacities to 45 lakh bales from current 20 lakh bales," added secretary textiles Rajagopal Devara. Maharshtra would provide 9% capital subsidy or up to Rs 9 crore for infrastructure development in the proposed 14 textile parks that would need an investment of Rs 10,000 crore. This would be in addition to the Rs 40 crore subsidy from the Centre.

Honda Siel Cars India changes name to Honda Cars India

NEW DELHI: Japanese auto major Honda has changed the name of its Indian operations to Honda Cars India Ltd following the break up of its joint venture with Usha International of the Shriram Group. The erstwhile JV, Honda Siel Cars India (HSCI), will now become a 100 per cent subsidiary of Honda in India. "The name change will be with immediate effect as per the fresh Certificate of Incorporation issued by the Registrar of Companies, NCT of Delhi and Haryana," Honda Cars India Ltd (HCIL) said in a statement. Last month, Honda bought out Usha International's entire 3.16 per cent stake for Rs 180 crore in the joint venture, which was established in December 1995. HCIL President & CEO Hironori Kanayama said the company was committed to the Indian market and would continue to bring latest products from Honda.

Festive season likely to keep gold demand strong

The global economic crisis and the resultant volatility have led to the need for diversification of portfolios and increased the importance of risk management. It's during such times that gold's fundamental characteristics stand out as a hedge against inflation and preserver of wealth. Besides, there is a continued erosion of purchasing power of the world's key currencies, rising inflation and, of late, the sovereign debt crisis in the Eurozone. Little wonder then that the metal has risen since 2002. According to the World Gold Council's (WGC) latest report, the global demand in the second quarter of 2012-13 stood at 990 tonne, down 7% on a year-on-year basis due to the weak demand in jewellery, investment and technology. The net buying trend by banks, which started in the second quarter of 2009, continued in this quarter as well. The demand by central banks and official institutions in the developing countries increased 63% to 157.5 tonne. Gold's cultural heartland, India and China, continued to dominate the consumer demand segment, contributing 45% to the total jewellery, bar and coin demand.The consumer demand for gold in China for the second quarter of 2012 was 145 tonne, down 7% y-o-y due to the economic slowdown and lack of a clear price trend. In the first quarter of 2012, the demand rose to a record 255.2 tonne, overtaking that of India. In India, the monetary tightening, rapid depreciation of the rupee against

September 11, 2012.

Tata Motors enters Indonesia, to start local assembly in 2013

NEW DELHI: Homegrown auto major Tata Motors announced its foray into Indonesia with the setting up a wholly-owned Jakarta-based subsidiary and plans to launch its products in 2013. The company will foray into both passenger and commercial vehicles through its arm PT Tata Motors Indonesia, the company said in a statement. "Indonesia is a key market for Tata Motors, which has a wide range of products from small cars to buses in passenger vehicles and from 0.5T mini-trucks to 49T heavy trucks in commercial vehicles," it added. Tata Motors is also evaluating options for setting up a manufacturing base in Indonesia to serve the country and the ASEAN region, it said, adding commercial launch and local assembly would happen in 2013. Significant investments will also be planned for component localisation, the company said without elaborating. Commenting on the development, Tata Motors Managing Director Karl Slym said: "As elsewhere in the world and as is the Tata practice, we will function in Indonesia as an Indonesian company...We will establish deeply rooted local operations and will grow in tandem with the prosperity of the country and its people". On the company's product launch programme for the Indonesian market, Tata Motors Executive Director (Commercial Vehicles) Ravi Pisharody said: "Based on customer feedback, we will progressively introduce relevant passenger and commercial vehicles, backed by appropriate distribution and service infrastructure such that we are closest to our customers". Tata Motors is also participating in the 20th Indonesia International Motor Show, starting in Jakarta on September 20. It will display 14 Tata passenger and commercial vehicles, being considered for introduction in Indonesia progressively.

Government may Kingfisher Airlines

dilute

rules

to

save

MUMBAI: The government's refusal to suspend the licence of Kingfisher Airlines, despite its crippling financial problems, is baffling as civil aviation rules clearly empower the regulator to act against a defaulting airline, unable to pay salaries, experts say.

The Vijay Mallya-owned airline faced a stunning meltdown last year after a cut-throat industry price war squeezed its cash flow, forcing it to suspend a majority of its flights and nearly halt operations. Since November last year, the company has paid monthly salaries to employees only in fits and starts and has been forced to drastically reduce its operations. It has defaulted on loans, forcing many banks to classify it as a non performing asset (NPA). The civil aviation ministry has, so far, refused to shut down the airline, saying that Kingfisher still continues to operate the required minimum number of aircraft. The ministry has also begun moves to dilute rules that mandate the regulator to take into account an airline's financial health and status before renewing its licence. Bharat Bhushan, the former Director General of Civil Aviation (DGCA), included financial status and health as one of the parameters that the regulator must take into account when renewing a licence. The rules are referred to in government parlance as civil aviation requirement (CAR). "The issue has to be seen in two stages, the first would involve a constant monitoring of any airline that is going through a financial crisis from close quarters and having found any evidence of the same in the second stage the regulators need to take action as the mandate that they have is to ensure safety on all costs," said Peeyush Naidu, director, Infrastructure Consulting, Deloitte. The CAR clearly says that the air operator's permit is dependant upon a number of things, including financial status and health. "Further expansion of fleet and operations, including Air Operator's Permit, shall be subject to mitigation of the potential risk factors identified during the financial survey by the operator to the satisfaction of the DGCA," the CAR points out. Factors that will be included in the assessment include issues pertaining to significant lay offs/turnover of personnel, delays in meeting payroll, decreased standards of training, a reason to believe reduction of safe operating standards or evidence of cutting corners, demand for 'cash and delivery' by suppliers who formerly granted the operator credit, shortage of supply of spares and sale and repossessions of aircraft and other equipment. Kingfisher Airlines was plagued by most of these issues in the past one year though the airline insists that its financial troubles have not affected training and safety standards one bit. "We are not prepared to comment on information from phantom sources. We are in constant touch with DGCA. We have not received any queries or communication on the lines suggested. We are operating to the highest safety standards under supervision of DGCA," a Kingfisher spokesperson said.

Max India sells films unit to Treofan for Rs 540 crore

NEW DELHI: Analjit Singh-led Max India is selling its 22-year-old speciality films business to Germany's Treofan for an enterprise value of Rs 540 crore as part of the strategy to focus on its core businesses of healthcare and insurance.

"The offer from Treofan is subject to financing, a material adverse change clause, confirmatory due diligence, execution of mutually satisfactory sale and purchase agreements, management retention, formal approval from Treofan's advisory board and receipt of regulatory and corporate approvals," said Max India in a press release. ET first reported in April Max India's plans to sell the specialty films division. The Delhi-based company's shares closed at Rs 190.35 on Monday, up 3.54% at the Bombay Stock Exchange ahead of the late-evening announcement. The speciality films, or biaxially-oriented polypropylene (BOPP) unit, is one of Max India's oldest businesses. Over the years, the company has divested many of its businesses, including pharmaceuticals, telecom and electronics, but the BOPP unit always remained part of its portfolio. "It was an emotional decision for me personally, but the board and management rightly decided that it made good business sense to focus on our portfolio of service-oriented businesses of life," said Max India chairman Analjit Singh. The speciality films division is the only business which is housed in Max India, the listed entity. The company operates its insurance businesses through joint ventures and holds a 74% stake in its healthcare venture, Max Healthcare. Life Healthcare of South Africa owns 26% in Max Healthcare. Once the speciality films transaction is closed, Max India will become a pure investment company. The films division had an annual manufacturing capacity of 50,000 tonnes per annum. During 2011-12, it clocked revenues of Rs 703 crore and operating profits of Rs 77 crore. It has debt of Rs 105 crore. An executive from a global consultancy firm, who tracks Max India's insurance business, said the BOPP unit was a "misfit" in the company's overall portfolio. The cash from the deal would enable the company to drive growth organically or through acquisitions. "When you are expanding, access to cash is handy," he said. Max India MD Rahul Khosla said additional funds from the deal would provide the company with several investment options to drive growth. The BOPP deal is Max India's third major transaction in the last one year. In April, it brought in Japan's Mitsui Sumitomo to replace US-based New York Life Insurance in its life insurance venture, making a windfall gain of Rs 802 crore in the process. In October 2011, it sold a 26% stake in its hospital chain Max Healthcare for Rs 516 crore to South Africa's Life Healthcare.

Registrar of companies begins probe into books of Deccan Chronicle

NEW DELHI: The registrar of companies (RoC) has started the scrutiny of the Hyderabad-based media company Deccan Chronicle, which is facing financial problems.

"The RoC (Hyderabad) has already initiated a preliminary investigation into the books of the company on the basis of a complaint by a party and will soon submit its report to the ministry," Naved Massod, secretary of ministry of corporate affairs, told ET. Deccan Chronicles Holding owns dailies such as Deccan Chronicle, Financial Chronicle, The Asian Age and Andhra Bhoomi, apart from holding a controlling stake in IPL team Deccan Chargers. "Based on the report we will order further action," the secretary said. The group has already put up its IPL team for sale. Several banks approached the debt recovery tribunal and the Bombay High Court against the company last month. Some lenders have also accused the company's promoters of misappropriation of funds. The RoC, established by the MCA under Section 609 of the Companies Act, ensures statutory compliance by all registered companies in the country. The government can order an inquiry under Section 234 of the Companies Act, which is a non-invasive scrutiny, if the registrar finds financial irregularities in the accounts of the company. The RoC has the powers to recall any documents or explanation from the firm in question.

Mahindra & Mahindra to open its fourth tractor assembly plant in North America
The world's largest tractor maker in volumes, Mahindra & Mahindra has opened a fourth assembly plant for tractors in North America at Bloomsburg, PA. The all new assembly facility will produce Mahindra max series tractors and Mahindra compact tractors developed purely for the US market. Initially the plant will assemble 200 tractors per month, which can be scaled upto 500 units per month, based on the demand. Mahindra & Mahindra's US subsidiary, Mahindra USA will operate this facility in partnership with TPC Power Centre. Mahindra and TPC have converted an empty warehouse on five acres into a fully-functional 40,000 square foot facility that will employ up to 30 people in the operation as it moves into full production. Pawan Goenka, president, automotive & farm equipment sector, Mahindra & Mahindra said, "The new facility will provide support and service to Mahindra's northeast United States and eastern Canadian dealers and partners. The center, to be operated in partnership with TPC Power Center, will also create a positive impact on the Bloomsburg and surrounding area's economy."

September 12, 2012.

iPhone 5 launched at same price as iPhone 4S, starting $199

Amidst much anticipation, Apple took the wraps off the much awaited iPhone 5 at its September 12 event on Wednesday. In a surprise move, Apple announced that the iPhone 5 will come with the same price tags as iPhone 4S, that is $199 $299 and $399. The new iPhone line-up will now include iPhone 5, iPhone 4S and iPhone 4. Apple has phased out the smartphone's older model iPhone 3GS. (In pics: Apple unveils its new iPhone 5) Apple will begin taking orders for the iPhone 5 on September 14. Shipments begin on September 21, and the smartphone will be sold in 100 countries by the end of the year.

The new iPhone will be made entirely of glass and aluminum, said Apple's marketing chief Phil Schiller. iPhone 5 will be 18% thinner than its previous model Apple iPhone 4S. "iPhone 5 is the world's thinnest smartphone," Schiller said. It is also 20% lighter than iPhone 4S. The iPhone 5 sports a larger 4-inch "retina" display, ability to surf a high-speed 4G LTE network. Apple iPhone 5 features a retina display and the screen will have a 1136 x 640 screen resolution, with a 16:9 aspect ratio. According to Schiller, the iPhone 5 has a better battery life than 4S. While like iPhone 4S, it features an 8 MP camera, it is 25 per cent smaller. iPhone 5 will run on a quad-core Cortex A6 processor. Apple claims that the processor makes the device twice as fast as its predecessor. iPhone 5 will run on Apple's new operating software iOS 6. The audio system has also been updated to include three microphones. The event began with Apple's CEO Tim Cook taking centre stage. "We've got some really cool stuff to show you," he said. Cook said that Apple has sold 7 million iPads in the last quarter, which he claimed is more than any PC manufacturer. He also said that Apple customers have already downloaded 7 million copies of Mountain Lion.

Air India's new Boeing 787 Dreamliner to fly on domestic routes from September 19
NEW DELHI: Air India's new Boeing 787 Dreamliner will start flying on domestic routes from September 19, with the airline hoping that the fuel-efficient aircraft will bring back its good old 'Maharaja' days by saving costs. With Air India implementing its turnaround and financial restructuring plans for several months now, the beleaguered national carrier has reported a cash surplus of Rs 48 crore between April and July against a cash deficit of Rs 586 crore during the same period last year.

"Dreamliner is an exciting plane. We hope that it will take Air India back to its good old 'Maharaja days'," Civil Aviation Minister Ajit Singh told reporters here. US manufacturer Boeing claims the Dreamliner consumes 15 -20 per cent less fuel than an aircraft of the same size, thus substantially reducing fuel costs which comprises 40 per cent of an airline's total operational costs. "Dreamliner will start flying on domestic routes from September 19. The first flight will be on Delhi-Chennai route. Later on, six more destinations will be added. It will fly on international routes in winter," Air India CMD Rohit Nandan said. Singh, along with former Civil Aviation ministers Shahnawaz Hussain and Rajiv Pratap Rudy and Congress MP Naveen Jindal, cut the ribbon to formally launch Air India's first Dreamliner at a function at the IGI airport. With the government already committing to provide Rs 30,000 crore to the cash-strapped carrier, he said no more funds would be given to the airline which would now on have carry out aggressive cost-cutting measures to become competitive.

Wipro to sell water purification and treatment business to Earth Water Group
MUMBAI: Four years after diversifying into water purification and treatment, soaps-to-software major Wipro is selling the business to NewDelhi-based Earth Water Group (EWG), said two independent sources aware of the development. The deal size is likely to be between Rs 45-50crore and a formal announcement is due in a fortnight. On Monday, Singapore based CLSA Partners - the alternative asset-management arm of CLSA Asia-Pacific Markets - invested $15 million in Earth Water Group for a minority stake. Sources familiar with the matter say that part of the money will be used for this acquisition. Last year, Wipro had mandated the investment banking arm of Anand Rathi to find a strategic buyer for the business after identifying it as non-core. The potential sale was part of a bigger restructuring exercise to exit the smaller pieces in its diversified portfolio, which the Azim Premji-led company has been finding it difficult to scale up. The other businesses identified as non-core include the baby care and vanaspati oil brands. Close to 85 per cent of Wipro's revenues come from IT, while consumer durables and lighting form the lion's share of the residual non-IT revenues.

The company's spokesman said he did not want to comment on " market speculation."

