Birla Sun Life, Idea tie up to offer free cover
PRIVATE life insurer Birla Sun Life Insurance and Idea Cellular have entered into a strategic alliance to sell insurance policies to subscribers of the cellular operator. The tie-up has been initiated through the launch of the 'Group Term Insurance Cover'. Under the plan, Idea subscribers, between the age of 18-35 years, downloading dialer tones would get a free life insurance cover, the two Aditya Birla Group companies said in a release. The companies said one subscriber was allowed only a single policy. Policy claim for natural death was covered after six months and for accidental death from day one. This promotion would run for a period of 12 weeks, it said. The alliance encompasses various multiple joint activities and promotions to provide value added services to the individual customer bases of the two companies, the release added. — PTI, New Delhi
source: economic times
Wednesday, November 22, 2006
Bharti ties up with Lenovo for laptops
AFTER PCs, telecom companies are turning their attention to bundling offers for the fast-growing laptops segment. Telecom major Bharti Airtel has entered into a tie-up with Lenovo for bundling laptops with fixed broadband connection. It is also eyeing a similar arrangement for bundling notebooks and datacards for mobile connectivity. Bharti’s primary competitor in cellular space, Reliance Communications, which already has a tie-up with Hewlett Packard for bundling its wireless data card, has now entered into similar deals with both Lenovo and HCL. “PC penetration is essential to drive up broadband adoption. We have tied up with Lenovo to drive computer penetration and are in talks with HCL for a similar offering. We see a real big opportunity here, and are also talking to a set players to provide a ‘terminal only devices’ for multiple users,” Atul Bindal, Joint President of Bharti Airtel, told ET. When contacted, Princy Bhatnagar, GM (desktops), Lenovo (India) confirmed that the company had entered into a tie-up with Bharti Airtel and Reliance Communications for bundling broadband connections and R-Connect cards respectively with Lenovo desktops and laptops. “We are also in discussion with Bharti for bundling data cards for offering mobile connectivity. This means that laptop users can surf the net while on the move by using a PCMCIA data card,” he added. Lenovo and HCL sell 60,000 units every month. Mr Bindal also said that Bharti Airtel recently became the first private operator to cross five lakh internet subscribers — about three lakh subscribe to broadband services (256 kbps and above) on DSL, while the remaining are primarily on 128 kbps. The company offered services in 92 cities and plans to enhance its coverage of these cities.
AFTER PCs, telecom companies are turning their attention to bundling offers for the fast-growing laptops segment. Telecom major Bharti Airtel has entered into a tie-up with Lenovo for bundling laptops with fixed broadband connection. It is also eyeing a similar arrangement for bundling notebooks and datacards for mobile connectivity. Bharti’s primary competitor in cellular space, Reliance Communications, which already has a tie-up with Hewlett Packard for bundling its wireless data card, has now entered into similar deals with both Lenovo and HCL. “PC penetration is essential to drive up broadband adoption. We have tied up with Lenovo to drive computer penetration and are in talks with HCL for a similar offering. We see a real big opportunity here, and are also talking to a set players to provide a ‘terminal only devices’ for multiple users,” Atul Bindal, Joint President of Bharti Airtel, told ET. When contacted, Princy Bhatnagar, GM (desktops), Lenovo (India) confirmed that the company had entered into a tie-up with Bharti Airtel and Reliance Communications for bundling broadband connections and R-Connect cards respectively with Lenovo desktops and laptops. “We are also in discussion with Bharti for bundling data cards for offering mobile connectivity. This means that laptop users can surf the net while on the move by using a PCMCIA data card,” he added. Lenovo and HCL sell 60,000 units every month. Mr Bindal also said that Bharti Airtel recently became the first private operator to cross five lakh internet subscribers — about three lakh subscribe to broadband services (256 kbps and above) on DSL, while the remaining are primarily on 128 kbps. The company offered services in 92 cities and plans to enhance its coverage of these cities.
source: economic times
Monday, November 20, 2006
CAT English paper not a test of language
THE English section of CAT caught many students, who were expecting it to be a cakewalk, napping. “English section was unexpectedly difficult,” said Mehak Sagar, a third year Economics (Hons) student of Lady Sri Ram college. With this year’s test containing five options, instead of the usual four, and with the differences between them minute, most students found English surprisingly difficult. Interestingly, this view was shared by Liberal Arts students, including those doing English honours. “It wasn’t even English, it was more of reasoning,” said Abhinav Dasgupta, a final year English (Hons) student from St Stephen’s College. Adds Shayak Barman, a third year Eco student from the same college: ”I spared 45 minutes for English as I had always planned. But that was not enough time to crack the ambiguity and fine lines between the options.’’ While many students had first tried their hand in the English section thinking that they would finish it quickly and then move on to the other two. To their surprise, however, they found that it took so much time that they were left with little time for the other two sections, This, despite the fact that CAT 2006 was about 30 minutes longer than last year’s test. But if English was a shocker, the quantitative, and data interpretations sections turned out to be the salvation of many. “Mathematics and data interpretation were up for grabs,” said a student of Mathematics. The two sections really did come as relief for CATters from a background in Economics, Mathematics and even History or English. On the whole, however students found the CAT easier as compared to the mock tests they had taken. The questions were less (75 as compared to 90 last year), the time was more (150 minutes as against 120 minutes last year), and while the increased number of options did confuse some, the consensus was that a call for the next round was within reach if the magical figure of 100 could be breached.
source:economic times
THE English section of CAT caught many students, who were expecting it to be a cakewalk, napping. “English section was unexpectedly difficult,” said Mehak Sagar, a third year Economics (Hons) student of Lady Sri Ram college. With this year’s test containing five options, instead of the usual four, and with the differences between them minute, most students found English surprisingly difficult. Interestingly, this view was shared by Liberal Arts students, including those doing English honours. “It wasn’t even English, it was more of reasoning,” said Abhinav Dasgupta, a final year English (Hons) student from St Stephen’s College. Adds Shayak Barman, a third year Eco student from the same college: ”I spared 45 minutes for English as I had always planned. But that was not enough time to crack the ambiguity and fine lines between the options.’’ While many students had first tried their hand in the English section thinking that they would finish it quickly and then move on to the other two. To their surprise, however, they found that it took so much time that they were left with little time for the other two sections, This, despite the fact that CAT 2006 was about 30 minutes longer than last year’s test. But if English was a shocker, the quantitative, and data interpretations sections turned out to be the salvation of many. “Mathematics and data interpretation were up for grabs,” said a student of Mathematics. The two sections really did come as relief for CATters from a background in Economics, Mathematics and even History or English. On the whole, however students found the CAT easier as compared to the mock tests they had taken. The questions were less (75 as compared to 90 last year), the time was more (150 minutes as against 120 minutes last year), and while the increased number of options did confuse some, the consensus was that a call for the next round was within reach if the magical figure of 100 could be breached.
