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3G auction guidelines by Dec: A RajaMTNL will be launching services in December 2008 in Delhi and BSNL is likely to start its services in January 2009 in Chennai.Source: Moneycontrol Top Headlines | 25 Nov 2008 | 7:27 pm Bangalore hotel projects on holdUntil recently, Bangalore used to boast of the highest average room rates among hotels in India but now the heydays of the tourism and hospitality sector are over. Most of the hotel projects announced two years ago have not taken off yet.Source: Moneycontrol Top Headlines | 25 Nov 2008 | 7:07 pm Slowdown impact: Retail expansion plans on holdIndia\'s retail industry is changing or putting on hold expansion plans largely due to the economic slowdown. The latest victims are Subhiksha and Spinach retail.Source: Moneycontrol Top Headlines | 25 Nov 2008 | 5:56 pm Insurance cos record negative growth in SepAfter life insurance giant LIC is showing negative growth rates, two private life insurance players Bajaj Allianz and Aviva have registered negative growth rates for the month of September. That\'s according to the IRDA figures. Both these companies have recorded a negative growth rate of about 12% for the month of September this year.Source: Moneycontrol Top Headlines | 25 Nov 2008 | 5:55 pm BHP Billiton calls off $66bn offer for Rio TintoBHP Billiton, the world\'s largest mining company, has called off its USD 66 billion offer for rival Rio Tinto. The company blamed falling commodity prices and regulatory demands for the pull out.Source: Moneycontrol Top Headlines | 25 Nov 2008 | 4:50 pm KS Oils buys edible oil refinery in Haldia for Rs 150crKS Oils has acquired an edible oil refinery in Haldia for Rs 125150 crore. Sanjay Agarwal, MD, KS Oils, said the acquired refinery has a capacity of 500 MT per day. \"This acquisition would increase the companys overall refining capacity to 1,800 MT per day.\"Source: Moneycontrol Top Headlines | 25 Nov 2008 | 4:11 pm Fiat to beat auto blues with LineaThe auto slowdown forced carmakers to postpone some of their launches. However, they can\'t wait forever. After a long wait, Fiat is betting big on its next offeringthe Linea.Source: Moneycontrol Top Headlines | 25 Nov 2008 | 4:10 pm BIG TV to break even within 5 yrs: Rel CommMahesh Prasad of Reliance Communications said the company is still on target in terms of the objectives that it had set on launch to achieve the 40% market share and become the market leader in the country by 2011. He said the company is looking to breakeven within the first five years.Source: Moneycontrol Top Headlines | 25 Nov 2008 | 3:30 pm CC Const, BSCPL Infra JV bag $127m Kabul orderCC Construction recently formed a joint venture with BSCPL Infra and bagged a USD 127 million contract to construct the Parliament in Kabul. Gurjeet Singh Johar, Chairman, CC Construction, said this is the first large building contract. This is a USD 127 million contract.Source: Moneycontrol Top Headlines | 25 Nov 2008 | 3:05 pm US launches support plan; big mining merger axedLONDON (Reuters) - The United States and Europe prepared fresh measures on Tuesday to tackle a sharp economic downturn, which top miner BHP Billiton cited in abandoning a $66 billion bid for Rio Tinto .Source: Reuters: Money News | 25 Nov 2008 | 2:28 pm Private sector banks will be forced to cut lending rates: FM - Hindu
Source: Google News India - Business | 25 Nov 2008 | 2:27 pm Cotton ginners of Punjab, Haryana observe strike - Hindu
Source: Google News India - Business | 25 Nov 2008 | 2:27 pm Jet's pilots remain firm on removal of expat pilots - Hindu
Source: Google News India - Business | 25 Nov 2008 | 2:26 pm Holcim says slowdown won't derail India expansionNEW DELHI (Reuters) - Swiss cement major Holcim will press ahead with its planned capacity expansion in India despite a global slowdown in construction activity, a senior company official said on Tuesday.Source: Reuters: Money News | 25 Nov 2008 | 2:21 pm Tata Chem in JV for Jatropha seedlings marketingTata Chemicals Tuesday said it has entered into a joint venture with Singapore-based company JOil for marketing the latter's Jatropha seedlings in India and East Africa.Source: Daily News & Analysis: Money News | 25 Nov 2008 | 2:21 pm Govt can not cut prices until late Dec - DeoraNEW DELHI (Reuters) – The Goverment can not cut domestic fuel prices until after state polls end in late December due to rules barring populist pre-election politicing, its oil minister Murli Deora said, even as tumbling global crude prices made domestic sales profitable once again.Source: Reuters: Money News | 25 Nov 2008 | 2:14 pm Don’t club NRIs with FIIs in stock market: Assocham to RBI - Livemint
Source: Google News India - Business | 25 Nov 2008 | 2:12 pm IDBI to hire over 650 people at managerial levelNew Delhi: Country’s leading public sector lender Industrial Development Bank of India (IDBI), will recruit 652 people at managerial level, even as most of the financial institutions globally are handing out pink slips as part of their cost cutting measures. The bank is planning to hire as many as 256 managers for its retail banking business, while it plans to add another 220 managers in the SME financing division. Besides, it is also looking to recruit 176 assistant general managers for the SME financing business. Till March 2008, IDBI Bank already had a combined employee base of 8,989, including professionals from the fields of accountancy, management, engineering, law, computer technology, banking and economics, as per data available in the bank’s website. The bank has encouraged willing candidates to apply online and fixed the last date for application submission by mid of the next month. On the other hand, the largest lender of the country, SBI, which announced to create 25,000 jobs this fiscal, is also hiring for its associate banks. Over 200 people have already been selected for the final interview round. “For the last so many years, the bank has not been recruiting people. I understand the problem. This year, we are recruiting 20,000 in the clerical cadre and 5,000 supervisory staff,” SBI Chairman O P Bhatt had earlier said in a meeting of the banks officers association. Source: LatestNews-Home - Livemint.com | 25 Nov 2008 | 2:08 pm Siemens Q4 net at Rs599 crMumbai: Diversified firm Siemens on Tuesday said its consolidated net profit stood at Rs599.54 crore for the fourth quarter ended 30 September, while the company had a net profit of Rs692.85 crore in the corresponding period last year. The company’s consolidated net sales and services (excluding excise duty) rose to Rs9,679.82 crore for the September quarter from Rs9,379.60 crore in the same period last fiscal, Siemens said in a filing to the Bombay Stock Exchange (BSE). Siemens has recommended a dividend of Rs3 per equity shares of Rs2 each for the financial year ended 30 September. The company’s net profit stood Rs593.32 crore for the financial year ended 30 September, while it had a net profit of Rs596.54 crore for the last fiscal. Net sales and services (excluding excise duty) increased to Rs8,295.54 crore for the year ended 30 September from Rs7,726.80 crore for the last year. On a standalone basis, Siemens net profit stood at Rs225.19 crore for the fourth quarter ended 30 September, while the company had registered a net profit of Rs308.62 crore for the September quarter of FY’08. The company’s standalone net sales and services (excluding excise duty) increased to Rs2,421.61 crore in the September quarter from Rs2,188.45 crore in the same period previous year. “Information and Communication” segment has been sold with effect from 1 August, 2007 to “Siemens Enterprise Communication Pvt. Ltd.” (SECPL), a 100% subsidiary of the parent company, Siemens AG, Germany, however figures are not comparable. Shares of the company closed at Rs268.05, down 4.95% on the BSE. Source: LatestNews-Home - Livemint.com | 25 Nov 2008 | 1:57 pm GDP growth to be lower than estimates: Montek - IBNLive.com