ET Review: Samsung Galaxy Beam

Cost: Rs 29, 990 Rating: * * * * Specifications: 1Ghz dual-core, 768MB RAM, 8GB + microSD, 4-inch touchscreen (800 x 480), 5MP rear/1.3MP front cam, Android 2.3, 145 grams Positives: High-quality LED projector and decent Android smartphone in a not-too-bulky casing Negatives: No tripod or stand included, sound doesn't match the requirements, no cap for projector lens NEW DELHI: A smartphone's screen is way too small when you want to share a video or photo with friends. That's why fitting a pico projector into a phone has been tried so many times with varying degrees of success. The problem is that doing this considerably increases bulk and noticeably decreases battery life. Plus, all the projector phones available so far have been feature phones not based on a smartphone operating system. The LED-based projection system has so far been more of a gimmick rather than a usable feature. The Galaxy Beam is different though. It is India's first smartphone with built in projector. Right at the outset, we think that the Beam is a good attempt at keeping things simple, attractive and making it perfectly usable as a day-to-day phone. That the projection quality is impressive is just icing on the cake. Full Coverage on Apple's new iPhone Look at it from the side and you won't be able to tell that there's a projector in there. The projector lens is on top of the phone, covered by a glass panel (but there is no lens cap). It has a total brightness of 15 lumens and a resolution of 640 x 360 pixels. These numbers may not seem that impressive, but you need to consider that we're talking about a phone that weighs just 145 grams and is just 12.5mm thick. Under the right conditions (with low ambient lighting and with a flat white surface), the phone can project an image up to 50-inchs in size (diagonal size). Interestingly, the projector can also double up as a flashlight one that projects a perfectly rectangular lightbeam and in your choice of colour. To start the projector up, you need to press the dedicated button on the side of the phone. It starts up almost immediately and you can proceed to adjust the various settings, starting with the focus and orientation (landscape or portrait). A nice bedside stand is included in the box, which also serves as a charger for an additional battery. The battery life when using it as a phone is roughly a day or two. Running it solely as a projector, you should get about three and a half hours of use.

September 13, 2012.

ICICI, HDFC cut interest rates on fixed deposits

MUMBAI: Private sector lenders such as ICICI Bank and HDFC Bank on Wednesday reduced interest rates on fixed deposits by at least half-a-percentage point, following the leader State Bank of India. The reduction in deposit rates comes when the economy is slowing down and credit pickup is slack. But the reduction by private lenders is half of SBI's, which brought down the rates by as much as 100 basis points across many maturities to maintain profitability after lowering lending rates. ICICI Bank cut rates across maturities ranging from 91 days to less than five years. It now offers a maximum 8.75% on retail term deposits as against 9.25% earlier. But it is still 25 basis points higher than SBI's. In the shorter tenures of seven days to 45 days, however, the bank has increased rate by 50-75 bps. A reduction in statutory reserve ratio - the amount of funds to be held in government bonds - by a percentage point is also helping the banks lend 15,000 crore more to corporate or retail customers. Deposits grew 14.1% year on year against RBI's projection of 16%. "We could now see private players reduce lending rates to get competitive as many public sector banks like State Bank of India and Andhra Bank have cut rates on select retail products," said a banking analyst with a domestic brokerage. "ICICI Bank is also doing this to maintain a healthy margin of over 3%," he said.

Global tech companies like Amazon, Google, Cisco, IBM others look beyond IITs; offer fat pay cheques to non IITians
BANGALORE | KOLKATA: When Sukruth KS first walked into the National Institute of Technology in the small town of Warangal in Andhra Pradesh three years ago, he was just another engineering student. When he passes out in May next year, he will be the one who Microsoft hired for a $1,00,000 (approximately Rs 60 lakh) salary for a global posting.

Anmol Kumar, Balmukund Trivedi and Dinesh Reddy, three of Sukruth's batchmates, have also snagged similar salaries from Epic Systems, a US-based company that makes software for healthcare companies. To put that in perspective, the highest pay cheques seen at top-notch IITs are in the $1,40,000 range.

Global tech and Internet firms are on the prowl in small towns this placement season, looking to lure talent from NITs and good private engineering colleges. Both would rank a notch lower than IITs in the talent pecking order. Sample this: Amazon, Google, PepsiCo, Yahoo, Cisco, Oracle, Deloitte, Adobe, DE Shaw, Flipkart, Direct-i, Caterpillar, Future First and IBM are making offers this year at non-IIT campuses in Vellore, Madurai and Mesra, and also at private colleges in Delhi and Bangalore. Placement heads at these colleges say companies are hiring more than last year.

Banks may also use SMERA ratings to assess loan risks: RBI
MUMBAI: The Reserve Bank today said banks may use ratings of SME Rating Agency of India (SMERA), in addition to grades provided by other agencies, to assign risks to loans for the purpose of computing capital adequacy requirements. "It has now been decided that banks may also use the ratings of the SME Rating Agency of India Ltd (SMERA) for the purpose of risk weighting their claims for capital adequacy purposes in addition to the existing five domestic credit rating agencies," the RBI said in a notification. Currently, five rating agencies CARE, CRISIL, FITCH India, ICRA and Brickwork are authorised by the RBI to provide risk weight to loans. Under the system, the balance sheet assets, non-funded items and other off-balance sheet exposures are assigned prescribed risk weights and banks have to maintain unimpaired minimum capital funds equivalent to the prescribed ratio on the aggregate of the risk weighted assets and other exposures. The long term and short term ratings issued by these domestic credit rating agencies have been mapped to the appropriate risk weights applicable as per the Standardised Approach under the Basel II Framework, the RBI said. "The rating-risk weight mapping for the long term and short term ratings assigned by SMERA will be the same as in case of other rating agencies," the notification added.

Infosys' software platform Flypp exposes risks in company's platform strategy

BANGALORE: When Infosys launched its reusable software platform Flypp for mobile operator Aircel nearly three years ago, the innovative solution was perceived as harbinger of the Bangalore-based company's now retooled business strategy.

But since December 2009, when Flypp was unwrapped, it has failed to make much progress, highlighting the potential pitfalls of software platforms on which Infosys has pinned such high hopes. Built and launched for Aircel, Flypp was positioned as just what mobile phone operators needed to counter falling tariffs by opening up new revenue streams from mobile value added services. It was meant to connect cellphone operators and their subscribers to the world of third-party applications. And revenue for Infosys would be based on usage, tying it very closely to outcomes for its client. However, app stores from the likes of Google and Apple which sit on mobile devices have changed the market so drastically that phone operators are no longer keen on hosting their own stores, dealing Flypp a crippling blow. "There is a lot of risk in this practice. We have to keep trying and innovating," said Sanjay Purohit, senior vice president and global head of products, platforms and solutions at Infosys. Infosys has launched around 12 platforms and 9 products for which it has around 50 clients and booked business of about $300 million. This pales in comparison with the company's total revenue of $7 billion, but products and platforms, according to Infosys, have only just begun their journey. In the new strategic direction, called Infosys 3.0, the company aims to derive at least one-third of its revenues from products and platform-based solutions.

Essar Oil to pay sales tax to Gujarat government in 8 installments: Supreme Court
NEW DELHI: Essar Oil Ltd was today directed by the Supreme Court to pay sales tax dues of Rs 5,165 crore in eight quarterly instalments to the Gujarat Government. A bench comprising justices A K Patnaik and Swatanter Kumar said the amount has to be paid with an interest of 10 per cent with effect from Jan 17, 2012.

The bench asked Essar Oil to pay the first instalment before Jan 2, 2013. The order was passed after the company sought at least three years time to pay the dues. Gujarat government had sought the payment of dues within six months. Essar Oil on July 17 had offered to pay to Gujarat government the sales tax liability of Rs 6,169 crore in instalments. The first instalment of Rs.1,004 crore was deposited by July 30.

The court on August 29 had kept the matter for deciding the question as to whether the company would be liable for interest for the period from April, 2008 onwards on the tax amount. | Gujarat government's demand for around Rs.1,800 crore as interest for the period upto January 17, 2012 was rejected by the court. Essar Oil Ltd had approached the apex court against the order of the Gujarat High Court which had refused any relief to it for making the payment in instalments. Essar Oil had availed Gujarat government's 'Capital Investment Incentive to Premier/Prestigious Unit Scheme, 1995-2000' for its Rs 1900-crore Vadinar plant in Jamnagar district as a 100 per cent export-oriented unit for refining of petroleum products with a capacity of 9 million tonnes per annum.

September 14, 2012.

Muthoot Finance Limited's 4th NonConvertible Debenture a good investment option

Considering interest rates are going to decrease, the fourth Non-Convertible Debenture of Muthoot Finance Limited is a good low risk debt investment option for investors. Muthoot Finance Limited will open on September 17, 2012 a public issue of secured, redeemable, nonconvertible debentures (NCDs) of face value of Rs. 1000 totalling Rs 250 crore with an option to retain oversubscription up to Rs. 250 crore aggregating to a total of Rs. 500 crore. There are five investment options ranging in maturity between two and six years and is offering an effective yield between 11.50% and 12.40% per annum. The minimum application is for ten NCDs (Rs. 10,000) and in multiples of 1 NCD thereafter. The issue closes on October 5, 2012.The funds raised by the issue will be used for various activities like lending, investments, repaying existing loans and for capital expenditure and working capital requirements.

iPhone 5: Critics not impressed with Apple's new model

NEW DELHI: So Apple has announced the new iPhone, the taller, uber-sleek iPhone5 with a faster processor. As has come to be a given, there was a great deal of speculation and anticipation prior to the event. Plenty of those who got a chance to use the iPhone 5 seem to have been touched by a bit of the famed Apple magic. So nothing has changed really. Or has it? For years, Apple events were the fountainheads of disruptions that shaped the industry. Competitors scrambled to catch up. The touchscreen, the retina display, Siri, a form factor that kept getting better and better, the iTunes store, the appstore with more and better apps than any other platform. But tech gurus around the world are saying something else now: that Apple's innovative disruptor status, guaranteed after every iPhone launch, is being challenged. Full Coverage on Apple's new iPhone "Although the 4S sold wonderfully for Apple and brought some interesting additions, few would argue against the suggestion that it opened the door for competitors," Patrick Ross wrote in Tech Radar. Apple Inc. co-founder Steve Wozniak said he plans to get the iPhone 5 and hopes it will take better photos than the Samsung Galaxy S III. "I'm always excited about every iPhone product because there are always good advances," Wozniak said in an interview to Bloomberg. "Better

quality pictures will mean a lot, because when I show people pictures on my iPhone 4 and my Galaxy S III, they always say that the Galaxy S III, or even the Motorola Razr pictures look better." Samsung currently enjoys a 32.6% worldwide share of the smartphone market, up from 17% last year, according to research firm IDC. The Galaxy S3 alone has sold 20 million units in under three months. Apple's smartphone marketshare slipped from 18.8% last year to 16.9%. After years of struggling to put out a credible competitor, Nokia last week unveiled the Lumia 920, a device with wireless charging, NFC (near-field communication) capabilities and a camera that was assessed by some tech watchers as even superior to rivals' offerings.

ICICI Securities launches 'StockMIND' contest

nationwide

MUMBAI: ICICIdirect Centre for Financial Learning, on Friday, launched of 'StockMIND', a nation-wide contest aimed at college students enabling them to showcase their stock investment skills. The idea of the programme is to educate the youth on stock market investments. "One of the objectives of ICFL is to demystify equity markets. While we are conducting number of programmes which include classroom and online training for various age groups, we felt that a programme aimed at the today's younger generation should be fun and fast-paced. StockMind aims at being a healthy competition and will also provide the participants with investments knowledge," said Vineet Arora, EVP and head of product & distribution, ICICI Securities. All participants will have to register and play the game on 'virtualstocks.icicidirect.com', a platform that replicates the experience of online share trading by using virtual money. As a precursor to the competition, a seminar would be organized in all the colleges before the contest is rolled out. The seminar would cover basics of equity investment and the importance of equity investing in managing personal finances better. After the seminar, students from various college will compete online through a game which will help them acquire practical knowledge. The closing of the event would include a presentation from the expert faculty of ICICIdirect Centre for Financial Learning wherein they would evaluate the best and worst investment decisions taken by contest participants. The event will help participants understand the process of making equity investments and necessary insights for better investment decisions. "We will be reaching out to thousands of students through several leading colleges in India. Since the objective of the game is to help students understand the equity markets, the whole competition will be played with virtual money. The winner from every college will bag the title of StockMIND," said Neeraj Joshi, head of ICFL.

Volkswagen plans compact sedan for India

MUMBAI: German carmaker Volkswagen India is actively considering a compact sedan in India to avail the lower tax rate on sub-4 metre cars and emulate the success of the new Maruti Suzuki Swift Dzire. Europe's largest carmaker plans to develop a sub-4 metre notchback or sedan on the 'Up!' platform and a 1.5 litre diesel engine codenamed 'EA 189', which is a derivative of the existing 1.6 litre engine, to benefit from the small cars excise duty of 12%, at least three people familiar with Volkswagen India's plans told ET. Cars with length of four metres or more, or engine capacity of more than 1,500 cc attract 24% excise. Normal sedans do not qualify for this. But trimming it to size can be a great benefit in a highly price-competitive market like India as recently proved by the runaway success of the new Swift Dzire. Other players such as Mahindra & Mahindra and Honda too reportedly plan to enter sub-4 meter notchback segment with compact Verito and Brio sedan, respectively. During April-August the super compact sedan segment grew by over 30% to 88,342 units, while the overall car market grew just 7.2%.

John Chacko, Volkswagen Group's chief representative for India, refused to give specific information but confirmed that the firm is actively considering compact sedan sub-4 meters. "After being in India for three years, we have to adapt to a certain extent as far as the regulations (read excise duty) are concerned.... Definitely we will have to work on engines, right up to the length of the car," he said. Chacko said the 'Up' platform is still under study and it will take two to three years for the product to hit the market. The sources quoted earlier said the group is developing a 1.5 litre diesel engine to be used across various models of Volkswagen and Skoda including Polo, Fabia, Vento and Rapid, instead using multiple 1.2 and 1.6 litre engines. VW India, which is present in only one-third of the overall car market in the country, is currently developing a product portfolio strategy for future.

'Nestle India likely to under perform other FMCG companies'

MUMBAI: Nestle India is likely to under perform the FMCG companies in the coming quarters as the current valuation does not factor in the slowing growth.

The growth in Nestle India's key categories - Noodles and Chocolates has slowed down over the past few quarters. In the first half of CY12, the packaged food sales grew by 13% as compared to 22% over C06-C11. While a part of this can be attributed to the macro slowdown, and partly due to the reduced focus on the low end products. This along with the recent sharp price hikes indicates the company's excessive focus on the profitability even at the cost of volumes. Besides this the company is lagging behind the competition in the categories such as chocolates and beverages. The company's sales growth for the next two years is likely to come down to around 15% from 22% over the last five years. Increased advertisement spends due to competition, higher depreciation due to recent capital expenditure and higher increased interest cost will also keep the profitability under pressure. Considering all this, the current valuation of price to earning 36 is not justified and the company's stock is likely to under perform in the coming quarters.

September 15, 2012.

KPMG says rooftop solar power could be a game-changer for India

Rapid fall in solar prices and increase in cost of conventional power driven by fuel shortages has brought 'grid-parity' closer, which is expected to happen at a broad scale level by 2017 in India, according to the report, KPMG said in a report. KPMG sees India's cumulative solar photovoltaic market potential by 2016-17 at around 12,500 megawatts, which would include around 4,000 mw of rooftop market. KPMG believes that the solar lease model could become a game-changer. In a report titled 'The Rising Sun', KPMG said that the rooftop solar power will see parity faster with utility tariffs due to high transmission and distribution losses and cross-subsidies present today and parity in many categories can emerge as early as 2014. "Given the issues of fuel shortages and import dependence of the energy sector, solar power should be given a significant strategic thrust by the government. The National Solar Mission has made a good beginning. The momentum should be sustained if the investments made by the country in the last few years are to give the full benefit", says Arvind Mahajan, Partner, Head of Energy and Natural Resources vertical at KPMG in India. The state governments, utilities and regulators should encourage solar power to realize its potential by providing critical enablers such as net metering infrastructure, energy banking facility and developing an ecosystem for rooftop market installation.