source:economic times
IIM grads spoilt for choice
THINGS are only getting better for top B-school students. The options have multiplied. Big names have gotten a little bigger. Stipends have never been this good. And the seriousness of intent couldn’t get more serious. Summer placements at IIMs this year mirror well the state of the Indian economy and India Inc’s mood. Of course, the old ones thronged the campus, from Ibankers like Lehman Brothers and JP Morgan to consulting majors like McKinsey and Value Partners. But reflecting the changing composition of the Indian economy, many companies from New-Age sectors — from Reliance, Nike and RPG in retail, Jones Lang LaSalle in real estate, Sony Entertainment Television and Yahoo! in media to startups like pagalguy.com — have also been accepted. Every year in October-November, six IIMs organise summer placements for their first-year students. Since this precedes the full-fledged campus placements, summer placements are a good indicator of what lies ahead for students graduating out of the campuses next year. New sectors are getting plenty of attention from young graduates. Students at IIMA showed an increased interest in joining startup firms which would give them valuable exposure across functions and higher levels of responsibility in a short time. RPG Retail president JH Mehta said the company had flocked to IIMs this year as good quality research in retail was the need of the hour. Technopak Advisors chairman Arvind Singhal said the firm had offered live projects in emerging areas, like retail and consumer products, and would use the opportunity to vet prospective recruits. “Most of these organisations are building their talent pools now and this would be a great opportunity for interns to learn and grow with the organisation,” said IIML placement chairman Pankaj Kumar. IIMI placement chairperson Prashant Salwan said new sector companies had offered internship profiles which were more researchoriented and in line with student aspirations. It begins with the stipends being offered by the companies. It has risen sharply across campuses. Average stipends have risen by up to 50% for some institutes, along with a record number of international offers. IIMC saw domestic stipends for the two-month stint ranging from Rs 90,000 to Rs 4.5 lakh, while international stipends shot up as high as $22,000. “At IIMK, we saw average stipends grow by 35%,” said placement chairperson K Balooni. “Companies think of summer placements as the first step in the final recruitment process. Thus, they are only too willing to pay higher stipends to attract and retain the best brains,” said A Nayak, executive VP, HR, ITC, which picked up IIMA and IIMC students. With competition for hiring graduating students intensifying, firms have begun to see summers as a good way to introduce themselves to the prospective recruits. Special projects are being worked out, mentors are being assigned to forge better relationships and understanding with them. IIMA, IIMB and IIMC saw senior-level profiles offered by Lehman Brothers, Goldman Sachs, Deutsche Bank and Barclays Capital similar to those earlier offered only to the Ivyleague schools. McKinsey and Co, Bain and Co and AT Kearney were first-time recruiters at IIMB, picking up 11 students. Amit Bordia, VP, alternative risk markets, Deutsche Bank, said: “Students are being recruited as associates, equivalent to the roles offered to graduates from the leading US B-schools like Harvard and Wharton.” Though summer placements have always been an integral part of BCG’s recruitment process across the globe, it started in India only last year. “This is because we wanted to make sure that every intern gets proper hands-on training and to handle live projects,” says BCG principal Saurabh Tripathi. Earlier, consulting firms, usually among the top recruiters for final placements, weren’t regulars during the summers. “But now, since I- banks are bagging some of the best summer interns through PPOs, consulting firms are coming for summers as well in greater numbers so as to not lose out in the process,” says IIMB placement chairperson S Mukherjee. This year saw a significant increase in the number of exclusive recruiters who chose to recruit only from particular IIM campuses. IIMC saw exclusive recruiters like Morgan Stanley International, Credit Suisse and Fortis. IIMI got firms like Verve Consulting, Astro Mesat and CanvasM. Temasek and Barings Singapore only chose IIMB and IIMK saw seven such firms in diverse areas, like ship management, M&A advisory and retail. “This trend is because a firm feels a synergy between requirements and strengths of a particular institute. Like IIMC, whose students are acknowledged to be particularly strong in quantitative skills,” says IIMC recruitment coordinator Ritesh Kapur. TOWARDS NORTH Summer placements at IIMs this year mirror well the state of the Indian economy New-Age companies like Reliance, Sony and Yahoo! have been accepted too IIMA students more interested in startup firms which would give them higher responsibility early Average stipends have risen by up to 50%, along with a record number of global offers
source: economic times
Expectations leap at easier CAT
Around 1.75 Lakh Hopefuls Test Their Skills For 1,500 Seats At Six IIMs
THE new CAT’s out of the bag, and here is the first impression: less questions, more time, and one more option per question; tougher paper on English and relatively easier one on data interpretation; four marks for every right answer, and a minus one for a wrong one. Thus went a Sunday that could launch more than a thousand — well, there are about 1,500 seats across the six IIMs — corner-room careers as around 1.75 lakh aspirants took the common admission test 2006. Overall, as ET correspondents who fanned out across the country and some who took the exams found out, CAT 2006 was a pleasant surprise. To begin with, as compared to last year, the total number of questions went down from 90 to 75 while the exam duration had been increased by 30 minutes. Around 1.75 lakh students had applied for the CAT this year, but IIM officials refused to hazard a guess on how many actually took the test. IIM-Bangalore chairperson (admissions) Prof Subhabrata Das told ET, “The entire process across the country went off well without an incident.” Sure, Prof Das felt it was too early to take stock of the final number of candidates. According to sources at the CAT centres throughout 23 cities, there was a 90-95% attendance. Anyone who is confident of scoring more than 100 marks — of the total 300 — stands a good chance to get a call for the next round. But as some coaching agencies felt, increased competition this year may push that surety point to nudge the 120-mark level. “On an average, the best students attempted 45-48 of the total 75 questions,” CAT coaching institute Career Launcher India director Arindam Lahiri said. Like every year, this time too, the format was modified. Aspirants happy with new format Says Career Forum chairperson Sujata Khanna, “Every year, the CAT has a surprise. This year, it has been the increase in the number of marks per question, and a reduction in the number of questions.” Adds a spokesperson for Indiatimes Mindscape Test Centre, “If CAT 2005 was the toughest CAT ever, students were treated to a pleasant surprise at CAT 2006.” Aspirants appeared happy with the new format. “Increased time and reduced number of questions allowed us to spend more time on each section. However, there were less questions to choose from this year,” said CAT aspirant Punita Chada. Some experts felt there were ambiguities in the question paper, especially in the English and problem-solving sections. “Different people might have different right answers to the same question,” said Manek Daruwala, director of Ahmedabad-based coaching institute TIME. “The question paper speaks of changing global requirements. While the new-age managers are expected to understand basic mathematics, they are expected to be more fluent in English,” Lahiri added. “Mathematics and data interpretation was up for grabs,” said a student of Mathematics from St Stephen’s College who took the CAT. This was neither an exclusive response nor something that is only expected of a student of Mathematics (Hons). The two sections on maths and logic really came as relief for CATters with a background in economics, mathematics or even history or English. “The English section was unexpectedly difficult,” said Mehak Sagar, a third-year Economics (Hons) student from Lady Sri Ram College, Delhi. In English, with the added factor of increase in options that demanded more thinking, the options were also puzzling enough with the differential between them being microscopic. “Some options were also ambiguous,” said Mehak.
