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Grasim board approves cement biz demerger into SamruddhiThe Grasim board that met today, has decided to demerge its cement business into its arm Samruddhi. Grasims shareholders would get one share of Samrudhhi for every one held.Source: Moneycontrol Top Headlines | 3 Oct 2009 | 9:16 am Ashok Leyland to up CV prices by 11.5%Ashok Leyland is looking at increasing prices of commercial vehicles by about 1.5% due to pressure from rising input costs, reports CNBCTV18.Source: Moneycontrol Top Headlines | 3 Oct 2009 | 8:31 am GrasimUltraTech to meet today to discuss recast offerThere is a major restructuring on the cards at the AV Birla group. Reports suggest that the group is looking at recasting its cement businessa move that could involve merging its entire cement business into UltraTech.Source: Moneycontrol Top Headlines | 3 Oct 2009 | 6:22 am US stocks fall following disappointing jobs report!Investors retreated further from stocks Friday as the pile of disappointing economic reports grew larger.Source: Zee News : Business | 3 Oct 2009 | 6:09 am IBM email challenges Google in the `cloud`!IBM on Monday will begin offering businesses a basic "cloud computing" email service at a price that undercuts a plusher offering by Google.Source: Zee News : Business | 3 Oct 2009 | 6:09 am Three more US banks closed, nearly 100 for year!Three US banks failed on Friday, bringing the total to 98 this year, as regulators continue to shutter financial institutions.Source: Zee News : Business | 3 Oct 2009 | 6:09 am Global crisis: G-7 financial chiefs to meet in Turkey !G7 fin chiefs will assemble on Saturday in Turkey for a regular but unusually short gathering to reaffirm their commitment to resolving global crisis.Source: Zee News : Business | 3 Oct 2009 | 6:09 am Generous pay for new Freddie Mac CFO!The pay package given to Freddie Mac`s new CFO should`ve sent a message from Washington to corporate USA about how exec compensation standards must change.Source: Zee News : Business | 3 Oct 2009 | 6:09 am Suspect in Letterman extortion pleads not guilty!A TV producer pleaded not guilty on Friday to a USD 2mn extortion attempt against talk show host David Letterman.Source: Zee News : Business | 3 Oct 2009 | 6:09 am Forbes India: How Shahnaz Husain made beauty her businessShahnaz Husain has singlehandedly built a business empire selling Ayurveda products. Here, she speaks with Forbes India about her journey so far and succession plan.Source: Moneycontrol Top Headlines | 3 Oct 2009 | 5:45 am CPI-M forms a 500-kilometre long human chain against ASEAN pact - Sify
Source: Business - Google News | 3 Oct 2009 | 4:15 am GE to merge all healthcare units into Wipro JV - domain-B
Source: Business - Google News | 3 Oct 2009 | 4:06 am Parsvnath Developers raises Rs 168 cr via QIP - Business Standard
Source: Business - Google News | 3 Oct 2009 | 4:04 am Grasim to demerge cement business - India Infoline.com
Source: Business - Google News | 3 Oct 2009 | 4:01 am Europe faces many years of weak growth: IMFEurope will feel the effects of the global economic and financial crisis well beyond the next year, hampered by slower growth and high unemployment, the International Monetary Fund (IMF) said Friday.Source: IndiaeNews.com: Business News | 3 Oct 2009 | 3:30 am RBI may hike key rates early next fiscalThe central bank may unwind its accommodative monetary policy by hiking key rates in the first quarter of FY2011, say bankers and economists.Source: Moneycontrol Top Headlines | 3 Oct 2009 | 2:59 am The timeless appeal of a real heroGoogle has used a sketch of Mohandas Karamchand Gandhi on its homepage in most countries. Billboards have sprung up in Mumbai showing Gandhiji in his traditional dhoti above the image of a Mont Blanc pen.Source: Moneycontrol Top Headlines | 3 Oct 2009 | 2:53 am Pvt airlines try to poach AI's striking pilots, unsuccessfully - Economic Times
Source: Business - Google News | 3 Oct 2009 | 1:50 am Second phase of Baglihar hydel project to start in six monthsThe Jammu and Kashmir government is planning to start work on the second phase of the Baglihar hydroelectric project in Ramban district in six months to boost the power generation capacity of the state, an official said.Source: IndiaeNews.com: Business News | 3 Oct 2009 | 1:31 am DIARY-G7, IMF and World Bank meetings in Istanbul - Reuters
Source: Business - Google News | 3 Oct 2009 | 12:19 am Maoist strike hits life in ChhattisgarhA daylong nationwide strike called by Maoists hit life in Chhattisgarh's trouble-torn Bastar region Saturday as buses stopped plying and guerrillas blocked key roads even as thousands of security personnel were deployed in the area and in the state capital here.Source: IndiaeNews.com: Business News | 3 Oct 2009 | 12:00 am Soon, investors can get unclaimed dividends after the 7-year periodNew Delhi, Oct. 2 In a move that will bring smiles to investors, the new Companies Bill will allow shareholders get dividends they have not claimed even after the stipulated period of seven years, and with interest too.Source: Business Line - Home Page | 3 Oct 2009 | 12:00 am Sugar shortage to continue till 2011Mumbai, Oct. 2 Sugar exporters around the world and speculators in the futures market closely watching developments in India have more than one reason to smile.Source: Business Line - Home Page | 3 Oct 2009 | 12:00 am Govt’s job guarantee scheme gets the Mahatma tagNew Delhi, Oct. 2 On a day the nation remembered Mahatma Gandhi on his 140th birth anniversary and commemorated the Golden Jubilee of Panchayati Raj institutions, the Government rechristened its flagship programme the National Rural EmploymentSource: Business Line - Home Page | 3 Oct 2009 | 12:00 am Without cement, Grasim’s earning structure may weakenMumbai, Oct. 2 The Aditya Birla group’s plan to spin off Grasim Industries’ cement business into a separate entity and merge it with its subsidiary, UltraTech Cement, could dilute the earnings potential of Grasim which derives aboutSource: Business Line - Home Page | 3 Oct 2009 | 12:00 am GE integrates all healthcare units with Wipro joint ventureTo accelerate the growth of its $17-billion global healthcare business, General Electric (GE) on Friday announced its decision to integrate all its GE Healthcare units in India and South Asia with the existing Wipro GE Healthcare joint venture.Source: Business Line - Home Page | 3 Oct 2009 | 12:00 am Fall in MF assets under management in SeptMumbai, Oct. 2 The mutual fund industry’s assets under management declined in September even as equity markets touched a 17-month high of 17,000 during theSource: Business Line - Home Page | 3 Oct 2009 | 12:00 am US agency puts Bay under cyclone watchThiruvananthapuram, Oct. 2 The Climate Prediction Centre of the US National Weather Services has put the Bay of Bengal under cyclone watch during October 7-12 due to what looks like an extension of linearly progressive turbulent weather from theSource: Business Line - Home Page | 3 Oct 2009 | 12:00 am Labour unrest at Gurgaon-Manesar auto parts units continuesNew Delhi, Oct. 2 With a total of 25,000-30,000 workers of auto ancilliary units in the Gurgaon-Manesar belt agitating for around six days now, major auto companies depending on these units for component supply are in for toughSource: Business Line - Home Page | 3 Oct 2009 | 12:00 am Loopholes in the gift tax regimeThe new gift tax regime that seemingly is comprehensive enough to rope in all kinds of gifts as against the previous regime that taxed only gifts in the form of money came into force with effect from October 1. Incidentally, the onset of the newSource: Business Line - Home Page | 3 Oct 2009 | 12:00 am RBI may hike key rates early next fiscalMumbai, Oct. 2 The central bank may unwind its accommodative monetary policy by hiking key rates in the first quarter of FY-2011, say bankers andSource: Business Line - Home Page | 3 Oct 2009 | 12:00 am Nissan Unveils Sketch Of Its Global Compact Car - Stock Watch
Source: Business - Google News | 2 Oct 2009 | 11:51 pm 'US now has better understanding of India's stand on climate' - Business Standard
Source: Business - Google News | 2 Oct 2009 | 10:49 pm MF assets dip as corporates pull out funds - Economic Times
Source: Business - Google News | 2 Oct 2009 | 7:18 pm General Motors India posts 49% growth - Indian Express
Source: Business - Google News | 2 Oct 2009 | 5:46 pm Merck's key drug comes under US FDA scannerDrug regulator has raised fears of link between Januvia and pancreatitis.Source: Daily News & Analysis: Money News | 2 Oct 2009 | 3:24 pm 3i Infotech may restructure debt3i Infotech, the mid-cap IT services firm, which recently raised Rs 317 crore through a qualified institutional placement, may restructure its existing debt of about Rs 1,200 crore.Source: Daily News & Analysis: Money News | 2 Oct 2009 | 3:22 pm Why Honda Jazz is not sellingPricing seems to be the issue with the premium hatchback, which is also losing volumes to Honda's other brand, City.Source: Daily News & Analysis: Money News | 2 Oct 2009 | 3:19 pm Eveready lines up Uniross revampIndian co working on system integration, debt restructuring at French battery maker.Source: Daily News & Analysis: Money News | 2 Oct 2009 | 3:16 pm Bharti-MTN Geneva date unlikelyThe South African telco is not listed as a participant at the ITU meet.Source: Daily News & Analysis: Money News | 2 Oct 2009 | 3:15 pm Second house the best way to build a retirement nestMost people build a nest egg for their retirement by investing a regular sum of money into a systematic investment plan (SIP) of a mutual fund.Source: Daily News & Analysis: Money News | 2 Oct 2009 | 3:11 pm Finding repayments difficult? There's counsellingAn autonomous body with 79 member banks has set up a credit counselling centre in Mumbai.Source: Daily News & Analysis: Money News | 2 Oct 2009 | 3:05 pm SBM to disburse Rs1,440 cr agri loansBank has given farm loans worth Rs 500 crore during March-September.Source: Daily News & Analysis: Money News | 2 Oct 2009 | 3:02 pm Order missingThe stock of Jindal Saw, leading manufacturer of submerged arc welded (SAW) pipes in the country, has sharply outperformed the