Aegon Religare's new term plan: Added benefits at an extra cost

MUMBAI: In line with the ongoing trend of launching term insurance plans with added benefits, Aegon Religare Life Insurance has recently launched a pure protection cover. The plan offers two death benefit - that is, amount available to the policyholder's nominees in case of his or her death - options. The first one is the regular option, which hands over the entire sum assured to the beneficiaries on the insured's demise. The second one pays out the cover amount in two parts. While half of it is paid out after life assured ' s death, the balance - 3% of the sum assured - is paid out every month, for a period of five years. According to the company, the total payout amounts to 230% of the sum assured in this case.

The plan comes with an accidental death rider, where the cover is equal to the base sum assured. This apart, you can opt for three more riders - Critical Illness, Woman Care and Total and Permanent Disability - after paying the applicable premiums. The minimum age at entry is 20 years, while the upper limit is 65 years; the maximum age at maturity is 75 years. The lowest cover that you can buy under the plan is Rs 10 lakh. Upside : Given that a pure term cover is a must-have in every individual ' s portfolio, you can look at this plan if you don' t have adequate protection cover already. The in-built accidental death benefit rider enhances the sum assured.

Diesel price hike: Carmakers like Maruti Suzuki, M&M & GM India hopeful festival sales will blunt impact
MUMBAI: A 5 increase in diesel prices may have provided another telling blow on an already slowing down Indian passenger vehicle space, but industry players are still hopeful that the upcoming festive season will help soften that knock. Top industry officials from Maruti Suzuki, Mahindra & Mahindra and GM India, amongst others, say the diesel price hike may defer demand slightly, yet the upcoming festive season will be better than last year. R C Bhargava, chairman, Maruti Suzuki told ET: "I don't think the hike will have a big impact on demand; there may be a temporary reduction in demand, but off take should pick up by the time the big festivals set in." Companies with a predominantly diesel portfolio, like Mahindra & Mahindra (M&M) and Tata Motors, are likely to feel the pinch. M&M, for its part, is better placed as it is largely a producer of utility vehicles - the industry's fastest growing segment currently. Pawan Goenka, president, automotive, at M&M in fact welcomes the move, as it will reduce the differential between petrol and diesel. "We have always believed that the country cannot sustain a high level of subsidy on diesel for long as it has artificially broadened the gap between the two fuels; as far demand goes we don't expect a major impact, with our portfolio growing in double digits." Importantly, Goenka adds that the hike has now more or less dispelled the fear of a special tax on diesel vehicles will go away. The Society of Indian Automobile Manufacturers (SIAM) has been demanding unregulated prices of diesel like petrol. "We have been asking the government to remove the distortion in fuel prices. The decision to hike diesel price by 5 per litre hike may initially hurt the consumer and induce market inflation, but prices have to be adjusted to the real global scenario and corrected in a staggered manner," SIAM senior director Sugato Sen said.

Gujarat Elections 2012: Narendra Modi proactively harnessing 'young voters' in his quest to retain power
AHMEDABAD: Every morning, Narendra Modi unfailingly tweets Vivekananda's teachings. The one-liners continued on the social media site even during the tense days leading to the Naroda-Patiya riots case verdict last month, and on the day his ex-minister Maya Kodnani was sentenced to life imprisonment, Modi tweeted, "Youth life is the most precious life". All along, the Gujarat chief minister has been passionately nurturing the 18-25 years contingent, hoping this 30% vote bank from his state would look beyond Godhra and help him retain power. Elections will be held in Gujarat towards the year end and the battle-ready chief minister is trying to take his youth engagement to a higher level. What started with statewide sports meet "Mahakumbh", caught attention earlier this month when Modi became the first Indian politician to get on Google Hangout, a group video chat wherein handpicked participants asked sanitised questions. Ahmedabad-based entrepreneur Nirav Shah says the young population like strong personalities, those who display firmness. Like Barack Obama, Modi hit the bull's eye on Google Hangout when his answers on everything from his diet and dressing to criticism and administration were viewed by six lakh people. The aim was to get the Gen Z talking about Modi's leadership and charisma. Subsequent steps by his government - banning gutka (chewing tobacco) to holding a Swami Vivekananda Yuva Vikas Yatra - helped him ready his armour for the 2012 state polls, a qualifier for a bigger national role.

Bharti Infratel files IPO papers to divest 10%

NEW DELHI: Bharti Infratel, the mobile phone tower arm of Bharti Airtel, has filed papers for an initial public offering to raise about 5,000 crore, which will make it the country's largest IPO in two years. According to papers filed with market regulator Sebi on Friday, Bharti Airtel plans to dilute 10% equity through the proposed share issue, which will mark Bharti Group's return to the capital market after a gap of 10 years. The company plans to sell 188.9 million shares, which will include fresh issue of 146.23 million shares and sale of 42.67 million shares by four private equity investors, namely, Temasek Holding, Goldman Sachs, Anadale and Nomura.

September 16, 2012.

iPhone 5 vs Nokia Lumia 920 vs Samsung Galaxy Slll: Why Apple is still the king despite late entry
In 2016, phonemakers will ship a billion smartphones, according to research firm NPD DisplaySearch. That will be one smartphone for nearly every sixth person on the planet. The pot of gold at the end of that particular rainbow is pretty gigantic, and it is little wonder that vicious battles are being fought in courtrooms and markets around the world. It is into this ultimate war for tech dominance that the iPhone 5 has been delivered.

True to form, Apple delivered yet another competent iteration of its money-spinning device. But the 'reality distortion field' mastered by the late Steve Jobs is starting to wear off. Look closer (in a manner of speaking, of course), and what we have is a device physically sleeker than its predecessor, but not all that different fundamentally. While it is true that smartphones have matured as a product category and we are mostly going to see incremental changes as opposed to defining innovations ( touchscreen, apps, retina display, Siri, etc.), there is something more at work here. If the iPhone 5 has failed to elicit the glowing universal admiration the product line is used to, it is because it has been born into a world with more competent rivals than any of its predecessors. It has in fact been shaped by competition perhaps more than any other Apple device. In other words, after years of leading and shaping the industry, Apple is playing catch up in the handsets category, the arc of its domination appearing to plateau.

Will Boeing's 787 Dreamliner turn Air India's business around?

New hope is in the air for Air India. No, it's not related to government permission for foreign carriers to invest in domestic airlines that came on Friday. Airline FDI is expected to benefit private carriers with far lesser financial problems than the nation al carrier. Air India's hope is about 186-foot long, boasts a top speed of up to 560 miles an hour and flies at least 9,440 miles (New York to Hong Kong) non-stop tanked up. It is a plane alright, but because of its ostentatious title, Dreamliner, and unique futuristic features, it would be easy to overlook that bit.

The 787-series Dreamliner is billed as a plane like no other, but in this part of the globe, it acquires a greater aura. Air India is the fifth airline to snap up the 787. But no other airline has entwined its future to a plane as the government-run carrier has with the Dreamliner. When it embarks on its maiden flight on September 19 from Delhi to Chennai, the 787 will be carrying a load of expectations that would outweigh all the 256 passengers it can accommodate. "We hope that the Dreamliner will take Air India back to its good old Maharaja (mascot) days," aviation minister Ajit Singh said when the first of the 27 planes the carrier has ordered landed on Wednesday. Plane Truths Singh's excitement is understandable. The 787-series Dreamliner is the first mid-size airplane that can fly long routes, enabling airlines to tap non-stop routes, according to Boeing. Translation: passengers can avoid the pain of an airport transit.

Aviation, retail and cable stocks likely to zoom on FDI move

NEW DELHI: Stocks of aviation, retail and cable companies are likely to be on buyers' radar when the share market opens on Monday -- the first day of trade after the government decided to open these sectors for overseas investors, experts said. Late on Friday evening, the government allowed 51 per cent foreign investment in multi-brand retail, 49 per cent investment by foreign airlines in aviation and raised the FDI cap in broadcasting from 49 per cent to 74 per cent. Many of the stocks from these sectors have already seen a rally in past few days on hopes of these decisions and the upmove is likely to continue on Monday, experts said. Religare Securities' Rajesh Jain said: "Investors have factored in the FDI impact in the past few days trading but buying can be seen in retail, aviation and cable companies (on Monday as well)." The FDI announcement is a very positive news for the entire market and stocks from retail, aviation and cable companies would move up as the FDI demands were finally met, said SMC Global Securities' Jagannadham Thunuguntla. Welcoming the decision allowing FDI in cable firms, Den Networks CEO S N Sharma said: "This will help consolidation in the sector and allow companies to invest in developing cutting edge products and services for the consumer."

"It will also allow cable companies to start investing aggressively in broadband infrastructure services and help evolve a healthier ecosystem for all stakeholders," he said.

Post-nod to FDI in retail, Metro Cash and Carry wholesale to catch up on Bharti Walmart in Punjab
CHANDIGARH: In the backdrop of nod to FDI in multi-brand retail, German wholesale retailer Metro Cash & Carry India is set to launch its next store at Zirakpur near Chandigarh by the next month, third in Punjab. The store coming up literally a mile away from its counterpart's Bharti Walmart's already operational store will make Punjab biggest market for Metro in terms of number of store. Metro's'plans for Punjab in the current financial year goes further. It is working on opening the fourth store at Amritsar, the city from where Bharti Walmart's cash and carry joint venture took off in 2009. This choice of stores in vicinity or same cities between the two retailers goes beyond Punjab. Metro is mainly opening stores in same cities where Bharti Walmart is already operational. Whether the choice of location is a result of natural choice or definite strategic decision to harp on spadework of Bharti Walmart, Metro declined to comment. But is the upcoming Zirakpur store too close for comfort for the two competitors? "Zirakpur store is built on land owned by the company. This land was bough much before Bharti Walmart announced its plans for the location," a senior executive of Metro Cash and Carry India said. Zirakpur store is among few properties build on land owned by the Metro and not leased property. "Factors like availability of infrastructure required for business to business model and well defined clients make few locations more suitable," the executive from Metro maintained.

Costume jewellery to touch Rs 11,000 crore by 2014: experts

MUMBAI: With gold ruling at Rs 32,000 per 10 grams, the demand for costume jewellery is growing and is expected to touch Rs 11,000 crore by 2014, say experts. "Increased adoption of the costume jewellery category, expansion in product offerings is expected to drive growth to nearly 20 percent. As such, we expect the market size to reach at least Rs 11,000 crore by 2014," Juvalia & You India founder and CEO Chaitanya Aggarwal told PTI here.

September 17, 2012.

Reliance Cement enters market, to focus on Vidarbha

MUMBAI: Reliance Cement Company, the cement subsidiary of Reliance Infrastructure, today commercially launched its product and said it would initially focus its marketing efforts in the Vidarbha region. "The company now commercially enters the cement market that has been on a robust growth trajectory for more than a decade now, led by buoyancy in sectors like realty, infra and construction," it said in a statement. The product is a new-age Portland Pozzollona cement, manufactured at RInfra's recently commissioned plant at Butibori in Maharashtra. It will be mainly delivered to the Vidarbha market and a strong channel network has been set up to service retail customers, the release said. "We will initially cater to the entire Vidarbha market focusing on districts like Nagpur, Wardha, Chandrapur, Bhandara and Amrawati. Later, we will expand our marketing and distribution networks in other districts," Reliance Cement vice-chairman Sumit Banerjee said.

Diesel hike no bump: M&M, Tata Motors, Nissan, Ford & others going ahead with SUV launch plans
MUMBAI: A hike of Rs 5 in the price of diesel has not curbed the enthusiasm of utility vehicle (UVs) makers, who are set to launch six SUVs and multi-purpose vehicles (MPVs) in the next six to seven months. Mahindra & Mahindra (M&M), Tata Motors, Nissan, Ford and General Motors are in the process of blueprinting the launch plans for these vehicles, most of which will be priced in the affordable bracket of Rs6-12 lakh.
"We are upbeat about the growth of UVs. The diesel price increase may have some immediate impact, but we are very hopeful that the festival season will help boost sales," says Takayuki Ishida, MD & CEO, Nissan Motor India.

RBI cuts CRR: Home and auto loan rates expected to come down
MUMBAI: Your home and auto loan rates are expected to ease after the Reserve Bank of India slashed cash reserve ratio by 25 basis point to 4.50% in its mid quarter review of the monetary policy on Monday. CRR is the minimum proportion of deposits that banks must hold with the central bank. The CRR reduction is expected to inject Rs 17,000 crore liquidity into the banking system. The move is primarily aimed at managing the tight liquidity expected in the next few weeks on increased currency leakage during the upcoming festive season, and to ensure smooth flow of credit to productive sectors of the economy. Adequate and sustained liquidity will add to the banking and business confidence. We have seen a concerted reduction in deposit rates and eventually we will see lending rates softening. This will be translated into retail rates as well,'' said Rana Kapoor managing director and chief executive officer, Yes Bank. The country's largest bank, State Bank of India has slashed interest rate on select retail loans including home and auto loans. Private sector banks like ICICI Bank, HDFC Bank and Axis Bank have reduced their deposit rates by upto 50 basis point. Aditya Puri, MD & CEO HDFC Bank had also said,Interest rates are expected to come down as most banks have cut their deposit rates.'' Despite, adequate liquidity and low interest rates the loan growth has come down to less than 17% year on year in August 2012.

Sensex to hit record high, cross 23,000 mark in 2013: Morgan Stanley
NEW DELHI: Investment bank Morgan Stanley on Monday set a new target of 23,069 points by the end of December 2013 for the 30-share index BSE Sensex. The new target implies an index trading at 14.9 times estimated 2014 earnings. The target surpasses an all time high of 21,206.77 points hit by Sensex on January 10, 2008. "Conditions for a new bull market are getting slowly satisfied. The yield curve has stopped flattening, liquidity is improving, valuations appear supportive and profit margin expansion is a growing possibility in the coming months," the investment bank said in a note. The bank expects a domestic earnings growth of 10 per cent in fiscal 2013 and of 19 per cent in fiscal 2014. Morgan Stanley has said that cyclicals are "ultra cheap," and prefers "quality" cyclicals over defensives.

As a result, the investment bank is "underweight" on consumer staples in its model portfolio, while raising energy and materials to "overweight" and taking industrials to "neutral." Morgan Stanley has also cut technology exposure in its portfolio by 100 bps. Deutsche Bank and Citigroup also raised their targets for Sensex after the government announced reforms last week, including opening up the country's multi-brand retail sector to foreign direct investment.

Experts divided on benefits of FDI in retail to farmers

NEW DELHI: Agriculture experts seem divided on the issue of benefits to farmers from government's decision to allow foreign direct Investment (FDI) in multi brand retail in India. Planning Commission Member Abhijit Sen said the benefits of FDI in multi brand retail to the farmers needs to be analysed in the long run, while noted farm economist Y K Alagh said the move will be successful if it reaches the small farmers and artisan groups in the country. Consortium of Indian Farmers Associations (CIFA) Secretary General P Chengal Reddy welcomed the move saying that it would help in raising the income of the farmers. Agriculture expert Devinder Sharma felt this policy will only help the multi-national companies. Explaining the dynamics of profit, Sen said that benefits to the farmers will increase if the demand increases. "Whether FDI in multi brand retail will be able to perk up the demand needs to be analysed in the long and medium term," Sen said. There have been initiatives in the retail sector relating to agricultural products, but so far farmers have not gained much from it, he added. Echoing similar views, Alagh, who is a former union minister and Member, Planning Commission, said for the farm sector to grow, FDI in multi brand retail should target the demand in the big towns and not just the metros.