Around 1.75 Lakh Hopefuls Test Their Skills For 1,500 Seats At Six IIMs
THE new CAT’s out of the bag, and here is the first impression: less questions, more time, and one more option per question; tougher paper on English and relatively easier one on data interpretation; four marks for every right answer, and a minus one for a wrong one. Thus went a Sunday that could launch more than a thousand — well, there are about 1,500 seats across the six IIMs — corner-room careers as around 1.75 lakh aspirants took the common admission test 2006. Overall, as ET correspondents who fanned out across the country and some who took the exams found out, CAT 2006 was a pleasant surprise. To begin with, as compared to last year, the total number of questions went down from 90 to 75 while the exam duration had been increased by 30 minutes. Around 1.75 lakh students had applied for the CAT this year, but IIM officials refused to hazard a guess on how many actually took the test. IIM-Bangalore chairperson (admissions) Prof Subhabrata Das told ET, “The entire process across the country went off well without an incident.” Sure, Prof Das felt it was too early to take stock of the final number of candidates. According to sources at the CAT centres throughout 23 cities, there was a 90-95% attendance. Anyone who is confident of scoring more than 100 marks — of the total 300 — stands a good chance to get a call for the next round. But as some coaching agencies felt, increased competition this year may push that surety point to nudge the 120-mark level. “On an average, the best students attempted 45-48 of the total 75 questions,” CAT coaching institute Career Launcher India director Arindam Lahiri said. Like every year, this time too, the format was modified. Aspirants happy with new format Says Career Forum chairperson Sujata Khanna, “Every year, the CAT has a surprise. This year, it has been the increase in the number of marks per question, and a reduction in the number of questions.” Adds a spokesperson for Indiatimes Mindscape Test Centre, “If CAT 2005 was the toughest CAT ever, students were treated to a pleasant surprise at CAT 2006.” Aspirants appeared happy with the new format. “Increased time and reduced number of questions allowed us to spend more time on each section. However, there were less questions to choose from this year,” said CAT aspirant Punita Chada. Some experts felt there were ambiguities in the question paper, especially in the English and problem-solving sections. “Different people might have different right answers to the same question,” said Manek Daruwala, director of Ahmedabad-based coaching institute TIME. “The question paper speaks of changing global requirements. While the new-age managers are expected to understand basic mathematics, they are expected to be more fluent in English,” Lahiri added. “Mathematics and data interpretation was up for grabs,” said a student of Mathematics from St Stephen’s College who took the CAT. This was neither an exclusive response nor something that is only expected of a student of Mathematics (Hons). The two sections on maths and logic really came as relief for CATters with a background in economics, mathematics or even history or English. “The English section was unexpectedly difficult,” said Mehak Sagar, a third-year Economics (Hons) student from Lady Sri Ram College, Delhi. In English, with the added factor of increase in options that demanded more thinking, the options were also puzzling enough with the differential between them being microscopic. “Some options were also ambiguous,” said Mehak.
source: economic times
Saturday, November 18, 2006
MBAs face CA challenge
B-SCHOOL grads better watch out. A new breed of chartered accountants trained in management skills are getting ready to challenge them in their backyard. Until now, MBAs have had a certain edge over CAs in the job market, as most of the latter were not trained in management skills. But now that’s going to change. The Institute of Chartered Accountants of India (ICAI) will set up 11 centres of excellence across the country, with an investment of about Rs 100 crore. ICAI is forging alliance with national and global institutes to avail of their expertise in training its members and students and impart better communications and presentation skills. It has initiated a dialogue with IIMC and is likely to sign an agreement soon. “Role of a CA is no more limited only to auditing the books. Their abilities are being utilised in various areas of operations, such as strategic planning and innovative ideas,” ICAI V-P Sunil Talati said. He said that it was now being realised that an MBA scored over the CA in the job market, as they possessed better presentation skills. “So, we are going to set up 11 centres in metros and other major cities. We are in the process of signing an agreement with IIMC and planning to join hands with prominent global institutions,” he said. It was learnt that ICAI and IIMC have conducted two rounds of meetings in the recent past. The first centre would start training the first batch of students in Hyderabad from March 2007. ICAI will issue a note on the same to the government. Mr Talati added that CA students studied and cleared four times more papers compared to an average MBA graduate. ICAI is trying to break up the barrier of managerial skills between MBAs and CAs. “We are changing the syllabus according to market requirements,” he said. Of 1,32,000 CAs, 50% ICAI members are employed in the corporate world, while the rest are practicing in India and abroad.
source: economic times
Wipro bags Rs 304-cr Dena Bank BPO deal
WIPRO Infotech has bagged a Rs 304.4-crore IT outsourcing services contract from Dena Bank. This contract marks the 10th win in the last two years for Wipro Infotech, the IT solutions and services division of Wipro with focus on India, Middle East and the Asia-Pacific. It had also recently won a similar contract from HDFC Bank. Spread over 10 years, the scope of the contract covers applications and infrastructure provisioning and management to enable centralised banking operations of Dena Bank across its 850 branches. Wipro will be responsible for provisioning, system integration and the management of the entire IT infrastructure covering computing platforms and networking. This would also include data centre and disaster recovery centre. The project has already commenced and will be rolled out to all the 850 branches of Dena Bank in phases. Wipro Infotech president Suresh Vaswani said: “Our total outsourcing (TOS) practice has been a success in the Indian geography.”
source:economic times
WIPRO Infotech has bagged a Rs 304.4-crore IT outsourcing services contract from Dena Bank. This contract marks the 10th win in the last two years for Wipro Infotech, the IT solutions and services division of Wipro with focus on India, Middle East and the Asia-Pacific. It had also recently won a similar contract from HDFC Bank. Spread over 10 years, the scope of the contract covers applications and infrastructure provisioning and management to enable centralised banking operations of Dena Bank across its 850 branches. Wipro will be responsible for provisioning, system integration and the management of the entire IT infrastructure covering computing platforms and networking. This would also include data centre and disaster recovery centre. The project has already commenced and will be rolled out to all the 850 branches of Dena Bank in phases. Wipro Infotech president Suresh Vaswani said: “Our total outsourcing (TOS) practice has been a success in the Indian geography.”
