April 2015

Management Times

Indias Outstanding Management Journal

Try this planting method for better yield in coconut

Reasons such as the
decreasing yields, lack of
commercial returns and
problems like eriophid mite
and black headed caterpillar
menace are forcing coconut
farmers to grow other crops in
place of the trees.
In the last five years in
Davangere district in
Karnataka alone, nearly 2,000
hectares of coconut area have
been converted to cultivation
of other crops.
Not only for coconuts but
also for any other crop the
ability to maximise the yield
is important for a farmer and
Mr. Renukarya has been able
to prove that by changing the
planting method, yield can be
increased in coconut, says
D r. T. N . D e v a r a j a ,
Programme Coordinator,
Taralabalu KVK,

CONTENTS
1

Try this planting method for better

yield in coconut
2

Editor Writes
3

Rupee drops 6 paise against dollar

in early trade
4

Rupee gains 7 paise against dollar

in early trade
5

FabFurnish launches specialized

logistics service
6

Globe Trot
11

New - Now
&

Merry, Merrier
Management Times

Davanagere.
Change the method
Mr. M.K. Renukarya from U.
Kallahalli village in Davangere
district, who worked as farm
manager in University of
Agricultural Sciences (UAS),
Bengaluru, for three decades,
wanted to use his experience to
change this situation. He started
in his own land which is drought
prone and unfertile, to
demonstrate cropping pattern in
dryland horticulture.
In order to increase the number
of coconut palms per unit area
and to get maximum income,
Mr. Renukarya adopted a new
system of planting called
pentagonal and paired system of
planting which is his own
innovation.
C o n v e n t i o n a l l y, c o c o n u t
seedlings are planted in straight
lines in fields. Further, if they are
to be planted on field borders
single seedlings are planted at
closer or wider distances.
Pentagonal planting
In pentagonal type of planting,
seedlings are placed in such a
way that one plant is planted in
centre and four plants at a
distance of eight feet in all four
directions. A pit for planting is
dug and inputs like water,
manure etc are placed into it
along with the seedlings.
Organic wastes are also dumped
into the pits which act as
vermicomposting sites. The
whole area is covered with fallen
coconut fronds and other organic
waste.

In paired system, the interspace between the seedlings is

reduced to six feet. Two plants
are planted in a three cubic
metre pit filled with coconut
husk, compost, red earth tank
silt etc. The entire pit is
covered with fallen coconut
fronds and other available
organic waste of farm. In
between the coconut seedlings
arecanuts are also planted.
Along with this, fodder grass
and legumes are also planted
on the field bunds for fodder
for cattle.
Two trenches are dug about
eight feet away from the pit
which act as catchment for
rainwater.
More trees
Paired and pentagonal
planting of coconut
accommodates more number
of coconut palms. In normal
system 56 seedlings are
required for an acre. In this
system 70 seedlings may be
required. Though initial cost of
planting using labour might be
a bit more, by this method each
tree has been found to yield an
average of 80 nuts a year.
This is significantly high
because in the conventional
planting trees in the region
yield anywhere between 55- 65
nuts a year depending on the
region, says Mr. Renukarya.

EDITOR WRITES
Management
Fiscal policy deals with the taxation and expenditure decisions of the
government. Monetary policy, deals with the supply of money in the
economy and the rate of interest. These are the main policy approaches
Times
used by economic managers to steer the broad aspects of the economy.
Chief Editor
In most modern economies, the government deals with fiscal policy
B.Indusekhar, MBA while the central bank is responsible for monetary policy. Fiscal policy
is composed of several parts. These include, tax policy, expenditure
Managing Editor
policy,
investment or disinvestment strategies and debt or surplus
Dr. Pradeep Kumar,
management.
Fiscal policy is an important constituent of the overall
Ph.D
economic framework of a country and is therefore intimately linked
Administrative Office: with its general economic policy strategy. Fiscal policy also feeds into
Management Times
economic trends and influences monetary policy. When the government
receives
more than it spends, it has a surplus. If the government spends
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more than it receives it runs a deficit. To meet the additional
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expenditures,
it needs to borrow from domestic or foreign sources, draw
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upon its foreign exchange reserves or print an equivalent amount of
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money. This tends to influence other economic variables. On a broad
generalisation, excessive printing of money leads to inflation. If the
Printed and published by government borrows too much from abroad it leads to a debt crisis. If it
B.Indusekhar on behalf of
Management Times at MT draws down on its foreign exchange reserves, a balance of payments
Press, No.5, First Main Road, crisis may arise. Excessive domestic borrowing by the government may
K a m a r a j N a g a r W e s t , lead to higher real interest rates and the domestic private sector being
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unable to access funds resulting in the crowding out? of private
investment. Sometimes a combination of these can occur. In any case,
the impact of a large deficit on long run growth and economic wellbeing is negative.