September 18, 2012.

Mercedes Benz B-Class launched in India at a starting price of Rs 21.49 lakh

MUMBAI: German luxury car maker Mercedes Benz launched the B class, a compact sports tourer at a starting price tag of Rs 21.49 lakh (ex-showroom Mumbai), its cheapest car in India yet. Available in two variants B 180 and the B 180 Sport, the price starts from Rs 21.49 lakhs and goes up to Rs 24.87 Lakhs for the Sport variant. ( All prices are Mumbai ex showroom). The BClass is India's first sports tourer. Globally the sports tourer category comprises of cars like the Audi A3 Sportsback, BMW Active Tourer 1 series and VW Tiguan and Touran and Ford C Max.

The car is packed with safety features with 7 airbags including a knee airbag. Under the hood, Mercedes-Benz is offering a 1.6 litre petrol engine that churns out 122PS of power The engine is mated to Merc's 7-speed dual clutch gearbox with 3 driving modes. The gearbox is linked to paddle shifters for sporty gear changes. Top speed is a claimed 190 km/h. Debashis Mitra, Director, Sales & Marketing, Mercedes-Benz India said: "We are extremely excited with the initial response of the B-Class in India. Our Strategy of introducing the segment & then launching the car has been well received by our customers. The huge response only demonstrates that the Three Pointed Star is easily the most aspired brand in India and kicks off a beginning of our product offensive in next couple of year in India." He further added "The sell out of the new B-Class in the pre launch phase convinces us that there is a latent demand for 'Sports Tourers' in India and they are looking forward for cars loaded with features." The launch will enable Mercedes to take on rivals BMW and Audi, both of which have begun exploring the bottom half of the price spectrum to step up sales. Globally, the B-Class has been a success with over 75000 units sold within the first few months of its launch.

Nifty's December target seen at 5850, buy high beta stocks: Edelweiss
NEW DELHI: The UPA government's stance to introduce more pro-growth policy initiatives in the coming months will boost the market sentiment and the Nifty may end the year 2012 with a target of 5850, Edelweiss said in a report on Tuesday.

Overall, it seems that the government is breaking out of policy inertia that has lingered on since late 2010. "We believe that some more actions will follow in the near term as plans for SEB restructuring and coal price pooling among others and these, in our view, should not be politically difficult," Edelweiss said. The Indian markets have rallied nearly 3 per cent since the announcement of reforms from the UPA government and currently are trading at 13.9x next 12 months earnings. Boost in the markets will be partly led by an expected 12 per cent earnings growth for FY14 and partly by re-rating of the Indian markets. "Accordingly, we are changing our stance from 'sell on rise' to 'buy on dips' as we anticipate several buying opportunities in the coming months as earnings disappoint in Q2FY13 and global economic concerns intensify," added the report. The steps taken by the UPA government have send out a strong signal to investors, ratings agencies and even to RBI that the government is serious about India's macro environment. Edelweiss recommends adding beta to the portfolio through adding rate cyclicals and trimming holdings in defensives such as FMCG and pharma.

IndiGo carried most passengers in August, Kingfisher worst performer

NEW DELHI: No frill airline IndiGo continued its spree of carrying the maximum number of passengers besides having the largest market share in August, as Civil Aviation Minister Ajit Singh, concerned over Air India's performance, asked the national carrier to prepare a plan to enhance its share. There was a minor increase of 0.5 per cent in the total number of passengers carried in JanuaryAugust this year compared with the period last year, official data showed. IndiGo carried 12.05 lakh passengers last month, followed by Jet Airways-JetLite combined flying 11.01 lakh, SpiceJet 8.07 lakh, Air India 7.94 lakh and GoAir 3.24 lakh. The worst performer was cash-strapped Kingfisher Airlines which carried only 1.38 lakh passengers in August, while the new scheduled carrier Air Mantra of Religare, which is operating only two small 17-seater aircraft since July 23, flew a few hundred air travellers to Chandigarh and Amritsar. In terms of market share, IndiGo was again on top with 27.6 per cent, followed by Jet-JetLite combine with 25.2, SpiceJet with 18.5, Air India 18.2, GoAir with 7.4 and Kingfisher at the end of the list with 3.2 per cent. Concerned over the national carrier's performance, the Minister asked Air India to submit to him in a week's time a plan to enhance its share in the domestic passenger market.

CSIR to focus on MSME sector; starts company to aid spinoff

NEW DELHI: After developing a number of technologies for the societal and strategic areas, CSIR has now drawn up plans to focus on the micro, small and medium enterprises sector. To realise its goal, Council of Scientific and Industrial Research (CSIR) is in talks with the State Bank of India to pick up stake in a company it has established in Pune to help MSME sector to start spin-off companies using technologies developed by its chain of 37 laboratories. "We are in talks with SBI Ventures on how they can partner with us and provide cash flows for starting spin-off companies using CSIR technologies," CSIR Director General Samir Kumar Brahmachari told reporters here. CSIR Tech will sell or license technologies developed by CSIR and raise a corpus to incubate companies. "We have started CSIR Tech Private Limited to hold equity for the technologies we create. The new venture will help us in valuation of our contribution," he said.

Low-cost tablets from HCL, Beetel, and others no match yet for iPad, Samsung Galaxy Tab
NEW DELHI: When little-known tablet maker Zync Global started selling its first 7-inch device in November last year, director AnujGarg realized his big customers were not in the metros but in smaller towns and cities. And he faced some peculiar problems. "We would get calls for even the most basic inquiries, for instance, 'how do you switch it on?'," he says.
While the Delhi-based company claims to have sold about 100,000 tablets, mostly in the sub- Rs 5,000 segment, Garg admits that low-cost tablets are not exactly flying off shelves.

Multiple research agencies tracking the Indian tablet market say Samsung, Apple and BlackBerry hold anywhere between 80% and 90% of the Indian market, even though it's raining low-cost tablets with a new device entering the market every second day, at least for the last couple of weeks.

September 19, 2012.

General Motors, Ford betting on new vehicles, localisation to make a dent in India where Maruti, Hyundai are slipping
MUMBAI: American carmakers General Motors and Ford plan a flurry of launches in volume segments and to improve their reach and service to make a dent in the Indian car market where leader Maruti Suzuki and No. 2 Hyundai Motors are slipping.
"Our aim is to increase market share to a double digit figure and this will depend on the new portfolio mix and market conditions," Lowell Paddock, president and MD at General Motors India, said. The company plans to launch the Sail mini in October, to be followed by Sail compact sedan, or notchback, and the Enjoy multi-purpose vehicle. With these launches, GM will have a presence in all segments of the passenger car market.

If GM has invested more than $1 billion, or approx Rs 5,500 crore, in India, Ford has brought double that amount as it looks at markets such as India and China to propel its global growth. "India is an important market; with the kind of money we are investing, it's at the centre of the radar," Michael Boneham, president and managing director at Ford India, said. Ford will roll out its sub-4 metre SUV EcoSport early next year, to be followed by six other cars by 2015. Market watchers say these measures will help the two Detroit giants stabilise their position but they will not break into the top three league in the foreseeable future. GM and Ford currently rank sixth and seventh, respectively, in the Indian passenger vehicles market. "Ford and GM have not been able to connect with the Indian customer...people do not view them as aspirational brands," Hormazd Sorabjee, editor at Autocar India, said. He said new launches and improvement in distribution and sales network will help the two improve market share. "However, they will never get into the top league as they do not have entry level models that give volumes," Sorabjee said.

Jet Airways could be first off the ground with FDI from Etihad
MUMBAI: Jet Airways and Etihad Airways are in discussions for a possible deal that could see the Middle-Eastern carrier pick up a minority stake in the country's oldest surviving private airline, according to three people familiar with the talks.

If consummated soon, Jet will become the first local carrier to receive foreign investment after the government last week liberalised rules to permit overseas airlines to acquire up to 49% stake in Indian airlines. The two sides have held several rounds of discussions, the first of which took place at Jet's office in Mumbai before the venue shifted to Abu Dhabi where Etihad is based, one of the persons told ET. "Etihad officials were in town some weeks ago and were in our office. This was much before the FDI policy was announced. Soon after they left for their country, our top brass followed them to Abu Dhabi and has been stationed there for more than a week," one of the sources, a company insider, said. The Jet side in the negotiations is led by founder-Chairman Naresh Goyal, who is being assisted by Chief Executive Officer Nikos Kardassis, Chief Commercial Officer Sudheer Raghavan, and KG Vishwanath, VP, strategy.

Coal blocks of eight companies de-allocated; Arcelor Mittal, GVK, DB Power face penalties
NEW DELHI: An official panel reviewing coal blocks development has suggested scrapping mining licences of three coal blocks owned by eight companies including Electrosteel Castings Ltd, Rungta Mines and Maharashtra Seamless Ltd. The inter-ministerial group also recommended deduction of bank guarantee of four companies -Arcelor Mittal, GVK Power, Jayaswal Neeco and DB Power for slippages in development of three blocks.

Samsung's new assault against Apple: Fullpage ads claiming Galaxy S3 is better than iPhone 5
Samsung may have lost the most recent round in the United States in its legal fight with Apple over cellphone technology, but that hasn't stopped it from mounting a new assault against Apple that relies on a more public tactic full-page ads. In a round of ads that began this week, Samsung takes direct aim at Apple, claiming its Galaxy phone is a better choice than the new iPhone 5. While going after a competitor in an ad is not a new technique, the tone of the Samsung ads is decidedly snarky for a technology company emerging from a $1 billion defeat in the latest patent battle between the two companies.

One of the ads features the company's new Galaxy S III alongside the iPhone 5. The ad, which began appearing in print publications over the weekend, features an image of an iPhone tilted to the right and a white Galaxy phone tilted to the left under the headline, "It doesn't take a genius." Below the two phones is a list of each of the device's features. "This is a marketing campaign. It's not a legal campaign," said Teri Daley, a Samsung representative. "As marketers we're focused on educating consumers. We feel like they've somewhat been led down a blind path when truly that innovation has stopped a long time ago." The genius reference could be interpreted as a swipe at the Apple customer support employees who work at the company's "Genius Bars." This summer, Apple debuted a television ad campaign featuring a Genius Bar employee. The campaign was short-lived. Todd Pendleton, Samsung's chief marketing officer, said the "It doesn't take a genius" ad was not meant to insult iPhone owners. "Apple users or fanboys, or whatever you call them, they're not the target of this work at all," he said. "If you look at the core essence of the work, it really is showing an innovation story. A more innovative product in this case is the GS III."

SBI takes the lead, cuts base rate by 25 bps

MUMBAI: State Bank of India chairman Pratip Chaudhuri walked the talk with a 25 basis-point cut in its Base Rate, the minimum rate at which it lends to even the best of its customers, lowering the payment outgo for lakhs of middle-class borrowers. The bank on Tuesday said it lowered the Base Rate to 9.75% from 10% earlier which could reduce its profitability. A basis point is 0.01 percentage point. "Net interest margins (a measure of profitability) would be impacted by about 4 basis points, but that should be made up by growth in businesses," said Chaudhuri. "The impact is likely to be in the cars and home loans segment." Chaudhuri's SBI is the first bank to lower the lending rates after the Reserve Bank of India on Monday reduced the cash reserve requirement by 25 basis points to 4.5%, releasing at least Rs 17,000 crore into the system. "It is a very positive move, as a mid-term policy it is very significant,'' Chaudhuri said after the central bank decision. "I think the RBI has given a clear signal that they are willing to respond and that they have taken note of the signs of deceleration in the economy." The move by the biggest bank is likely to force rival banks such as Punjab National, ICICI Bank and others to follow suit that could help corporates suffering from high interest payments breathe easy. With loan growth at less than 17% and few new projects coming up, lending rates could fall further.

With this rate cut, Chaudhuri is fulfilling his side of the promise that a cut in cash reserve requirement is more than essential for overall market rates to fall than a cut in repo rate, the ratb at which the central bank lends to commercial banks. Chaudhuri's articulation drew ire from the RBI deputy governor KC Chakrabarty which also led to a rare joke from the usually serious governor Duvvuri Subbarao. "I have appointed a committee to see if we should do away with the CRR,'' Subbarao told a conference after the media kept the tempo in a tit-for-tat between Chaudhuri and Charabarti. "Members of the committee will be Dr Chakrabarty and Pratip Chaudhuri. The two will be locked in a room and they can't submit the report till my term is over."

September 20, 2012.

HTC seeks to catch up with Apple and Samsung with smartphones featuring Windows Phone 8
NEW YORK: As the first to use Google's Android smartphone software, HTC, the Taiwanese handset maker, was briefly the top US smartphone manufacturer. It was surpassed by Apple and Samsung. Now, to vie for a bigger piece of the market, HTC is working with another underdog: Microsoft's Windows Phone software. At an event in New York on Wednesday, HTC introduced two smartphones featuring Windows Phone 8, the latest version of Microsoft's mobile operating system. The phones, HTC Windows Phone 8X and HTC Windows Phone 8S, were deliberately named to raise awareness among consumers that Windows phones even exist in a market that is dominated by Apple and Android. "Generally speaking, consumers aren't aware of Windows Phone," Terry Myerson, corporate vice president of Microsoft's Windows Phone division, said in an interview. "We wanted to increase the awareness of Windows Phone by simplifying that message." For HTC, a big bet on Windows Phone is risky. The previous version of Microsoft's mobile software, Windows Phone 7, has been unpopular among consumers, gaining about 2.5 per cent of the US market. HTC was the top US smartphone maker in the third quarter of 2011, but it now has less than a tenth of the market. Apple and Samsung together account for 57 per cent of the US smartphone market, according to estimates by Gartner, the technology research firm. In a previous interview, Jason Mackenzie, president of global sales and marketing at HTC, said the company did not have a strong, iconic brand for its phones, as Apple does for its iPhone and Samsung does for its Galaxy phones. At the event, HTC and Microsoft focused their discussion on the Windows Phone 8X model, the bigger and more expensive of the two phones. It has a 4.3-inch screen and a wafer-thin body. Mackenzie said the camera had an 88-degree viewing angle so that multiple people could be seen during a video conference call, as opposed to just one person's face.

Singapore Airlines to increase number of flights from India

NEW DELHI: Singapore Airlines will increase the number of flights from India in coming winter schedule starting from October and is also looking for opportunities to operate from new destinations. "India is an important market for us, we are now operating 85 weekly flights from 10 cities but this winter we will increase the flight to 93. Our low-cost arm SilkAir will launch a new flight from Vizag from October 20," said Casey Ow Yong, Regional Vice President, West Asia and Africa. Aiming to provide world class services to its premium class fliers, Singapore Airlines recently opened a new 'SilverKris Lounge' at Terminal 3 of the IGI airport here. The lounge is designed for Singapore Airlines' first and business class passengers as well as PPS Club, KrisFlyer Elite Gold and Star Alliance Gold members, an airline official said.

Jet Airways flies over 1% on FDI talks from Etihad

NEW DELHI: Jet Airways Ltd surged over 1 per cent in trade on Thursday on reports that the airliner and Etihad Airways are in discussions for a possible deal that could see the MiddleEastern carrier pick up a minority stake in the country's oldest surviving private airline, ET reported on Wednesday. At 01:20 pm, Jet Airways was trading 1.4 per cent higher at Rs 365.45. It has hit a low of Rs 360.40 and a high of Rs 371 today. If consummated soon, Jet Airways will become the first local carrier to receive foreign investment after the government last week liberalised rules to permit overseas airlines to acquire up to 49 per cent stake in Indian airlines. "The two sides have held several rounds of discussions, the first of which took place at Jet's office in Mumbai before the venue shifted to Abu Dhabi where Etihad is based," the report added. Last week, the government relaxed its rules to allow foreign carriers to buy up to 49 per cent stake in Indian airlines. By allowing FDI from foreign carriers, the government has opened up new avenues for fund raising by domestic carriers who are currently finding it tough to raise money from Indian banks.