broader markets in the past one month.Source: Daily News & Analysis: Money News | 2 Oct 2009 | 2:59 pm Cement plansGrasim Industries announced on Thursday that its board would meet on Saturday to discuss its restructuring plans.Source: Daily News & Analysis: Money News | 2 Oct 2009 | 2:56 pm Rio wins right to host the 2016 OlympicsCopenhagen: Finally, South America gets an Olympics. The 2016 Games are going to Rio de Janeiro. In a vote of high drama, the bustling Brazilian carnival city of beaches, mountains and samba beat surprised finalist Madrid, which got a big helping hand from a very influential friend. Chicago was knocked out in the first round in one of the most shocking defeats ever handed down by the International Olympic Committee. Even Tokyo, which had trailed throughout the race, did better eliminated after Chicago in the second round. Rio spoke to IOC members’ consciences: the city argued that it was simply unfair that South America has never hosted the games, while Europe, Asia and North America have done so repeatedly. “It is a time to address this imbalance,” Brazil’s charismatic president, Luiz Inacio Lula da Silva, told the IOC’s members before they voted. “It is time to light the Olympic cauldron in a tropical country.” The final result was decisive: The IOC said Rio beat Madrid by 66 votes to 32. Chicago got just 18 votes in the first round, with Tokyo squeezing into the second round with 22. Madrid was leading after the first round with 28 votes, while Rio had 26. In the second round, Tokyo was eliminated with just 20 votes. Rio was first with 46, and Madrid had 29. Silva, a bearded former union leader, disappeared into a huge group hug with the joyous Rio team after IOC president Jacques Rogge announced that the city won. Football great Pele had tears in his eyes. On Rio’s Copacabana beach, where the city plans to hold beach volleyball in 2016, the crowd of nearly 50,000 people roared. The party was expected to go on well into the night. But Rio’s bid, while high on romance, is also not without risk. Because of Rio’s high crime and murder rates, security will be a constant issue in 2016. Preparing Rio for the Olympics will cost billions of dollars money that critics said could have been better spent on tackling the city’s social problems. Madrid’s surprising success in reaching the final round came after former IOC president Juan Antonio Samaranch made an unusual appeal for the Spanish capital, reminding the IOC’s members as he asked for their vote that, at age 89, “I am very near the end of my time.” Samaranch ran the IOC for 21 years before Rogge took over in 2001. Chicago had long been seen as a front-runner and got the highest possible level of support from President Barack Obama himself. But he only spent a few hours in the Danish capital where the vote was held and left before the result was announced. Former IOC member Kai Holm said that the brevity of his appearance may have counted against him. The short stopover was “too business-like,” Holm said. “It can be that some IOC members see it as a lack of respect.” Senior Australian IOC member Kevan Gosper surmised that Asian voters may have banded together for Tokyo in the first round, at Chicago’s expense. “I’m shocked,” Gosper said. “The whole thing doesn’t make sense other than there has been a stupid bloc vote.” He worried that the shock exit could do “untold damage” to the already testy relations between the IOC and the US Olympic Committee. They had recent flare-ups over revenue sharing and a USOC TV network. “To have the President of the United States and his wife personally appear, then this should happen in the first round is awful and totally undeserving,” Gosper said. The European-dominated IOC’s last two experiences in the US were bad: the 2002 Salt Lake City Winter Olympics were sullied by a bribery scandal and logistical problems and a bombing hit the 1996 Games in Atlanta. Obama had held out the enticing prospect of a Chicago games helping to reconnect the US with the world after the presidency of George W. Bush. He told the IOC earlier Friday that the “full force of the White House” would be applied so “visitors from all around the world feel welcome and will come away with a sense of the incredible diversity of the American people.” Now, Chicago can only rue what might have been. And Obama’s gamble of expending his own political capital on the bid backfired. The last US city to bid for the Summer Games, New York, did scarcely better. It was ousted in the second round in the 2005 vote that gave the 2012 Games to London. Tokyo did better than many expected by reaching the second round. It had offered reassurances of financial security, with $4 billion already banked for the games. But the fact that the Olympics were held only last year in Asia, in Beijing, handicapped the Japanese capital’s bid. Its plans for a highly compact games, sparing athletes tiring travel by holding all but the shooting within 8 kilometers (5 miles) of the city center, were technically appealing. But the bid failed to generate real enthusiasm, even in Japan. Tokyo had the lowest public backing in IOC polls, with 55% of residents supporting the bid and 7.8% strongly opposed. Tokyo’s final presentation Friday to the IOC, while smooth and heartfelt, lacked the buzz that the Obamas and Rio generated. In short, Tokyo was simply overshadowed, failing to convince IOC members that it really wanted or needed the games. Source: Home - Livemint.com | 2 Oct 2009 | 1:19 pm G-20 may need to change, says IMF chiefIstanbul: The head of the International Monetary Fund (IMF) said on Friday the Group of 20 may need to change to be more representative just a week after it was proclaimed the world’s premier economic decision-making body. In particular, Africa should be better represented in the G-20, the IMF’s Managing-Director Dominique Strauss-Kahn said at a conference on the sidelines of the IMF and World Bank annual meetings here. At the moment, only South Africa is a member among African countries. However, Latin America has three representatives - Argentina, Brazil and Mexico - in its ranks. “We need to add some African countries,” Strauss-Kahn said. “It’s difficult to organize a global economy by letting 1 billion people in Africa out of the process.” He did not specify which countries should be included or left out or whether the G-20 should be expanded. The G-20 was established as a forum for finance ministers in 1999, when Bill Clinton was president of the United States, but remained in the shadow of the Group of Seven rich countries. Strauss-Kahn said the G-20 was devised “not totally on a scientific basis.” Since the crisis exploded a year ago, the G-20’s status has grown as world leaders tried to work out a coordinated response to the deepest recession since World War II. Source: LatestNews-Home - Livemint.com | 2 Oct 2009 | 1:09 pm The week in review for 02 October 2009New Delhi: After months of negotiations, Bharti Airtel’s merger talks with MTN finally fell through on Wednesday after the South African government rejected the deal. At issue was the South African government’s determination to retain MTN’s national identity and the Indian government’s inability to allow dual listing of a merged company. Recently, Sebi changed the rules on GDRs, a move which could have forced MTN to spend more money to make an open offer for Bharti shares. A merger between Bharti and MTN would have created the world’s third largest wireless phone company with 200 million subscribers and annual revenues of $20 billion. Air India pilots ended their four-day strike on Wednesday after civil aviation minister Praful Patel told them the airline would freeze its plans to reduce their paychecks. A section of Air India’s executive pilots had been protesting a plan to cut productivity-linked incentives by up to 50%. And while the end of the strike has given Air India a breather, its backing down on pay cuts may complicate the airline’s restructuring plans. Already, the four-day strike has cost Nacil, which runs Air India, about Rs100 core. Air India has accumulated losses of Rs7,200 crore and as of June, has a debt of Rs15,241 crore. Nacil is looking for a Rs15,000 crore rescue package from the government that depends on cost-cutting measures like reducing paychecks. NTPC and RIL will have to resume their legal battle over gas supplies in the Bombay high court. On Thursday, the Supreme Court dismissed NTPC’s appeal challenging an unfavourable Bombay high court ruling in the legal dispute. NTPC was challenging a Bombay high court decision that allowed RIL to amend its legal petition to include a government affidavit, also filed in the Bombay high court but pertaining to RIL’s separate gas dispute with RNRL. September has been a bonanza month for India’s auto makers, with the festive season and cheaper loans driving up sales. Hyundai Motor India posted sales of nearly 28,000 units, an increase of 25% from last year. Maruti Suzuki sales shot up 10.7% to more than 71,000 units and Mahindra and Mahindra saw record sales of about 27,000 units, up 12% from a year ago. On Tuesday, Bharti Shipyard’s shareholders gave it the go-ahead for increasing its borrowing limit to Rs7,000 crore from the earlier Rs5,000 crores. Bharti Shipyards needs the money to buy a controlling stake in Great Offshore Ltd., which is India’s biggest integrated offshore provider. Another company, ABG Shipyard is also in the race for Great Offshore. Banks that lent money to Vishal Retail are now working out a plan to restructure its debt of about Rs730 crore. Under the deal, Vishal Retail will pay the debt over 9 years at an interest rate of 6%. Reliance Capital will soon offer health insurance policies of three to five years through it subsidiary Reliance Life Insurance. The company is using its life insurance arm because it has a bigger retail distribution network and can offer policies of more than one year. India’s exports declined in August, but at a slower rate than in the last eight months. Merchandise shipments dropped 19.4% from a year earlier to $14.3 billion. Overseas sales account for about 15% of India’s economy. Inflation rose higher than expected with