Source: Google News India - Business | 25 Nov 2008 | 1:49 pm Don’t club NRIs with FIIs in stock market: Assocham to RBINew Delhi: Industry chamber Assocham on Tuesday said non-resident Indians are wrongly being clubbed with FIIs (foreign institutional investors) in the stock markets and the RBI needs to simplify the “complex, cumbersome and archaic” regulations on NRI investments. Assocham President Sajjan Jindal has asked the Reserve Bank that “investments by NRIs are clubbed with those by FIIs for determining the total FII investment limit in any company.” Noting that such a practice deprives NRIs of an opportunity to invest in many companies even when the market is down, Jindal said, “the regulations relating to NRI investment in Indian stock market is presently complex, cumbersome and archaic and these need to be simplified.” The chamber also said NRIs should be permitted to trade in future-and-option segment on lines of FIIs, otherwise this is discriminatory and denies the Indian diaspora an opportunity to trade and hedge using options. It has also asked the RBI to allow NRIs to hedge their currency risk in rupee and provide regulatory approvals, enabling retail investments in stock markets from them. Currently, each NRI transaction has to be settled separately in the market. The NRI’s investments in the security market should be allowed to set off their losses earned in the security transactions against the profit earned from the security transactions. While various fiscal measures taken recently are welcome, it is high time the regulators take more proactive, imaginative and bold initiatives by revisiting a few of the existing regulations and processes in the capital and currency markets. Source: LatestNews-Home - Livemint.com | 25 Nov 2008 | 1:48 pm Deora invites hydrocarbon investments, projects from CISNew Delhi: In yet another effort to secure energy ties with oil and gas rich countries, Petroleum Minister Murli Deora on Tuesday invited investments and joint projects in the hydrocarbons sector from member countries of the Commonwealth of Independent States (CIS). “We seek greater opportunities of acquiring oil and gas equities abroad. India provides the world a huge market for hydrocarbons, opportunities for building of gas pipelines across the region and supplying of more LNG to us,” Deora said addressing the roundtable of energy ministers from CIS countries. State-run Oil and Natural Gas Corp’s (ONGC) overseas investment arm ONGC Videsh Ltd has already made a total investment of about $8 billion so far in energy assets on foreign shores, the minister said. “Our share of oil and gas production from these assets reached almost 9 million tonnes last year,” Deora said, adding that India is working to increase its presence in Russia’s hydrocarbon sector. OVL already has 20% stake in Sakhalin-I oilfield in Russia. Energy-deficient India is also pursuing discussions on the $3.5 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline. “We are in serious discussion on import of natural gas from Turkmenistan through the transnational pipeline. We are eager for business opportunities in Kazakhstan, Uzbekistan and Azerbaijan for mutual benefit,” Deora said adding that an Indian company is already working in Tajikistan for production of gas. India, he said, is keen to tie-up with CIS countries for gas processing and gas-based petrochemical projects, alongside assisting in modernisation and upgradation of refinery and setting up greenfield refining projects. The government’s New Exploration Licensing Policy (NELP) that invites domestic as well as foreign firms to participate in bidding in the Indian hydrocarbon sector has already completed seven rounds of bidding. The next round would be held in early 2009. “We would be happy to hold a NELP roadshow in Moscow that would be of interest of the industry in the region,” Deora said. Source: LatestNews-Home - Livemint.com | 25 Nov 2008 | 1:42 pm Reuters Summit - Infosys BPO sees lower 2009 attrition levelsBANGALORE (Reuters) - Infosys BPO, a unit of India's No. 2 software services firm Infosys Technologies , plans to bring down employee attrition levels next year, but will closely watch underperforming employees, a company executive said on Tuesday.Source: Reuters: Money News | 25 Nov 2008 | 1:27 pm UPDATE 1-Indian sugar ends down as crushing peaks - Reuters India
Source: Google News India - Business | 25 Nov 2008 | 1:20 pm UPDATE 1-Tata Chem unit to invest S$25 mln in Singapore JV - Reuters India
Source: Google News India - Business | 25 Nov 2008 | 1:20 pm India GDP at 7-7.5 pct in Sept quarterNEW DELHI (Reuters) - India's economy is likely to have grown at an annual rate of between 7.0 and 7.5 percent in the July-September quarter and that should be roughly the rate of expansion for the current fiscal year as a whole, its chief statistician said.Source: Reuters: Money News | 25 Nov 2008 | 1:19 pm Technology can fix India's problems: Nilekani - IBNLive.com
Source: Google News India - Business | 25 Nov 2008 | 1:05 pm European morale sinks further as economy crumblesROME (Reuters) - Falling consumer and business morale around Europe on Tuesday pointed to a continent heading for a prolonged recession, with a surprise tick up in consumer sentiment in Germany seen as an isolated and temporary blip.Source: Reuters: Money News | 25 Nov 2008 | 1:03 pm Russia not opposed to Imperial Energy acquisitionRussian Energy Minister Sergey Shmatko Tuesday said his government was not opposed to the acquisition of Imperial Energy by ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp (ONGC).Source: IndiaeNews.com: Business News | 25 Nov 2008 | 1:02 pm New telecom operators can't sell stakes for three years: GovernmentMergers and acquisitions between new telecom operators will be allowed only if they have completed three years of operations after being issued licenses, Telecom Minister A. Raja said here Tuesday.Source: IndiaeNews.com: Business News | 25 Nov 2008 | 1:01 pm KS Oils buys Ambo Agro's refinery biz - Business Standard
Source: Google News India - Business | 25 Nov 2008 | 1:01 pm India looks at Russia for assured oil supplyIndia is hoping that the successful outcome of Sakhalin 1 oilfield project will be replicated in other projects in Russia.Source: IndiaeNews.com: Business News | 25 Nov 2008 | 1:01 pm DoT to meet potential bidders between Dec 1113: SourcesThe Department of Telecom, or DoT, said it will meet with potential bidders between December 11 and 13 and will hold 3G and broadband prebid conference on December 19, reports CNBCTV, quoting sources.Source: Moneycontrol Top Headlines | 25 Nov 2008 | 1:00 pm Union leaders meet labour minister over Dunlop shut downVarious labour unions of tyre maker Dunlop India Ltd are still not ready to accept the management offer of Rs.2,000 per employee every month while keeping the plant shut down to tide over the current economic slowdown, a top trade union leader said here Tuesday.Source: IndiaeNews.com: Business News | 25 Nov 2008 | 1:00 pm Meltdown-hit tourism sector exploring new areas, says ministerTourism Minister Ambika Soni Tuesday said though the global meltdown has affected India's tourism sector, it has also led to exploring new areas.Source: IndiaeNews.com: Business News | 25 Nov 2008 | 1:00 pm India looks to central Asia for securing oil, gas supplies - Economic Times