source:economic times
Bharti,Future too smell riches at farm gate
THANKS to growing corporate interest in agri-business, companies like FieldFresh Foods and Pantaloon are proposing to set up direct links with rural India under a panchayati raj ministry-industry initiative. FieldFresh, a Bharti Enterprises-Rothschild joint venture which exports agri-products to Europe and the US, has submitted a proposal to the panchayati raj ministry to build direct linkages with farmers in the Hyderabad rural, Medal, Nizamabad, Rangareddy and Krishna districts of Andhra Pradesh. The company plans to not only procure Banganpally variety of mangoes at farm gate but also provide extension services to improve quality. The proposed project would cover an area of about 65,600 hectares in this region. The proposal is under consideration. Retailer Pantaloon has also proposed to establish rural business hubs for procuring farm produce directly from farmers. The pilot project would involve procuring 2,000 tonnes of tur dal, or yellow lentils, from Jalna, Jalgaon and other districts in Maharashtra and from Vasad and Unjha in Gujarat. The value of the procurement in the pilot scheme is estimated to be about Rs 5 crore. The company proposes to sign a memorandum of understanding with the panchayats of the identified areas to begin sourcing from February next year. Pantaloon further plans to set up warehouses in these areas in the next phase and offer seed inputs and provide farm extension services to farmers as well. Both these projects will be undertaken through the rural business hubs (RBH) initiative of the panchayati raj ministry and Confederation of Indian Industry (CII). The initiative is based on the public-privatepanchayat partnership and aims to foster and permeate economic growth into and for rural India. It has been conceptualised to synergistically link rural products, skills and produces with the marketing and professional skills of the industry. RBHs focus on agri-product processing, handicrafts and handlooms sourcing and power generation in rural India through biomass and other alternative energy sources. RURAL ROOTS Bharti’s FieldFresh Foods, Pantaloon proposing to set up direct links with rural India under a panchayati raj ministry-industry initiative Linkages involve not only procuring produce but also setting up warehouses and providing seeds and extension services to improve quality .
source:economic times
THANKS to growing corporate interest in agri-business, companies like FieldFresh Foods and Pantaloon are proposing to set up direct links with rural India under a panchayati raj ministry-industry initiative. FieldFresh, a Bharti Enterprises-Rothschild joint venture which exports agri-products to Europe and the US, has submitted a proposal to the panchayati raj ministry to build direct linkages with farmers in the Hyderabad rural, Medal, Nizamabad, Rangareddy and Krishna districts of Andhra Pradesh. The company plans to not only procure Banganpally variety of mangoes at farm gate but also provide extension services to improve quality. The proposed project would cover an area of about 65,600 hectares in this region. The proposal is under consideration. Retailer Pantaloon has also proposed to establish rural business hubs for procuring farm produce directly from farmers. The pilot project would involve procuring 2,000 tonnes of tur dal, or yellow lentils, from Jalna, Jalgaon and other districts in Maharashtra and from Vasad and Unjha in Gujarat. The value of the procurement in the pilot scheme is estimated to be about Rs 5 crore. The company proposes to sign a memorandum of understanding with the panchayats of the identified areas to begin sourcing from February next year. Pantaloon further plans to set up warehouses in these areas in the next phase and offer seed inputs and provide farm extension services to farmers as well. Both these projects will be undertaken through the rural business hubs (RBH) initiative of the panchayati raj ministry and Confederation of Indian Industry (CII). The initiative is based on the public-privatepanchayat partnership and aims to foster and permeate economic growth into and for rural India. It has been conceptualised to synergistically link rural products, skills and produces with the marketing and professional skills of the industry. RBHs focus on agri-product processing, handicrafts and handlooms sourcing and power generation in rural India through biomass and other alternative energy sources. RURAL ROOTS Bharti’s FieldFresh Foods, Pantaloon proposing to set up direct links with rural India under a panchayati raj ministry-industry initiative Linkages involve not only procuring produce but also setting up warehouses and providing seeds and extension services to improve quality .
source:economic times
Are you CATting tomorrow?
ON SUNDAY, around two lakh wannabe-CEOs will take the common admission text (CAT), which comes with a different pattern and longer duration this year. In fact, the numbers are despite renewed efforts by the Indian Institutes of Management (IIMs) to cut the growing and almost unmanageable number of candidates. A cut-off of 50% in graduation has been made mandatory for this year’s CAT aspirants. Over the years, this entrance exam has seen the numbers swell from a few thousands to over two lakh today. In 1998, around 65,000 candidates had appeared for CAT. This increased to 1 lakh in 2003, and around 1,60,000 students appeared for the exam last year.
source: economic times
ON SUNDAY, around two lakh wannabe-CEOs will take the common admission text (CAT), which comes with a different pattern and longer duration this year. In fact, the numbers are despite renewed efforts by the Indian Institutes of Management (IIMs) to cut the growing and almost unmanageable number of candidates. A cut-off of 50% in graduation has been made mandatory for this year’s CAT aspirants. Over the years, this entrance exam has seen the numbers swell from a few thousands to over two lakh today. In 1998, around 65,000 candidates had appeared for CAT. This increased to 1 lakh in 2003, and around 1,60,000 students appeared for the exam last year.
source: economic times
Friday, November 10, 2006
TCS, Satyam bag Rs 645 cr contract from Qantas
Tata Consultancy Services and Satyam Computers, the country’s largest and fourth largest software exporters respectively, on Thursday said that they have bagged a Rs 645 crore seven-year contract from Australian airline Qantas. While TCS’ share in the contract is valued at Rs 402 crore, Satyam’s share in the deal amounts to Rs 243 crore. The Tata Group company would shoulder as much as 75% of the applications services and transformation (AST) outsourcing programme of Qantas. The deal involves providing support to Qantas’s key IT applications for airport operations and commercial systems.
Tata Consultancy Services and Satyam Computers, the country’s largest and fourth largest software exporters respec- tively, on Thursday said that they have bagged a Rs 645 crore seven-year contract from Australian airline Qantas. While TCS’ share in the contract is valued at Rs 402 crore, Satyam’s share in the deal amounts to Rs 243 crore. The Tata Group company would shoulder as much as 75% of the applications services and transformation (AST) outsourcing programme of Qantas. The deal involves providing support to Qantas’s key IT applications for airport operations and commercial systems.
source: Financial Express (10/11/2006)
Tata Consultancy Services and Satyam Computers, the country’s largest and fourth largest software exporters respectively, on Thursday said that they have bagged a Rs 645 crore seven-year contract from Australian airline Qantas. While TCS’ share in the contract is valued at Rs 402 crore, Satyam’s share in the deal amounts to Rs 243 crore. The Tata Group company would shoulder as much as 75% of the applications services and transformation (AST) outsourcing programme of Qantas. The deal involves providing support to Qantas’s key IT applications for airport operations and commercial systems.