the Wholesale Price Index climbing to 0.83% in the 12 months to 19 September. The IMF has cut its 2010 growth forecast for India to 6.4% from the earlier 6.5%. It also says consumer price inflation will be around 8.7% in 2009 and 8.4% in 2010. Source: LatestNews-Home - Livemint.com | 2 Oct 2009 | 1:00 pm The Mint report for 02 October 2009New Delhi: The Serious Fraud Investigations Office, or SFIO, has started an inquiry into the IPO scam that shook India’s stock markets in 2005. SFIO has written to both Sebi and RBI asking for information, and is hoping its investigation will uncover both the beneficiaries of the scam and any possible regulatory lapses. The IPO scam was first unearthed in April 2006, revealing the presence of 59,000 fictitious demat accounts that were meant to corner IPO shares. SFIO is a part of the ministry of corporate affairs. GE Healthcare is revamping its India operations. Nineteen years ago the company got into a partnership with Wipro that later became a joint venture called Wipro GE Healthcare. Now, both companies have announced they will integrate their plants and business units to make a more efficient organization. Bajaj Auto says it has sold nearly a quarter of a million two-wheelers in the last month. The company has reported a 14.62% increase in two-wheeler sales to 249,133 units in September out of total vehicle sales of more than 280,000 units. Parsvnath Developers has raised Rs225 crore by selling equity in two of its projects to private investors. The company needs the money to reduce its debt of Rs1,600 crore and to pay for construction activity. With the latest sales, Parsvnath has raised a total of Rs500 crore in the last four months. The UPA’s flagship rural employment scheme is getting a name change. On Thursday, the government renamed the Nrega job scheme the Mahatma Gandhi National Rural Employment Guarantee Act. The move comes on the eve of Mahatma Gandhi’s 140th birth anniversary and amidst reports that some opposition-ruled states have started taking credit for Nrega. Markets remained closed on Friday to commemorate the birth anniversary of the Father of the Nation. Source: LatestNews-Home - Livemint.com | 2 Oct 2009 | 1:00 pm Amravati faces the mother of all battlesPresident Pratibha Patils son is fighting on a Congress ticket against the powerful two-term sitting MLA and Maharashtra finance minister Sunil Deshmukh, who has quit the party to contest as an independent.Source: Business Standard | Front Page Headlines | 2 Oct 2009 | 12:42 pm Stanchart, RBS talks collapse on valuationNegotiations between Standard Chartered Bank and the Edinburgh-based Royal Bank of Scotland (RBS) over a proposed sale of the latters assets in India, China and Malaysia to the former have collapsed.Source: Business Standard | Front Page Headlines | 2 Oct 2009 | 12:41 pm Bharti may take on MTN in bid for ZainIndian firm holds preliminary talks, Essar group also in the fray.Source: Business Standard | Front Page Headlines | 2 Oct 2009 | 12:36 pm When boy meets manSiddharth Mehra, or Sid, the title character of Wake Up Sid, is a goofy, likeable brat. Nestled in the wealth of his industrialist father, Sid goes about life without a care—playing video games, getting wasted in nightclubs and reading comic books. When he flunks his final college exams, reality dawns. He walks out on his best friend, who has managed to pass his exam, and then after a verbal brawl with his father, leaves home and knocks on the door of his friend, Aisha Bannerji. Aisha, a 27-year-old woman from Kolkata who is new to Mumbai, takes Sid in. She is dogged and down-to-earth, and wants to make a life of her own in Mumbai, the city she is already in love with. She lives in a studio apartment in a suburban housing society.  As far as the story is concerned, Ayan Mukerji’s Wake Up Sid holds no surprises. It is the tried and tested coming-of-age formula—you know right from the first scene that Sid is going to become a man in the end. What makes it refreshing, though, is the characterization (the debutant director is also the film’s writer). Although there are some glaring loopholes in the logic of some of the scenes, he pulls off a warm-hearted and eminently watchable film. The “new urban youth” film has successful precedents. After the conventionally heroic hero—the superstar— ruled the box office for ages, Dil Chahta Hai seemed path-breaking in 2001, although it didn’t have much more to it than the clever projection of a new urban milieu—the smug world of the city boy. Rock On!! worked for similar reasons. In both films, the music and the performances were a bonus. Wake Up Sid is in that genre. But at its centre is a much more believable guy, made so by Ranbir Kapoor. Kapoor showed promise in Saawariya (2007) and Bachna Ae Haseeno (2008); as Sid, he has moved a couple of notches above. Despite some consciously clever one-liners in the script, Kapoor enables his role’s transformation with ease. As the spoilt wastrel in the first half, and a man at ease with the demands of adulthood, he is convincing. In the first half, as he drifts along, you know that there’s a deep and soulful Sid lurking within. Wake Up Sid is largely free of clichés. At 27, Aisha is a few years older than Sid, a fact that the script doesn’t hammer in. Usually if the guy is in love with an older woman, she is mysterious, someone with a traumatic past. Aisha is quite sorted; Sid tries hard to live up to her expectations. The odd thing about Aisha is that she is shockingly prudish. When she meets Sid for the first time at a party, they get along instantly, and decide to go out for a walk. “But I’m not going to sleep with you or anything,” she tells him. Later on, when Sid’s mother visits her house, she tells her there is nothing “of that sort” going on between the two of them. Their relationship has an unreal, sanitized purity about it. During the few months that they live together in the same room, there’s no hint of physical desire in them. A guy in his early 20s and a woman in her late 20s who love each other—and no sex? Konkona Sen Sharma must have been the obvious choice for Aisha’s role, and not just because she is Bengali. She has become the staple choice for the good girl without rough edges. It’s time an actor of her calibre broke out of this rut. In this film, Kapoor comes across as the better actor. Like all youth-centred films, the adults in Wake Up Sid are square and grim. Anupam Kher and Supriya Pathak don’t have enough in their roles to work on, although one of the best scenes in the film is between Kapoor and Kher— when a changed Sid comes to his dad’s office to give him his first salary cheque. Anil Mehta is in top form as the cinematographer. He is a seasoned craftsman, but his work, especially the way he captures Mumbai in the night, shows he is not jaded or conventional. Wake Up Sid is going to work best with teenagers and college-goers. Go watch, and take your parents along. Wake Up Sid released in theatres on Friday. sanjukta.s@livemint.com Source: LatestNews-Home - Livemint.com | 2 Oct 2009 | 12:36 pm Too many planes in the skyThe two aviation strikes in September point to a simple truth: India has too many planes on the tarmac and in the skies. The strike by Jet Airways pilots in the earlier part of the month ensured that one-fifth of the aviation industry’s capacity was grounded. The strike by Air India pilots later in the month effectively shut down one-fifth of domestic capacity again. Expectedly, flight schedules were dislocated and fliers had to hurriedly shop for options. Through both these episodes, however, few were stranded at airports. Most did manage to get tickets on some other airline. There was no overall shortage of seats. This means that India has far more seat capacity than current demand. Part of this is a result of long-term strategic planning, as airline companies added capacity to meet galloping demand. But another part comes from the irrational exuberance during the boom, coupled with cheap finance and hopes of quick fortunes through equity sales to private equity, institutional and retail investors. Bailouts are not the answer. Source: LatestNews-Home - Livemint.com | 2 Oct 2009 | 12:17 pm Mindful of ‘me’Spotlight | Onida Reviewer: Gopi Kukde Sculptor, creative consultant and popularly known as the man who conceptualized the iconic Onida devil, Kukde reviews the brand’s latest television campaign which has dropped the devil. Campaign  Devil’s advocate: Gopi Kukde says he lives ‘like the (Onida) devil’. Abhijit Bhatlekar / Mint What did you think of the new Onida commercial? The ads are extremely well made. The whole look, the casting is very refreshing and it makes you want to look at the ad again. What the ad tells me (is) that the product has been designed keeping “me”, the consumer, in mind—(this) is where I see the danger. Over the years, advertisers have abandoned the tangible qualities of the brand, such as the USP (unique selling point), to focus on something bigger, the intangibles in their communication. Nike, for instance, rarely advertises shoes. It sells a mindset which offers a huge boost with the Just do it tag line. Having fallen into the trap of saying that “we are good design”, something that’s tangible, the brand now needs to deliver what it is promising. The company and the current ad agency maintain that the devil has ceased to be relevant. Do you agree? In an interview, Prasoon Joshi said people tend to turn a blind spot to things that are old...I don’t agree. People tend to turn a blind eye to things that are boring. When you saw the devil, he started out as someone who made you smile. He wasn’t boring you with random details about technology, he was saying “don’t envy it, just grab it”. But as things went along, the poor devil was reduced to being a salesperson! It wasn’t like he got old. If that were the case, then no one would look at Amul hoardings. Which other mascots to your mind are iconic?  Promises to keep: Kukde says the brand has to deliver now on design. Has the devil ever inspired you and your works? I live like the devil. Thinking like him makes you imagine the worst thing that can happen and helps you overcome your fear.