Source: Google News India - Business | 25 Nov 2008 | 12:47 pm US trade team heads to India, eyes $150 bn nuclear pie!With the India-US civil nuclear deal in place, Washington is sending its largest ever nuclear trade mission to India with an eye on a major share in its projected USD 150 billion nuclear business.Source: Zee News : Business | 25 Nov 2008 | 12:24 pm World oil prices lower in Asia!World oil prices fell in Asian trade on Tuesday as euphoria over the US government`s bailout of Citigroup faded and investor pessimism about the global economic downturn returned, analysts said.Source: Zee News : Business | 25 Nov 2008 | 12:24 pm Tata Chemicals shelves expansion plan !Tata Group firm Tata Chemicals on Monday said it would put on hold expansion of its soda ash plant in Gujarat, while it has raised USD 300 million (Rs 1,500 crore) to repay a loan taken to acquire a firm in the US.Source: Zee News : Business | 25 Nov 2008 | 12:24 pm Nandan Nilekani confident of changing India with ideas !Can ideas change a nation? Co-founder of Indian software giant Infosys and author Nandan Nilekani believes that they can, even if it takes a long time for them to become embedded in the collective psyche of the country.Source: Zee News : Business | 25 Nov 2008 | 12:24 pm Obama urges Congress to pass costly stimulus bill!Citing an "economic crisis of historic proportions," President-elect Barack Obama urged Congress to pass a costly, job-creating stimulus bill.Source: Zee News : Business | 25 Nov 2008 | 12:24 pm Rupee gains 37 paise against dollar!The Indian rupee today appreciated by 37 paise against the US dollar to Rs 49.72 in early trade on dollar selling by banks amid strong Asian equity markets.Source: Zee News : Business | 25 Nov 2008 | 12:24 pm Sensex climbs 280 pts in early trade!Sensex soared by about 280 points in the opening trade after global markets staged a stellar rally.Source: Zee News : Business | 25 Nov 2008 | 12:24 pm Asian stock markets rise after Wall Street rally!Asian markets rose on Tuesday as investors regained some confidence on Wall Street`s second straight day of strong gains, spurred by a US government bailout of banking giant Citigroup.Source: Zee News : Business | 25 Nov 2008 | 12:24 pm As India, China take hit, Asia to see sharp slowdown: IMF!With the effects of the financial crisis now engulfing emerging markets of India and China too, growth in Asia is expected to slow sharply in 2009, the International Monetary Fund says in its latest forecast.Source: Zee News : Business | 25 Nov 2008 | 12:24 pm Obama unveils economic team, backs Bush approach to crisis!Vowing to "jolt this economy back into shape", US president-elect Barack Obama has said he and the Bush administration are "united" in their efforts to deal with a financial crisis of "historic proportions".Source: Zee News : Business | 25 Nov 2008 | 12:24 pm Russia may cut oil production to check falling pricesRussia does not rule out reducing production of oil as a reaction to the continuous fall in international crude prices.Source: IndiaeNews.com: Business News | 25 Nov 2008 | 11:33 am Early gains wiped off, Sensex ends 208 pts downMumbai: After a promising start, the Bombay Stock Exchange benchmark Sensex on Tuesday fell by over 250 points on fag-end selling across counters barring consumer durables. The bellwether index closed lower by 207.59 points at 8,695.53, with heavyweight Reliance Industries taking a big hit of over 6%. The wide-based National Stock Exchange index Nifty also closed down by 54.25 points at 2,654.00. Markets had surged in the morning with the Sensex gaining over 270 points to breach the 9,000 level again on strong cues in Asian bourses after shares rallied in US on Monday. However, it was a straight fall then as the European stock markets opened lower by 1.0-2.0%. The Planning Commission’s observations that economic growth would be lower at seven per cent this fiscal against 9% in 2007-08 dampened the sentiment. Amidst reports of a likely a cut in fuel prices, oil and gas sector index lost 3.86% - the highest among all indices on Tuesday at 5409.37. Source: Home - Livemint.com | 25 Nov 2008 | 11:32 am Thales-Samtel JV to make global products in avionicsFrench defence and aerospace major Thales says its joint venture with city-based electronic giant Samtel will enable India become part of the global supply chain for civil and military avionics.Source: IndiaeNews.com: Business News | 25 Nov 2008 | 11:31 am Navies should sanitise Gulf of Aden: Stolt Valor captainStressing that the Gulf of Aden, which controls the access to the Suez Canal, is vital for the global economy, the Indian captain of the cargo vessel MV Stolt Valor that was held captive by Somali pirates for two months, Tuesday stressed the need for global navies to 'sanitise' the waterway and stage 'hot pursuit' raids against the brigands.Source: IndiaeNews.com: Business News | 25 Nov 2008 | 11:01 am BSE Sensex loses 2.3 pct as early euphoria fadesMUMBAI (Reuters) – The BSE Sensex fell 2.3 percent on Tuesday after an early rally gave way to deeper concerns about sluggish consumer spending that has forced companies such as steel and truck makers to cut output.Source: Reuters: Money News | 25 Nov 2008 | 10:50 am Armed guards for merchantmen transiting Gulf of AdenShipping companies are deploying armed guards on their merchant vessels passing through the Gulf of Aden, one of the busiest and the most piracy-infested shipping lanes in the world, following a spike in hijackings by Somali pirates, an official said Tuesday.Source: IndiaeNews.com: Business News | 25 Nov 2008 | 10:33 am India looks to central Asia for securing oil, gas suppliesIndia is looking for greater 'synergy in energy' with central Asian countries, Petroleum Minister Murli Deora said here Tuesday.Source: IndiaeNews.com: Business News | 25 Nov 2008 | 10:32 am ONGC announces oil discovery in Bay of BengalMumbai: India’s state-run Oil & Natural Gas Corp. has made a “significant” oil discovery in the Bay of Bengal, off India’s eastern coast, the company said on Tuesday. The discovery, in Krishna Godavari basin, 15 kilometers off the coast of Andhra Pradesh, “augurs well as it marks the ONGC’s determined efforts to put the KG Offshore to new and higher levels of oil production,” the company said in a statement. ONGC, the nation’s largest oil and gas exploration company, did not reveal the total size of the find. The title of its statement said: “ONGC announces significant discovery in Krishna Godavari Offshore.” The company said production, in conjunction with several nearby blocks, would start at 20,000 barrels a day by 2013 and peak at 150,000 barrels a day by 2017. At $40 a barrel, that volume could add $1.8 billion to ONGC’s earnings before interest, taxes, depreciation and amortization, Credit Suisse said in a Tuesday note. Credit Suisse called the new find “a significant quantity,” which allays concerns about declining domestic production elsewhere. Credit Suisse also said the discovery reaffirms hydrocarbon prospects in the shallow waters of the Krishna Godavari basin, where Reliance Industries Ltd. and Gujarat State Petroleum Corporation Ltd. also have interests. Source: Home - Livemint.com | 25 Nov 2008 | 10:11 am OECD sees India's GDP growth at about 7 pct in 2008NEW DELHI (Reuters) - India's economy is expected to expand about 7 percent in 2008 and 2009 before recovering to above 8 percent in 2010 as world growth picks up, the Organisation for Economic Cooperation and Development (OECD) said on Tuesday.Source: Reuters: Money News | 25 Nov 2008 | 10:07 am Tata Chem to invest $25 mn in Singapore firmMumbai: Tata Chemicals Ltd said on Tuesday its unit, Tata Chemicals Asia Pacific Pvt Ltd, has signed an agreement to invest $25 million in a Singapore-based jatropha seedling firm. The Singapore firm, JOil (Singapore) Pte Ltd has been set up by the Temasek Life Sciences Laboratory Ltd along with other investors in Singapore, the Indian chemicals maker said in a statement. The agreement is aimed at boosting Tata Chemicals bio-fuels foray and will give Tata Chemicals exclusive marketing rights for JOil’s jatropha seedlings in India and East Africa, it said. Source: Home - Livemint.com | 25 Nov 2008 | 10:00 am Russia may cooperate with Opec to check falling oil pricesNew Delhi: The fall in global oil prices may bring the world’s largest oil producer Russia and oil cartel Opec together to control the freefall as Kremlin today said low crude oil prices were hurting the oil producers who have budgeted their investment at $70-90 per barrel prices. Russian energy minister Sergei Shmatko said Russia was looking at coordinating investments and policies with Organisation of Petroleum Exporting Countries (Opec) to get a grip over the markets even as it plans to form a cartel of gas producers with Iran and Qatar. “We cannot rule out cutting down of production,” he said when asked if Kremlin was looking at cutting oil production, just like Opec, to shore up crude oil prices which have fallen from USD $per barrel in July to around $50 a barrel currently. He blamed the freefall of crude oil prices to recession in major economies and speculation in the oil market. Even after Opec cut oil production by 1.5 million barrel, crude prices have fallen 7%. “Today’s oil prices are not determined significantly by