Suzlon seeks extension for FCCB payment, stock down

MUMBAI: Shares of Suzlon Energy were down on profit booking on Thursday as the company is seeking four-month extension from bondholders for redemption of FCCBs.

Suzlon Energy had issued $200-million zero coupon convertible bonds due October 2012 and $20.8 million 7.5 per cent convertible bonds due October 2012. The meeting of bondholders will be held on October 10, 2012. "We intend to redeem the outstanding October FCCBs at the end of the proposed four-month extension, subject to requisite approvals. We are actively working on various sources of funding; including from the sale of non-critical assets, fresh debt, equity-linked and/or equity fund raising through the domestic and international capital markets, and additional secured leverage at an international subsidiaries-level by optimally re-balancing our debt across various assets," a company spokesperson said. The company had redeemed FCCB liability of $360 million in July through a combination of instruments including proceeds from sales of non-critical assets, internal accruals and new facilities from senior secured lenders. At 10:12 am, the stock was at Rs 16.47, down 3.97 per cent, on the BSE. It touched a high of Rs 16.95 and a low of Rs 16.25 in trade today.

Tata AIA Life launches unit-linked plan 'Suraksha Kosh'

MUMBAI: Tata AIA Life Insurance today launched 'Suraksha Kosh', a non participating marketlinked endowment plan for protection against premature death, living post an accident and critical illness or surgery. "Suraksha Kosh provides to customers to get the best from their investments on a unit-linked platform as also meet their desired saving goal without worrying about the risk of death, dismemberment and onslaught of medical exigency like a critical illness," company's managing director Suresh Mahalingam said in a release issued here. It is a unit-linked plan where death benefit is enhanced by a combination of sum assured plus the total fund value. Suraksha Kosh offers the customers the opportunity to choose from a range of eight investment funds as per their risk profiles.It offers a flexible policy term from 15 to 40 years and is available to individuals from the age 18 to 50 years with maximum maturity age of 65.

September 21, 2012.

Now, BSNL moves TDSAT against TRAI's VAS procedures

NEW DELHI: After GSM and CDMA Telecom operators, state-controlled telecom firm BSNL today moved sectoral tribunal TDSAT against TRAI's directive on offering Value-AddedServices (VAS). BSNL has challenged the show-cause notice issued by Trai on July 18, 2012 for implementation of VAS guidelines. The TDSAT bench headed by its Chairman Justice S B Sinha has directed to list the matter for October 3 for hearing. The Telecom Disputes Settlement and Appellate Tribunal has also listed the petitions of GSM lobby group Cellular Operators Association of India (COAI) and CDMA's Association of Unified Telecom Service Providers of India (AUSPI) against the TRAI directive. TRAI while issuing guidelines on July 4, 2011 had said that telecom operators would have to take confirmation from their customers through SMS or e-mail or Fax or in writing within 24 hours of activation of the VAS. It had further said that the operators could charge only after confirmation is received from their customer and if not it shall be discontinued. Further, every service provider shall, at least three days before the due date of renewal of a subscribed value added service, inform the consumer about it through SMS.

Modern artist Tyeb Mehta's oil painting sets season record of Rs 9.63 crore in auction
MUMBAI: Modernist painter Tyeb Mehta notched up another record when his oil painting fetched Rs 9.63 crore (USD 1.8 million) at the recent online Saffronart Autumn art auction, becoming the most expensive artwork to be sold this season. The 1988 oil on canvas " Falling figure with Bird" is the fourth highest price achieved amongst Mehta's other paintings sold across the world. The late master's work was among 53 sold works out of a total of 75 works in Saffronart's annual online Autumn auction that featured 35 modern and contemporary Indian artists and raked up a total sales of 21.04 crores (USD 3.9 million).

Said to be one of the most important ones from Mehta's suite of falling figures, the painting draws on both Indian and Western myths and legends depicting an androgynous human figure entangled with that of a bird. The figures, locked together in endless free fall, convey not only the anxiety and disquiet that the Mumbai -born Mehta carried with him following his experiences of the horrors of Partition and war, but also his engagement with modernist concepts like existentialism and "Universal Man". Before the sale Saffronart had said they expected the work to fetch between Rs 8.1 crores- Rs 10.8 crores.

Indian Automobile Industry getting more price-competitive

That the Indian automobile industry is going through hell and high waters is no new revelation. But even as the inventory levels for many of the auto manufacturers are hitting the roof, the companies are leaving no stones unturned to woo the customers by launching extremely price competitive products. Following the success of Maruti's Multi-utility vehicle Ertiga and Renault's SUV Duster, both relatively price-competitive vis-a-vis their peers, the launch of Mahindra and Mahindra's compact mini SUV Quanto could not have been timed better. With price ranging from Rs 5.82 lakh to Rs 7.36 lakh, (ex-showroom Thane), Quanto appears fully geared to take on the competition. While Ertiga's price ranges from Rs 7.8 lakh to Rs 9.13 lakh, for Renault is it's between Rs 8.35 lakh to Rs 11.84 depending upon the variant, making Quanto, so far, the most affordable of all. Interestingly, Qunato's seating capacity has also been enhanced to 5+2 seats, by providing for 2 additional seats at the rear, though at the cost of comfort for long journeys, to take on the competition head on. Whether Quanto will succeed in raking in the kind of success Ertiga has seen so far is difficult to tell. This launch however clearly signals that the Indian Automobile industry is getting more price-competitive than ever before and that the customers can expect many more pocket friendly products from this industry in the coming future.

Honda to launch first diesel car in India in FY'14: Global CEO

TOKYO/NEW DELHI: Japanese auto giant Honda today said it will launch its first diesel driven car in India by March 2014 and the engine for the same will be produced locally in the country.

"In India, an all-new diesel engine will be adopted sequentially to new models starting in FY14 (fiscal year ending March 31, 2014)," Honda Motor Co Chief Executive Officer Takanobu Ito said here. He further said the company will locally produce the diesel engines, thereby signalling setting up of a diesel engine plant in India in future. "In addition to the high fuel efficiency, the cost competitiveness of the all-new diesel engine will be enhanced through local sourcing and local production to make new diesel models more affordable for customers," Ito said. Although he did not share details such as the engine capacities to be developed by its subsidiary Honda Cars India, a source said the diesel engine will first be fitted to a new sedan that is being developed at present. "In Asia, in order to compete in and win in highly competitive low-price markets and fulfill the diverse needs of customers, in addition to the all-new Fit Series, Honda will add sedan-type and utility-type models utilising the platform of the Brio," Ito said.

Apple iPhone 5 hits stores, long queues despite glitches

TOKYO: Apple's iPhone 5 hit stores in a festive global rollout Friday, with long queues of devotees undeterred by a lukewarm welcome from experts for the smartphone and complaints about its new mapping system. The lines of eager fans outside retail stores looked set to make the latest generation iPhone another commercial smash for the trend-setting US company, coming after Apple said it had received more than two million orders online. Australians were the first to get their hands on the device. In Sydney the faithful filmed the experience on their iPhones and iPads as staff inside clapped and cheered when the doors opened at 8:00 am (2200 GMT Thursday). But the event was also hijacked by companies looking for free publicity, with the first dozen or so in the queue wearing promotional T-shirts and caps or carrying advertising materials. "Seven of us are here from our company, since midday Tuesday," said Todd Foot, 24, who was first in the line and works for an organisation that reviews mobile phones. "We've actually had telephone hook-ups with the first in the lines in New York and London. It's been a bit crazy."

September 22, 2012.

Pre-placement offers from companies like Hindustan Unilever, Wipro off to a good start at top IIMs
AHMEDABAD | BANGALORE | KOLKATA: Pre-placement offers (PPOs) are off to a good start across the premier Indian Institutes of Management (IIMs) though it's early days yet to call it a downpour. At top IIMs, including Bangalore, Lucknow, Kozhikode and Indore, the numbers are as good or even better than last year, hinting at robust final placements, even though the overall economy is still in the grip of a slowdown. IIM Bangalore is leading the pack, having already notched up 50 PPOs, more than half of last year's total tally of 93. Numbers at IIM Indore are looking good as well with some 20 PPOs in, while IIM Kozhikode has 12 PPOs and 15 pre-placement interviews (PPIs) already, with a top offer of Rs 22 lakh from Deutsche Bank. PPOs are offered by companies based on students' performance during summer internships. They continue to flow in till December or even beyond, till final placements begin at the campuses. PPIs are interviews that a company takes for students who have interned with them, which may convert into a PPO. Therefore, students who get PPIs are interviewed for a post before the company comes over for placements. PPOs come in from June-July onwards and continue till December-January. "There is no impact of the slowdown and students are happy," says Sapna Agarwal, head, Career Development Services (CDS) at IIM-B. The institute has received international offers as well, with an almost 100% conversion in the consulting sector. IIM Lucknow too is off to a healthy start with 40 PPOs already, compared to a total of 75 last year. The institute has seen 100% PPO conversion at firms like McKinsey and BCG this year. "Hindustan Unilever has made five PPOs while the Aditya Birla Group has given two PPOs. Fidelity and a Singapore-based hedge fund too made offers to the interns," said Aman Bhatnagar, recruitment coordinator at IIM Lucknow. "These are tough times and PPOs do offer a big relief to the students," he added. Packages have been more or less the same as last year, but a few recruiters have raised the compensation by 1525% by sweetening the deal through offers like joining bonuses," Bhatnagar added.

Wal-Mart to open Indian stores in 12 to 18 months

MUMBAI: Wal-Mart plans to open retail outlets in India in the next 12 to 18 months, the company said Friday, making it the first multinational to jump on the government's decision to open the country's huge retail market to foreign players. Raj Jain, the managing director of Bharti Wal-Mart, a joint venture that operates 17 outlets that cater to small businesses in India, confirmed by email that Wal-Mart plans to open stores that serve consumers over the next 18 months, but declined to say how many. India announced last week that it would allow foreign firms to take a majority stake in multibrand stores for the first time. The surprise decision cheered investors but cost the ruling Congress Party an important coalition ally. New Delhi first tried to enact the measure last year, but backed down in the face of resistance from coalition partners, badly damaging its credibility with global investors. Prior to the reversal, foreign retailers like Wal-Mart could only operate wholesale outlets. Opponents say the move will cost Indians jobs and decimate millions of mom-and-pop shops. Advocates say welcoming players like Wal-Mart is necessary to attract the investment needed for India to modernize its food supply chains, reduce waste and bring down spiraling food prices.

Tata Group, L&T explore options to monetise Dhamra Port investment

MUMBAI: The salt-to-software conglomerate Tata Group on Friday acknowledged that both the shareholders of Dhamra Port - L&T and Tata Steel - are exploring options to "monetise" their investments. "Tata Steel and L&T are deliberating various strategic alternatives with respect to the Dhamra Port, including options that will allow fuller utilisation of our capacities. The ultimate objective of this exercise is to maximise shareholder value over the long term," said a Tata Steel spokesperson.

ET had reported in its Friday edition that Indian and international port operators and global sovereign funds are looking at bidding for a controlling interest in the port. Reacting to the story, the Tata spokesman added: "The review by shareholders is at a very preliminary stage and there is no assurance that this review may result in any further action." L&T and Tata Steel are equal partners in the venture. L&T's infrastructure development arm L&T IDPL built the port as an EPC contractor. Players like Adani Ports, international port companies and sovereign funds like Temasek are believed to be keen on taking control of the operations.

How FDI in multi-brand retail will open up opportunities for real estate sector
The recent announcement by the RBI of strong growth in the service sector in 2011-12 has brought cheer to the real estate developers, as it may sustain the present high demand of commercial real estate in the near future. The projected slowdown in overall economic growth globally, and particularly in India, to 6.5% in 2011-12 , as against 8.4% in 2010-11 , has affected the sentiment in the market place. The recent decision of the government to allow foreign direct investment (FDI) in the multibrand retail sector will also help the real estate sector in the country. This will also increase the demand for commercial space in the market. At the same time, as the demand for office space will continue to be strong, fresh jobs creation in the country will also see a strong growth. Normally, when a company takes 1,000 sq feet of office space on rent, it employs around seven people to fully utilize that space. That means, at least seven new people will enter the job market and, on average , five out them will buy residential apartments. Therefore, a consultant said that according to the thumb rule, the requirement of residential space increases five times that of the commercial space used. Therefore, if the demand for the commercial space remains strong, it will also continue to give a fillip to the residential real estate.

Telecom Department may ask Airtel, Vodafone & Idea to stop 3G roaming pacts
NEW DELHI: The telecom department may issue two separate sets of notices to incumbent GSM operators - Bharti Airtel, Vodafone and Idea Cellular - asking these operators to hang up on their 3G roaming pacts, and also pay back the 'unjust enrichment' these companies earned from these pacts. The DoT is looking at separate notices after studying the response of the law ministry which said the government was 'well within its rights to claim the amounts earned by companies by providing 3G services for which they did not have any authorisation, permission or licence from the DoT'. "It will be based on the doctrine of unjust enrichment and this would be distinct from the termination of licences," the Additional Solicitor General had said in a July 14 note to the telecom department.

Bharti, Vodafone and Idea won 3G airwaves in 13, 9 and 11 circles, respectively, and their roaming pacts ensured that customers could access high-speed data services on a pan-India basis. In December 2011, the government had issued a directive asking these companies to terminate these agreements within 24 hours, a move that was challenged by the mobile phone companies. In June this year, the telecom tribunal delivered a split verdict on a petition challenging the government's order banning such agreements, following which the government had sought the law ministry's opinion on the issue. According to an internal note of the telecom department, the Additional Solicitor General has 'clarified that showcause notice for imposition of penalty, including cancellation of licence, could be issued'. Action regarding recovery of unjust enrichment amount would be additionally applicable, the September 14 note said. "As per the advice of the Additional Solicitor General, action regarding recovery of 'unjust enrichment' amount needs to be taken by way of issuing a separate showcause notice," the note added.

September 23, 2012.

Supply of Aakash - 2 to IIT Bombay has started; launch in October: Datawind

NEW DELHI: Maker of low cost Aakash tablet, Datawind, today said it has started supplying the new version of the tablet to IIT Bombay and it is likely to be launched in October. "Supplies are on to IIT Bombay. In the next few weeks, it should be launched. I do not have the exact date, but HRD Minister ( Kapil Sibal) has said he wants to launch on the anniversary date which is October 5," Datawind CEO Sunit Singh Tuli told PTI. The launch will depend on the Minister's schedule, but it is not very far from now, he added. Tuli said Datawind has started supplying the next version of the low cost tablet, Aakash 2, to IIT Bombay since the last one month and a half. However, he refused to disclose other details. Sibal had earlier said that new version of Aakash tablet would have a better battery with a threehour battery backup, a capacitive touch screen among other new features at the same price. Datawind had won the tender for making and supplying Aakash tablets for price of around $49 per unit. Apart from this order, the company has also received orders for 55 lakh more from general customers.