Tata Consultancy Services and Satyam Computers, the country’s largest and fourth largest software exporters respec- tively, on Thursday said that they have bagged a Rs 645 crore seven-year contract from Australian airline Qantas. While TCS’ share in the contract is valued at Rs 402 crore, Satyam’s share in the deal amounts to Rs 243 crore. The Tata Group company would shoulder as much as 75% of the applications services and transformation (AST) outsourcing programme of Qantas. The deal involves providing support to Qantas’s key IT applications for airport operations and commercial systems.
source: Financial Express (10/11/2006)
Monday, November 06, 2006
Success is more about direction than distance
MANY managers spend a lot of their working time thinking about how to accelerate their promotions, how to impress the boss more than their colleagues and how to earn money faster. What’s the aim of a career? To go far, or in the right direction. Ideally, you should achieve both, but that is not easy. If you watch club-level golfers, you will see the point. Some stand on the tee box with the longest club, and whack the ball with the might of an ox. They are the ones who want to see the ball soar away with an accelerating speed. A few seconds later, when they observe where the ball has landed, they curse and crib. The ball has, perhaps, been lost or has landed in a difficult spot, from where it would be difficult to play the next shot. Other golfers take a measured approach of landing the ball on the fairway at a spot where they want to land. For them, the next stroke is as important as this first tee shot. Both are valid ways to play the game. If you are talented, you may learn to do both ie., go far as well as land where you want. Many clublevel golfers never achieve this. The purpose of a career is to utilise your potential, as that alone can give you satisfaction and a sense of self-esteem. It becomes possible to achieve such a satisfaction when you are surrounded by friendship and trust, which are essential for accomplishment in managerial tasks. Nobody can do a management job all by himself, this is a well-accepted fact. It is the web of relationships and friendship that enables a manager to navigate the choppy waters that the ship of his career will constantly encounter. There was a movie made by Frank Capra which I recall seeing when I was young. It starred James Stewart and Donna Reed and was named It’s a wonderful life. The story is about a man, who thinks he is a failure. So he prepares to commit suicide. An angel is sent to prevent his act and to rescue him. The angel finds that the man lacks selfesteem and he thinks that his friends and relations do not care for him much. The angel takes him in an invisible form to overhear what his friends and relations think of him in reality. He is surprised to know that he is loved and that he mattered to them. His own perception of his failures in his career and business activities bothered them little, and their love for him was overwhelming. He feels blessed. Moral of the film — No man is a failure who has friends. Well, it is the same with your career. You take your own successes too seriously, and your failures in the same way. Other people do not think about either with the same intensity, they have better things to do! If you aim in the right direction, the best possible distance will come automatically.
MANY managers spend a lot of their working time thinking about how to accelerate their promotions, how to impress the boss more than their colleagues and how to earn money faster. What’s the aim of a career? To go far, or in the right direction. Ideally, you should achieve both, but that is not easy. If you watch club-level golfers, you will see the point. Some stand on the tee box with the longest club, and whack the ball with the might of an ox. They are the ones who want to see the ball soar away with an accelerating speed. A few seconds later, when they observe where the ball has landed, they curse and crib. The ball has, perhaps, been lost or has landed in a difficult spot, from where it would be difficult to play the next shot. Other golfers take a measured approach of landing the ball on the fairway at a spot where they want to land. For them, the next stroke is as important as this first tee shot. Both are valid ways to play the game. If you are talented, you may learn to do both ie., go far as well as land where you want. Many clublevel golfers never achieve this. The purpose of a career is to utilise your potential, as that alone can give you satisfaction and a sense of self-esteem. It becomes possible to achieve such a satisfaction when you are surrounded by friendship and trust, which are essential for accomplishment in managerial tasks. Nobody can do a management job all by himself, this is a well-accepted fact. It is the web of relationships and friendship that enables a manager to navigate the choppy waters that the ship of his career will constantly encounter. There was a movie made by Frank Capra which I recall seeing when I was young. It starred James Stewart and Donna Reed and was named It’s a wonderful life. The story is about a man, who thinks he is a failure. So he prepares to commit suicide. An angel is sent to prevent his act and to rescue him. The angel finds that the man lacks selfesteem and he thinks that his friends and relations do not care for him much. The angel takes him in an invisible form to overhear what his friends and relations think of him in reality. He is surprised to know that he is loved and that he mattered to them. His own perception of his failures in his career and business activities bothered them little, and their love for him was overwhelming. He feels blessed. Moral of the film — No man is a failure who has friends. Well, it is the same with your career. You take your own successes too seriously, and your failures in the same way. Other people do not think about either with the same intensity, they have better things to do! If you aim in the right direction, the best possible distance will come automatically.
source: Economic Times (6/11/2006)
What is money laundering?
THE Government of India has decided to move amendments to the Prevention of Money Laundering Act (PMLA) that will entail taking tougher measures to block terrorist financing through banking channels. The amendments will bring terrorism financing and customs offences under the glare of prevention of money laundering.
What is the Financial Action Task Force (FATF)? The Paris-based inter-governmental organisation was launched in 1989, primarily to fight the flow of drug money, but has now also focused on fighting terror financing. It sets policies that guide countries in adopting anti-money laundering measures. The organisation has designated 20 categories of offences that should be brought under anti-money laundering rules. The FATF does not have a tightly defined constitution or an unlimited life span. The task force reviews its mission every five years. In 2004, ministry representatives from the 33 FATF members agreed to extend the mandate of the task force until 2012. What is money laundering? Money laundering involves disguising financial assets so that they can be used without detection of the illegal activity that produced them. Through money laundering, the launderer transforms the monetary proceeds derived from criminal activity into funds with an apparently legal source. Illegal arms sales, smuggling and the activities of organised crime can generate huge amounts of proceeds. Embezzlement, insider trading, bribery and computer fraud schemes can also produce large profits and create the incentive to legitimise the ill-gotten gains through money laundering, says the FATF. The IMF, for example, has stated in 1996 that the aggregate size of money laundering in the world could be somewhere between 2-5% of the world’s gross domestic product. Using 1996 statistics, these percentages would indicate that money laundering ranged between $590 billion and $1.5 trillion. What steps has India taken to combat it? The Prevention of Money Laundering Act, 2002 (PMLA 2002), forms the core of the legal framework put in place by India to combat money laundering. PMLA 2002 and the rules notified came into force with effect from July 1, 2005. The Financial Intelligence Unit and the Enforcement Directorate have been entrusted with exclusive and concurrent powers under relevant sections of the act to implement its provisions. The PMLA 2002 and notified rules impose obligations on banking companies, financial institutions and intermediaries to verify the identity of clients, maintain records and furnish information to the Financial Intelligence Unit (FIU). PMLA 2002 defines money-laundering offences and provides for the freezing, seizure and confiscation of the proceeds of crime. Why is the Indian government planning to update its existing legal framework to combat money laundering? The government is also hopeful that the amendments to the prevention of money laundering act will give India an observer status with the FATF, which is to be decided early next year. While the FATF has also asked for making insider trading in stock markets a money laundering offence, the government is not in favour of doing so. The amendments are significant as monetary authorities in the US, Europe, and Singapore are not satisfied with the existing framework to curb money laundering in India. Therefore, the decision to update the existing act is driven by the demands of the US and EU to take tougher action to block terrorist financing through banking channels. Indian banks can then look forward to an easy entry into the US market. The demands had been affecting the global expansion plans of banks. Where does money laundering occur? Money launderers usually prefer to move funds through stable financial systems. Anti-money laundering measures often force launderers to move to parts of the economy with weak or ineffective measures to deal with the problem. At an advanced stage of a transaction, the funds are usually processed relatively close to the underlying activity; often, in the country where the funds originate. The launderer might choose an offshore financial centre, a large regional business centre, or a world banking centre — any location that provides an adequate financial or business infrastructure. At this stage, the laundered funds may also only transit bank accounts at various locations where this can be done without leaving traces of their source or ultimate destination.