B. Indusekhar, Editor.

Rupee down 25 paise against dollar in early trade

The rupee weakened further by 25 paise to trade at a fresh two-month low of Rs. 62.80 against the
U.S. dollar in early trade at the Interbank Foreign Exchange due to rise in the greenbacks value
against other currencies overseas.
Dealers attributed the fall in rupee to dollars gains against other currencies overseas and a lower
opening in the domestic equity market. Besides, increased demand for the American currency
from importers too weighed on the rupee, they stated. The Indian rupee had lost 39 paise to close
at a two-month low of 62.55 against the American currency after better-than-expected jobs data
spurred expectations of an early hike in U.S. interest rates. Meanwhile, the benchmark BSE
Sensex fell by 34.84 points, or 0.12 per cent, to 28,809.94 in early trade.

Flipkart launches 'Home' category

E-commerce marketplace, Flipkart, announced the launch of its 'Home' category .
With over 5 lakh products and over 1,000 brands, Flipkart's 'Home' category will offer a wide
range of products under furnishing, dcor, lighting, household items and DIY tools to customers.
This category will also offer a range of national and international brands. A press release by the
company stated that the online marketplace will provide a platform for artisans and entrepreneurs
in the home space to reach out to a wider audience with a range of new-age, contemporary and
ethnic products. Commenting on this, Ankit Nagori, SVP- Marketplace, Flipkart, stated, We
intend to be the ultimate destination for home product shoppers, offering buyers a unique
shopping experience, enabling them to browse, compare, review and make purchases
effortlessly. Ankit further added, We will be introducing additional products in this category
very soon which will enable us to further expand our offerings to our customer base. Launched in
October 2007, Flipkart an e-commerce marketplace offering over 20 million products across its
various categories.
2

Rupee drops 6 paise against dollar in early trade

The rupee fell by six paise to a fresh two-month low of 62.82 against the U.S. dollar in early trade
on Wednesday at the Interbank Foreign Exchange due to rise in the Greenbacks value against
other global currencies.
Forex dealers attributed the fall in the rupee to the dollars strength against other global
currencies and sustained capital outflows but a higher opening in the domestic stock market
capped the rupees fall.
The rupee had lost 21 paise to end at two-month low of 62.76 against the dollar in trade on
sustained dollar demand from importers amid rate hike concerns by the U.S. Federal Reserve.
Meanwhile, the benchmark BSE Sensex recovered by 82.15 points, or 0.29 per cent to 28,792.02
in early trade.

Sensex down 102 points in late morning trade

A sudden bout of selling washed out the benchmark BSE Sensexs initial gains and the index fell
by 102 points in late morning trade despite firm Asian cues and fresh capital inflows.
The 30-share index resumed higher at 29,134.93 and touched a high of 29,183.76, showing a rise
of 253.35 points, or 0.86 per cent, on the back of passage of Insurance Bill in Parliament
Later, it succumbed to heavy selling to hit a low of 28,809.07. The NSE Nifty also fell by 38.20
points, or 0.44 per cent, to quote at 8,737.80.
Major losers were Axis Bank, Hindalco, Sun Pharma, BHEL, Bajaj Auto, Larsen, GAIL and Tata
Steel. Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs. 733.09 crore
on Thursday, as per provisional data released by the stock exchanges.
Key indices in China, Hong Kong, Taiwan, South Korea and Japan rose by 0.25-1.44 per cent,
while indices in Singapore and Indonesia fell by 0.09-0.27 per cent.
At the New York market, U.S. stocks recorded one of the biggest gains in more than a month,
bouncing back from two days of losses, as expectations of a rate hike were pushed back following
disappointing retail sales data.

Indias GDP growth will be 7.5 per cent this year: Jaitley
Noting that India is emerging as one of the fastest growing economies, Finance Minister Arun
Jaitley has stated that this year the GDP growth rate will be 7.5 per cent and next year hopefully it
would be higher.
Launching the Union Bank of India (UK), a subsidiary of the Union Bank of India, Jaitley last
night stated that since the new government came to power the economy has regained.
During the last few years we had fallen off the radar, our growth had slowed down, our priorities
were blurred and the world was accusing us of policy paralysis. Finally people of India decided to
bring about a change, he stated.
Without naming UPA, he stated, The I (India) was falling off the BRIC. But today most of others
are facing challenge while India is emerging as one of the fastest growth nations. This year we will
close at 7.5 per cent GDP growth and next year hopefully higher.
Fiscal deficits are on the downside. There is a flurry of activities, we are correcting aberrations in
taxation structure, we are concentrating on infrastructure and trying to brings about fairness in our
system. The success of the auction of Spectrum and Coal mines has shown how corruption could
be avoided and bring higher values. We seem to be favourably placed.
At the same time, he noted that elimination of poverty is a major challenge and government is
working hard to tackle this great challenge.
Arun Tiwari, Global Chairman and Managing Direction of Union Bank of India, earlier told
newsmen that the UK subsidiary has planned to have USD 150 million turnover in the first year
and nearly USD 1 billion annual turnover in the next four to five years.
3
He stated the bank would launch its debit card in six to nine months time.
Management Times