What is your favourite piece of advertising work? My all-time favourite would have to be the “Shaadi aur tumse? Kabhi nahi! (Marry you? Never!)” campaign for Pan Pasand. The idea was that eating paan or paan-flavoured candy sweetens the tongue, but we didn’t want it to be contrived or the character to lose its original temperament. So even though the lines are delivered sweetly, the character is still refusing the proposal! As told to Gouri Shah gouri.s@livemint.com Source: LatestNews-Home - Livemint.com | 2 Oct 2009 | 12:15 pm IMF wants further increase in resourcesThe head of the International Monetary Fund (IMF) on Friday called for a further increase in its resources so the institution can become a “credible” global lender of last resort. IMF managing director Dominique Strauss-Kahn noted that a $500 billion (Rs24 trillion) increase in IMF funding agreed in April would require fresh approval every five years by contributing countries and could be activated only in times of crisis. He said that could create “uncertainty” in markets about whether countries could count on IMF in times of need. “This uncertainty means that the IMF cannot yet serve as a credible global lender of last resort,” Strauss-Kahn said in a speech ahead of weekend meetings of IMF and the World Bank. “And because providing global financial insurance is so critical for crisis resolution and crisis prevention, the resource base of the IMF should be increased further.” Strauss-Kahn argued that bolstering IMF’s lender of last role would discourage nations from relying on export-led growth in order to build up large currency reserves, helping pave the way for a more balanced global economy. “The absence of adequate insurance to guard against sudden stops in private capital flows has played a major role” in the growth of reserves, he said. Asian countries, wary of IMF’s handling of the region’s financial crisis in the 1990s, have amassed trillions of dollars in savings to avoid having to return to IMF for help again. Strauss-Kahn said the build-up in reserves had come at the expense of investments that would have had a higher social return, such as education or infrastructure. He also said the “self insurance” of large reserves could complicate monetary and exchange rate policy by fostering a potentially inflationary level of liquidity. Strauss-Kahn said increasing the subscriptions, or quotas, of member countries, which would require them to pony up resources in exchange for greater voting power, would be one way to boost funding for the global lender. The issue of increased quotas, which determine voting power in IMF, is set to loom large for emerging economies when global financial officials meet in Istanbul this weekend for the semi-annual IMF and World Bank meetings. Strauss-Kahn said it was difficult to know exactly how much in new resources the fund would need, but noted that some experts have called for $1 trillion in added funding. For the first time ever, emerging market countries, such as China, Russia, India and Brazil, contributed resources this year towards an IMF crisis fund. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 2 Oct 2009 | 12:08 pm US jobless rate rises to 26-yr high in SepWashington: Employers cut more jobs than forecast last month and the unemployment rate rose to a 26-year high, calling into question the sustainability of the economic recovery. The unemployment rate rose to 9.8%, the highest since 1983, from 9.7% in August, the US labour department said on Friday in Washington. Payrolls fell by 263,000, following a revised 201,000 decline the prior month that was less than previously reported. US Federal Reserve chairman Ben Bernanke on Thursday said the expansion may not be strong enough to “substantially” bring down unemployment, indicating the central bank will be slow to drain the trillions of dollars it’s pumped into the economy. UAL Corp. is among companies still cutting jobs on concerns spending will fade as government stimulus wanes. “Only profitable firms will hire workers and we don’t have any assurance that firms will be profitable for the next year,” said Guy LeBas, chief economist at Janney Montgomery Scott Llc in Philadelphia. “Consumer spending is going to be constrained by weaker incomes.” Stock index futures slid after the report, extended earlier losses, and US treasury securities rose. The contract on the Standard and Poor’s 500 index was down 1.2% to 1,015.1 at 8.51am in New York. The yield on the benchmark 10-year note fell to 3.14% from 3.18% late on Thursday. Revisions subtracted 13,000 from payroll figures previously reported for August and July. Payrolls were forecast to drop 175,000 in September after a 216,000 decline initially reported for August, according to the median of 84 economists surveyed by Bloomberg. Estimates ranged from decreases of 260,000 to 100,000. Job losses peaked at 741,000 in January, the most since 1949. The jobless rate was projected to rise to 9.8%. Forecasts ranged from 9.6% to 9.9%. The labour department on Friday also published its preliminary estimate for the annual benchmark revisions to payrolls that will be issued in February. It showed the economy may have lost an additional 824,000 jobs in the 12 months ended March. The data currently shows a 4.8 million drop in employment during that time. The projected decrease was three times larger than the historical average, the labour department said. Most of the drop occurred in the first quarter of this year, probably due to an increase in business closings, the government said. September’s losses bring total jobs lost since the recession began in December 2007 to 7.2 million, the biggest decline since the Great Depression. Friday’s report showed factory payrolls fell 51,000 after decreasing 66,000 in the prior month. Economists forecast a drop of 52,000. The decline included a drop of 3,500 jobs in auto manufacturing and parts industries. General Motors Co. (GM) this week said it would close the Saturn brand after Penske Automotive Group Inc. broke off discussions to buy the unit. Saturn dealers will have until October 2010 to wind down operations. The Detroit-based auto maker said in June a Saturn sale would have saved 13,000 jobs and 350 dealerships. GM had called back some workers after the government’s “cash-for-clunkers” plan cut further into inventories already diminished during the bankruptcy shutdown. Sales of cars and light trucks plunged last month after the $3 billion (Rs14,370 crore today) incentive plan expired in late August. Vehicles sold at a 9.2 million annual pace in September, down from a 14.1 million annual pace in August. Payrolls at builders dropped 64,000 after decreasing 60,000. Financial firms decreased payrolls by 10,000, after a 25,000 decline the prior month. Service industries, which include banks, insurance companies, restaurants and retailers, subtracted 147,000 workers after falling 69,000. Retail payrolls decreased by 38,500 after a 8,800 drop. Government payrolls decreased by 53,000 after falling 19,000 the prior month. Economists surveyed by Bloomberg last month projected the jobless rate will reach 10% by late 2009 and average 9.7% for all of next year even as the economy expands at an average 2.6% pace in the second half of this year and 2.4% in 2010. Bernanke told lawmakers in Washington on Thursday that he anticipated the jobless rate will hold above 9% though 2010. While acknowledging that “economic activity has picked up”, Fed policymakers on 23 September said household spending “remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit”. Friday’s report also showed the average work week shrank to 33 hours in September, matching a record low, from 33.1 hours in the prior month. Average weekly hours worked by production workers dipped to 39.8 hours from 39.9 hours, while overtime decreased to 2.8 hours from 2.9 hours. That brought the average weekly earnings to $616.11 from $617.65. Workers’ average hourly wages rose 1 cent, or 0.1%, to $18.67 from the prior month. Hourly earnings were 2.5% higher than September 2008, the smallest gain since 2005. Economists surveyed by Bloomberg had forecast a 0.2% increase from the prior month and a 2.6% gain for the 12- month period. Airlines are also cutting staff. UAL’s United Airlines, the third biggest US carrier, last month furloughed 290 more pilots under a plan to trim jobs and limit labour costs, while American Airlines said it would furlough 228 flight attendants. Source: Home - Livemint.com | 2 Oct 2009 | 12:07 pm Wine menus shrink in face of high tariffsBangalore: Ayear ago, Taj West End was the place to go in Bangalore for wine connoisseurs. It stocked 250 wines, many from France, Chile, Australia, New Zealand and California. It still remains the place to go, but now stocks around 210-220 wines. The reason: high tariffs and slowing demand in the wake of an economic slowdown. India’s small wine market is becoming smaller, and importers and hoteliers are shrinking their wine lists even as they battle with excess inventory.  