traditional parameters of demand and supply but it is under effect of whole financial crisis and speculation,” he said. “Russia will cooperate with Opec to defend its interest. We want to understand the process involved and protection mechanism.” Russia, which is targeting to produce 480-490 million tonnes of crude oil in 2009, was keen on exchange of information on market developments and investment programmes with Opec. Source: LatestNews-Home - Livemint.com | 25 Nov 2008 | 9:52 am Shares fall in Europe as Citi euphoria fadesLondon: European stocks bucked Wall Street and Asia to fall more than 1% on Tuesday as euphoria surrounding the US rescue of Citigroup gave way to concerns about sharply deteriorating major economies. Washington’s announcement late on Sunday to shoulder most losses on about $306 billion of Citi’s risky assets and inject new capital boosted world stocks by 6.6% on Monday. However, investors were quick to take profits, worrying that more banks might be forced to seek government help and that the rescue plan was unlikely to change the fact that the world economy is slowing fast. The World Bank said China’s growth - once seen as the engine of the world economy - could slow to 7.5% in 2009, its slowest pace of expansion since 1990, due to the intensifying impact of global financial turmoil. The FTSEurofirst 300 index of leading European shares fell 1.4%, after rallying nearly 9% on Monday - its second biggest one-day percentage rise on record. Shares in Rio Tinto fell 36% after top global miner BHP Billiton walked away from its $58 billion hostile offer for the firm. A 3.4% rise in Asian stocks helped MSCI world equity index post a 0.4% gain. Emerging stocks rose 2.4%. US crude oil fell 3% to $52.88 a barrel after rising more than 9% on Monday. The December bund futures rose 17 ticks as European shares slipped. The low-yielding yen rose 0.6% 96.50 per dollar while the dollar rose 0.3% against a basket of major currencies. US data due later includes a preliminary reading for third-quarter growth. The US economy is expected to have contracted 0.5% in the three months ending September. Interest rate futures are fully pricing in the Federal Reserve to cut interest rates by half a point to 0.5% in December. Source: Home - Livemint.com | 25 Nov 2008 | 9:06 am Banks should be thinking long term - RBIMUMBAI (Reuters) - Banks need to keep thinking about their longer-term plans and recognise that policy steps taken to counter the global financial crisis were temporary, a deputy governor of the Reserve Bank of India (RBI) said.Source: Reuters: Money News | 25 Nov 2008 | 8:11 am IMF approves $7.6 bn loan aid for PakistanKarachi: Pakistan won final approval for an emergency $7.6 billion International Monetary Fund loan on Monday to avert a balance-of-payments crisis in the strategically vital country. Pakistan will immediately access $3.1 billion under the 23-month facility with the rest phased in subject to quarterly review, the fund said. The programme has twin goals: to steady the economy and restore confidence by tightening macroeconomic policy, and to ensure social stability and support for the poor and vulnerable, the fund said. Why does Pakistan need an IMF package? Foreign exchange reserves from fell $100 million to $6.64 billion in the week that ended on 15 November, or just enough to cover nine weeks of imports. The central bank’s own reserves fell to $3.46 billion from $3.50 billion a week earlier. Imports for October totalled $3.46 billion, while exports were worth $1.52 billion. - he current account deficit almost doubled in the first four months of the 2008/09 fiscal year that began on 1 July from the same period a year earlier. The deficit stood at $5.9 million in the four months to the end of October, compared with $3 billion in the same period last year. Pakistan has a $500 million bond due to mature in February. The market had priced in the risk of a default but the IMF loan removes that risk. What will package involve? The fiscal deficit, excluding grants, will be brought down to 4.2% of gross domestic product (GDP) in the 2008/09 (July-June) fiscal year, and then 3.3% in the 2009/10 fiscal year, compared with 7.4 percent of GDP in the fiscal year to June 2008. Inflation, at 25% will be brought down to an average of 13% in the 2009/10 fiscal year and to 6% by the end of the next year through tighter monetary policy. There will be an end to central bank financing of the government. According to bank data, the government borrowed $2.48 billion from 1 July to 8 November. Expenditure on a social safety net will be increased to protect the poor through cash transfers and targetted electricity subsidies. Analysts say Pakistan needs serious structural reforms. Otherwise its balance of payments will remain stressed. The most difficult task for the government will be to bring net borrowing from the State Bank to zero, they say. The IMF said “the programme also envisages a tightening of monetary policy to bring down inflation”. This may be criticised by industrialists and members of capital markets as an increase in interest rates typically slows down growth. Source: Home - Livemint.com | 25 Nov 2008 | 8:09 am India preparing for 7 pct growth this FY - AhluwaliaNEW DELHI (Reuters) - India is preparing for growth around 7 percent in the current fiscal year which ends in March and slowing inflation would give greater flexibility to the Reserve Bank of india (RBI) in monetary policy, a top official said on Tuesday.Source: Reuters: Money News | 25 Nov 2008 | 8:01 am India may cut fuel prices after 24 Dec: DeoraNew Delhi : India may cut fuel prices towards the end of December as the code of conduct for ongoing assembly elections bars potentially vote-winning policy moves, the oil minister, Murli Deora, said on Tuesday. Crude oil has fallen from its July peak of $147 a barrel to $54 on Tuesday, but India has not cut fuel prices, unlike Malaysia, which last week announced a fifth cut in prices. “Crude oil has fallen. We should reduce prices but we cannot do it before 24 December because of the code of conduct,” Deora said. Oil Secretary RS Pandey said his ministry would send a proposal for price cuts and related subsidy issues to the cabinet before 24 December. Voters will go to the polls in a handful of states over the next few weeks. India raised government-set fuel prices by about 10% in early June and has continued to sell petrol and diesel at the same price since then. State-run firms Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp, have resisted moves to cut fuel prices arguing they need to make up for losses incurred earlier as crude rates soared. Source: Home - Livemint.com | 25 Nov 2008 | 7:42 am The Expat Show: Sunday Book MarketThis show discusses the Sunday book market that takes place in Daryaganj, situated in Old Delhi. (Read the accompanying blog for more information and pictures of the market)  Visiting the market is a good winter time occupation, because in summer, the heat can get too overbearing. It’s definitely worth a visit. Chances are that you will pick up a few excellent bargains. And on the off chance that you dont find anything you like - its certainly worth the experience. Source: LatestNews-Home - Livemint.com | 25 Nov 2008 | 7:40 am Kingfisher will cut fare on uniform ATF taxMUMBAI: Kingfisher Airlines Ltd has said it would reduce airfares “across the board” as soon as the Indian government brings aviation turbine fuel (ATF) under the declared goods category. “Kingfisher will immediately reduce airfares across the board as soon as the declared goods classification is approved for ATF,” Chairman Vijay Mallya said in a statement late on Monday. Mallya was responding to the Finance Minister P Chidambaram’s announcement to introduce a bill during the forthcoming Parliament session to bring ATF under the declared goods category. The declared goods status on ATF would attract a uniform sales tax of 4% across the country. ATF is currently taxed by between 4-30% across the country. The airline had posted a net loss of Rs6.4 billion for the six months to 30 September, hurt by high jet fuel costs and low demand. ATF accounts for nearly half of an airline’s operating costs. Shares of