Indian Business Headlines for May 10, 2009

Global hoteliers look east as recession bites

DUBAI (Reuters) - Global hoteliers are pinning their hopes on the east's underserved leisure markets to offset falling revenue as holidaymakers and business travellers cut back to save money in the global downturn.

Source: Reuters: Money News | 10 May 2009 | 2:05 pm

Iraq says will export oil from Kurdish fields

BAGHDAD/SULAIMANIYA, Iraq (Reuters) - The Iraqi oil ministry will begin exporting oil from fields in semi-autonomous Kurdistan, an official said on Sunday, heralding a breakthrough in a bitter feud over control of Iraq's oil wealth.

Source: Reuters: Money News | 10 May 2009 | 1:58 pm

Kremlin top job depends on crisis handling - Putin

MOSCOW (Reuters) - Vladimir Putin, Russia's prime minister, indicated on Sunday that the handling of the economic crisis would play a major role in determining whether he or President Dmitry Medvedev ran for the top Kremlin post in 2012.

Source: Reuters: Money News | 10 May 2009 | 1:56 pm

Mamata says no to post-poll alliance that has Left

Kolkata: In a tough message to ally Congress, Trinamool Congress chief Mamata Banerjee on Sunday said that her party would not be a part of any post-poll arrangement at the Centre which has Left parties in it and also ruled out any truck with the BJP.

“If the Left forms an alliance with the Congress, we will not go. Nor will we go along with the BJP,” she said in remarks which are significant in the wake of the recent Congress overtures to the Left.

“It is not possible for us to go along with CPI(M.) It is also not possible to go with the BJP,” she told reporters at the Kolkata Press Club.

She said her party had “no ties” with the BJP and expressed confidence that Congress would form the government without Left support.

“I believe that Congress will not need support from CPI-M and there is no question mark over our alliance with Congress,” the Trinamool chief said.

Mamata made it clear that the alliance between her party and the Congress was on.

Source: LatestNews-Home - Livemint.com | 10 May 2009 | 1:45 pm

TRS dumps Third Front, declares support for NDA

Ludhiana: Dumping the Third Front, TRS chief Chandrasekhar Rao on Sunday declared his support for the BJP-led NDA and vowed to bring others to join it.

“We will not only support NDA with an open heart but also rope in others to support it,” Rao told an NDA rally here, two months after he had joined Left and other leaders in launching the Third Front.

The Telangana Rashtriya Samiti, which parted with the UPA in 2006 on the statehood issue of Telangana and fought the elections in alliance with the Left parties and TDP in Andhra Pradesh, also accused the Congress and Prime Minister Manmohan Singh of “betraying” the people of Telangana.

Rao shared the dais with senior BJP leaders L K Advani, Narendra Modi, JD(U) leader Nitish Kumar and SAD chief Parkash Singh Badal.

Source: LatestNews-Home - Livemint.com | 10 May 2009 | 1:28 pm

JLR to launch models if get funds: Ratan Tata

London: India’s leading industrialist Ratan Tata has said he would like to see Jaguar Land Rover coming out with new products, including a sports car, provided his cash-starved company gets access to funds.

In an interview to the Sunday Times, Tata said Jaguar has dusted off plans for a sports car. “The E-type was iconic, so we have resurrected it,” Tata said, adding that his company has also accelerated development of fuel-efficient hybrids.

Tata added that though he plans to come out of the recession with these new products in place but it would be remorseful if the meltdown continues and the company cannot get access to funds.

“The first thing that will happen will be that these products will go on hold and we will come out of the recession just as we went in,” Tata told the Sunday Times.

He added, “I had hoped we would come out of it a new company.”

In this regard the Sunday Times said, “remorse looks more likely” as having failed to raise bank loans to ease JLR through a disastrous slump in sales, Tata has asked the government for financial assistance.

So far the response from the government has been lukeworm, as the British government has come out with some imposing conditions which Tata does not like. “Unless the gulf can be bridged, the new E-type risks being parked on the drawing board,” the report said.

Source: LatestNews-Home - Livemint.com | 10 May 2009 | 1:10 pm

JLR to launch models if get funds: Ratan Tata

Tata added that though he plans to come out of the recession with these new products in place but it would be remorseful if the meltdown continues and the company cannot get access to funds.