Slowdown woes: India’s wine market is becoming smaller, and importers and hoteliers are shrinking lists as they battle with excess inventory. Ramesh Pathania/Mint “Companies kept on importing labels, thinking the market would grow,” says Abhay Kewadkar, business head (wines), and chief wine maker and director at United Spirits Ltd (USL), part of the country’s largest liquor company UB Group. “(But) states kept increasing duties.” Much like imported hard liquor, wines are taxed by both the Union government and the states. Over the past year, Maharashtra, Karnataka and Delhi, the three biggest markets for wine, hiked tariffs by 37%, Rs300 per litre and 30%, respectively. The result: higher prices and lower demand. Meanwhile, the global economic crisis meant fewer business travellers and tourists for India and, consequently, lower occupancy for hotels. Indian companies, too, responded to the slowdown by asking executives to trim their entertainment expenses. As demand for wine fell, the hotels responded by stocking fewer labels. According to Aman Sharma, manager (corporate food and beverages) at Indian Hotels Co. Ltd, which owns the Taj group of hotels, the wine lists at the Taj properties shrunk by 10-15% over the past year. The company has restarted purchases of imported wines, he adds, but the quantities are still down 10-15%. Wine importers have also reduced the volume and variety of their imports. United Vintners, a subsidiary of USL, which imports as many as 35 labels or wine types, plans to control the import and sale of expensive wines such as Marlborough, grown on the east coast of New Zealand, and Chablis and Burgundy, grown in eastern France. “The more volume you try to do, the more money will be stuck,” says Kewadkar. The company, promoted by Vijay Mallya, entered the wine business in October 2008 and hopes to account at least 1% of its parent’s revenue by March 2010. USL ended 2008-09 with Rs4,152 crore in revenue. Mumbai-based wine importer, Berkmann Wines Cellars (India) Pvt. Ltd, too, says it plans to prune its wine labels from 250 to 150 by March. The company ended 2008-09 with Rs5.2 crore in revenue, substantially off its target of Rs7 crore. “Earlier we would bring five companies from a particular (wine growing) region, now we bring only two-three,” says Farhad Bhabha, commercial director at Berkmann Wines. Not all wine importers will survive, said Gryphon Brands’ Chandra. Sure enough, saddled with inventory, some are selling imported wines at discounted rates to hotels. “We are trying to deplete stocks by selling at discounted rates,” says Jaidev Chatterjee, general manager at Mumbai-based liquor importer Sonarys Co-brands Pvt. Ltd. “Bangalore over the last one year has become unviable.” His reference is to the Rs300 per litre tax the Karnataka government has imposed on wines manufactured outside the state. Still, not everyone is convinced this is the end of the road for wines in India. Despite the small size of the market, high tariff structures, and uninitiated customers, Australian wine maker Casella Wines Pty Ltd, which makes the Yellow Tail brand of wines, believes being in India is worth it. “Choosing to be present in India today is an investment in the future,” said Richard Owen, Asia-Pacific export manager at Casella Wines, in an email. According to Owen, the current size of the Indian market in no way reflects its potential. Demand, he said, would increase “once individual states charge more reasonable and realistic taxes and allow imported wines to compete more fairly with domestic wines”. USL, too, believes wine is a business of the future. Around the world, 1.1 litres of wine is consumed for every litre of hard liquor. The Indian average is 0.0075 litre for every litre of hard liquor. “The Indian wine market can grow to 200 million cases on par with IMFL (Indian made foreign liquor),” says Kewadkar. Source: Home - Livemint.com | 2 Oct 2009 | 12:06 pm SFIO steps in to probe IPO scamMumbai: The Serious Fraud Investigation Office (SFIO), the investigative agency of the ministry of corporate affairs (MCA), has initiated an inquiry into the initial public offering (IPO) scam that rocked the Indian stock markets in 2005, according to a senior official of the department. SFIO, created in 2003 as a multi-disciplinary body under MCA, deals with corporate crime. The scam, unearthed in April 2006, involved depositories, depository participants and many market operators who allegedly used or abetted certain entities in creating 59,000 fictitious demat accounts to corner shares of many IPOs meant for small investors.  “In August, we wrote to the agencies asking for all the information required for investigation, but no one has responded yet,” said the official. He declined to be identified as he is not authorized to speak to the media. In an email response to Mint, a Sebi spokesperson said: “As a matter of policy, Sebi does not comment on an ongoing investigation.” Both RBI and NSDL did not respond to emails. The SFIO investigation aims to cover all aspects of the scam, including regulatory lapses if any, and the ultimate beneficiaries. The investigation office has also asked for records of all proceedings conducted by Sebi and action taken by RBI against non-banking financial companies involved in the scam. The department is scheduled to send its report to MCA by November for action. SFIO does not have prosecuting powers, but it can direct and supervise prosecutions under various pieces of economic legislation through appropriate agencies. “We have also asked for minutes of the allotment committee meetings, information on all the off-market transactions during that period and data on fictitious demat accounts,” the SFIO official said. A demat, or dematerialized account, is mandatory for anyone wanting to trade in equities in India. When an IPO is over-subscribed, the basis of allotment of shares is decided by the registrar to the public issue, based on the recommendations of a committee appointed by the board of the company that is raising money from the public. The allotment committee consists of a few directors or the entire board. Earlier in April, the Sebi board had sought external legal opinion on orders issued by an independent committee against the country’s premier depository NSDL. There were differences within the board on whether the committee had exceeded its brief, which was to oversee Sebi proceedings against NSDL in the scam. The orders, issued by the committee in December 2008, found that NSDL had failed to meet applicable legal standards for duties and responsibilities of depositories. The committee also directed NSDL to conduct an independent enquiry to establish individual liability, if any. C.B. Bhave, the current Sebi chairman and the former head of NSDL at the time of the scam, has recused himself from the proceedings against the depository. During the investigations, Sebi had found that certain entities had illegally obtained IPO shares reserved for retail applicants through fictitious demat accounts. They then transferred the shares to financiers, who sold the shares on the first day of listing to benefit from the difference between IPO and opening prices.  Awaiting judgement: A file photo of the Bombay Stock Exchange. Market regulator Sebi’s investigation into the IPO scam is continuing. Punit Paranjpe/Reuters Ahmedabad-based Roopal-ben Panchal, allegedly the linchpin of the operation, is said to have opened several fake demat accounts and raised finances on the shares allotted to her through branches of an old private bank. It has been widely reported that she advertised free photo shoots in local newspapers and later used the pictures to create fake demat accounts to trade in the shares. Sebi has investigated several IPOs, including those of Yes Bank Ltd, Infrastructure Development Finance Co. Ltd, Jet Airways (India) Ltd, Sasken Communication Technologies Ltd, Suzlon Energy Ltd, Punj Lloyd Ltd, Jaiprakash Hydro-Power Ltd and NTPC Ltd among others for possible abuse of the shares meant for retail investors. In November 2006, Sebi had ordered NSDL and a few others implicated in the IPO scam to return Rs115 crore in “illegal profits” made from the IPO deals. In an ex parte order, Sebi had said the depositories “failed to exercise oversight over the depository participants” and the promoters of NSDL and another depository Central Depository Services (India) Ltd were directed to take “all appropriate actions, including revamping of management”. The Securities Appellate Tribunal set aside the Sebi order in December 2006 on an NSDL appeal, describing the regulator’s action as a clear “violation of the principles of natural justice”. The appellate wing of Sebi, however, left it open for the regulator to initiate fresh proceedings. Sebi’s investigation of the IPO scam has been continuing. RBI, too, got into action after the scam was unearthed. In 2006, the banking regulator had fined nine banks for violating the know your customer norms, breaching prudent banking practices, and not adhering to directives and guidelines for granting loans against shares and IPO applications. The banks were fined for failing to show prudence in opening multiple savings accounts with one common name and multiple unconnected names. These savings accounts were used to open many demat accounts for making multiple applications in IPOs. N. Sundaresha Subramanian contributed to this story. Source: Home - Livemint.com | 2 Oct 2009 | 12:05 pm RSS seeks to reinvent itself to build new cadre baseResidents of Dwarka had an unexpected visitor on Gandhi Jayanti: Mohan Bhagwat, the chief of the Rashtriya Swayamsevak Sangh (RSS). It was the first time an RSS chief had chosen to make the traditional address—annually convened in the Capital for shastra puja (weapon worship)—in Dwarka, one of the fastest growing suburbs located in the Capital’s south-west. The presence of Bhagwat was expected to give a boost to the cadres that the RSS has been seeking to expand in the suburb that’s emerging as home to white collar migrants. His Friday address was attended by an estimated 15,000 RSS cadres clad in their traditional khaki short pants, white shirts and black caps. In the decade that the suburb has come into being, the 84-year-old Hindu nationalist organization has set up 200 shakhas (daily assemblies) in Dwarka. The suburb also represents the new and more flexible face of the RSS. Keeping in mind the fact that potential cadres will come from professional ranks, the RSS has ensured timings and the regimen are flexible. While conventionally, the shakhas have operated in the morning and entailed exercise drills—as part of the efforts to create a disciplined cadre—the RSS has now included night shakhas in areas such as Dwarka to accommodate working professionals. Exhorting the assembled cadres in Dwarka to make the nation Sanghmayi (drenched in RSS following), Bhagwat said: “While our nation has the reputation, it has utterly failed to secure supremacy in the world arena. Our values of truth and non-violence cannot be asserted until we wield and worship power, something which the RSS preaches and practices.” The RSS, which is the ideological parent of India’s main Opposition Bharatiya Janata Party (BJP), has become critical once again, especially after the two successive general election defeats. Analysts believe the rebuilding efforts are designed to reposition the RSS as an acceptable ideological faith to a rapidly evolving demography, moving away from the traditional perception of being dominated by the upper castes.  