Kingfisher were up 5.71% at Rs25.15 in the Mumbai market. Source: Home - Livemint.com | 25 Nov 2008 | 7:05 am Facebook to get $873 mn in damages from spammerWashington: Facebook has welcomed a US court ruling against a Canadian spammer ordered to pay $873 million in damages for sending unwanted messages to users of the popular social network. Max Kelly, Facebook’s director of security, called the US District Court ruling in San Jose, California, an “important victory for our users - and against spam and those who create it.” Judge Jeremy Fogel on Friday ordered Adam Guerbuez and his company Atlantis Blue Capital to pay $436.2 million in statutory damages and another $436.2 million in aggravated statutory damages for violations of the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM). “Does Facebook expect to quickly collect $873 million and share the proceeds in some way with our users?” asked Kelley in a posting on the Facebook blog. “Alas, no. It’s unlikely that Guerbuez and Atlantis Blue Capital could ever honour the judgement rendered against them.” “But we are confident that this award represents a powerful deterrent to anyone and everyone who would seek to abuse Facebook and its users,” he added. Facebook began legal action against Guerbuez in August, claiming that he had managed to obtain the passwords of Facebook users and was bombarding them with millions of messages about sexual products and drugs. Source: LatestNews-Home - Livemint.com | 25 Nov 2008 | 6:54 am Facebook to get $873 mn in damages from spammerWashington: Facebook has welcomed a US court ruling against a Canadian spammer ordered to pay $873 million in damages for sending unwanted messages to users of the popular social network. Max Kelly, Facebook’s director of security, called the US District Court ruling in San Jose, California, an “important victory for our users - and against spam and those who create it.” Judge Jeremy Fogel on Friday ordered Adam Guerbuez and his company Atlantis Blue Capital to pay $436.2 million in statutory damages and another $436.2 million in aggravated statutory damages for violations of the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM). “Does Facebook expect to quickly collect $873 million and share the proceeds in some way with our users?” asked Kelley in a posting on the Facebook blog. “Alas, no. It’s unlikely that Guerbuez and Atlantis Blue Capital could ever honour the judgement rendered against them.” “But we are confident that this award represents a powerful deterrent to anyone and everyone who would seek to abuse Facebook and its users,” he added. Facebook began legal action against Guerbuez in August, claiming that he had managed to obtain the passwords of Facebook users and was bombarding them with millions of messages about sexual products and drugs. Source: Tech News - Livemint.com | 25 Nov 2008 | 6:54 am Wall Street crisis threatens 225,000 NY jobs: officialNew York: As many as 225,000 jobs could be lost in New York city and state due to the Wall Street crisis, state comptroller Thomas DiNapoli has said. “Total private sector job losses during this two-year period could reach 225,000 in New York state, including 175,000 in New York city,” DiNapoli said in a report on the crisis on Monday. The report, covering the period October 2007 to October 2009, warned that “job losses could be even greater if the downturn is longer and deeper than currently forecast.” The report underlines alarming budget shortfalls facing both New York city Mayor Michael Bloomberg and state Governor David Paterson. The report predicts 48,000 job cuts in New York city’s financial services sector, 38,000 of them in the securities industry. The finance sector is so central to the area’s economy that every Wall Street job supports two additional jobs in other fields in the city and another 1.3 elsewhere in the state. Before the crisis, which has seen the collapse of major banks and the wiping out of trillions of dollars worth of investments, Wall Street was the engine of New York government revenues. The securities industry accounted for just five per cent of New York city jobs, but 25 per cent of income. Source: LatestNews-Home - Livemint.com | 25 Nov 2008 | 6:33 am Kotak Securities puts BUY on Satyam ComputerWe spoke to the company officials to get an update on the latest macro developments and some company-specific issues. The company has maintained that, the macro scenario has remained challenging with the crisis in the US BFSI sector spreading globally and to other verticals. While the spending decisions are getting delayed, the budgeting exercise for CY09 will probably be finalized by Q1CY09 itself. The manufacturing sector has started seeing some impact in terms of delayed decision-making. The TIMES (Telecom, Media) vertical is also seeing an impact with clients postponing projects. As far as existing revenues are concerned, there are more concerns about the sustainability of these revenues because of the significantly fluid situation globally. However, there have been no major client-specific developments post 2QFY09. In fact, some of the large accounts have scaled up during 3QFY09 and are expected to contribute in 4QFY09 also. Revenues from ”impacted” clients like Merrill Lynch have remained steady. The company has also started receiving additional projects from clients like Barclays, negating the impact of Lehman’s revenues. We believe that, in the near-to-medium term, client specific issues may gain prominence and may lead to differentiated growth rates for Indian IT services vendors over this period. While on an overall basis, Satyam’s average realizations are expected to be stable in H2FY09 the company has already started seeing some impact in segments of the BFS sector. Outlook We expect revenues in FY09 to rise by 32% (33% earlier). EBIDTA margins are expected to be higher due to the rupee depreciation and other cost control initiatives. Consequently, PAT is expected to rise by 34% to Rs.22.6bn, leading to an EPS of Rs33.7. We have adopted the DCF method of valuation to account for the potential impact arising from the challenging macro environment. After incorporating lower growth in the foreseeable future, we arrive at a fair value of Rs373 for Satyam. At this price, our FY09E earnings will be discounted 11x. Current valuations are attractive at 6.7x FY09 PE. The stock is available at 1.6x FY09 BV with a RoE of ~27%. The company is expected to have net cash of Rs58.5 billion as at FY09 end, translating into Rs87 per share. We maintain BUY on the stock. Source: LatestNews-Home - Livemint.com | 25 Nov 2008 | 6:23 am OVL not to revise Imperial bid against new oil pricesNew Delhi: The fall in international oil prices notwithstanding, ONGC Videsh Ltd will not revise its £12.50 a share buyout of Imperial Energy Corp Plc as the acquisition priced UK-listed firm’s in-place oil reserves at $2.5-3 per barrel. “OVL has valued Imperial’s 2P (proven and probable) oil and gas reserves at $2.5-3 per barrel and the acquisition even at current oil prices is enormously beneficial,” said a source associated with the transaction. Imperial explores for oil in Russia’s Siberia region and had the equivalent of 920 million barrels of proven and probable oil reserves as on December 2007, according to an audit by DeGolyer & MacNaughton. ‘2P´ tag means a 50% likelihood of recovery of the reserves. Acquisition of Imperial will cost OVL, the overseas arm of state-run Oil and Natural Gas Corporation, about £1.4 billion or $2.1 billion at current exchange rates. “OVL had the option of revising bid price but it is not considering doing so,” he said. Crude oil prices were trading at $115-120 a barrel when OVL made the bid for Imperial in August. They are now around $50 per barrel and Imperial shares are at £10.71. OVL has time till 9 December to make an offer to acquire all outstanding shares of Imperial. The offer will remain open for 28 days and OVL will take another 14 days thereafter to make payments to shareholders tendering their shares, he said. All of the funding for the acquisition was in place. ONGC is lending most of the money to OVL at 6% interest rate while $1 billion has been tied-up in bridge loan. The Indian firm’s plans to delist