THE Government of India has decided to move amendments to the Prevention of Money Laundering Act (PMLA) that will entail taking tougher measures to block terrorist financing through banking channels. The amendments will bring terrorism financing and customs offences under the glare of prevention of money laundering.
What is the Financial Action Task Force (FATF)? The Paris-based inter-governmental organisation was launched in 1989, primarily to fight the flow of drug money, but has now also focused on fighting terror financing. It sets policies that guide countries in adopting anti-money laundering measures. The organisation has designated 20 categories of offences that should be brought under anti-money laundering rules. The FATF does not have a tightly defined constitution or an unlimited life span. The task force reviews its mission every five years. In 2004, ministry representatives from the 33 FATF members agreed to extend the mandate of the task force until 2012. What is money laundering? Money laundering involves disguising financial assets so that they can be used without detection of the illegal activity that produced them. Through money laundering, the launderer transforms the monetary proceeds derived from criminal activity into funds with an apparently legal source. Illegal arms sales, smuggling and the activities of organised crime can generate huge amounts of proceeds. Embezzlement, insider trading, bribery and computer fraud schemes can also produce large profits and create the incentive to legitimise the ill-gotten gains through money laundering, says the FATF. The IMF, for example, has stated in 1996 that the aggregate size of money laundering in the world could be somewhere between 2-5% of the world’s gross domestic product. Using 1996 statistics, these percentages would indicate that money laundering ranged between $590 billion and $1.5 trillion. What steps has India taken to combat it? The Prevention of Money Laundering Act, 2002 (PMLA 2002), forms the core of the legal framework put in place by India to combat money laundering. PMLA 2002 and the rules notified came into force with effect from July 1, 2005. The Financial Intelligence Unit and the Enforcement Directorate have been entrusted with exclusive and concurrent powers under relevant sections of the act to implement its provisions. The PMLA 2002 and notified rules impose obligations on banking companies, financial institutions and intermediaries to verify the identity of clients, maintain records and furnish information to the Financial Intelligence Unit (FIU). PMLA 2002 defines money-laundering offences and provides for the freezing, seizure and confiscation of the proceeds of crime. Why is the Indian government planning to update its existing legal framework to combat money laundering? The government is also hopeful that the amendments to the prevention of money laundering act will give India an observer status with the FATF, which is to be decided early next year. While the FATF has also asked for making insider trading in stock markets a money laundering offence, the government is not in favour of doing so. The amendments are significant as monetary authorities in the US, Europe, and Singapore are not satisfied with the existing framework to curb money laundering in India. Therefore, the decision to update the existing act is driven by the demands of the US and EU to take tougher action to block terrorist financing through banking channels. Indian banks can then look forward to an easy entry into the US market. The demands had been affecting the global expansion plans of banks. Where does money laundering occur? Money launderers usually prefer to move funds through stable financial systems. Anti-money laundering measures often force launderers to move to parts of the economy with weak or ineffective measures to deal with the problem. At an advanced stage of a transaction, the funds are usually processed relatively close to the underlying activity; often, in the country where the funds originate. The launderer might choose an offshore financial centre, a large regional business centre, or a world banking centre — any location that provides an adequate financial or business infrastructure. At this stage, the laundered funds may also only transit bank accounts at various locations where this can be done without leaving traces of their source or ultimate destination.
source: Economic Times (6/11/2006)
UTI in talks for royalty on brand use by subsidiaries
Shaji Vikraman & MK Venu MUMBAI/NEW DELHI
COME 2008, and the use of the UTI brand name will come at a price for entities riding on the strength of it. Talks are on to firm up an agreement that will make it incumbent for any of the firms promoted by the erstwhile mutual fund UTI, such as UTI Bank and other subsidiaries, to pay a royalty for use of the UTI brand name to UTI Asset Management Co (UTI AMC). The model may be on the lines of the one the house of Tatas have adopted. All Tata group companies pay royalty fees to the holding company, Tata Sons, for using the brand name and logo. The fees are based on a percentage of the company’s revenues. “An agreement is being worked out and would be in place well before 2008 on the licensing of the UTI brand name,” top government sources said. Industry officials said the proposed agreement may incorporate a noncompete clause that will ensure that no entity using the UTI brand name can compete with UTI AMC in the mutual fund segment. The exclusive right to use the UTI brand name that still resonates with a lot of investors in the local financial sector resides with UTI AMC, the country’s largest fund house. The brand value is accentuated, especially in the semi-urban and relativelysmaller towns, where it is seen as a proxy for the sovereign. The UTI brand licensing right was vested with the UTI AMC in 2005 under an agreement after the government sold the AMC to the four sponsors: SBI, LIC, PNB and BoB. The valuation of the AMC took into account the UTI brand name and, therefore, it was the AMC that got to use the brandname for keeps. Senior government officials said talks have been kicked off on the issue and an agreement to incorporate payment of royalty fees to UTI AMC by UTI entities would be in place before January 2008.
Shaji Vikraman & MK Venu MUMBAI/NEW DELHI
COME 2008, and the use of the UTI brand name will come at a price for entities riding on the strength of it. Talks are on to firm up an agreement that will make it incumbent for any of the firms promoted by the erstwhile mutual fund UTI, such as UTI Bank and other subsidiaries, to pay a royalty for use of the UTI brand name to UTI Asset Management Co (UTI AMC). The model may be on the lines of the one the house of Tatas have adopted. All Tata group companies pay royalty fees to the holding company, Tata Sons, for using the brand name and logo. The fees are based on a percentage of the company’s revenues. “An agreement is being worked out and would be in place well before 2008 on the licensing of the UTI brand name,” top government sources said. Industry officials said the proposed agreement may incorporate a noncompete clause that will ensure that no entity using the UTI brand name can compete with UTI AMC in the mutual fund segment. The exclusive right to use the UTI brand name that still resonates with a lot of investors in the local financial sector resides with UTI AMC, the country’s largest fund house. The brand value is accentuated, especially in the semi-urban and relativelysmaller towns, where it is seen as a proxy for the sovereign. The UTI brand licensing right was vested with the UTI AMC in 2005 under an agreement after the government sold the AMC to the four sponsors: SBI, LIC, PNB and BoB. The valuation of the AMC took into account the UTI brand name and, therefore, it was the AMC that got to use the brandname for keeps. Senior government officials said talks have been kicked off on the issue and an agreement to incorporate payment of royalty fees to UTI AMC by UTI entities would be in place before January 2008.