Investment in gold yields higher returns than equity, property

NEW DELHI: Investments in gold have yielded higher returns compared to those in equity and real estate in India during the last three years, according to a study. Those who invested in gold between September 2009 and September 2012, have received double returns as the yellow metal has been their first choice for investment, a study released by industry body Assocham said. Presently, price of gold is over Rs 32,000 per 10 grams against around Rs 15,000 per 10 grams about three years ago. Hence, giving more than double the returns on investments, it said. "Gold has really outdone other asset classes and it is likely to remain an attractive bet as long as uncertainty over the global economy stays" Assocham Secretary General D S Rawat said. He added that gold is the safest bet for investments amid uncertainty in other investment avenues.

The prices of yellow metal saw a huge jump due to high prices of gold across the world and a weakening rupee. The study said those who invested in property have also seen good returns. However, these are comparatively lower than returns from gold. Investments in real estate have yielded almost double returns in cities such as Delhi, Mumbai, Chennai and Gurgaon in the last three years, it said.

Pilot project to replace electric bulbs with LED lights

CHENNAI: The Tamil Nadu government today proposed to take up a pilot project in Tirupur and Thanjavur zones to replace power-consuming conventional electrical bulbs with the more energy-efficient LED lights, covering 145 local bodies as part of the effort. This is in continuance of Chief Minister J Jayalalithaa's directions to replace bulbs with the LEDs and ensure lower power consumption, better and efficient management of streetlights, a state government release here said. Accordingly, the project will be taken up in 2012-13 in 145 local bodies, including nine corporations in Tirupur and Thanjavur zones and four technical panels and high-powered committees would be formed for this purpose, it said. The project would be implemented with the participation of private players, it added. She further announced a government subsidy of Rs 26 crore towards constructing new buildings for 10 municipalities across the state.

FDI in retail: Why Kerala is fiercely opposing big foreign investment

Renowned author Robin Jeffrey has written extensively about India over the past three decades. An avid Kerala watcher, Jeffrey's stellar book The Decline of Nayar Dominance had brought him closer to the state's people, politics and language he can read and write in Malayalam, and he still keeps a close watch on its political developments. He isn't surprised by the Congress-led UDF government declaring that it will not implement its own party's proposed retail reform chief minister Oommen Chandy is the only Congress chief minister to say his state isn't ready to implement foreign direct investment (FDI) in multi-brand retail.

A consumerist society, Kerala has a good number of active providers of consumer's needs, notes Jeffrey. "They could say, 'Why do we need foreign investment to do what we are already doing?' One can then ask, 'Why does one want Walmart-style operations if they bring no local advantage?" asks Jeffrey.

Foreign policy on backburner for Barack Obama at UN

WASHINGTON: President Barack Obama will take a mere day out of his reelection bid for the UN General Assembly this week, and his flying visit will be shorn of the usual flurry of visits with world leaders. Obama will hope to win a few domestic political points by cutting a statesman like figure with his annual speech to the United Nations, and will offer his most detailed explanation yet of the US response to the rash of anti-American protests in the Arab world. While in New York, he will also repay former president Bill Clinton for his acclaimed speech lauding the Obama presidency at the Democratic National Convention, by appearing at the annual Clinton Global Initiative meetings. And while his schedule does not allow time to meet the likes of Israeli Prime Minister Benjamin Netanyahu and Myanmar leader Thein Sein, Obama is expected to record an appearance on popular American daytime talk show "The View." The program is a favorite with women voters, a key demographic in the November 6 election, as Obama seeks to cement a narrow lead over Republican White House hopeful Mitt Romney. After one night and 24 hours in New York spanning Monday and Tuesday, Obama will be out on the campaign trail again, traveling to swing state Ohio on Wednesday and battleground Virginia later in the week as he gears up for three head-to-head debates with Romney next month.

September 24, 2012.

Air India, Jet Airways fight for market share, announce up to 40 per cent discount for festival season
NEW DELHI: Full service carriers Air India and Jet Airways seem to have thrown in the gauntlet on budget airlines to garner more market share this festival season by announcing up to 40 per cent discounts on tickets booked a month in advance. Budget carriers Indigo and SpiceJet have been gaining market share at the expense of Jet Airways. Air India's aggressive first mover stance to introduce special fares is significant as it comes in the backdrop of civil aviation minister instructing Air India to garner more loads (aircraft occupancy) few days ago.The national carrier announced the "Jaldi Jaldi" scheme under which the fare for tickets booked at least 30 days in advance will be 40-50 per cent cheaper compared to the existing instant purchase fare, the airline said. A day later, Jet Airways announced similar discounts saying, "The new apex fares will go on sale effective September 22 and will offer guests attractive savings on several domestic routes. Travel validity for 21-day apex fares is till October 18, 2012, while the 30-day apex fares have no expiry date."

Travel experts say the idea behind such discounts is to be assured of filling up a certain number of seats and generating a fixed amount of revenue well in advance so that the carriers can sell the remaining seats at a premium. Going by the data given by sector regulator Directorate General of Civil Aviation (DGCA), airlines had an average occupancy of only about 70 per cent in August. This indicates that 30 per cent capacity is going unsold.

Idea launches dual-SIM smartphone Aurus

Idea Cellular Monday launched a dual-SIM Android smartphone, the fourth addition to its 3G devices portfolio that it offers bundled with a mobile connection. Idea Aurus is priced at Rs 7,190 and will offer 3G benefits worth Rs 2,340 for Idea users who opt for a recharge of Rs 259, thus reducing the final cost of the phone to Rs 5,109. The Wifi and GPS enabled phone features a front for video calling and and a five mega-pixel back camera and comes pre-loaded with Idea TV, Idea mall, gravity sensor, built in Facebook, Twitter and Youtube.

The telco is pitching Aurus to the youth and working professionals - who want to own high-end, feature rich yet inexpensive smartphones - as the cheapest mobile phone in the market that offers video calling facility. Idea Cellular chief marketing officer Sashi Shankar said,"3G is becoming an enabler in smaller towns which don't have good broadband access. Deep rooted mobile network and availability of affordable smartphones are making acceptance and adoption of 3G services faster in Tier 2 & 3 towns."

Facebook shares drop 10% after Barron's snub

SAN FRANCISCO: Facebook shares dropped on Monday after financial weekly Barron's questioned the social networking company's value and priced its stock at just $15. Facebook's shares slid 10 per cent to $20.64 in mid-day trade on Nasdaq, about 46 per cent off of its $38 IPO price in May. The decline shed most of its gains from the previous week, when shares were boosted by news that the company was testing a new mobile advertising network. "Is the stock a buy? The short answer is 'No,'" Andrew Bary wrote in the latest edition of Barron's over the weekend. "The stock trades at high multiples of both sales and earnings, even as uncertainty about the outlook for its business grows." At $15, Facebook would still be richly valued at 24 times its projected 2013 profit. That's compared to established tech giants Apple and Google, which both now trade for about 16 times their 2012 earnings, Barron's argued. Aside from the No. 1 social network's struggle to adapt to the rise of mobile devices, Barron's also highlighted Facebook's stock compensation costs, which have ballooned as the company fights to hold onto its employees by dangling more shares.

Mercedes-Benz aiming at 30% market of luxury car segment in India

KOLKATA: Luxury car manufacturer Mercedes-Benz is hoping to capture 30 per cent of the top-end market in India within the next 10 years, a company official said today. "We are clearly the market leader in the luxury car segment at present. By 2022, we are aiming to capture 30 per cent of the segment," Debashis Mitra, director (sales and marketing), Mercedes-Benz India told a press conference here. In India, the luxury car segment is dominated by players like BMW, Mercedes and Audi, with Jaguar being the latest entry. He said market research studies have revealed that the passenger car market in India would reach 80 lakh by 2022 from the present levels of 25 lakh. As against one per cent of the total cars being in the luxury segment, this would go up to 4 per cent, he said. "We aim to sell 70,000 to 80,000 cars in India by that time," Mitra said while launching B-Class premium car in the city. To capture the growing premium segment, Mitra said the company would launch new generation compact cars each year till 2015. Mitra said that the price point of premium segment of the car was between Rs 25 lakh and Rs 30 lakh, while the luxury segment was above Rs 30 lakh. Others like BMW and Audi have already entered the segment with X1 and Q3 respectively.

CLSA overweight on financials; ICICI Bank, Axis Bank top picks

NEW DELHI: The government's policy initiatives over past week have propelled 10-26 per cent rally in stock prices of many financial sector stocks in India on the hope of an overall revival in the economy. "We remain overweight on private banks such as ICICI and Axis Bank and among PSUs we like SBI and BOB and among NBFCs we like HDFC Ltd and IDFC. Policy moves and better corporate sentiments can support upside to loan growth and lower asset quality pressures for banks," CLSA said in a report. Restructuring of debt to SEBs can provide greater visibility to quality of 25 per cent of banks' power sector loans, but "we would watch out for any economic sacrifice by banks.

SEB losses have now accumulated to US$35 billion," it said. According to analysts, the risk appetite is improving globally and the rally in the markets is likely to sustain, thanks to monetary easing from the top three central banks in the US, Europe and Japan. "The government is set to take more decisions to accelerate capital markets reforms and attract overseas capital, in a bid to maintain the momentum generated by the move to open sectors such as multi-brand retail and aviation to FDI," ET reported. The steps being contemplated include raising the ceiling for foreign borrowings, easing curbs on portfolio investors, and liberalising norms for overseas borrowings, said the report. In a separate report last month on Indian financial sector, UBS said that following a recent rally in banking stocks, they think the risk-reward does not appear favourable. UBS is of the view that there is little upside, especially considering the macro situation has deteriorated (high oil prices, weak monsoons, and policy inaction) and more industries are facing pressure.

September 25, 2012.

Google Maps not waiting in wings for Apple's iPhone 5: Eric Schmidt
TOKYO: Google Inc has made no move to provide Google Maps for the iPhone 5 after Apple Inc dropped the application in favour of a home-grown but controversial alternative, Google's Executive Chairman Eric Schmidt said. Apple launched its own mapping service earlier this month when it began providing the highly anticipated update to its mobile software platform iOS 6 and started selling the iPhone 5. But users have complained that Apple's new map service, based on Dutch navigation equipment and digital map maker TomTom NV's data, contains glaring geographical errors and lacks features that made Google Maps so popular. "We think it would have been better if they had kept ours. But what do I know?" Schmidt told a small group of reporters in Tokyo. "What were we going to do, force them not to change their mind? It's their call." Schmidt said Google and Apple were in constant communication "at all kinds of levels." But he said any decision on whether Google Maps would be accepted as an application in the Apple App Store would have to be made by Apple. "We have not done anything yet," he said. Google and Apple were close partners with the original iPhone in 2007 and its inclusion of YouTube and Google Maps. But the ties between the two have been strained by the rise of Google's Android mobile operating system, now the world's leading platform for smartphones. Schmidt said he hoped Google would remain Apple's search partner on the iPhone but said that question was up to Apple.

SBI sits on excess fund of Rs 80,000 crore, could lower lending rates further
MUMBAI: State Bank of India (SBI) is sitting on excess funds of around Rs 80,000 crore, an amount equivalent to what all banks put together borrow from the central bank, indicating it could lower lending rates further. Last week, the lender lowered the so-called base rate to 9.75 per cent from 10 per cent earlier. A basis point is 0.01 percentage point. The bank's deposit growth has been double that of loans, allowing it to be liberal with lending rates to boost flagging demand for loans.

SBI chairman Pratip Chaudhuri said that the bank has seen robust growth in deposit mobilisation while demand for loans is lukewarm. He said, in the first five months of this fiscal year, the bank has seen a deposit growth of 8 per cent while advances have risen 4 per cent. On a year-on-year basis, deposits rose 22 per cent while advances grew 14 per cent. The central bank has projected loan growth of 17 per cent and deposit growth of 16 per cent for the current fiscal year. Chaudhuri indicated that the bank has started investing surplus money in commercial papers and certificate of deposits besides investing in government securities. He said the bank holds excess government securities to the tune of five percentage points than mandated by RBI. The central bank mandates banks to hold 23 per cent of their deposits in the form of Gilts.

China's first aircraft carrier, 'Liaoning' enters service

BEIJING: China's first aircraft carrier -- a former Soviet ship it bought from Ukraine and refurbished -- entered service Tuesday, the defence ministry in Beijing said, naming it as the Liaoning. "Having the aircraft carrier enter the ranks will be of important significance in raising the overall fighting capacity of our nation's navy to a modern level," the ministry said in a statement. The commissioning makes China the last permanent member of the United Nations Security Council to have an aircraft carrier, and comes at a time of increased maritime tensions in the region. The 300-metre (990-foot) ship was named after the northeastern province that is home to China's main naval port city of Dalian, where its refit was carried out. The defence ministry said the vessel will "increase (China's) capacity to defend, develop its capacity to cooperate on the high seas in dealing with non-traditional security threats and will be effective in defending the interests of state sovereignty, security and development". Domestic press said on Sunday that the vessel had been handed over to the navy of the People's Liberation Army by its refitters. There had been swirling speculation on what the vessel was to be called, with retired Major General Luo Yuan suggesting naming it Diaoyu, after islands in the East China Sea claimed by China, which are also claimed by Japan and called Senkaku by Tokyo. The announcement comes at a time of heightened maritime disputes over the islands and elsewhere in the Asia-Pacific region, where China's growing assertiveness has put it on a collision course with Japan, Vietnam and the Philippines.

Beijing on Sunday postponed a ceremony marking the 40th anniversary of the establishment of diplomatic ties with Tokyo.

Nissan launches MUV Evalia at a starting price of Rs 8.49 lakh

NEW DELHI: Japanese auto major Nissan on Tuesday launched its multi-utility vehicle Evalia priced between Rs 8.49 lakh and Rs 9.99 lakh (ex- showroom Delhi). Evalia can accommodate as many as 8 occupants. Mated to a 5-speed manual transmission the front-wheel drive MPV is powered by a 1.5-litre dCi diesel engine that produces 85PS of power and 200Nm of torque. Nissan claims that the Evalia can hit 60km/h in 12.7 seconds owing to its monocoque construction that gives it a lower kerb weight compared to other MPVs available in the market today. The ARAI figure for the Evalia stands at 19.3kmpl which translates to a 50% better overall efficiency as compared to the current competition. Nissan said it will look to expand production capacity either through new plants or the existing plant and would launch 10 new models in India by 2015-16, including the Datsun brand. With the expansion Nissan seeks to be a significant player in the country. "As part of our global Nissan Power 88 plan, we will be launching 10 new models by FY'16, which is introducing two new models every year," Nissan Motor Co Corporate vice president, Africa, Middle East and India, Toru Hasegawa told reporters here.

12-year-old Mumbai boy Aditya Salunke clears NSE beginner's test for mutual fund investors
NEW DELHI: He cannot write a cheque or invest on his own yet. But Mumbai schoolboy Aditya Salunke knows that if a redemption cheque doesn't reach an investor within 10 days, he is entitled to an interest of 15% per annum. Or that 75% of investors can vote to wind up a mutual fund scheme. Or that sectoral schemes are riskier than diversified equity funds. This 12-year-old student of Mumbai's Manik Vidya Mandir has cleared the beginner's module exam conducted by the National Stock Exchange (NSE) for certifying mutual fund advisors. Aditya scored 55% in the exam in which the passing marks are 50%. He was the youngest candidate at the NSE's Certification for Financial Markets (NCFM) exam held in July this year probably the youngest to take this test ever. When he reached the examination centre with his father, astonished NSE officials initially did not allow him to enter.

September 26, 2012.