Rupee gains 7 paise against dollar in early trade

The rupee appreciated by seven paise to 62.43 against the U.S. dollar in early trade at the
Interbank Foreign Exchange on fresh selling of the American currency by exporters and banks.
Besides, a higher opening in domestic stock market and passage of the Insurance Bill in
Parliament supported the rupee, forex dealers stated.
The rupee had gained 28 paise to close at 62.50 against the Greenback trade, in line with smart
recovery in local equities and fresh dollar selling by exporters. Meanwhile, the benchmark BSE
Sensex regained the 29,000-mark by surging 253.35 points, or 0.87 per cent, to 29,183.76 in early
trade.

HDFC Bank launches new mobile Alibaba-Snapdeal talks fall apart on

valuation
app
Private sector lender HDFC bank launched a
mobile application which allows its
customers to instantly transfer money to any
contact in their phone book. The transaction
can be done 24 hours a day with a maximum
transaction limit of Rs. 5,000 or ten
transactions a day and Rs. 50,000 a month.
The bank has partnered with Kochi-based
mobile value added services company
MobME who has developed the new app
called for the service. The transaction can be
done between registered HDFC customers
who have downloaded the app on their phone.
As part of our digital strategy we want
provide convenience for our customers. The
new app will help our customers including
students, young professionals and customers
in rural India. The Chillr app gives the
convenience of sending and receiving money
using mobile phone in a secured manner,
said Nitin Chugh, Head, Digital Banking,
HDFC Bank.
Chillr is a first-of-its kind application that is
linked directly to customers bank accounts.
With Chillr, the banks customers can transfer
money to any person in India once they
download the app and register.
The application is save and we don't save
passwords or and can be accessed only with
an M-PIN known to the customer alone. They
can send and request money directly using
their mobile phone, stated Sony Joy, Cofounder of MobME & CEO at Chillr.
The company also said it is in touch with other
banks to launch the application. HDFC Bank
customers can download the app from iStore
or from Play.

Management Times

The much-touted proposal of Chinese giant

Alibabas stake purchase in Indian e-commerce
firm Snapdeal may have fallen off due to high
valuations being sought by the homegrown online
marketplace.
The deal, which was being pegged at about $500700 million, has hit a roadblock due to a high
valuation demanded by Snapdeal, sources said.
Both the companies declined to comment on the
matter, but sources said that Alibaba was valuing
the Indian firm in the range of $4-5 billion as
against a valuation between $6-7 billion sought by
Snapdeal.
The stake purchase in Snapdeal would have given
Jack Ma-led Alibaba a stronger footing in the
Indian market, which has one of the largest
Internet populations globally.
Alibabas talks with Snapdeal for acquiring a
stake in the firm have broken down, a person in
know of the developments said. Alibaba has been
expanding its presence in India, including through
acquisitions.
Last month, Ant Financial Services part of the
Alibaba Group said it will acquire 25 per cent
stake in One97 Communications, the parent of
mobile commerce firm Paytm.
A U.S.-based investment banker stated while
private equity and venture firms are hugely
interested in investing in e-commerce in India,
they are adopting a cautious approach as they feel
valuations are being pumped up to exorbitant
levels. While acquiring stake in Snapdeal would
have been a good deal for Alibaba, the high
valuation could have forced it to back off, said the
banker, who did not wish to be named. PE firms and
angel investors are aggressively funding start ups
and Internet-led businesses in India, targeting
4
higher returns in the years to come.

FabFurnish launches specialized logistics service

Online furniture market place FabFurnish.com, stated it has launched its own specialized
logistics service called Fabone. The company believes this will help it in quicker delivery of
orders, cost optimization and package tracking.
Customers can avail of free, expert assembly, open delivery, on-the-spot product demos and
efficient and accurate package tracking. The service also ensures that there is no chance of
mishandling or damage of the delivered goods as the process is carried out by the well-trained
staff of FabFurnish itself, the company stated in a release.
At present, the service is available in cities like Delhi, Gurgaon, Noida, Faridabad, Mumbai, Pune
and Bangalore. The company is planning to expand the logistics service to 25 more cities in the
next 6-9 months.
We cover 40-45 per cent of our sales through our own logistics services. Going forward, we aim
to scale this figure to 80 per cent by the end of this year. Also, we will continue to work with our
existing logistics partners as our ultimate goal is to offer services pan India, which is only possible
with a wide delivery network, stated Vikram Chopra, CEO and Founder, Fabfurnish.com.