Agent of change: RSS chief Mohan Bhagwat. Harikrishna Katragadda/Mint Critics are not too impressed. According to them, the fundamentalist, religious and ideological slant militates against its ability to reach out to a wider cross-section in the country. “They can act as a major positive force, but the organization should first make their stand ample clear that are they in favour of an inclusive society with respect for all castes and religions,” said B.G. Varghese, political analyst and visiting professor at the Centre for Policy Research. The RSS has expanded its presence steadily since 1990, growing its base of shakhas from 29,000 in 1990 to 40,000 at the end of March. Most of these expansions have come about in Andhra Pradesh, Tamil Nadu and Kerala, which have a strong presence of the socially backward communities. The right-wing Hindu organization was formed on Dussehra day in 1925 by Keshav Baliram Hedgewar in Nagpur, its headquarters. The organization, which was originally formed to unite Hindus—who form the majority of India’s population—today has at least 800,000 cadres attending its daily shakhas across the country. According to former RSS functionary and BJP leader K.N. Govindacharya, the image of the RSS so far has been that of a paramilitary and secret organization, quite contrary to reality. “The RSS itself is to be blamed for it. There is an effort from the RSS part to change the image,” he said. RSS leaders admit that the organization is trying to re-invent itself in order to attract more youth and the weaker sections of society, although it officially disagrees that its popularity has gone down. The new initiatives includes non-traditional methods to reach out to people. It runs “IT Milan” (information technology meetings)—an informal gathering of its supporters and sympathizers from the IT sector—in cosmopolitan cities such as Bangalore, Hyderabad, Chennai and Mumbai. The organization, known for its emphasis on discipline, has become more flexible with its timings and is advising members to join the night shakhas.  Makeover drill: Nearly 15,000 cadres attended the RSS meet in Dwarka, New Delhi, on Gandhi Jayanti. The suburb boasts 200 shakhas. Harikrishna Katragadda / Mint It has also set up a group of senior functionaries to reach out to political leaders and bureaucrats, known as the Vishesh Sampark Yojana. The organization, which runs over 40,000 shakhas across the country, also uses social networking to attract youngsters. “Using online social networking resources like Yahoo Groups and Orkut, and weekly physical meetings called IT Milans, the Rashtriya Swayamsevak Sangh has over the past six years built a steady stream of new age ‘software shakhas’ to groom busy IT professionals in the RSS way of thinking,” said Ram Madhav, RSS spokesperson. Adds Suresh Naik, a doctorate holder in microelectronics and full-time RSS worker: “The new-age shakhas (on Web platforms) concentrate less on the physical aspects, but more on stimulating the minds of its members to nationalistic thinking and a life of service,” said the coordinator for the IT branches. Source: Home - Livemint.com | 2 Oct 2009 | 12:03 pm The after partyMany wait all year for the ‘pujas’. Some wait all year for the goddess’ parting gifts. In the build-up to the Durga Puja festivities in Kolkata, there is a huge hum of industry: lights, ‘pandals’, images are erected, transported and arranged in a seemingly ephemeral tableau. For some, though, business is best after the crowds have gone home. Click here for a slideshow of pictures post the Durga pujas Photographs by Indranil Bhoumik/Mint Source: LatestNews-Home - Livemint.com | 2 Oct 2009 | 11:52 am State govt intervenes in Harrisons-tribals spatKochi: In an attempt to resolve a two-year-old agitation by 7,000 tribal and other landless people, the Kerala government has invited leaders of the protest for talks on Monday and may announce a special rehabilitation package for them, said A.K. Balan, minister for the welfare of backward and scheduled communities. In August 2007, the protesters, under the banner of the Sadhu Jana Vimochana Samyukta Vedi (SJVSV), a movement demanding land for the landless poor, encroached the Kumbazha rubber estate of Harrisons Malayalam Ltd (HML) in central Kerala. They pitched tents and have been living there for the past two years. Harrisons Malayalam is part of the R.P. Goenka group. Balan said the state has now formulated a rehabilitation package for these landless poor after involving opposition leader in the state assembly Oommen Chandy and revenue minister K.P. Rajendran. He declined to disclose the details of the package but said it would be separate from a Rs5,000 crore scheme announced last year by the Kerala government for giving land and houses to nearly 133,000 tribal families in the state. Under that package, a tribal family would get 3-10 cents (0.03-0.1 acres) of cultivable land. Officials involved in drawing up the new package have suggested a 25-cent ceiling per family. “This will be a package not just for housing but also providing land for agriculture,” Balan said, but would not comment on the proposed ceiling. “Details of the package and necessary changes to be made will evolve at Monday’s meeting.” The minister added that the 2,581.06 acres the agitators had encroached on was plantation land and the government would identify other areas for them to settle. But the state government has limited land and would have to consider buying land to rehabilitate the landless tribals, Balan said. V. Venugopal, chief manager (law affairs) of Harrisons Malayalam, said the plantation land was handed over to the R.P. Goenka group in 1918 by the Vanchipuzha Madhom royal family. The rights are fully vested with the group, he said, contrary to the claim of the tribals that the lease period for the land ended in 2009. The Kerala high court had in August 2007 asked the government to evict the agitators, he added. Revenue minister Rajendran said his department has initiated a survey of the encroachers on the Harrisons Malayalam land to identify those who are truly landless. The government will distribute land to them under its new package based on this survey, he said. L. Gopalan, president of the SJVSV, welcomed the government’s decision to hold talks to end the agitation. “It is an agitation to ensure the right of the tribals to cultivate in the land which originally was theirs,” he explained. “The government can consider giving on lease one acre per family and in case the land is not cultivated, it can be taken back.” Source: LatestNews-Home - Livemint.com | 2 Oct 2009 | 11:38 am Andhra to invite bids for 4 airports with new incentivesHyderabad: The Andhra Pradesh government is firming plans to offer additional incentives to developers as it invites bids afresh for four regional airports, but some firms say the bait may not be tempting enough. The proposed additional incentives include exemption from value-added taxes and waiver of lease rentals for the first seven years of operations, said Manmohan Singh, principal secretary in charge of infrastructure and investment in the state.  Unviable: Navayuga Engineering’s C.V. Rao says the remote locations of the proposed sites will affect potential non-aeronautical income. Bharath Sai/Mint The state had in March 2008 invited bids to develop eight airports in small cities. Thirty seven companies bought the bid documents but none bid for them as they found the projects not feasible. The state finally scrapped the process this July. “Now, following the additional incentives this time, we hope to attract developers to come forward and construct the four airports,” said Singh. The regional airports would also be able to generate money for the developers through city-side developments that include shopping malls, hotels and convention centres, he said. India’s infrastructure and realty sectors are seeing a revival after a year of slump, but the aviation sector is still struggling to rise. “Given the poor air traffic opportunities in such places, the developer cannot expect aeronautical revenues,” said C. Visweswara Rao, chairman of Navayuga Engineering Co. Ltd, one of the few firms that filed an expression of interest in the previous round. “Since the sites proposed for airport projects are far from the towns, non-aeronautical revenues are also doubtful.” E. Sudhir Reddy, chairman and managing director, IVRCL Infrastructures and Projects Ltd, also said these airport projects are unviable because of high lending rates and poor potential for non-aeronautical revenues from shopping malls and hotels. IVRCL had bought the bid forms in the previous round but didn’t file an expression of interest. Regional airports typically act as links to hubs or main airports in metro cities, according to M. Thiagarajan, managing director of Paramount Airways (Pvt) Ltd, which flies to several regional airports such as Madurai and Tiruchirapalli, both in Tamil Nadu. “If you are able to use small and right-sized