Sunday, November 05, 2006
Role Reversal
The realty sector is seeing fresh changes with suburban retail units taking space in office buildings
THIS one’s turning into a heady cocktail. Even as more offices are being set up in shopping malls, there’s an interesting twist in the retail tale — suburban retail units are now planning to take up space in office buildings. These units include foodcourts, hypermarkets and bank retailing outlets. For instance, Deutsche Bank has recently taken up around 5,000 sq ft of retail space in DLF Infinity. Setting up hypermarkets in office-cum-commercial complexes is also on agenda for retail majors like Big Baazar and Piramyd. And this is just a tiny fraction of the action that the retail sector in the NCR saw during the last quarter. In the last two-three months, at least a dozen blue chip brands and retail chains have taken up sizeable space in high streets of the city. Some of these transactions include automobile major BMW, which took up 9,000 sq ft in a prime Delhi suburban business district (SBD). International lifestyle and healthcare chain Celebrity Fitness, food & beverages major TGIF and the French womenswear brand NafNaf have already taken up 30,000 sq ft, 8,000 sq ft and 4,000 sq ft in the upcoming Ambi Mall in Gurgaon. Adding even more feathers to the list are names like Bosini, Adidas, Barcode, Time Factory, Esprit and Catwalk. Of these, Time Factory has taken 1,200 sq ft of retail space in Shipra Mall, Esprit has taken 6,000 sq ft in South Extension, Catwalk has signed up 2,000 sq ft in MGF City Square, Bosini is setting up a 3,000 sq ft shop in Greater Kailash, Adidas has taken 5,000 sq ft in the city’s central business district (CBD) and Barcode is setting up a resto-bar over 8000 sq ft in Vasant Kunj. Explains Sanjay Chandra, MD, Unitech Group: “In any growing retail market you witness this kind of boom, but here you see bigger unorganized market. Slowly it will not be the same and we will see better future for organized retail also. Right now demand for good retail space is high and in the near future it is only expected to grow. The developing markets internationally have done well and have carved a niche for themselves in the minds of the consumers once the organized retail pie increase.” Interestingly, the workspace demand in the country is also on a great growth path. In 2002, it was 6.5 million sq ft of demand which is 25 million sq ft in 2005. This sector is set to witness a growth of 25 to 30% in the next couple of years. The cost of occupation in Mumbai is $56.83 per sq ft per annum, while it is $40.62 in Delhi and $52.04 per sq ft in Manhattan. However, returns in India range from 12% to 15%, while in mature markets such as the US and Western Europe, they are 3 to 4%. Experts feel that the Indian retail market is bound to grow as it is estimated that urban population in the country will grow by 85 million in the next 10 years. “The real growth in economy, specially in urban areas, is probably between 8 and 10% as the per capita income of the Great Indian Middle Class is growing the highest anywhere in the world. The Indian traditional habit of high savings is also fast changing and the younger generation is fast embracing various lifestyle products,” says Rohtas Goel, MD, Omaxe Group. According to a report by Jones Lang LaSalle, these are just some of the few formats in the pipeline for the retail sector. “The retail sector in India is fast evolving with new formats and locations continually being explored,” the study says. In fact, to a great extent, experts attribute some of the major transactions of this quarter to this trend. In addition to this steep appreciation in demand, the recent demolition of unauthorised construction by MCD has also prompted leading brands to take up space in the high streets of the city, further pushing rental values. According to the study, the range of rentals of prime high street locations such as South Extension and GK has shot through the roof and grown by almost 75-80% in just about a year. There has also been a similar growth in rentals of some sub-urban malls. A large number of upcoming mall developments would also enable the emergence of neighbourhood and regional malls rather than the destination mall status that the operational malls command. The decision to release land by the Delhi Development Authority is a significant step in allowing retail developments in the city to cater to one of the largest and affluent catchments in the country. Says Dr Davinder Gupta MD, DGS Raltors Pvt Ltd: “While the proposed numerous neighbourhood malls take shape, we see an impressive augmentation in the primary catchment of the current malls in Gurgaon and Noida and do not expect any major adverse impact in the performance of these malls.”