Adlabs Entertainment IPO gets Sensex drops 101 points in late morning
trade
60% subscription
The initial share sale of theme park
operator Adlabs Entertainment got
subscribed 60 per cent a day ahead of the
issue closure.
The issue for sale of 1,76,04,092 shares,
received bids for 1,06,31,725 shares, or 60
per cent till 1700 hrs, as per data available
with the National Stock Exchange on
Monday.
On Thursday, the IPOs price was lowered
to Rs 180-215 from Rs 221-230 per share
while the closure date was extended to
March 17, amid tepid response from
institutional investors.
The quota for qualified institutional
investors received 53 per cent subscription,
while that for non-institutional investors
got subscribed 36 per cent.
Retail investors category was subscribed
1.11 times.
Including the anchor investor portion, the
sale is up to 20,326,227 equity shares. This
includes a fresh issue of 18,326,227 equity
shares and an offer for sale of 20 lakh
shares by promoter entity Thrill Park
Limited.
Adlabs Entertainment is promoted by
Manmohan Shetty and Thrill Park.
Deutsche Equities India Private Limited,
Centrum Capital Ltd and Kotak Mahindra
Capital Company Ltd. are the book running
lead manager to the issue.
Management Times

The benchmark BSE Sensex washed out initial

gains by slipping 101 points in late morning trade
on Wednesday on fresh selling pressure in power,
auto and IT sector stocks amidst mixed Asian cues.
A bout of volatility was witnessed in early trade as
key benchmark indices turned red after opening
higher.
The Sensex resumed higher at 28,766.87 and
firmed up further to 28,806.97 on initial strong
buying on the back of fresh foreign capital inflows.
However, it failed to maintain initial gains and
dropped to 28,599.88 before quoting at 28,635.15
at 11 a.m., showing a loss of 101.23 points, or 0.35
per cent, from its last close.
The CNX 50-share Nifty also dropped by 27.95
points, or 0.32 per cent, to 8,695.35 at 11 a.m.
Major losers were NTPC (2.25 per cent), ONGC
(1.66 per cent), HDFC (1.34 per cent), HUL (1.29
per cent), BHEL (1.21 per cent) and M&M (1.12
per cent).
Foreign portfolio investors (FPIs) bought shares
worth a net Rs. 265.52 crore
, according to provisional data released by the
stock exchanges. The U.S. market closed on a
mixed note as investors await the end of a two-day
Federal Reserve meeting that could offer hints as to
the timing of an increase in interest rates.
Key benchmark indices in China, Hong Kong,
South Korea and Taiwan were up by 0.17-1.08 per
cent while indices in Japan and Singapore were off
by 0.08-0.24 per cent.
5

Globe Trot

Govt working to wrest Khadi trademark from German firm

Government is working in tandem with the Khadi and Village Industries Commission (KVIC) to
expedite the process of de-registering Khadi trademark in the European Union by a German
company, Parliament was informed.
KVIC has also initiated the process to register Khadi trademark in India and internationally.
The German company, named Khadi Natureprodukte GbR, has registered Khadi as a trademark
with the European agency, OHIM (Office for Harmonisation in the Internal Market).
Spain-based OHIM is the nodal agency for Trademarks and Design Registration in the European
Union. Indian Embassies abroad have been in touch with the authorities of European Union for
cancellation of the registration of Khadi as a trademark, Micro Small and Medium Enterprises
Minister of State Giriraj Singh informed the Lok Sabha in a written reply.
The government, KVIC and the Indian Embassies are working in tandem to expedite the process
of de-registering the trademark of Khadi, he added.
Singh said the process to register for international trademarks for Khadi is being done in two
stages first at national level and second at international level.
He added that KVIC has filed an application to register Khadi as a word mark under IPR
Authority in Mumbai. This mark has been filed for 27 classes under IPR Act covering various
products relevant to KVIC comprising of Khadi fabrics and village industries, Singh stated.
Online registration for Khadi as a Word mark has already been done and application for
International IPR under Madrid Protocol has been filed for the US, European Union and Russia
and China, he added. KVIC is a statutory body engaged in promoting and developing khadi and
village industries.