“The first thing that will happen will be that these products will go on hold and we will come out of the recession just as we went in,” Tata told the Sunday Times.

He added, “I had hoped we would come out of it a new company.”

Source: World Business - Livemint.com | 10 May 2009 | 1:10 pm

Corus, JLR acquisitions at inopportune time: Tata

Ratan Tata has said his two acquisitions -- Anglo Dutch steelmaker Corus and British Marquee Jaguar Land Rover - were done at an "inopportune time"
Source: Daily News & Analysis: Money News | 10 May 2009 | 12:59 pm

Indian cos world's most reputed; Tatas above Google, Microsoft

They may not be as big as their global peers in terms of revenue and profits, but Indian companies are top of the lot in terms of their reputation.
Source: Daily News & Analysis: Money News | 10 May 2009 | 12:56 pm

Recession threatens West Asia oil exporters: IMF

Dubai: The economies of West Asia oil exporters are likely to suffer from a possible prolonged global recession as demand for the region’s main export wanes, the International Monetary Fund (IMF) said on Sunday.

Government expenditure, however, should mitigate the slowdown, the IMF said in a report released in Dubai.

Arab states in the Gulf and other oil exporters in the West Asia (Middle East) were previously seen as less vulnerable to financial turmoil as they were cushioned by accumulated windfall revenues from oil.

But with a continued oil price slide, those governments will be less inclined to maintain robust public spending, a key policy in mitigating the fallout from the economic downturn, the report said.

“A major risk to the economic outlook is the possibility of a prolonged recession. This would keep oil demand and prices low,” it said.

“If MEOE (Middle East Oil Exporters) governments come to believe that oil prices will remain depressed for a prolonged period of time, they are likely to reduce their spending to maintain fiscal sustainability.”

Although oil has lost $100 since peaking at a record $147 a barrel in July, MEOE states have maintained a high level of capital spending, going from a massive collective surplus of $400 billion last year to a projected deficit of $10 billion in 2009, it said.

Economic growth rates in Middle East oil exporters are expected to decline significantly although public expenditure should moderate the slowdown in non-oil growth, the IMF said, projecting real gross domestic product for those countries to grow 2.3% this year compared to 5.4% in 2008.

GDP growth rate in Arab countries in the Gulf, the world’s top oil exporters, is expected to slow by more than one third to 1.3% this year, according to the IMF.

The economies of the region are, however, expected to fare better than the economies of the European Union and the United States, which are expected to shrink 4.0% and 2.8% respectively, the IMF said.

“The reason why despite this drop in oil prices, they continue to do reasonably well is because most of them are using the reserves they’ve accumulated during the boom years to continue to maintain the level of public spending,” Masood Ahmed, director of the IMF’s Middle East and Central Asia Department, said at a panel discussion in Dubai.

“This continued public spending during the downturn is protecting their own economies and is also having positive spillover effects on neighbouring countries.”

Gulf Arab countries, for example, have witnessed a six-year oil-fuelled economic boom, triggering a rally in the real estate and financial sectors.

With the onset of the global financial crisis, governments in that region have stepped up spending to ramp up their economies.

Saudi vowed in late 2008 to maintain spending on major projects despite the global financial crisis, forecasting spending at 475 billion riyals ($127 billion) for this year.

The UAE, the second-biggest Arab economy, expected total spending across all sectors fully controlled by the government to hit 135 billion dirhams ($36.8 billion) this year, an 11% increase over 2008.

The IMF report identified Middle Eastern oil exporters as Algeria, Iran, Iraq, Libya, Sudan and Yemen and the six states of the Gulf Cooperation Council - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Source: LatestNews-Home - Livemint.com | 10 May 2009 | 12:48 pm

Hindustan Unilever Jan-Mar profit soars 3.68%

Mumbai: Hindustan Unilever Ltd on Sunday reported a 3.68% increase in standalone net profit at Rs394.99 crore for the quarter ended 31 March 2009.

The company had a standalone net profit of Rs380.95 crore in the corresponding quarter of the previous fiscal, HUL said in a statement.

Total income of the company went up to Rs4,035.37 crore during the reporting quarter from Rs3,839.88 crore during the quarter ended 31 March 2008, it said.

Net sales stood at Rs3,988.33 crore for the quarter ended 31 March 2009, against Rs3,762.58 crore in the corresponding quarter previous fiscal.