aircraft, regional airports will be a great fit to any airline and country,” Thiagarajan said. “But with the current situation, it is tough to believe that somebody will be ready to invest in creating a new infrastructure at any regional location.” India currently has 80 airports, of which 24 major airports together account for 94% of the total air traffic, according to a report by Centre for Asia Pacific Aviation. The fresh round of bids would be for airports at Ramagundam, Kurnool, Tadepalligudem and Nizamabad in Andhra Pradesh. Each airport requires around 500 acres of land, including for city-side development. The government has dropped three airports from its original list after Airports Authority of India rejected the proposed sites at Vijayanagaram, Kothagudem and Nellore because of insufficient land and structures nearby. The state is not including the proposed Ongole airport either in the latest round as it has offered the project to Ras Al Khaimah, one of the emirates of the United Arab Emirates, through a memorandum of understanding. Infrastructure Corp. of Andhra Pradesh (Incap), the state’s nodal agency for promoting infrastructure projects, will issue a tender notice in the next fortnight and complete the technical and financial qualification rounds for the bids by mid January, Singh said. Incap will hire a consultancy firm to help it in the technical and financial bids process. Last time, Incap had hired Infrastructure Development Corp. (Karnataka) Ltd (iDeCK), a joint venture between IDFC Ltd and the Karnataka government that had assisted in the small airport projects at Gulbarga and Shimoga. “The AP (Andhra Pradesh) government plans to award airport projects to the shortlisted infrastructure firms that offer maximum revenue share to the government,” said Singh. GMR Infrastructure Ltd had offered to share 4% of its revenue with the Andhra government when it won the Hyderabad international airport project in September 2003. P.R. Sanjai in Mumbai contributed to this story. Source: LatestNews-Home - Livemint.com | 2 Oct 2009 | 11:36 am Wipro, GE to integrate healthcare units in IndiaBangalore: Nineteen years after Wipro Ltd and GE Healthcare struck a partnership, later forming a joint venture called Wipro GE Healthcare Pvt. Ltd, the parent companies are integrating the different business units and manufacturing plants in India for better management, resource utilization and rapid growth.  Better management: GE chief executive Jeffrey Immelt. Mustafa Quraishi / AP Wipro GE Healthcare, which distributes around 85% of GE Healthcare products in India, said on Friday it will absorb three business units of GE Healthcare—GE Medical Systems India, GE Healthcare Life Sciences and GE Healthcare Medical Diagnostics, of which the latter two distribute their products outside Wipro-GE. Another business unit, GE-BEL, an export-oriented joint venture between GE Medical Systems and Bharat Electronics Ltd that operates a medical equipment component manufacturing plant, will remain outside the integrated entity, said V. Raja, president and chief executive of Wipro GE. Raja will continue to lead the expanded business entity, which will have 1,200 employees from the three GE Healthcare units. The integrated Wipro GE will now run manufacturing plants at two locations in Bangalore. After the completion of the integration, which could take 6-12 months depending on regulatory approvals, Wipro GE will be the exclusive vehicle for GE Healthcare’s activities in India. Wipro holds a 49% stake in the joint venture, according to its annual report. GE chief executive Jeffrey Immelt, who is currently visiting India, said that in five years, 50-75% of GE Healthcare products would be made in India. In July, GE had said it would invest $6 billion (Rs28,740 crore) globally over the next six years in the healthcare sector on services, partnerships and research and development. GE’s healthcare revenue in India is around $500 million and the company expects to double it in three-five years. With a compounded annual growth rate of 25-30%, which is double the average healthcare market growth rate in India, Raja says Wipro GE will now be more aggressive, both in investment and innovation. The expanded Indian entity will continue to serve South Asian markets, particularly Sri Lanka, Bangladesh, Nepal and neighbouring countries. Source: Home - Livemint.com | 2 Oct 2009 | 11:02 am American, BA warned by EU over proposed tie-upBRUSSELS (Reuters) - American Airlines and fellow Oneworld alliance partners British Airways and Iberia face fresh European Union antitrust hurdles as they look to extend their pact to include coordinated schedules and prices.Source: Reuters: Money News | 2 Oct 2009 | 11:00 am Birla’s cement sales rise 16% in SepMumbai: Aditya Birla Group’s September cement sales climbed 16% to 2.77 million tonnes (mt) in September and production rose 15% to 2.74mt. Sales in the six months ended 30 September gained 19% to 17.9mt, group spokeswoman Pragnya Ram said. Source: Home - Livemint.com | 2 Oct 2009 | 10:46 am SBI to raise up to $1 bn by selling dollar bondsBangalore: State Bank of India, or SBI, the nation’s largest bank, is seeking to raise $700 million (Rs3,353 crore) to $1 billion selling medium-term dollar bonds, chief financial officer S.S. Ranjan said over the phone. “Initial roadshows are going to be held.” He declined to provide details. Source: Home - Livemint.com | 2 Oct 2009 | 10:33 am Orissa private bus owners announce indefinite strikeThe private bus owners in Orissa Friday night announced an indefinite strike from Sunday after the state government refused to roll back the toll fee and turned down their three-point proposal.Source: IndiaeNews.com: Business News | 2 Oct 2009 | 10:30 am ‘UltraTech will outperform’Mumbai: The board of Grasim Industries Ltd, the flagship of the Aditya Birla Group, meets on Saturday to discuss hiving off its cement division and then merging it with subsidiary UltraTech Ltd, resulting in the creation of India’s largest cement maker. In an interview, Ajay Parmar, head of research at Emkay Share and Stock Brokers Ltd, talks about the impact of this deal. Edited excerpts: What do you think are the triggers that are pushing Grasim towards this restructuring? Basically it’s the rationalization of the same business in two companies. Now, UltraTech will have the entire combined cement business and will become the largest cement manufacturer in India. With this capacity, UltraTech will enjoy economies of scale. If you look at it from the investor’s point of view, UltraTech becomes a better choice. It will be a plain-vanilla, single business and one company. There will be a lot of interest in this company because it will enjoy a leadership premium. What will happen to Grasim? Grasim will become a holding company plus it will have other businesses such as VSF (viscose staple fibre), chemicals, etc. For Grasim, nothing has changed much. It has a 55% holding (in UltraTech). Post merger it will have more than 75%. As for earnings, UltraTech’s were consolidated into Grasim. It will continue to reflect in Grasim’s earnings. What is the best way to get this transaction done? How will it affect shareholders? The decision is going to be revealed (on Saturday). I also think that this (merger) won’t trigger the takeover code since it’s not a slump sale. They are going to spin it off and then merge. Anything that can save capital gains tax would benefit both the company and shareholders. My belief is that investors will start shifting from Grasim to UltraTech because the latter gives them a direct investment opportunity in the Indian cement industry and in the largest company. UltraTech will outperform while Grasim will gradually underperform. Will this trigger a round of consolidation in the industry? If you consider the post-merger numbers of UltraTech, it will be able to generate at least Rs4,000 crore of cash. Without taking any debt, with that money, you will be able to add another 7 million tonnes of capacity, which you either buy out or construct. Now, larger companies would typically be interested in buying out smaller companies to maintain their market share and there would be consolidation. How can cement companies protect their margins when everyone is expanding capacity? In the last two-three quarters, cement companies benefited from the lower cost of raw materials. That is a seasonal thing. On a macro level, there will have to be more rationalizing (of) the cost structure, and introduction of superior marketing strategies. Looking at the overcapacity problem in another way, we are all projecting a 7% growth for cement sales based on GDP (gross domestic product) growth. If economic growth improves and the government executes its plan on infrastructure, this overcapacity situation may not last at all. ravi.k@livemint.com Source: Home - Livemint.com | 2 Oct 2009 | 10:19 am Investors position themselves for Grasim Industries demergerShort Grasim, Long UltraTech. That’s the call the markets have taken in each of the past three trading sessions. So while Grasim Industries Ltd shares have fallen by 5.1% in these three sessions, those of UltraTech Cement Ltd have risen by 13%. News of Grasim’s move to hive off its cement business and then merging it with UltraTech evidently reached the markets before the first news reports went to print.  But why is this news being taken negatively by Grasim’s shareholders and positively by UltraTech’s, when details of valuations and the merger ratio are still not known? The reasoning is simple. Post restructuring, UltraTech will transform into the country’s largest cement company with a capacity of 49 million tonnes and will be the only one with a pan-India presence. Currently, ACC Ltd has a wide reach but is not present is some key states such as Gujarat and Andhra Pradesh. UltraTech, post-merger, is therefore likely to be re-rated as a stock, and may even be the preferred stock to play in the Indian cement sector because of its pan-India presence.  