Budget shows commitment to keep There is room for further cuts: MoS
fiscal deficit low: S&P
Jayant Sinha
India's budget for 2015/16 highlighted the
government's commitment to keeping the fiscal
deficit low, ratings agency Standard and Poor's
stated, adding that the country's debt burden and
subsidy bill could constrain its ratings.
"India's 2015-2016 budget highlights the
government's commitment to keeping the fiscal
deficit low despite lower-than-expected
revenue growth," S&P stated in a statement .
"This commitment moderates the drag on
sovereign credit support posed by the relatively
heavy general government debt burden in
India," it added. "Nevertheless, the debt burden
and large budgetary subsidies could constrain
the speed of improvements in India's credit
metrics."
Finance Minister Arun Jaitley on Saturday
announced a budget that put boosting growth
before painful reforms, slowing the pace of
fiscal deficit cuts and seeking to put domestic
and foreign capital to work. S&P currently rates
India at "BBB-minus", its lowest investment
grade rating, with a "Stable" outlook.
Management Times

Expecting a near-term boost to economy from

RBIs rate cut, Minister of State for Finance
Jayant Sinha today said the decision should
bring down the loan EMIs significantly and
there is room for further easing of rates.
Soon after RBIs decision to lower rates by 0.25
per cent, Mr. Sinha said that the rate cut was a
vote of confidence for the Union Budget
presented last week.
The rate cut would give a boost to economy in
the near terms and EMIs will come down
significantly, the Minister said.
What is going to happen to rate cycle moving
forward is going to be driven by data and RBI
has signalled this clearly, he said, while
adding that further room for easing rates
remains.
He said that inflationary expectations have
collapsed and a global trend of deflation was
prevalent. We have said in Parliament that we
are pursuing a very prudent fiscal consolidation
road map. Our aim is to move growth onto a
sustainable, non-inflationary path...
6

Infosys BPO opens centre in Puerto Rico

Infosys BPO has stated it has set up a new, 250-seat bilingual centre in Puerto Rico to cater to
clients worldwide in the aviation sector. It will provide service in English and Spanish.
The 12,000-sq ft site is in Aguadilla town, an aviation hub, and has a workforce of mainly local
engineers and US citizens with skills in aerospace and aviation industries.
Anup Uppadhayay, CEO and Managing Director of Infosys BPO, statedThe new centre in
Aguadilla is a promising regional hub for Infosys BPO. We envision it as a centre of excellence
for the aviation and aerospace industry.
The new centre would initially deliver complex order-to-cash business processes for clients in
the aviation sector. It would later expand the service in the region for customers in the government
sector and the healthcare industry.
Puerto Rico Industrial Development Company Executive Director Antonio Medina Comas who
was present at the inauguration stated Infosys announced this plan only last year.

India open for investment; US ready Mirach to file $400 million defamation
to move in: USIBC chief
suit against Sahara
India is open for investment and the U.S.
companies are eager to move in, head of a
bilateral trade organisation has stated while
praising Prime Minister Narendra Modi for
embarking on a journey to change the business
environment in the country.
India is ready and open for investment and the
U.S. is eager to move in, stated Mukesh Aghi,
president of U.S. India Business Council
(USIBC), the apex trade and business
advocacy group for American businesses
having a foothold in India.
Mr. Aghi, who took the reins of USIBC this
month, stated the American companies were
particularly looking at the $1.5 trillion
investment opportunities in the infrastructure
sector.
The success of USIBC, which is celebrating its
40th year would be measured by increasing
bilateral trade to $500, he stated. The
challenge is there, but I look at it as an
opportunity, he stated.
The government of Prime Minister Modi has
embarked on a journey. Expectations are high.
When you try to turn a large ship, it takes time.
When you try to change the environment, it
does take some time. It is going to take
probably longer time, Mr. Aghi stated.
Welcoming Mr. Aghi as the new head of
USIBC, the Indian Embassy ChargAffaires
Taranjit Singh Sandhu stated the relationship
between India and the U.S. has never been as
strong as they are today.
Management Times

U.S.-based Mirach Capital stated it is initiating

a $400 million defamation lawsuit against the
Sahara group, while alleging that the failed
financing deal with the Indian conglomerate has
caused irreparable harm and shaken investor
confidence.
Accusing Mirach Capital of cheating and
forgery in the failed $2.05 billion loan
arrangement, Sahara had also said last month
that it has initiated legal action against the U.S.based firm.
The crisis-hit group had alleged that Mirach and
its CEO Saransh Sharmas criminal conduct and
lack of financial capabilities to honour such
huge commitments led to the breaking down of
the deal, leading to the loss of precious time,
resources and position of Sahara.
In a press release issued, Mirach has now
accused Sahara of hurling unfounded
allegations against it despite factual
evidence that completely dispels Saharas
trumped up allegations of forgery.
Stating that the Lucknow-based company and
its representatives continue to attempt to
discredit Mirach and its CEO Sharma in the
court of public opinion, Mirach stated it is
announcing a defamation lawsuit to the
amount of $400 million against the Sahara
Group, as well as a news organisation believed
to be a collaborator.
Mirach further accused Saharas representatives
of breaching an exclusivity contract with it
following public comments by its Indian-origin
7
CEO Mr.