However, exports during the March quarter of 2008-09 dropped to Rs218.56 from Rs397.32 crore in the same quarter previous fiscal.

Source: LatestNews-Home - Livemint.com | 10 May 2009 | 12:32 pm

Yamuna Bank Metro opens, environmentalists up ante

The Yamuna Bank metro extension, a gateway to the east Delhi metro lines, was opened to the public here Sunday amid anxious attempts by environmental activists to stop further construction as it caused 'irreparable damage to the ecology'.
Source: IndiaeNews.com: Business News | 10 May 2009 | 12:30 pm

Maruti not decided on phasing out 800, Omni!

Maruti Suzuki on Sunday said it has not yet taken a call on phasing out its successful cars 800 and Omni.
Source: Zee News : Business | 10 May 2009 | 12:13 pm

Mobile banking yet to take off among Indian banks!

The much-touted mobile banking is yet to take off in the Indian banking industry on account of lack of customer awareness and staff training.
Source: Zee News : Business | 10 May 2009 | 12:13 pm

Tata AIG to ramp up operations, aims 15% premium income growth!

Aiming to clock around 15 per cent growth in premium income in the current fiscal, Tata AIG General Insurance said it will take a slew of measures.
Source: Zee News : Business | 10 May 2009 | 12:13 pm

Hindustan Unilever Q1 net profit up 3.7 pct

MUMBAI (Reuters) - Hindustan Unilever Ltd, India's biggest consumer goods maker, said on Sunday its net profit in the first three months of the year rose 3.7 percent, a result which fell short of forecasts, mainly due to provision for retirements and restructuring costs.

Source: Reuters: Money News | 10 May 2009 | 11:56 am

DoT notifies mobile number portability; service from 20 Sept

New Delhi: Come September, cellphone users in some parts of the country, including the four metros Delhi, Mumbai, Kolkata and Chennai, will have the facility to switch operators even while retaining their existing number.

The department of telecommunications (DoT) has issued a notification in this regard saying, “Mobile Number Portability is to be implemented in Delhi, Mumbai, Maharashtra and Gujarat Service areas of Zone I and Kolkata, Tamil Nadu, Chennai, Andhra and Karnataka of Zone 2 within six months of award of licence by September 20, 2009, and in the rest of the country by March 20, 2010”.

Syniverse Technologies (Zone 1) and MNP Interconnection (Zoin 2) are the two companies who have been licenced by the DoT to carry out the MNP exercise.

The DoT said TRAI will decide on all kinds of tariffs related to MNP like the transaction fee to be charged from the customer for seeking change of number.

But sources said number portability charges are likely to be below Rs 300 and it will take maximum two days to change the service provider.

TRAI is learnt to be keen to keep the cost at a reasonable level so as not to discourage subscribers willing to change their service provider and at the same time make it a viable business model for the service providers.

Source: LatestNews-Home - Livemint.com | 10 May 2009 | 11:40 am

Hindustan Unilever net profit up 3.68% to Rs 394.99 cr

Hindustan Unilever Ltd on Sunday reported a 3.68% increase in standalone net profit at Rs 394.99 crore for the quarter ended March 31, 2009.
Source: India Business News | Business News - Times of India | 10 May 2009 | 11:29 am

Income-tax returns in four months now

New Delhi: Individual and small corporate taxpayers will get income or corporate tax refunds in four months, with the refund banker scheme spreading across the country soon.

The refunds, arising out of tax payments and TDS collections, usually take more than a year to reach the average taxpayer.

“Tax and TDS refunds will now reach the individual and small (corporate) taxpayers in about four months (by August 2009). The refund banker scheme may also be implemented across the country,” a senior finance ministry official said.

Taxpayers who have filed their returns for the assessment year 2008-09 should now write to their area Income-Tax Assessment Officers quoting their magnetic ink character recognition (MICR) codes (used in the banking industry to facilitate cheque processing) and vital bank account details.

This will help the department to send refunds quickly in any part of the country, the official added.

Officials in the income tax department also added fast and quick refunds have been made possible this time as the department has finished the process of “data migration” to its central servers from its offices across the country.

The department said while the taxpayer will get back his money back in “good time”, defaulters will be served tax demand notice in the same (four-month) period.

“Tax defaulters should beware because while the department has initiated the process of sending refunds, it has also fast tracked demand notices to be sent to defaulters,” the official said.