Imperial from the London Stock Exchange is 90% of shareholders tender shares. “OVL wants Imperial to be delisted. It may re-list the company if and when it needs money,” he said. OVL, earlier this month, won Russian government approval for taking over Imperial, which has assets in Tomsk region of western Siberia. Russia’s Federal Anti-Monopoly Service (FAS) granted approval in respect of the ownership of Russian entities by entities controlled by a foreign government. Government of India holds 74% stake in ONGC. Prior to this, FAS cleared the acquisition under anti-monopoly regulations and stated that Imperial’s assets were not strategic. Since July, Imperial is producing 11,000 barrels of oil per day. Output will reach 25,000 bpd by fiscal-end with 18 wells coming on stream. Production would rise to 35,000 bpd (about 1.75 million tons) by 2009-end. The company also plans to start commercialising gas from 2010. Imperial board on 26 August had agreed to takeover bid by Jarpeno Ltd, a wholly-owned subsidiary of OVL. Source: Home - Livemint.com | 25 Nov 2008 | 6:21 am Rupee at 1-week high as shares climbMumbai: The Indian rupee rose to its strongest in almost a week on Tuesday, supported by higher stock markets and a weaker dollar overseas. At 10:25am, the partially convertible rupee was at Rs49.92/93 per dollar, 0.3% above Monday’s close of Rs50.09/10. In early trade, it strengthened to Rs49.70, its strongest since 19 November. The rupee had hit a record low of Rs50.60 on 20 November. Indian shares opened up 3%, taking cues from a rally across global markets after the US government’s rescue of Citigroup relieved wary investors. Dealers said the dollar’s weakness against a basket of currencies on Monday also boosted sentiment for the rupee. However, one-month offshore non-deliverable forward contracts were quoting at Rs50.62/77, weaker than the onshore spot rate, indicating the outlook for the currency continues to be bearish in the near term. The rupee has lost more than a fifth this year on foreign fund withdrawals of a net $13.6 billion from Indian shares this year. In 2007, foreigners had bought a record $17.4 billion. Source: LatestNews-Home - Livemint.com | 25 Nov 2008 | 5:58 am Oil falls below $54 in Asia after rising overnightSingapore: Oil prices fell below $54 a barrel on Tuesday in Asia after surging overnight as investors mulled whether a US government bailout of Citigroup Inc. restores enough confidence to staunch crude’s 64% slide since July. Light, sweet crude for January delivery was down 61 cents to $53.89 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract overnight rose $4.57 to close at $54.50 after the Treasury Department announced a rescue of banking giant Citigroup. Fears the sprawling financial firm would collapse sent stock markets plunging and the price of oil to a 3-year low near $49 last week. But some oil market watchers think euphoria over the government lifeline for Citigroup will soon give way to more dismal news about a severe global economic slowdown and trigger a test of the lows that oil hit last week. Investors are eyeing the Organization of Petroleum Exporting Countries, which accounts for 40% of global supply, for signs the group may reduce output quotas at an informal meeting 29 November in Cairo. Venezuelan Oil Minister Rafael Ramirez said on Sunday that Opec should cut oil production by 1 million barrels per day at the Cairo meeting. Opec President Chakib Khelil said on Monday that if the organization met today, a cut of 1 million barrels would not be enough to support oil prices. The group, which cut output by 1.5 million barrels a day last month, will hold its next official meeting on 17 December. Investors brushed off Opec’s output cut last month, but lower production should eventually help support higher prices, Moore said. Source: Home - Livemint.com | 25 Nov 2008 | 4:20 am Asia shares rally, some bold buying returnsHong Kong: Asian shares surged on Tuesday in line with global peers and so-called safe haven assets such as bonds were shunned after the US rescue of Citigroup bolstered badly needed confidence in the broader banking sector. The yen recovered from sharp day-earlier falls to edge up against major currencies, but traders said the Japanese currency’s recent gains from safe-haven bids were likely to pause in the near term as the willingness to take risks returns. Oil prices steadied at around $54 a barrel after surging more than 9% in the previous session, a rally that was big enough to send regional commodity-related stocks such as BHP Billiton sharply higher. The MSCI index of Asia-Pacific stocks excluding Japan rose 3.8% as of 7:20am (IST) heading towards a third consecutive daily gain. Japan’s Nikkei average jumped nearly 4%, resuming trading after a public holiday on Monday. The broader market rally comes after an initial tepid Asian reaction to a US plan, announced on Monday, to shoulder most losses on about $306 billion of Citigroup’s risky assets and inject capital into the struggling lender. But a subsequent Wall Street rally, which capped the best two-day run since the aftermath of the 1987 stock market crash, put these doubts to rest, sparking optimism the US government could step in to support other big banks. The rally in global markets was also helped after Obama promised to jolt the faltering US economy with a stimulus package, raising the outlook for beleaguered exporters worldwide. Shares in South Korea and Australia rallied about 4% each, while markets in Taiwan and Singapore gained 2-3%. Hong Kong was seen opening up 4.5%, but Shanghai’s main index rose a modest 1.3%. Gains in Asia were led in part by banking shares such as South Korea’s KB Financial Group and Commonwealth Bank of Australia recovering from steep falls on Monday. Investors went from buying assets perceived as safe havens during the uncertain period in the lead-up to Citigroup’s rescue to shunning them on Tuesday. Regional bonds largely fell. Source: Home - Livemint.com | 25 Nov 2008 | 3:57 am Accenture staff to work longer hoursBangalore, Nov. 24 In a bid to boost productivity levels at its India Delivery Centre, Accenture, management consulting, technology services and outsourcing company, plans to increase its work hours by an hour daily from JanuarySource: Business Line - Home Page | 25 Nov 2008 | 12:00 am ‘Lower tax on aviation fuel needs political consensus’New Delhi, Nov. 24 In what could be good news for the domestic airline industry, the Finance Ministry has said that it is open to the idea of amending the Central Sales Tax Act to make Aviation Turbine Fuel (ATF) cheaper.Source: Business Line - Home Page | 25 Nov 2008 | 12:00 am ‘Property slowdown to have ripple effect’The ripple effect of a slowing property market is likely to result in a substantial impact on the Indian economy, states a report by the Asia Economics Research Team at Goldman Sachs.Source: Business Line - Home Page | 25 Nov 2008 | 12:00 am Bay trumps forecasts, spins up early ‘low’Thiruvananthapuram, Nov 24 The southwest Bay of Bengal has trumped forecasters by spinning up a ‘low’ off Sri Lanka and neighbourhood on Monday ahead of an anticipated and potent easterly wave.Source: Business Line - Home Page | 25 Nov 2008 | 12:00 am Chidambaram pegs 2008-09 growth rate at 7-8%New Delhi, Nov. 24 After three years of plus 9 per cent growth in gross domestic product (GDP), India’s growth rate in the current year may moderate to a level between 7 and 8 per cent, the Union Finance Minister, Mr P. Chidambaram, saidSource: Business Line - Home Page | 25 Nov 2008 | 12:00 am Day Trading GuideSource: Business Line - Home Page | 25 Nov 2008 | 12:00 am Pharma exporters brace for payment delaysMumbai, Nov. 24 Exports during a global financial crisis can be challenging. But it has only got more so, with the possibility of delayed payments on exports becoming one more reason to worry for Indian drug makers. Several of them are active inSource: Business Line - Home Page | 25 Nov 2008 | 12:00 am Axon shareholders okay HCL Tech offerNew Delhi, Nov. 24 HCL Technologies’ proposed mega-acquisition of UK-based SAP consulting company Axon Group is nearly complete.Source: Business Line - Home Page | 25 Nov 2008 | 12:00 am Indian Oil Corporation (Rs 406.55): BuyWe recommend a buy in Indian Oil Corporation from short-term horizon. It is evident from the charts that Indian Oil Corporation (IOC) has been consolidating sideways in a broad price range between Rs 300 and Rs 450 since this July. After takingSource: Business Line - Home Page | 25 Nov 2008 | 12:00 am Kingfisher, AI to lower faresNew Delhi, Nov. 24 Domestic flying will become cheaper in the next few days. On Monday night, Kingfisher Airlines announced that it will lower fares.Source: Business Line - Home Page | 25 Nov 2008 | 12:00 am DQ Entertainment bucks downtrendBucking the downtrend in the global entertainment industry, Hyderabad-based DQ Entertainment (DQE), a gaming and animation company, is scaling up plans.