Graphics: Sandeep Bhatnagar / Mint In Grasim’s case, stand-alone revenues will fall substantially since the cement business accounted for 63% of revenues in fiscal year 2008-09. In terms of economic interest, however, nothing will change for Grasim shareholders. They will continue to have the same exposure to the cement sector through their shareholding in UltraTech. Currently, Grasim’s shareholders have a 54.78% share in UltraTech’s FY09 operating profit of Rs1,820 crore (Rs 997 crore). Besides, Grasim’s stand-alone cement business made an operating profit of Rs1,912 crore last fiscal, putting their total economic interest in the cement businesses of both companies at Rs2,909 crore. Now, according to an analyst with an institutional broker, in exchange for Grasim’s cement business, UltraTech is likely to issue 1.35 new shares for every share held by Grasim’s shareholders. Because of this equity dilution, Grasim’s stake in UltraTech will fall to around 27.47%. But since each Grasim shareholder will be issued fresh UltraTech shares, Grasim’s existing shareholders will end up with a 49.85% direct stake in the company (assuming it’s in the 1.35:1 ratio). Their total stake (direct and indirect) will stand at 77.32%, and post-merger the combined operating profit will stand at Rs3,732 crore (using FY09 results), giving them an economic interest of around Rs2,886 crore, or close to what they enjoy currently. Since Grasim’s exposure to the cement sector will be in the form of a holding company, investors may prefer to have a direct holding through UltraTech, and this would be the reason for the sudden preference for the latter’s shares. — Mobis Philipose Write to us at marktomarket@livemint.com Source: Home - Livemint.com | 2 Oct 2009 | 10:18 am Black rubber straps signal youthful futureNew Delhi: Hublot watches are distinct for using a blend of precious metals with rubber or ceramic and even carbon. “People often say: ‘How can you buy a $30,000 watch with a black rubber strap? Are you crazy?’” jokes Jean-Claude Biver, chief executive of the Louis Vuitton Moët Hennessy SA-owned company, brandishing the $250,000 (Rs1.19 crore) piece that adorns his wrist. Biver says in an interview that the $220 million Hublot aims to increase the 3% revenue contribution from India to 10% by 2015 by deploying about $15 million for marketing and distribution. Edited excerpts: Are customers ready to pay in excess of Rs4.5 lakh and up to Rs4 crore for a watch with a rubber strap, especially when heritage brands are available in the same price range?  Changing times: Jean-Claude Biver says the culture of negotiating for products in India needs to change. Harikrishna Katragadda/Mint Does the same thinking apply to India where customers are still conservative when it comes to high-value purchases? When it comes to buying luxury products, there is only one taste and one thinking, no matter which country you are in. For local products, there are many different tastes and varied standards but the logic is uniform for luxury products. You see, people use watches for different reasons now. One is to read the time, and one is for communication. As soon as someone buys a watch that costs more than $50, they enter the world of irrationality because they no longer buy it to indicate time—your mobile phone may give you more accurate time than a million-dollar watch. This purchase is used to communicate your dream of owning an expensive watch, or to communicate the person you are—sporty, rich, chic, powerful, whatever it may be. These have become especially important in today’s world where you may not be able to communicate as freely with people around you, but your watch can do that. We have some 400 buyers in India and the reasons they buy these watches are no different from the buyers elsewhere. What are your plans for Hublot in India? China is important but in India, there is more potential because there is incredible art and history here and this is what luxury items are all about. In the next few years, we are investing $15 million in just marketing the brand in the country. Although we are not looking at stand-alone stories just yet, we do plan to increase our distribution network through joint ventures and franchise operations. By 2015, we want to increase the amount of revenue this country generates from 3% of our global turnover to 10%. Will you be signing a Bollywood star as brand ambassador? No, we are staying away from Bollywood stars because we have seen that if one actor endorses a product, other actors won’t buy it, and they (actors) are our consumers, so we can’t do that. What was the influence behind the use of materials such as rubber and carbon, among others, in Hublot watches? One is the electric guitar. When the guitar became electric, it was still just a guitar but it broke tradition to create new sound. Similarly, if you look at what we are made of, or what this earth is made of, it’s a fusion of things like earth and water, water and bones, and this fusion should be present in watch-making too. What are the biggest challenges in marketing Hublot in India? The biggest sweat in general for luxury items is the discount. If you buy a luxury item and you meet another person who bought it for less, you get upset with the brand and may never come back to it. Price should never be discussed and it should be equal. This is a major problem for a market like India because there is a culture of negotiating for everything and this needs to be changed for more luxury items to be present here. Source: World Business - Livemint.com | 2 Oct 2009 | 10:17 am ANALYSIS - Commods rally won't last unless demand recoversNEW YORK (Reuters) - Commodities have outperformed the expectations of many analysts who bet on an anemic recovery after last year's crash, but the climb could start slowing if investors seek more proof the recession is over.Source: Reuters: Money News | 2 Oct 2009 | 9:48 am IMF chief: hard to argue for U.S. IMF quota cutISTANBUL (Reuters) - The head of the International Monetary Fund (IMF) said on Friday it was difficult to make arguments in favor of cutting U.S. voting power in the institution as a bigger voice is given to major emerging economies.Source: Reuters: Money News | 2 Oct 2009 | 8:39 am IMF, World Bank warn global cooperation could falterISTANBUL (Reuters) - The International Monetary Fund (IMF) and the World Bank warned on Friday that the global economic recovery might falter as complacent policymakers lost their will to cooperate.Source: Reuters: Money News | 2 Oct 2009 | 8:06 am Stalin meets labour leaders on Pricol issueTamil Nadu's Deputy Chief Minister M.K. Stalin met representatives of All India Trade Union Central Committee (AITUCC), a trade union affiliated to the Communist Party of India (Marxist-Leninist), here Friday to discuss the labour unrest at automotive component manufacturer Pricol.Source: IndiaeNews.com: Business News | 2 Oct 2009 | 7:30 am Strike by bus operators hits passengers in OrissaPrivate buses in Orissa kept off the roads for the second day Friday to protest a hike in toll fee, leaving thousands of passengers stranded.Source: IndiaeNews.com: Business News | 2 Oct 2009 | 7:02 am Property worth Rs.10 crore unearthed in Madhya Pradesh raidsThe State Bureau of Investigation for Economic Offences (SBIEO) has unearthed property worth over Rs.10 crore following raids at 11 premises of five retired and serving engineers associated with the Bansagar Power Project -- the largest venture of its kind in Madhya Pradesh's Rewa and Satna districts -- officials said here Friday.Source: IndiaeNews.com: Business News | 2 Oct 2009 | 6:30 am Climate change threatens Asia's farming, energy securityClimate change poses fundamental threats to Asia's food and energy security which, if left unchecked, will result in an upsurge of migration into already overburdened mega cities, according to three major new studies funded by the Asian Development Bank (ADB).Source: IndiaeNews.com: Business News | 2 Oct 2009 | 5:01 am Centre okays four-laning of Himachal highwayThe central government has approved a road project costing Rs.5.49 billion for the four-laning of the Parwanoo-Solan National Highway 22 in Himachal Pradesh, state Public Works Minister Gulab Singh said Friday.Source: IndiaeNews.com: Business News | 2 Oct 2009 | 4:31 am 600 dentists to feature in 24-hour oral care marathonSix hundred dentists from across the country will feature in a 24-hour oral care marathon here next week to offer free dental checks to Mumbaikars and create one more reason for this financial and entertainment capital of India to be on the world map.Source: IndiaeNews.com: Business News | 2 Oct 2009 | 4:31 am INTERVIEW - Tokyo bourse revamps options tradeTOKYO (Reuters) - The Tokyo Stock Exchange, Asia's biggest bourse by market capitalisation, is revamping trade in stock options to boost liquidity and keep its ranking as it faces rising competition from regional rivals in Hong Kong and India.Source: Reuters: Money News | 2 Oct 2009 | 4:12 am GE looking at partnership or IPO for NBC UniversalNEW DELHI/PARIS (Reuters) - General Electric Co is holding discussions on partnerships or an IPO for its NBC Universal unit, Chief Executive Jeffrey Immelt said, as expectations grow about a deal with cable operator Comcast Corp.Source: Reuters: Money News | 2 Oct 2009 | 3:55 am Elcoteq says Videocon to buy stake; shares jumpHELSINKI (Reuters) - Loss-making Finnish electronics firm Elcoteq said on Friday Videocon Industries Ltd would buy an equity stake in it, two days after it said plans for a similar deal with China's Kaifa collapsed.Source: Reuters: Money News | 2 Oct 2009 | 2:41 am
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