Currently the refund banker scheme is operational in six cities -- New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Patna -- with the country’s largest, public sector bank -- the State Bank of India (SBI) -- crediting the amount due to the bank accounts of taxpayers.

A finance ministry official, however, said refunds related to corporate taxpayers may take more time than those for individuals as more procedures are to be followed.

Source: LatestNews-Home - Livemint.com | 10 May 2009 | 11:20 am

IPL valued at over $2 bn; KKR richest team

New Delhi: Shahrukh Khan’s Kolkata Knight Riders may be struggling at the bottom in the second season of Indian Premier League, but in terms of brand value it is the richest team of the twenty-twenty cricket tournament, whose collective valuation has been now pegged at $2 billion.

At the same time, Rajasthan Royals, partly owned by another Bollywood star Shilpa Shetty, has emerged as the best team in terms of return on investment, although it is ranked third in terms of brand value.

The valuation exercise of the entire IPL franchise, along with the individual teams, have been conducted by UK-based international brand valuation consultancy Brand Finance Plc.

“The entire enterprise is valued at $2.01 billion,” Brand Finance said, adding, its methodology took into account various revenue lines such as broadcasting, IPL sponsorship, team sponsorship, merchandising and gate receipts as well as the effect of performance, the catchment population of the city, the capacity of the stadium and the presence of iconic players.

Among the eight teams, KKR has been ranked as the most valued with a brand value of $42.1 million, followed by Mumbai Indians ($41.6 million), Rajasthan Royals ($39.5 million), Chennai Super Kings ($39.4 million), Delhi Daredevils ($39.2 million), Royal Challengers Bangalore ($37.4 million), Kings X1 Punjab ($36.3 million) and Hyderabad Deccan Chargers ($34.8 million).

In the ongoing tournament, KKR is, however, ranked at the bottom with just one win out of the nine matches played so far, while Chennai Superkings is leading the tally.

In terms of franchise fees, Mumbai Indians is the most expensive team ($111.9 million), followed by Vijay Mallya- owned Royal Challengers ($111.6 million), Deccan Chargers ($107 million), Chennai Super Kings ($91 million), Delhi Daredevils ($84 million), Kings X1 ($76 million), KKR ($75.1 million) and Rajasthan Royals ($67 million).

“Despite propping up the bottom of this year’s edition of the IPL taking place in South Africa, the Kolkata Knight Riders are the most valuable franchise brand at $42.1 million. Celebrity co-owner Shah Rukh Khan’s hard-selling of the KKR brand has counteracted the team’s poor on-field performance,” Brand Finance said.

At the same time, Rajasthan Royal’s brand value of $39.5 million at 59% of its franchise fee of $67 million, makes the reigning champions IPL’s most profitable investment.

“When determining our brand ratings we have paid particular attention the ability of the franchises to generate advertising revenue, as well as the potential size of their support base. Rajasthan and Kolkata scored highly in these respective measures,” Brand Finance’s sports analyst Alexander Bird said.

“The success of each franchise will ultimately depend on its ability to attract and retain supporters who come to watch the team, and not just the players,” Bird added.

The IPL brand alone has a value of over $311 million and has generated huge economic value for its owner, the Board of Control for Cricket in India, and the eight team franchisees, Brand Finance said in its report.

“The ultimate proof of the success of the IPL Branded System will come when the franchisees decide to list their teams. This is a real possibility in the next 2-3 years,” Brand Finance India managing director Unni Krishnan said.

In terms of sponsors Mumbai Indians can boast of having the maximum number as many as 11 of them -- Master Card, Idea, Royal Stag, Pepsi, Adidas, Zandu Balm, Gitanjali Jewellers, Red FM, Orbit, Luminous and Kingfisher.

While Shah Rukh Khan’s Kolkata Knight Riders has 10 sponsors - Nokia, Star Plus, Sprite, Reebok, TagHeuer, Belmonte, Gitanjali, Wrigley’s Orbit, BILT and Planet M.

Meanwhile, Rajasthan Royals, though has the support of bollywood star Shilpa Shetty and is owned by Emerging India has only three sponsors -- Kingfisher, Boost and Puma.

Preity Zinta’s team Kings XI Punjab has sponsors like - Emirates, Gulf Oil, netlinkblue, Dabur, Apeejay Group, Wrigleys and Reebok.