After Air India and Jet Airways, IndiGo cuts ticket prices by up to 40% to lure travellers
NEW DELHI: Airlines have declared a full-blown price war to entice more passengers this festival with budget carriers IndiGo becoming the third to offer up to 40% discounts on a month's advance booking, after Air India and Jet Airways did so a few days ago. SpiceJet, the third-largest airline in terms of market share, is also expected to announce a similar move shortly, two travel industry sources said. Though these discounts are a much-needed respite for passengers who have either reduced air travel or have shifted to other modes of transport due to high airfares this year with the removal of Kingfisher Airlines' capacity, airline players think this may impact their financials. "Discounting fares in an already depressed yield market when costs are rising is not welcome news and it will put a lot more pressure in the airline sector. But I don't believe it will impact our financials as much as last year due to the fact that capacity has come down across the industry and we expect a strong holiday season in both international and domestic markets," a senior executive of Jet Airways told ET.

BlackBerry maker RIM unveils features of new smartphone, BB10 OS

SAN JOSE: Research in Motion offered investors a ray of hope on Tuesday, announcing an unexpected increase in subscriber numbers that sent its shares up 5 percent as the company worked hard to drum up enthusiasm for its crucial Blackberry due 2013. Waterloo, Ontario-based RIM, a pioneer in the smartphone arena, has in past years lost market share in North America to Apple Inc and Samsung, whose more versatile and user-friendly devices took off. RIM is trying to reinvent itself through a line of jazzed-up smartphones that will run on the BlackBerry 10 or BB10 operating system on which the company has staked its future. In an attempt to create a buzz around the new devices, Chief Executive Thorsten Heins gave a preview of the smartphone and its features to its developers at a gathering on Tuesday in San Jose, California. Dressed in an outfit few Silicon Valley executives sport - a grey pinstriped suit - Heins said the company was fighting for its future.

"There is new energy and a new fighting spirit in this company," he said as he listed new features from Internet browsing to multitasking between applications.

Audi to hike prices of SUV Q3 by 2% from October

NEW DELHI: Luxury car maker Audi today said it will hike the prices of its sports utility vehicle Q3 by up to two per cent, translating into an increase of Rs 50,000, with effect from October 1. "Due to economic upheavals and rupee devaluation, we have increased the price by 1 to 2 per cent on both the high grade and base grade version of Audi Q3 2.0 TDI," Audi India Head Michael Perschke said in a statement. At present, the Audi Q3 is priced at Rs 26.21 lakh onwards (ex-showroom, Maharashtra) for the base grade and Rs 31.49 lakh onwards for the high grade. "However, we are still confident of achieving our sales target of 8,000 cars at the end of 2012 and Audi Q3 will contribute significantly towards achieving this target," Perschke said. The premium compact SUV, which was unveiled at the Auto Expo in January 2012, has witnessed a total sales of 1,000 units so far in India with "only limited numbers of Audi Q3s are available for sale in 2012", the company said. The carmaker registered a total sale of 726 units in August this year, a growth of 42.35 per cent over the same period last year.

FDI in aviation not to impact profitability of airlines: Rakesh Jhunjhunwala

Punita Kumar Sinha, Managing Partner, Pacific Paradigm Advisors, caught up with Big Bull Rakesh Jhunjhunwala of RARE Enterprises for his take on the recent reform measures and the opportunities in the market. Rakesh Jhunjhunwala: I won't say that I am very happy with the fact that reforms have been made, but I would say that I am happy about the fact that at least some reforms have come about. I am not very hopeful that during the tenure of this government we would have many major reforms. There is tremendous political opposition to whatever the government wants to do. Whatever has to happen 12 months later, will happen. You will remember that when FDI was opened for many items, there was so much opposition. But who is talking about it today? The opposition to FDI in retail is all humbug because you say that foreigners will import goods from

China. But isn't Pantaloon importing, DMart, Trent or Titan importing? Indian retailers are already importing goods. So what do you mean by foreigners will come and necessarily import? You have to make our economy competitive. Goods will have to be procured from where you get the cheapest price and best quality. So what are these politicians trying to say?

Former RBS trader saw Libor fixing as cartel: Report

SINGAPORE: A former trader for the Royal Bank of Scotland discussed Libor fixing with traders from other banks and described the process -- now subject to regulatory investigations worldwide -- as a cartel, according to court documents cited by Bloomberg. In transcripts of instant messaging conversations that have now been sealed from public view, Tan Chi Min, the former head of delta trading at the British lender, discussed the setting of the London interbank offered rate (Libor) with colleagues inside and outside the bank.

"It's just amazing how Libor fixing can make you that much money or lose if opposite," Tan said, according to Bloomberg, in an electronic messaging conversation on Aug. 19, 2007, with traders at other banks, including a trader from Deutsche Bank called Mark Wong. "It's a cartel now in London," he added. More than a dozen banks are under investigation by regulators in the United States, Europe and Asia for suspected rigging of interbank rates used to price trillions of dollars worth of financial products. Tan was fired from RBS during an internal probe into alleged manipulation of Libor rates. The electronic conversation was among message exchanges included in a 231-page affidavit, filed by Tan, that Singapore High Court has sealed following a request from RBS. The British lender asked that the documents be sealed until the investigations by the U.S. Commodity Futures Trading Commission, the Department of Justice and Britain's Financial Services Authority are completed.

September 27, 2012.

28% of new vehicle buyers consider one or more models, says J D Power Study
With 30-50 new car model launches hitting the Indian market every year, the customer is spoilt for choice and is considering more than one vehicle to buy, a study by a leading consulting firm on Thursday said. "J D Power Asia Pacific 2012 India Escaped Shopper Study," reveals cross shopping activity in India increasing year on year as more prospective vehicle buyers are considering one or more models during their shopping process. The study, which examines the reasons why new-vehicle shoppers consider but ultimately reject certain models in favor of another, finds that 28% of new-vehicle buyers considered one or more vehicles before selecting the vehicle they ultimately purchased, up from 23% in 2011. In terms of consideration, Maruti Suzuki continues to be the most considered nameplate among vehicle buyers, despite a decline in consideration rate year over year. Conversely, the consideration rates of such makes as Toyota and Mahindra sharply increase from 2011. The desire for fuel efficiency tops price concerns as reason for vehicle choice, revealed the study. One-third of customers rejected the vehicle they initially considered purchasing because they wanted a vehicle with better fuel economy. Price continues to be among the major reasons for rejecting a vehicle. However, shoppers cite price less often in 2012 compared with 2011 as buyers increasingly prefer vehicles that provide a cost-of-operation advantage.

3G spectrum sale: DoT incorporates significant changes to auction rules

NEW DELHI: The telecom department has made changes to auction rules after mobile phone companies sought changes to the process followed in 2010 for 3G spectrum sale. ET has learnt that the department has incorporated three significant changes, including allowing mobile phone companies to reduce the number of blocks they are bidding for during the auctions. This facility was not available during the 3G auctions of 2010 because telcos could only bid for 5 MHz of units of airwaves for offering these high-end data services.

The second change involves allowing telcos to reenter the auctions in any circle at a later stage. This means, if an operator bidding for airwaves in Delhi stops bidding after the first five rounds, the company can continue bidding at a later round. "In the case of adopting the same rule as in 3G, there is a possibility that the bidders are not able to revise their bids, even with sufficient eligibility points in hand. Hence this change has been proposed with an intention to give the bidders another opportunity in the subsequent round," said a telecom department (DoT) internal note dated September 19. The department has also decided that in case spectrum remains unsold in any circle, these will be offered to new entrants who participated in the sale process but failed to win airwaves in that region. But these companies will have to match the auction price.

Nokia Lumia 920 priced up to 25% higher than Samsung Galaxy S3; risks consumer backlash
HELSINKI: Nokia's new Lumia 920 handset is being priced up to 25 percent higher than the rival Samsung Galaxy S3, risking a consumer backlash that could endanger its attempt to restore its fortunes. Analysts said Nokia will struggle to explain the premium on the Lumia, seen as potentially its last chance to break into the lucrative smartphone segment and catch Apple's iPhone and a string of other popular phones like the fast-selling Galaxy. The Lumia, which with its rounded edges and colourful covers look similar to its predecessors, was unveiled earlier this month and drew a thumbs down from many analysts who said it lacked the "wow" factor to challenge its rivals. It uses Microsoft's Windows Phone 8 software while Samsung Electronics' Galaxy S3 operates on Google's Android system, the platform favoured by many smartphone makers. "Windows Phone is still largely an unknown to consumers - they would probably expect to pay less if they are taking a risk," said Ovum analyst Nick Dillon. "Hardware-wise they are pretty similar, it would be hard for Nokia to justify that extra cost to consumers." Windows Phone has just around 3 percent of the global smartphone market, while the Android platform controls two-thirds of sales. Apple has around a quarter.

FDI in multi-brand retail: Foreign players worried over mandatory $100-mn investment in first 3 years
NEW DELHI: Less than two weeks after the government's decision to allow foreign supermarkets into India was greeted with loud acclaim by retailers, euphoria is being tempered by reality. Foreign retailers have discovered holes in the recently announced foreign policy for multi-brand retail and expressed apprehensions about the government's move to make it mandatory for them to invest $100 million, with at least half the money being compulsorily spent on back-end infrastructure, in the first three year of operations. They want clarity on whether the norm requires them to spend additional money on supply chain and logistics even if they acquire front-end retail companies in India. They are also unhappy that expenditure on land costs and rentals will not be counted as investment in back-end infrastructure. A senior executive of a large European retailer, requesting anonymity, said it was time to assess the feasibility of the policy. "There is long way to go before we can implement it on the ground. A $100-million investment in three years from FDI approval is a tough ask," he said. He added that investing $100 million in three years did not look like a feasible proposition, especially as investments were restricted to only nine states.

Gold could fall back to $800/oz in ten years: Ric Deverell, Credit Suisse
Ric Deverell: If you are looking at the next couple of years, particularly given the constraints on supply and challenges in the Middle East, the market is likely to remain relatively tight. So I would expect Brent oil to remain a little bit above $100 for the next year or two. But, if you move further out, if you move sort of 2015 and certainly by 2020, what is striking about the price of oil at the moment is that in real terms we have never seen prices at this level for any sustained time. The current price of Brent oil is about 250% above the long-term average and that suggests to me as a macroeconomist that the price will come down. It is very difficult to identify exactly what will drive that, but high prices ultimately always kill high prices and already you are seeing a whole bunch of innovations in terms of the demand side where there are very big substitutions occurring. On the supply side, the kind of thing that is going on with shale gas in the United States at the moment is really interesting in terms of illustrating the kind of technological change that can occur any time and ultimately that will actually start brining the price of oil down. So in

the short term, it is going to remain very tight, but as you move 5 or 10 years out, it will actually come down a lot more than a lot of people think possible at the moment. Punita Kumar Sinha: You think shale sas discoveries will help the pricing of oil and gas? Is that something India should be counting on and will India benefit from that trend? Ric Deverell: It will. There are two elements to that question again. In terms of India specifically, the really big challenge India has at the moment is that India is not really passing through the real price of oil to consumers. So one of the big challenges as I understand for India is that there are big subsidies still in terms of petroleum products and that is having a really big impact on the budget and perversely, that is one of the reasons that demand destruction is not occurring as quickly in India as in other areas and that is just because that people are not seeing the price of oil. But in terms of the global price of oil, shale is a real game changer. What has been interesting over the past couple of years is that this technological revolution has brought down the price of natural gas in the United States. That has already flowed through to the thermal coal market because the US has become a big exporter of the thermal coal as power stations have substituted into natural gas rather than thermal coal. My understanding is that whilst it will take some time, there is a lot of natural gas in China in particular and that will as we move forward 5 or 10 years become a big part of the global energy mix. That is part of the reason that I think oil prices will ultimately come down.

September 28, 2012.

Government signs Rs 7802.17 crore loan agreement with Japan

NEW DELHI: The government has signed a loan agreement of Rs 7,802.17 crore with Japan to fund four projects related to infrastructure and water. "Through this exchange of notes, Japan committed an amount of 132.645 billion yen for the second batch of FY2010-11 JICA ODA loan package to fund four projects," a government statement said today. Japan has committed loan of Rs 313.62 crore for campus development project of IIT, Hyderabad, Rs 3,572.73 crore for Tamil Nadu transmission system improvement project, Rs 2,211.52 crore for Rajasthan rural water supply and fluorosis mitigation project (Nagpur) and Rs 1,704.30 crore to fund Delhi water supply management project. With today's exchange of notes, the cumulative commitment of ODA from Japan has reached 3,587.302 billion yen, the statement said. The Japan International Cooperation Agency Official Development Assistance (JIMC ODA) carries out financial assistance to developing countries for socio-economic development.

General Motors' 3Q stock rise surprises industry

The company, which endured management upheaval during the quarter and announced that it would lose substantial cash in Europe, saw its shares rise almost 18 per cent from July through late September. The gain was the best since the first quarter of this year, when the stock climbed about 23 per cent. GM posted strong profits in that period.

GM stock has outperformed all other major automakers in the US including rival Ford Motor Co., which saw its shares rise only 5.5 per cent. Only Nissan Motor Co.'s US shares came anywhere close to GM's stock appreciation. They were up almost 11 per cent. General Motors Co.'s gains for the quarter surprised industry watchers, given publicity about management changes and the continued sales slump in Europe that has hit nearly every major automaker.

During the quarter, GM ousted its marketing chief and the head of European operations. It also lost several other key executives including its top electric-car engineer and head designer in Europe. Investors now realize that most of the departures signal that GM is making necessary changes. That's better than sweeping management problems under the rug like it did in the past, said Bill Selesky, an industry analyst for Argus Research. The changes, he said, have set GM apart from its peers this quarter. ``I think people are now looking at the company and saying they're more proactive,'' Selesky said. ``They're not the same company my father used to know.'' For the quarter, GM shares gained $3.48, rising from $19.70 on July 2 to close at $23.18 on Thursday. The stock pulled back a little in morning trading Friday, the last trading day of the quarter, falling 1.6 per cent to $22.81. Shares of Japanese rivals Toyota Motor Corp. and Honda Motor Co. each lost ground during the quarter, with Toyota down slightly and Honda off almost 8 per cent. GM made $2.5 billion through the first half of the year. But it's predicting lower profits in the second half as losses continue in Europe. Car sales are in their fifth-straight year of decline there, and GM has lost money in Europe for a dozen years. GM posted a $361 million pretax loss in the region in the second quarter. During the third quarter, it warned that it may have to reduce the value of its European operations.

T-Mobile USA inks $2.4 billion tower deal with Crown Castle
BERLIN: T-Mobile USA said on Friday it had signed a deal worth $2.4 billion with Crown Castle to rent its network of 6,400 wireless communications towers in the United States. "Subject to a one-off payment of $2.4 billion, Crown Castle will receive the sole right to use and lease out the wireless communications towers for approximately 28 years," the Deutsche Telekom subsidiary said in a statement. "Payment will be made at the closing of the deal which is expected in the fourth quarter of 2012," the firm added. T-Mobile will continue to use the equipment and will pay Crown Castle an annual fee for this right. "We have found an intelligent way to strengthen T-Mobile USA among competitors and reduce the group's net debt at the same time," said Deutsche Telekom chief financial officer Timotheus Hoettges.

Investors appeared relatively unfazed by the news, with Deutsche Telekom stock down 0.82 percent in mid-afternoon trading at about the same level as the wider DAX stock market.