E-commerce transactions on aggregator platforms turn costly

E-commerce transactions through websites and mobile apps based on aggregator model,
including for cab services and online shopping, may turn expensive as those providing such
services under their own brand are being brought under the service tax net.
The Finance Bill has proposed changes in the Service Tax rules with respect to certain etransactions involving aggregator model, which may impact online aggregator taxi services like
Uber and Ola Cabs. There are also many online retail websites that follow aggregator model.
Under this model, an entity does not produce or warehouses any product itself, but collects or
aggregates information on goods or services on one single platform from several sources.
The aggregator draws customers to its platform and allows them an easy comparison of prices and
specifications of product or service offered by several sellers. As per the Finance Bill 2015,
presented by Finance Minister Arun Jaitley in Parliament, In respect of any service provided
under aggregator model, the aggregator, or any of his representative office located in India, is
being made liable to pay Service Tax if the service is so provided using the brand name of the
aggregator in any manner.
If an aggregator does not have any presence, including that by way of a representative, in such a
case any agent appointed by the aggregator shall pay the tax on behalf of the aggregator.
In this regard, appropriate amendments have been made to the Service Tax Rules, 1994, it said,
while adding that the change has come into effect immediately, that is with effect.
As a result, such services will turn expensive once the aggregators decide to pass on the service
tax levy to the consumers. According to leading law firm Khaitan & Company, In respect of
certain ecommerce service transactions, the person liable to pay Service tax have now been
clearly specified.
For services offered under aggregator model, the aggregator, or its representative office in India
would be now made liable to pay Service tax if the service is provided by using the brand name of
the aggregator in any manner. If an aggregator does not have any presence, then its agent will
have to pay the tax, the law firm clarified.

Sensex gains 84 points; healthcare stocks surge

A benchmark index of Indian equities markets, the 30-scrip Sensitive Index (Sensex), was
trading 84.05 points or 0.29 percent up as healthcare stocks gained.
The wider 50scrip Nifty of the National Stock Exchange (NSE) was also trading at 22.45 points
or 0.25 percent up at 8,945.10 points. The Sensex of the S&P Bombay Stock Exchange (BSE),
which opened at 29,436.77 points, was trading at 29,464.78 points (at 9.25 a.m.) in the early
session, up 84.05 points or 0.29 percent from the previous days close at 29,380.73 points. The
Sensex touched a high of 29,485.99 points and a low of 29,386.67 points in the trade so far.
Good buying was observed in healthcare, fast moving consumer goods and consumer durables
sectors, while marginal selling pressure was seen in banking sector.

Motorola launches Moto Turbo for Rs. 41,999

Smartphone maker Motorola on Monday launched its flagship device Moto Turbo priced at
Rs. 41,999 with eCommerce firm Flipkart.
The US-based firm, which was acquired by Chinese tech major Lenovo from Google last year,
said the handset has top-of-the-line protection as it is designed with premium ballistic nylon.
Available for pre-order, Moto Turbo is designed with a water-repellent coating to protect from
the inside out. It has a 5.2-inch display, 2.7 GHz quad-core Qualcomm Snapdragon 805
processor, 21 MP rear camera, 3,900 mAh battery, 3GB RAM, 64GB of internal storage and is
powered by Androids latest Lollipop operating system.
8

Management Times

Vistara to have fleet size of 20 aircraft by 2018

Vistara, a joint venture between Tata Sons and Singapore Airlines, stated its fleet size will be
increased to 20 by 2018, from five at present.
Phee Teik Yeoh, Chief Executive Officer, Vistara (Tata SIA) Airlines Ltd also stated that the
aviation industry in India is facing challenges such as high fuel cost and a high tax regime.
By April, we will have 6 aircraft and gradually increase to 9 by the end of this calendar year.
Eventually, we will grow to 20 brand new A320 by 2018, Mr. Yeoh told reporters in a press
conference.
The airlines today launched its first flight from Hyderabad to New Delhi. Having started with its
operations on January 9, with 68 frequencies weekly, Vistara now operates 164 flights in a week.
According to Mr. Yeoh, all macro economic indicators are favourable to the growth of Indian
aviation industry which is expected to grow at 9-10 per cent in FY16.
Replying to a query on challenges that the Indian Aviation Industry is facing, Mr. Yeoh stated
government should work on addressing the issues such as high aviation turbine fuel coast which
is 40-60 per cent more expensive than other countries. He also said that government must remove
the 5/20 rule five years of flying experience, and a fleet size of 20 for allowing domestic
airlines to fly globally. High jet fuel cost makes the Indian carriers less competitive with the
other global airlines. In terms of taxes regime, for the aviation industry the government should
take action. 5/20 rule must be removed for the benefit of the nation and for the industry. It is not
for Vistara. Six other airlines are in queue to launch services in India Mr. Yeoh explained.
Justifying the launch of flights from Hyderabad, he stated it is due to the low sales tax on ATF
which formed one of the key considerations to expand the network from the capital of Telangana.