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 10:38 pm 'Facebook, MySpace, Orkut are failures in China'Shivanandan Pare, COO, Bigadda.com, confirms the group's plans to incubate an ad network and says ad spends will move from horizontal portals to social networking sites.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 10:34 pm Channels prepare for the Q3 sob storyThe dismal third quarter results awaiting media companies may result in the first shake-out in the general entertainment channel (GEC) space.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 10:33 pm Over five years, IPO returns trail FDs'Until the market took a turn for the worse in January this year, investing in initial public offers (IPOs) was seen as a sure-fire way of bagging a multi-bagger before it got off the ground.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 10:28 pm China 'repeating US mistakes of 1930s'China is in danger of repeating the mistakes that the US made in the 1930s in the downward spiral of the Great DepressionSource: Daily News & Analysis: Money News | 24 Nov 2008 | 10:26 pm Sensex stocks lose 85% of their embedded valueFrom being over 4000 points at the peak, the embedded value of Sensex stocks has shrunk by 85% to just 560 points. Experts feel there is more downside.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 10:24 pm Inflation falling? Just ask rural folkThe news that the wholesale index-based inflation rate has slid from 12.2% in September 2008 to 11% in October and to a single-digit figures in November has set the adrenaline flowing in officialdom.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 10:22 pm FM says will need extra year to meet FRBM goalThe government will need another year to achieve the Fiscal Responsibility and Budget Management (FRBM) target, finance minister P Chidambaram saidSource: Daily News & Analysis: Money News | 24 Nov 2008 | 10:20 pm Sterlite shuts Tuticorin unit, production loss at 23,000 tnSterlite Industries (India), India's largest copper producer, has shut down its 4,00,000 tonne smelter in Tuticorin due to the failure of its main cooling tower.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 10:19 pm IBM’s growth in India is not just for the perceived cost advantageBangalore: From about 5,000 employees in 2002, the Indian arm of International Business Machines Corp. (IBM) will likely end this year with 85,000, which means that one in five workers at the Armonk-headquartered company will be based in India. Since November 2006, Rajesh Nambiar, 41, has been steering Big Blue’s fortunes in services from India as vice-president and general manager of IBM Global Delivery, which serves its international customers. IBM dominates the global services market, a space in which Indian IT companies such as Tata Consultancy Services Ltd (TCS), Infosys Technologies Ltd and Satyam Computer Services Ltd are increasingly making a mark. The services business accounted for around $55 billion of IBM’s $98.8 billion of revenue in 2007. A 17-year veteran of TCS before joining IBM, Nambiar reveals what sets IBM apart from the competition. Edited excerpts: In 2000, the CEO of an Indian company presciently told me that one day IBM would emerge as the largest IT employer in India. Are you on course to do that? IBM doesn’t look at India just from the number of people we have here. Yes, we have had significant (people) growth here. The way we look at it in the 172 countries we operate in, it is a combination of domestic market, innovation and global delivery. Though they sound distinct, they overlap to some degree and in a sense feed into each other. Our success in the domestic market has been possible because of some of the expertise we have brought from our international operations. Similarly, we have been able to take some of our learnings in the (Indian) telecom market, for instance, to our international clients. Indian IT companies keep pointing out that while they need to keep growing the front-end (in terms of delivery centres and customers), IBM and other multinational players have had to build their delivery back-end in India which they feel would be more of a challenge...  Decisive factors: Rajesh Nambiar says expertise, economics and environment decide what the IT company does and where it does. Hemant Mishra / Mint If you are delivering a certain value at a certain price point, and that is no longer sustainable, we as a company have to react to that. To say IBM’s growth here is only as a reaction to (the perceived cost advantage) of Indian players is not true as we have been present in India since 1992. Global strategy (which Indian players talk about) by itself is not enough. Global integrated delivery depends on right skills, right cost and right open environment. Expertise, economics and environment will decide where we do, what we do. For instance, in 2003, we moved our entire procurement base from Armonk to Shenzen in China. The chief procurement officer who used to procure from 300 different centres shrunk it to just three centres in China, India and Budapest (Hungary), packed his bags and moved to China. We were then (also) not reacting to somebody. It is not about us having an India story, it is about IBM having a global story. India has the second largest headcount in IBM and appears in every (strategic) discussion we have, but it is in a global context. The Indian players play in one or two segments like services and BPO (business process outsourcing). They don’t have the software, the hardware. They don’t play in the infrastructure space, not in consulting. If you look at an end-to-end footprint, only IBM has that kind of a presence. Even in the application development and maintenance segment where the Indian players (are present) in, IBM has core delivery centres from eight places: India, China, the Philippines, Vietnam, Egypt, Romania, Brazil and Argentina. I don’t think that any other player can match this kind of a reach or would have the ability to scale quickly. Is IBM able to get the kind of cost efficiencies as Indian players do? Let me address that in two ways. All of us agree that Indian market seeks value. Which (company) is the largest player in the domestic market in India? Have you wondered why it is IBM and not any of the Indian companies which have their headquarters and bases here? The reason is that in the Indian market there is no labour arbitrage. IBM does not play the arbitrage game. Also See IBM India Headcount (Graphic) Companies play on...one of these strengths: client partner skills, which means access to C-suites, solutions that one builds or an efficiency play. Indian players largely play the efficiency (cost) play, whereas IBM builds the best solutions. Of course, each of them will also have the other two, but primarily it has to revolve around one of the axes. The $6 billion we invest in R&D (research and development) and the 3,200 patents we file every year, must count for something. Right (laughs)? Technology capability is taken for granted. A given. Domain capability is being acquired (by the Indian players). What sets us apart is our process domain expertise. Specific to IBM’s India delivery centre, there is a perception that most of it is grunt work and that Indian players offer more challenging opportunities for employees... We get 10 times the number of (lateral) entrants into IBM from these tier I Indian companies than we lose to them. That gives an indication of the kind of work we