Source: Home - Livemint.com | 10 May 2009 | 10:52 am

Vodafone to get DoT notice over subscriber verification process

New Delhi: In an effort to ensure that India’s phone service firms are in compliance with the subscriber conditions in their licence agreements with the Union government, the department of telecommunications, or DoT, has decided to send a notice to a Vodafone Essar Ltd unit over discrepancies found in the operator’s subscriber verification practices.

Vodafone Essar Digilink Ltd is the name of the company under which India’s third largest mobile phone operators by subscribers, Vodafone Essar Ltd, offers services in service areas of Rajasthan, eastern Uttar Pradesh and Haryana.

“We have found a number of discrepancies in the verifications done over the past year. We are in the process of sending letters to all the operators with who discrepancies were found as part of tests carried out over the last one year in the different circles,” a senior DoT official said on the condition of anonymity as the person is not authorized to speak to the media. “The letters should go out within the next 10 days.” Mint reviewed the letter to be sent to Vodafone Essar Digilink.

A Vodafone Essar spokesperson, contacted late on Saturday, said he would not be able to comment until Monday.

DoT, worried over the use of mobile phones by criminals, had asked cellular firms to disconnect services to customers who did not have documentation, such as a proof of address, which is mandated under government rules before issuing a connection, by 31 March, 2007. The DoT had fixed a penalty of Rs1,000 for each unverified subscriber and had also asked phone firms to physically verify each subscriber.

According to a report by the vigilance and telecom monitoring cell of DoT for the eastern Uttar Pradesh service area, verification of bonafide subscribers is done by dialing 10% of the activations. In this exercise, it was found that 40% of verifications in March 2008 and 25% in April that year were found faulty. “This indicates that the licencee is not ensuring adequate verification of subscribers before enrolling them as subscribers,” the cell said in a letter.

India has some 400 million mobile phone customers, second only to China.

Source: LatestNews-Home - Livemint.com | 10 May 2009 | 10:44 am

100,000 expected to flee Pakistan anti-Taliban offensive

Peshawar: More than 100,000 civilians were expected to flee Pakistan’s battle-torn northwest Sunday, after the government eased a curfew so people could escape a military onslaught against the Taliban.

Aid agencies fear a humanitarian disaster as security forces pound insurgent hideouts in the scenic Swat valley, a former ski-resort northwest of Islamabad torn apart by a two-year insurgency by the Islamist hardliners.

Up to 500,000 desperate people are already believed to have left their homes in Swat and nearby Lower Dir and Buner districts, the United Nations refugee agency has said, crowding into hastily-set up camps.

With the government unable to provide transport for the panicked diaspora, witnesses said people were grabbing what they could and streaming into thousands of vehicles or setting off on foot with their meagre belongings.

The easing of the curfew began at 6:00am (0000 GMT) in Swat and Malakand, and has been extended to 3:00pm because of the numbers trying to flee, a military official said.

“We expect more than 100,000 people will quit their homes at different places in Swat today,” local administration chief Khushhal Khan told AFP.

The government has said it was bracing to cope with half a million people displaced by the fighting.

Information minister Mian Iftikhar Hussain on Saturday appealed to the international community to help Pakistan cope with the flood of refugees.

“The situation at the camps is very worrisome because the weather is hot and people are facing many difficulties,” Hussain told a news conference. “It is very difficult to control sentiments while seeing children crying in the camp,” he added.

Thousands of Pakistani troops backed by warplanes and helicopter gunships are involved in the massive operation against Taliban and extremist fighters in the area, where jet fighters were pounding suspected rebel hideouts.

Khan said the government had made no arrangements for the transportation of the more than 100,000 civilians expected to flee Sunday, but had set up five more camps in North West Frontier Province where the displaced will be lodged.

Pakistani security forces mounted operations across three districts late last month after the hardline Taliban advanced to within 100 kilometres of Islamabad, despite a February ceasefire with the rebels.

Prime Minister Yousuf Raza Gilani said on Saturday that the army would minimise civilian casualties while the government would look after the displaced, but people streaming out of the area say homes have been hit with many killed.

Pakistan’s military says they have killed nearly 200 militants since Friday, although the death tolls could not be confirmed independently because of the ongoing military operation.

The fighting has sunk the controversial February deal between the government and an Islamist hardliner that aimed to put three million people under sharia law in a bid to end the Taliban uprising.