ATF, non-subsidised LPG price hiked

Jet fuel price was on Sunday hiked by a steep 8.2 per cent while the rates of non-subsidised LPG
was increased by Rs. 5 per cylinder on firming international oil rates.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs. 3,849.97 per
kilolitre, or 8.2 per cent, to Rs 50,363 per kl, oil companies announced .
The rate hike follows seven consecutive monthly cuts since August, the last being by 11.27 per
cent (Rs 5,909.9 per kl) from February 1.
Prior to Sundays increase, ATF price had been cut by Rs. 23,648.73 or 33 per cent in seven
reductions since August 2014. Even after todays hike, jet fuel rates are lowest since February
2011.
Jet fuel constitutes over 40 per cent of an airlines operating costs and the price increase will raise
the financial burden of cash-strapped carriers.
No immediate comment was available from airlines on the impact of the price hike on passenger
fares. Simultaneously, the oil firms also hiked the price of non-subsidised or market-priced
domestic cooking gas (LPG) by Rs 5 to Rs 610 per 14.2-kg cylinder in Delhi.
The increase comes on back of seven straight reductions in rates of non-subsidised or marketpriced LPG since August. The customers buy non-subsidised after exhausting their quota of 12
cylinders at subsidised rates.
A subsidised LPG refill currently costs Rs 417 in Delhi.
The price of non-subsidised LPG was last cut on February 1 by Rs 103.5 per 14.2-kg cylinder.
In the seven monthly reductions, non-domestic LPG rates had been slashed by Rs 317.50 per
cylinder, bringing the price to a three-year low.
State-owned fuel retailers, Indian Oil Corporation (IOC), Bharat Petroleum Corp (BPCL) and
Hindustan Petroleum Corp (HPCL) revise jet fuel and non-subsidised LPG prices on the first of
every month based on average imported cost and rupee-dollar exchange rate.
9

Asian stock market gets boost from U.S. rebound

A rally in United States stocks overnight gave Asian credit a boost that benefited Chinese property
bonds and Southeast Asian sovereigns.
Kaisa's 2017s and 2018s rose two points , leading an improvement in trading within the Chinese
high-yield property sector, which rose more than a point, according to a Hong Kong-based trader.
China Hongqiao Group's 2018s are down from 97.5 to 93.5, according to Tradeweb. The
company stated it would delay board meeting to March 27 because it needed more time to finalise
consolidated financial results for 2014, according to a Hong Kong stock exchange filing.
Sovereign bond spreads from the Philippines and Indonesia also came in 5bp.
Korea's and Thailand's CDS narrowed by 6bp, while Malaysia's CDS tightened by 7bp.
Petronas's bonds saw less selling pressure after pricing a USD5bn four-trancher. but the notes
have continued to drop.
The 2045s have dropped more than half a point, while the 2025s are down a third of a point,
according to data on Tradeweb.

PSU oil cos to invest Rs. 76,000 crore on project expansion

State-run oil firms including Oil and Natural Gas Corp (ONGC) will invest over Rs. 76,565 crore
on the project expansion during 2015-16, up 5 per cent over the previous fiscal.
ONGC, the nations most profitable company, will see its capital expenditure rise to Rs.
36,249.37 crore as compared with Rs. 34,813 crore in the current fiscal, according to the Budget
2015-16 document. Its overseas investment arm, ONGC Videsh Ltd, will invest another Rs.
10,402 crore in 2015-16. This, however, is lower than the investment of Rs. 12,387 crore in the
current fiscal. Oil India Ltd (OIL) has projected its capex rising by 11 per cent to Rs. 3,917.64
crore.
Refining and marketing companies will invest Rs. 20,256.02 crore with Indian Oil Corp (IOC)
leading the pack with 10.5 per cent increase in the capex at Rs. 9,407.80 crore. It will invest
another Rs. 1,000 crore in exploration and production as well as petrochemical business.
Hindustan Petroleum Corp Ltd (HPCL) will see a marginal decline in its capex of Rs. 1,636.64
crore in 2015-16 when compared with Rs. 1,763.56 crore in the previous year. Bharat Petroleum
Corp Ltd (BPCL) will see its refining capex go up by 11.6 per cent to Rs. 5,101.32 crore besides
another Rs. 1,400 crore being invested in E&P business.
Gas utility GAIL India Ltd will invest Rs. 2,704.51 crore as opposed to Rs. 2,131.52 crore capex
in 2014-15. The Budget for 2015-16 provides for Rs. 30,000 crore towards domestic cooking gas
(LPG) and kerosene subsidy. Of this Rs. 21,140 crore has been provided for transferring as direct
cash subsidy to cooking gas users under the Direct Benefit Transfer for LPG (DBTL).
Another Rs. 860 crore has been provided for subsidy payable to North Eastern Region and project
management expenditure. For kerosene, it provided Rs. 8,000 crore subsidy. The subsidy
provided compares with Rs. 57,085 crore in the revised estimate for 2014-15. This was provided
to state-owned oil companies to make up for losses incurred on fuel sales at governmentcontrolled rate. The revised estimate of Rs. 57,085 crore compares to Rs. 57,335.95 crore
provided in the Budget estimate of 2014-15. In 2013-14, Rs. 80,772 crore was provided for
subsidy compensation.