do. We are a critical component in IBM’s Globally Integrated Delivery (GID) model, the India delivery centres leverages the presence of IBM’s key business and R&D units in India, including India Software Labs, India Research Labs, and Global Business Solutions Center. We have strong presence in several key sectors like communications, financial services, public sector, and general business... They serve industries like banking, insurance, financial markets, telecom, energy and utilities, media and entertainment, pharma and life sciences. The assets built in India are largely deployed for our international customers. Graphics by Ahmed Raza Khan / Mint Source: Tech News - Livemint.com | 24 Nov 2008 | 7:30 pm You can’t wait for piped water before you give them computersNew Delhi: For all its much-debated status, the candy-green XO laptop—the size of a small, slim textbook—looks innocuous as it dangles from one of Satish Jha’s fingers. Jha, 51, president and chief executive officer of the Indian chapter of One Laptop Per Child (OLPC), has just launched the Give One Get One campaign, in which a buyer pays the cost of two laptops (around $400, or Rs20,000), gets to keep one, and donates the other to its intended recipient: a poor school student. In various ways, OLPC, a US-based non-profit organization, has distributed nearly a million XO laptops across the world, although its involvement in India has hitherto been limited to pilot projects in five schools. In an interview, Jha says he firmly believes in the XO—believes that, for all its reputation of being a stripped-down machine, it is actually more technologically advanced thanSony Corp.’s $3,000 Vaio sitting on his desk. Edited excerpts:  Way ahead: Satish Jha, president and CEO of the Indian chapter of One Laptop Per Child, says the XO laptop is technologically more advanced than his Sony Corp.’s $3,000 Vaio laptop. Madhu Kapparath / Mint Well, because it has a smaller capacity, and because it’s best used in a certain environment, by kids in schools. I’m also used to my Vaio, and there’s a transition process involved. But some of my friends, professors at Berkeley (the University of California at Berkeley), have the XO as their primary laptop, and they love it. If it has a smaller capacity, how then do you say that it’s more technologically advanced than other laptops? It has no moving parts. Its hard disk doesn’t crash, and it has three USB ports. It has dual boot, so that I can fire up either Windows XP or an open-source operating system. It is shockproof and waterproof, and it uses just 1W of power. It has mesh networking, so it can detect another XO within a certain range and create a network right away. What was the biggest challenge in launching the Give One Get One campaign in India compared with, say, the US or Europe? Right now, people in India will have to order it from Amazon UK, which takes more time and involves a £50 (about Rs2,500) shipping charge. The challenge is to create a distribution outlet within the country. We need a local retailer or an organization to order, say, 100,000 or 500,000 laptops and stock them here, so that it’s easier to ship within the country. And have you found such retailers or organizations? We’ve talked to people, and they’re willing to move in that direction. But philosophically we’re not ready. They have to respond to our value system. If they want to make money, that doesn’t work with us. We’ve had three offers so far. Are you apprehensive about launching this kind of scheme during such a dire economic situation? Well, yes, it’s dampened it a bit. Yes, times are tough, and yes, there’s an impact. But if full enthusiasm results in, say, 1,000 laptops ordered, it’s not like we’ll now be getting zero. We’ll get, maybe, a few hundred, for example. I don’t think the impact will be too severe. There’s been some criticism for trying to insert laptops into schools that lack even basic infrastructure, lack teachers, benches and textbooks… This has been a theoretical question, I think, not a practical one. What does a child learn in primary school today? Nothing. And I’m not talking about a Doon School child, but a normal, rural school. And what do you need to learn in primary school that you can use in life anyway? Reading, writing, arithmetic, maybe some painting and music—and there are programs for all of these on the laptop. Even if a school has no teacher, this is exciting and educational… You can’t wait for piped water to come to these children before you give them computers. For all you know, it may be another hundred years before they all get piped water. Two years ago, the ministry of human resource development said that expenditure “on a debatable scheme” such as One Laptop Per Child would be impossible to justify. What’s changed since then? Maybe India has grown up in two years, since that statement. The Sarva Shiksha Abhiyan programme has spent $2 billion—for that amount, every child in India could have one laptop. The difference is in the numbers; India is thinking in thousands of crores now, instead of hundreds of crores. A government’s view is also not cast in concrete necessarily. So you’ve met with a better response on this trip? Yes, we were told by the ministry to approach the state governments, and the education secretary said he would be open to trying laptops in, say, one class, not all five. State governments are excited. We’ve already been asked by one state to start pilot programmes of 10,000 laptops each in two of its districts. Source: Tech News - Livemint.com | 24 Nov 2008 | 7:29 pm Bigg Boss-2 helps Colors win top TV viewershipWith over 5.7 million viewers glued to the idiot box last Saturday, watching a rustic dhaba owner from Saharanpur Ashutosh Kaushik win the title and Rs 1 crore, the final episode of Bigg Boss-2 onSource: Business Standard | Front Page Headlines | 24 Nov 2008 | 7:11 pm No more oil bonds if crude price holds: FMIf crude oil prices stay at current levels, the Indian government would not be required to issue additional oil bonds to the four state-run oil marketing companies in the current financial year,Source: Business Standard | Front Page Headlines | 24 Nov 2008 | 7:09 pm Troubled Citi finally gets govt bailoutCitigroup Inc, facing the threat of a break-up or sale, received $306 billion of US government guarantees for troubled mortgages and toxic assets to stabilise the bank after its stock fell 60 per centSource: Business Standard | Front Page Headlines | 24 Nov 2008 | 7:08 pm Games2Win launches search engine for flash online gamesNew Delhi: Targeted at becoming one of the top 10 online entertainment companies by the end of 2009, Games2Win India has launched the world’s first global search engine for flash online games, Gamecurry. “Similar to Google, the website uses proprietary search and crawl engines and about 1.5 lakh games have already been indexed,” Games2Win CEO Alok Kejriwal said. Flash like Java provides platform on which certain internet-based programmes including online games are developed. Started in March 2007, the company had received a $5 million funding from Clearstone Venture Partners and Silicon Valley Bank. “We will use the funds to set up a sales office in the US as we grow,” Kejriwal said. Games2Win currently has two sales offices in Delhi and Bangalore and employs about 50 people. The company expects to start making profits from March 2010. “The gaming industry in India is still at a nascent stage. There is a high gestation period but given our popularity, we expect to start making profits from March 2010,” he said. Games2Win, with a business presence in 200 countries, is now focussing on developing global games. “Our focus is to develop games keeping in mind the global audiences. We had games specific to India and now we are looking at international audiences,” he said. Games2win is ranked 40 in the most popular online gaming destinations in the world list (comScore September 2008). A Nasscom report says that by the end of 2008, the gaming industry in India which is expected to value at $212 million, will reach $1,060 million by 2012 at a CAGR of 50%. Source: Tech News - Livemint.com | 24 Nov 2008 | 2:49 pm
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