Critics in Washington said the deal emboldened the Taliban and have welcomed the renewed military offensive, which also has broad public support.

Source: Home - Livemint.com | 10 May 2009 | 10:35 am

Kingfisher to fly from Bangalore to Dubai from next month

Kingfisher Airlines will start flying daily from India's technology hub Bangalore to Dubai from June 25.
Source: Daily News & Analysis: Money News | 10 May 2009 | 10:30 am

Honda to bring products with India-specific engines

New Delhi: Japanese car giant Honda will explore possibilities to bring in products powered by India-specific engines like it has planned with the small car -- Jazz, which will be launched in the country in June.

“The Jazz, which will be launched in India this June, has an engine, which has been specially developed for India keeping in mind the conditions here,” said Honda Siel Cars, India, vice president (marketing), Jnaneswar Sen.

The Japanese firm, which is present in India through a joint venture with the Siel Group, has already launched the Jazz in the UK with the same India-specific 1.2 litre petrol engine, generating 90 PS power, he added.

Asked if the company would develop more products specially meant for the Indian market, Sen said: “As and when the opportunity arises, we cannot rule out such a possibility. All our products are introduced after detailed study.”

He, however, said currently there were no plans to introduce more India-specific products apart from the Jazz.

Sen said as per Automotive Research Association of India (ARAI) certification, the Jazz would give a mileage of 16.1 km per litre under standard testing conditions.

The new small car would be positioned as a premium hatchback as Honda looks to strengthen its presence in the Indian market. The company currently sells premium sedans -- City, Civic and Accord, alongwith sports utility vehicle CR-V.

Source: Home - Livemint.com | 10 May 2009 | 10:29 am

IPL valued at over $2-bn; KKR richest team

The IPL brand alone has a value of over USD 311 million and has generated huge economic value for its owner, the BCCI.
Source: Daily News & Analysis: Money News | 10 May 2009 | 10:27 am

Satyam paid tax on fictitious interest income: SFIO

New Delhi: Satyam paid Rs186.91 crore as tax over seven years on fictitious interest income on non-existent fixed deposits, said the Serious Fraud Investigation Office (SFIO) in its report on the accounting scam in the IT firm.

Satyam Computer Services, under the leadership of its founder B Ramalinga Raju, paid excess tax on fictitious interest income from 2000-01 to 2007-08 on non-existent fixed deposits to prevent any “systematic falsification of accounts” from getting detected, said the SFIO report, the investigation arm of the Corporate Affairs Ministry.

Satyam, in the centre of the biggest accounting fraud in the country ever, is alleged to have shown fake fixed deposits of Rs3,318.37 crore on its books of account, while the company had FDs worth only Rs9.96 crore.

“The amount of excess taxes paid by the company between the financial year 2000-01 and 2007-08 is found to be Rs 186.91 crore, as worked out by investigation,” the SFIO said in its report.

Noting that the Raju brothers (B Ramalinga Raju and B Rama Raju) were aware that no tax was payable on the false interest income, the report said “they deliberately misused the funds of the company to the detriment of its shareholders in making payment of taxes which were not due”.

Source: Home - Livemint.com | 10 May 2009 | 9:57 am

India can comfortably grow 7-8 pct - former RBI head

MUMBAI (Reuters) - India should emerge from its downturn ahead of developed economies, with recovery depending on an export revival as falling external demand was the main reason for slowing growth, the former head of the Reserve Bank of India (RBI) said.

Source: Reuters: Money News | 10 May 2009 | 9:54 am

Multiplex strike sets DVD, VCD market busy

New Delhi: The ongoing tussle between film producers and multiplex owners, that has affected the release of new films, seems to be a blessing in disguise for DVD and VCD market.

The cash box of the DVD and VCD market is ringing as there is a surge in sales of movie CDs with people preferring to buy cartoon films and old Hindi and Hollywood movies, industry insiders say.

“There is a surge in the sales of DVDs after the multiplex strike. Customers arrival have increased with new releases much in demand,” Suhas Zafrani, Store Manager of Planet M in Connaught Palace said.

“People want to be entertained and relaxed and as multiplexes are not screening new releases, many are spending their qualitative time watching Bollywood and Hollywood movies at home with their families,” said Zafrani.