Rupee down 8 paise against dollar

The rupee lost 8 paise to Rs 61.91 against the dollar in early trade today on the Interbank Foreign
Exchange due to appreciation of the US currency overseas.
Sustained demand for the dollar from importers also weighed on the local currency but a higher
opening in the domestic equity market limited the rupees losses, forex dealers stated.
The rupee had slid 8 paise to end at 61.83 due to month-end dollar demand from importers and
some banks.
10

New-Now
Domestic car sales up 7% in February
With car sales in the country registering growth of nearly seven per cent last month, industry body
SIAM is hopeful of a single digit growth in domestic car sales during the current fiscal, after two
years of decline.
Improved consumer sentiments have helped in growth of passenger car sales. March is likely to
be better than last month as it is usually a month of good sales. Also, for the past two years, sales
growth in March was negative, Society of Indian Automobile Manufacturers (SIAM) Deputy
Director General Sugato Sen said. Car sales this fiscal are expected to see single digit growth, he
added.
According to data released by SIAM, domestic passenger car sales rose 6.85 per cent to 1,71,727
units in February this year against 1,60,717 units in the year-ago period.
In the April-February period this fiscal, car sales in the country stood at 17,00,006 units, a growth
of 5.24 per cent over 16,15,335 units in the same period last fiscal.
Asked about growth in sales despite roll back of excise duties benefits, Sen stated the overall
impact on EMIs paid by buyers has been very limited and hence the roll back has not impacted the
sales much. In February, motorcycles sales declined by 8.22 per cent, pulling the total twowheeler sales in the negative territory. While motorcycle sales declined to 7,74,122 units, scooter
sales rose 18.78 per cent to 3,70,527 units. Total two-wheeler sales stood at 12,08,084 units,
marginally lower from 12,20,141 units in the same period a year ago. Sen said poor harvest and
drying up of funds under MNREGA had impacted demand of motorcycles in rural areas.
He added that once demand picks up in rural areas more broad-based growth will be seen.
Presently, only five car makers are in the positive zone and about 11 others are seeing negative
sales, mainly because small cars are not selling in rural areas. Lack of buying in these areas is also
impacting motorcycle and LCV sales, he explained.

Merry, Merrier
The perfect son
A New York Divorce Lawyer died and arrived at the
A: I have the perfect son.
pearly gates. Saint Peter asks him "What have you done
B: Does he smoke?
to merit entrance into Heaven?" The Lawyer thought a
A: No, he doesn't
moment,
then said, "A week ago, I gave a quarter to a
B: Does he drink whiskey?
homeless person on the street." Saint Peter asked Gabriel
A: No, he doesn't
B: Does he ever come home late?
to check this out in the record, and after a moment Gabriel
A: No, he doesn't
affirmed that this was true.
B: I guess you really do have the perfect son. How old is
Saint Peter said, "Well, that's fine, but it's not really quite
he?
enough to get you into Heaven." The Lawyer said, "Wait
A: He will be six months old next Wednesday.
Wait! There's more! Three years ago I also gave a
Two little squirrels were walking along in the forest.
homeless
person a quarter." Saint Peter nodded to
The first one spied a nut and cried out, "Oh, look! A
nut!" The second squirrel jumped on it and said, "It's my Gabriel, who after a moment nodded back, affirming this,
too, had been verified.
nut!
The first squirrel said, "That's not fair! I saw it first!
Saint Peter then whispered to Gabriel, "Well, what do you
"Well, you may have seen it, but I have it," argued the suggest we do with this fellow?"
second.
At that point, a lawyer squirrel came up and said, "You Gabriel gave the Lawyer a sidelong glance, then said to
Saint Peter,
shouldn't quarrel.
Let me resolve this dispute." The two squirrels nodded, Let's give him back his 50 cents and tell him to go to
and the lawyer squirrel said, "Now, give me the nut." He Hell.
broke the nut in half, and handed half to each squirrel,
saying, "See? It was foolish of you to fight. Now the Lawer : Why did you steal this man's watch?
Thief : I did not steal it. He give it to me.
dispute is resolved.
Then he reached over and said, "And for my fee, I'll take Lawyer : When?
Thief : When I showed him my gun.
11
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