BlackBerry maker RIM reports quarterly loss of $235 mn but cash pile grows
TORONTO: Research In Motion Ltd reported a smaller-than-expected quarterly loss on Thursday and the struggling BlackBerry maker managed to increase its cash pile in the run-up to the launch of its make-or-break line of next generation devices. The Waterloo, Ontario-based company reported a net loss of $235 million or 45 cents a share, in its fiscal second quarter, ended September 1. That compared with a profit of $329 million, or 63 cents, in the same period a year earlier. Excluding one-time restructuring-related items, the loss came in at $142 million, or 27 cents a share, in the quarter just ended. Analysts, on average, had expected RIM to reported a loss of 46 cents a share, according to Reuters. RIM increased its cash to about $2.3 billion from $2.2 billion in the fiscal first quarter. Having sufficient cash on hand is seen as crucial to a successful launch of RIM's line of revamped smartphones that will run on its new BlackBerry 10, or BB10 operating system. The company has staked its future on BB10. A one-time smartphone pioneer, RIM's fortunes have faded as rivals such as Apple Inc and Samsung Electronics have taken market share form the BlackBerry with new slick devices like the iPhone 5 and Galaxy S III.

$ 349.5 billion external debt as of June 2012: RBI

MUMBAI: The country's external debt stood at $ 349.5 billion as of June 2012, up $ 3.9 billion or 1.1 per cent over March 2012, according to RBI data. "The increase in total external debt during the quarter was primarily on account of rise in nonresident external rupee denominated deposits, reflecting the impact of deregulation of interest rates in these deposits in December 2011. "There has been sizeable rise in short-term trade credit as well," RBI said.

The long-term debt at $ 269.1 billion and short-term debt at US 80.5 billion accounted for 77 per cent and 23 per cent, respectively, of the total external debt as of June 2012, the data showed. RBI said mutlilateral debt and external commercial borrowing (ECB) at the end of June 2012 was lower than that of the end of March 2012 on higher repayments during the quarter. The share of external commercial borrowings (ECB) continued to be the highest at 30 per cent of total external debt, followed by NRI deposits (17.4 per cent) and multilateral debt (14.2 per cent). Short-term debt accounted for 42.9 per cent of the total external debt. Of this, share of NRI deposits was 28.8 per cent. The share of short-term debt in total debt was 23 per cent, RBI said.

September 29, 2012.

FDI in retail: Why does PM Manmohan Singh 'turn active' only in US interest, says Narendra Modi
SURAJKUND: Gujarat chief minister Narendra Modi on Friday unleashed a scathing offensive on Prime Minister Manmohan Singh and Congress president Sonia Gandhi over corruption and FDI in multi-brand retail. His diatribe came within hours of BJP patriarch LK Advani asking the party to look within and ensure an "unblemished" and "united" image to be a credible alternative to the UPA government, which he said was unlikely to last till 2014. While Advani adopted the role of a mentor making the closing remarks at BJP's national council meet, advising the party to set its house in order to cash in on the "public anger" against corruption, Modi took centrestage as the party's show-stopper to take on UPA at a public rally winding up the conclave. "The country wants to know why in eight years you have become Singham twice - once when there was the nuclear treaty with US, and the second time on the FDI issue... Why not become Singham for India," Modi said alleging that in both instances it was done to benefit foreigners. He said that both times, the US was in election year and asked if there was a connection between the two. Taking on the government on FDI in multi-brand retail, he said US President Barack Obama had tweeted that Americans should buy from small shopkeepers. "I wonder why our prime minister could not see the position President Obama took," he said and demanded an answer from Singh on whether FDI in retail had anything to do with Sonia Gandhi's visit to the US as it was announced soon after her return from there. Referring to coal block allocations, Modi said it seemed like the Congress president had a role in all "scams" and that the prime minister was answerable for this to the country. Flaunting Gujarat's progress in dairy farming, he said "even in the prime minister's house, the milk comes from Gujarata In Gujarat, even cattle are operated for cataract; such facilities are not there for human beings in some other states."

BSNL and WishTel to launch tablet PC IRA ICON targeted at youth, professionals

AHMEDABAD: Mumbai-based electronic goods manufacturer WishTel and government owned BSNL will launch a tablet PC IRA ICON featuring 3G, Wi-Fi and bluetooth connectivity on October 1, celebrated as BSNL Day, said a Wishtel statement. The device is capable of delivering voice, video and data services using 3G and Voice Over Internet Protocol ( VoIP) services. The Triple Play 7 inch Tablet PC, IRA ICON is a 800X480 pixel full angle TFT LCD capacitive multi-touch screen that runs on Android 4.0 with 1.2 GHz processor and a nonstandard 1GB of RAM. It is powered by built in 3G Sim Bharat Sanchar Nigam Limited (BSNL). The IRA ICON supports calling features 3G, Wi-Fi and bluetooth connectivity and also comes with built-in stereo speakers and a microphone. The IRA Icon is slim and weighs less than half a kilo. It has a 0.3 MP front web camera and 2.0MP rear-facing documentation camera to support image capture, video conferencing and collaboration. It comes pre-loaded with applications that include Wish Learning, Wish Studio, Wish TV, Wish News, Wish video calling, among others. The tablet comes engineered with a 4000 mAh battery, which can give users browsing time of approximately 4-5 hours. The tablet PC has an internal storage of 4GB (expandable to 32GB - MicroSD (TF)). The IRA ICON Triple Play Tablet PC will be available from early next month and is likely to be made available at a highly competitive price of Rs 10,500. IRA Icon is available through a national network of value-added resellers and distributors of BSNL and WishTel.

Google can't patent injunction against Microsoft in Germany: US court ruling

SAN FRANCISCO: A US appeals court on Friday ruled that Google Inc's Motorola Mobility unit cannot enforce a patent injunction that it obtained against Microsoft Corp in Germany, diminishing Google's leverage in the ongoing smartphone patent wars. The injunction would have barred Microsoft from "offering, marketing, using or importing or possessing" in Germany some products including the Xbox 360 and certain Windows software. The ruling against the German injunction came from the 9th US Circuit Court of Appeals in San Francisco. Microsoft deputy general counsel David Howard said the company was pleased with the ruling. A representative for Google's Motorola unit declined to comment. Brian Love, a professor at Santa Clara Law school in Silicon Valley, said the decision helps Microsoft counteract a favorable dynamic for Google in Germany. "To some extent Germany has a reputation as place you can go and get an injunction relatively easy," Love said.

The current Xbox 360 is the market-leading console in the United States. Microsoft is expected to unveil its next generation Xbox video game console in 2013. Microsoft has said that Motorola's patents are standard, essential parts of its software and that Motorola is asking far too much in royalties for their use. Google closed on its $12.5 billion Motorola Mobility acquisition this year. Microsoft sued Motorola in the United States in 2010, and Motorola then filed a lawsuit in Germany. Earlier this year, Microsoft announced plans to move its European distribution center to the Netherlands from Germany ahead of a possible injunction.

HDFC Bank joins hands with PUNGRAIN

CHANDIGARH: HDFC bank today joined hands with Punjab Grains Procurement Corporation Ltd (PUNGRAIN) to facilitate payment to its commission agents spread over 350 mandis in Punjab. PUNGRAIN, in its initiative has decided to make payment to their commission agents through 'RuPay Debit card' and has developed the Kisan Arhtia (commission agents) information and Remittance Online Network (KAIRON) with the help of National Payment Corporation of India (NPCI). For this project, HDFC Bank will install its Point of sales (POS) machines in over 350 mandis to facilitate the payment to commission agents dealing in agriculture products, a release said here today. It said this initiative will facilitate faster payments to them and in turn will benefit farmers. HDFC Bank, in order to facilitate a successful implementation of this project, organised a day's training session for nodal officers along with food inspectors of PUNGRAIN.

India's FDI in retail saga: From Wal-Mart to Agarwal-Mart?

WASHINGTON: "I actually did vote for the $ 87 billion (war funding) before I voted against it," was a line that destroyed John Kerry's Presidential campaign in 2004. He could never live down the flip-flopper reputation after opponents simplified his statement to "I was for the Iraq War before I was against it." Subtle nuances and elegant explanations, not to speak of a possible change of heart after things went south, were lost in the verbal melee in an atmosphere where you were either "for it or against it." Something similar is happening in the debate in India about foreign direct investment in the retail sector, in which the American superstore Wal-Mart has become the figurehead. You are either

for FDI or against FDI; Wal-Mart is all good or pure evil. Look, look...says one distinguished opposition leader now in his twilight years, even Americans (or New Yorkers) are against it. Of course, some Americans are against Wal-Mart; many are for it. Many Americans are also prooutsourcing. And anti-globalisation. And pro-China. And anti-China. It's never black and white. In fact, as the popular Facebook-era metaphor goes: It's complicated. As someone who divides his time between U.S and India, here's my $ 0.02, or Rs 1.06 at the current exchange rate, about the FDI/WalMart debate: I am against Wal-Mart in America, and for Wal-Mart in India. How's that for a $ 2.00 Made-in-India flip-flop or "double standard" as a colleague put it? I am also mostly vegetarian in the US, but have no problems eating non-vegetarian in India. And there's a connection between the two.

September 30, 2012.

Kingfisher crisis may force Vijay Mallya to sell part of United Spirits to Diageo
MUMBAI: Almost three decades ago, Vijay Mallya and the late Manu Chhabria jointly bid for a liquor company, Shaw Wallace & Company (SWC). After winning it, the two fell out, with Chhabria taking full control of SWC. Then, in 2005, a year after a Hong Kong court ruled that Mallya was a partner in the SWC bid, the UB Group chairman got a chance for retribution. Vidya Chhabria, widow of Manu Chhabria, had put SWC on the block. Mallya made her an offer she couldn't refuse - $300 million (roughly 1,300 crore at the time) for a 54.54% stake in the liquor & beer maker that owned some 60 brands, and 15 distilleries all over the country. In a single stroke, Mallya had achieved plenty: With SWC in the bag, not only had he settled a 20-year-old score in style by buying out an arch rival, he would also now control 60% of the Indian liquor business and become the world's second-largest spirits maker, after Diageo. One of the first things Mallya did after inking the deal was to call his mother in London. "What is destined will happen," she said. Narrating this short conversation to journalists who waited hours to hear him first-hand at an airport hotel in Mumbai, Mallya abruptly ended the conference that had started minutes ago. He was tired, he explained, as he had to catch up on sleep after three days of uninterrupted negotiations.

FDI in retail: Why 30% local rule is 100% trouble for MNCs
A government has finally let in foreign retailers, but major players are still worried about their prospects. In conversations with the India representatives of global retail powerhouses, it is easy to detect a sense of indifference, if not despair. But shouldn't these people be over the moon? The government has after all granted their wish and a long-pending one at that. Companies such as Wal-Mart Stores Inc, the world's biggest retailer, have long been lobbying to enter India.

Yet, it is obvious why retailers are not ecstatic. The government's welcome mat to multinational supermarkets is riddled with riders. Under the new rules, foreign multi-brand retailers must invest at least $100 million and half that amount must be ploughed into back-end infrastructure in rural areas. That's not all. State governments will decide if they want foreign players and stores will be permitted only in cities of at least 1 million people. Retailers must also source 30% of the value of goods purchased from small- and mid-sized domestic suppliers. Investments should not worry these deep-pocketed companies. Neither would a sluggish start. "I think it is a matter a time before states realise the commercial advantages and allow these companies," says Shushmul Maheshwari, CEO of research agency RNCOS. So the rub may well be the 30% sourcing diktat. Though it is not unusual of multinationals to rub shoulders with small players, they fear that procurement condition poses many difficulties.

Gold to ease to Rs 30,500 level on gaining rupee: Analysts

MUMBAI: Gold prices are likely to ease to Rs 30,500 per 10 grams in the near term due to strengthening of rupee following government's recent measures like fuel hike, experts said. "Due to rupee strengthening, there is some weakness in the gold prices in the domestic market. If the currency continues to gain, gold may soften to Rs 30,500 level in short term," Commtrendz Research Director Gnanasekar Thiagarajan said. Rupee started gaining mainly on account of several government measures like the hike in fuel prices and announcement of FDI in multi-brand retail and aviation, he explained. However, in the international markets, the sentiment for gold prices is bullish for short term and the precious metal may reach $1,900 an ounce level by December, he said. "Rising inflationary scenario and many central banks, like in Turkey, South Korea and Russia, buying the yellow metal will further boost the demand and help in rising of the prices. Gold may reach USD 1,900 level by December," Thiagarajan said. Currently, gold is at Rs 31,200 per 10 grams in the domestic market, while in the international market, it is at $1,770 an ounce (28.34 grams). Echoing a similar view, Kotak Commodity Services analyst Madhavi Mehta said US federal bank announcing quantitative easing (QE3) that involves monthly purchases of an additional $40 billion worth of mortgage-backed securities with the aim of reducing unemployment will help gold.

This is an attempt to put more liquidity in the market, which will put pressure on the US green back and, hence, help gold in gaining strength.

FIIs infuse over Rs 19,000 crore in September

NEW DELHI: Overseas investors pumped in more than Rs 19,000 crore ($3.5 billion) in the Indian stock market in September, the highest monthly inflow in seven months, on account of bold economic reform initiatives taken by the government. Thus, FII investment in the country's equity market has reached Rs 82,331 crore ($15.85 billion) so far this year, and Rs 25,140 crore ($5 billion) in the debt market during the same period. In September, Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs 66,752 crore, while they sold equities amounting to Rs 47,491 crore translating into a net inflow of Rs 19,261 crore ($3.56 billion), according to the data available with the market regulator Sebi. This was the highest net investment by FIIs in stocks since February, when they had infused Rs 25,212 crore. Besides, FIIs had infused Rs 10,804 crore in August and Rs 10,273 crore in July. Market experts said the month of September has seen extraordinary amount of FII flows on several tough economic decisions including opening up FDI in retail and aviation sectors, capping up of cooking gas subsidy and hike diesel prices, taken by the government. "FII inflows was driven by policy reforms announced by the government and I think they will continue to invest in the domestic equity market in next six to eight months as well on further reforms in sectors like insurance and pharma," Wellindia Vice President Research Vivek Negi said. Another market analyst, Destimoney Securities MD and CEO Sudip Bandhopadhyay said,"The overall sentiment with regards to growth has enhanced the FII flows. Besides, foreign investors have also got support from easing of monetary policy by the US Federal Reserve."

BJP will never accept FDI in retail: Venkaiah Naidu

BANGALORE: Stressing that BJP will continue to oppose the decision taken by UPA government as part of economic reforms, BJP leader Venkaiah Naidu today said the party would never accept FDI in multi-brand retail and fight against the reforms undertaken by UPA government. Talking to reporters on the sidelines of a party function here, he said FDI in retail would "kill" the Indian trade.

Naidu said once the multinational retailers are allowed, millions of small traders will be put of business. These retailers will then monopolise the trade and dictate the price of commodities used by common man, hence FDI in retail is against the interests of farmers and also consumers, he said. He alleged that country leadership had "vested interest" behind the decision on FDI in retail. "While the US government wants to impose it, our government is welcoming it with open arms," he alleged. Taking a swipe at Congress for "opposing" FDI while in opposition and proposing it while in power, Naidu said "I have already released a document when Manmohan Singh as the leader of opposition in Rajya Sabha opposed FDI in retail during NDA rule." He also came down heavily against the UPA allies like SP, BSP and DMK and accused them of "double standards." "We don't know how long UPA will survive as it is on ventilator. Anything may happen to this government any time. UPA allies are opposing Congress in their states and supporting at Delhi", Naidu said. He said BJP will be strengthening the NDA with the possibility of early elections.