Sandeep Sharma, Store Manager of Music World, said, “the awareness among people for DVDs and the rental VCDs have risen this year, which was somewhat missing in past few years. Strike has benefitted us and business is good this summer.”

The strike began on 4 April after Bollywood producers failed to resolve their differences with multiplex owners over sharing of box office revenues.

Producers are calling for a 50:50 split in revenues, but the multiplex owners want the cut on the basis of a performance-based model.

Cartoons are a big hit this season among children where DVDs of animated Hindi movies like Jumbo, The Jungle Book and Hanuman are much in demand.

Hollywood cartoon movies such as Scooby-Doo, Star Trek and Kungu Fu Panda are also favourite among them, said a DVD and VCD store owner in South Delhi.

Many old Hindi films are also in demand as people are looking at other options for entertainment as they can’t go to see films in multiplexes, the store-owner said.

According to a recent KPMG report on the Indian entertainment industry, the DVD market was estimated to be worth Rs8.6 billion in 2008 and may reach Rs16 billion by 2013.

With Moser Baer already dominating the home entertainment industry for the past three years, Corporate giant Reliance Anil Dhirubai Ambani Group’s bigflix.com has also started giving a tough fight to its rivals.

Source: LatestNews-Home - Livemint.com | 10 May 2009 | 9:46 am

Satyam paid tax on fictitious interest income: SFIO

Satyam paid Rs 186.91 crore as tax over seven years on fictitious interest income on non-existent fixed deposits.
Source: Daily News & Analysis: Money News | 10 May 2009 | 9:28 am

Tatas ranks more reputed than Google, Microsoft

New York: They may not be as big as their global peers in terms of revenue and profits, but Indian companies are top of the lot in terms of their reputation, as per a study that has ranked Tatas as more reputed than the likes of Google, Microsoft, Coca-Cola, GE and Walt Disney.

Noting that the world looks to “corporate India to find trust, admiration and good feeling,” the US-based brand and reputation management consulting firm Reputation Institute has named five Indian firms among the top-50 in its annual list of the world’s most reputed companies.

While the global list has been topped by Italy’s chocolate maker Ferrero, Sweden’s retailer IKEA, and Johnson & Johnson in the US, the Tata group has been ranked 11th.

Among Indian companies, Tatas are followed by State Bank of India (29), Infosys (39), Larsen & Toubro (47) and Maruti Suzuki (49th).

There are 22 other Indian companies on the list of 600 largest companies, ranked in terms of their reputation.

“Corporate India has the best reputed companies. Of the 27 Indian companies ranked among the 600 largest in the world, almost 90 per cent received scores above the global mean, with five ranking among the Top 50,” the Reputation Institute said in its annual study for 2009.

Only the US had more number of companies in the top-50 (17 companies), the report noted. In terms of overall presence also, the US had five times the number of companies in the list than India.

The list is made on the basis of admiration, trust and good feeling that consumers have towards a company.

Other Indian companies on the list include - Hindustan Unilever (70th rank), ITC (96), Canara Bank (103), HPCL (112), Indian Oil (113), Wipro (117), Reliance Group (133), Mahindra & Mahindra (138), Bharti Airtel (164), Bank of Baroda (175), BPCL (176) and Punjab National Bank (178).

The report did not clarify whether the Reliance group means the Mukesh Ambani Group or Anil Ambani group of companies.

The report revealed that corporate trust is higher in the emerging markets, while companies in industrialised markets are trusted less.

“Proportionally, the largest companies in Brazil, Russia, India and China (BRIC) enjoy a stronger emotional connection with consumers than the largest companies in the industrialized world,” it added.

Out of the 289 companies from the US, Japan, the UK, France and Germany, 45% have reputations below the global average, while only 34% of the 142 companies from BRIC nations have below-average reputations, with Chinese companies dragging down the BRIC average substantially.

Industrial and Commercial Bank of China saw the largest gain in reputation, 16.38 points from 2008 to 2009, while AIG lost the most reputation capital with a drop of 27.52 points.

Internet giant Google has been ranked at the 23rd position, while Microsoft grabbed the 30th rank and Walt Disney was at 21st place. Nokia is at 45th, PepsiCo is 46th and GE is ranked 50th.

In 2008, Toyota and Google were number one and two, they now rank 59th and 23rd, respectively.

Source: Home - Livemint.com | 10 May 2009 | 9:08 am