source:Economic Times (05/11/2006)
The realty sector is seeing fresh changes with suburban retail units taking space in office buildings
THIS one’s turning into a heady cocktail. Even as more offices are being set up in shopping malls, there’s an interesting twist in the retail tale — suburban retail units are now planning to take up space in office buildings. These units include foodcourts, hypermarkets and bank retailing outlets. For instance, Deutsche Bank has recently taken up around 5,000 sq ft of retail space in DLF Infinity. Setting up hypermarkets in office-cum-commercial complexes is also on agenda for retail majors like Big Baazar and Piramyd. And this is just a tiny fraction of the action that the retail sector in the NCR saw during the last quarter. In the last two-three months, at least a dozen blue chip brands and retail chains have taken up sizeable space in high streets of the city. Some of these transactions include automobile major BMW, which took up 9,000 sq ft in a prime Delhi suburban business district (SBD). International lifestyle and healthcare chain Celebrity Fitness, food & beverages major TGIF and the French womenswear brand NafNaf have already taken up 30,000 sq ft, 8,000 sq ft and 4,000 sq ft in the upcoming Ambi Mall in Gurgaon. Adding even more feathers to the list are names like Bosini, Adidas, Barcode, Time Factory, Esprit and Catwalk. Of these, Time Factory has taken 1,200 sq ft of retail space in Shipra Mall, Esprit has taken 6,000 sq ft in South Extension, Catwalk has signed up 2,000 sq ft in MGF City Square, Bosini is setting up a 3,000 sq ft shop in Greater Kailash, Adidas has taken 5,000 sq ft in the city’s central business district (CBD) and Barcode is setting up a resto-bar over 8000 sq ft in Vasant Kunj. Explains Sanjay Chandra, MD, Unitech Group: “In any growing retail market you witness this kind of boom, but here you see bigger unorganized market. Slowly it will not be the same and we will see better future for organized retail also. Right now demand for good retail space is high and in the near future it is only expected to grow. The developing markets internationally have done well and have carved a niche for themselves in the minds of the consumers once the organized retail pie increase.” Interestingly, the workspace demand in the country is also on a great growth path. In 2002, it was 6.5 million sq ft of demand which is 25 million sq ft in 2005. This sector is set to witness a growth of 25 to 30% in the next couple of years. The cost of occupation in Mumbai is $56.83 per sq ft per annum, while it is $40.62 in Delhi and $52.04 per sq ft in Manhattan. However, returns in India range from 12% to 15%, while in mature markets such as the US and Western Europe, they are 3 to 4%. Experts feel that the Indian retail market is bound to grow as it is estimated that urban population in the country will grow by 85 million in the next 10 years. “The real growth in economy, specially in urban areas, is probably between 8 and 10% as the per capita income of the Great Indian Middle Class is growing the highest anywhere in the world. The Indian traditional habit of high savings is also fast changing and the younger generation is fast embracing various lifestyle products,” says Rohtas Goel, MD, Omaxe Group. According to a report by Jones Lang LaSalle, these are just some of the few formats in the pipeline for the retail sector. “The retail sector in India is fast evolving with new formats and locations continually being explored,” the study says. In fact, to a great extent, experts attribute some of the major transactions of this quarter to this trend. In addition to this steep appreciation in demand, the recent demolition of unauthorised construction by MCD has also prompted leading brands to take up space in the high streets of the city, further pushing rental values. According to the study, the range of rentals of prime high street locations such as South Extension and GK has shot through the roof and grown by almost 75-80% in just about a year. There has also been a similar growth in rentals of some sub-urban malls. A large number of upcoming mall developments would also enable the emergence of neighbourhood and regional malls rather than the destination mall status that the operational malls command. The decision to release land by the Delhi Development Authority is a significant step in allowing retail developments in the city to cater to one of the largest and affluent catchments in the country. Says Dr Davinder Gupta MD, DGS Raltors Pvt Ltd: “While the proposed numerous neighbourhood malls take shape, we see an impressive augmentation in the primary catchment of the current malls in Gurgaon and Noida and do not expect any major adverse impact in the performance of these malls.”
source:Economic Times (05/11/2006)
Reliance Energy buys Rosa Power
Group Company To Foray Into Money Changing Business, Acquires Kuoni’s
IT was a day of action at the Anil Dhirubhai Ambani Group. While Reliance Energy (REL) brought into its fold the Rosa Power Company initially owned by the Aditya Birla group, in another development, its financial services arm, Reliance Capital, acquired travel major Kuoni’s foreign exchange money changing unit, TravelMate Services. Reliance Energy will now set up the 600-mw Rosa thermal power project in Shahajhanpur, Uttar Pradesh. REL has signed the power purchase agreement (PPA) with Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL) and will make electricity available to the Uttar Pradesh Power Corporation (UPPCL) at the rate of Rs 2.69 per unit, said sources. “According to the PPA, the Rs 2,641-crore project will be completed in 44 months. REL will set up two coalbased units of 300 MW each and the plant construction will begin after the cabinet approval. “The UP Electricity Regulatory Commission has already approved the revised power purchase agreement signed between the REL and the UPRVUNL,” said sources close to the development. The project has got all the clearances from the government. This is the second major investment in the state’s power sector after REL proposed to set up a 3,500MW mega power project at Dadri worth Rs 10,000 crore. When contacted, REL and AV group officials refused to comment on the development. The Rosa Power Project, initially a 51:49 joint venture between the AV Birla Group and PowerGen of UK, was initiated in the early 1990s. The earlier estimates had pegged the project’s total cost at Rs 2,603 crore with a debt component of Rs 1,814 crore and equity of Rs 789 crore. On the other hand, Reliance Capital will foray into the money changing and money transfer business with the acquisition of TravelMate Services. Both the companies did not divulge the deal amount. Mumbai-headquartered TravelMate Services, a wholly owned subsidiary of Kuoni Group, has 36 offices, 2,900 agents and 91 employees across the country. It clocked a turnover of Rs 3 crore in 2005 and has an agency of Western Union Money Transfer. In a statement to BSE on Saturday, Reliance Capital said that it has agreed to acquire 100% of the equity share capital of TravelMate Services, subject to necessary regulatory approvals. On the move to divest the unit, Zubin Karkaria, CEO & managing director, Kuoni India, said it underlines the travel company’s strategy of focussing on its core business of providing travel products and services.
Group Company To Foray Into Money Changing Business, Acquires Kuoni’s
IT was a day of action at the Anil Dhirubhai Ambani Group. While Reliance Energy (REL) brought into its fold the Rosa Power Company initially owned by the Aditya Birla group, in another development, its financial services arm, Reliance Capital, acquired travel major Kuoni’s foreign exchange money changing unit, TravelMate Services. Reliance Energy will now set up the 600-mw Rosa thermal power project in Shahajhanpur, Uttar Pradesh. REL has signed the power purchase agreement (PPA) with Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL) and will make electricity available to the Uttar Pradesh Power Corporation (UPPCL) at the rate of Rs 2.69 per unit, said sources. “According to the PPA, the Rs 2,641-crore project will be completed in 44 months. REL will set up two coalbased units of 300 MW each and the plant construction will begin after the cabinet approval. “The UP Electricity Regulatory Commission has already approved the revised power purchase agreement signed between the REL and the UPRVUNL,” said sources close to the development. The project has got all the clearances from the government. This is the second major investment in the state’s power sector after REL proposed to set up a 3,500MW mega power project at Dadri worth Rs 10,000 crore. When contacted, REL and AV group officials refused to comment on the development. The Rosa Power Project, initially a 51:49 joint venture between the AV Birla Group and PowerGen of UK, was initiated in the early 1990s. The earlier estimates had pegged the project’s total cost at Rs 2,603 crore with a debt component of Rs 1,814 crore and equity of Rs 789 crore. On the other hand, Reliance Capital will foray into the money changing and money transfer business with the acquisition of TravelMate Services. Both the companies did not divulge the deal amount. Mumbai-headquartered TravelMate Services, a wholly owned subsidiary of Kuoni Group, has 36 offices, 2,900 agents and 91 employees across the country. It clocked a turnover of Rs 3 crore in 2005 and has an agency of Western Union Money Transfer. In a statement to BSE on Saturday, Reliance Capital said that it has agreed to acquire 100% of the equity share capital of TravelMate Services, subject to necessary regulatory approvals. On the move to divest the unit, Zubin Karkaria, CEO & managing director, Kuoni India, said it underlines the travel company’s strategy of focussing on its core business of providing travel products and services.
source: Economic Times (05/11/2006)
Friday, November 03, 2006
Car customers most satisfied with old models
Our Bureau NEW DELHI
OLDER models dominated the latest TNS Customer Satisfaction survey in most car segments, including entry, premium compact and mid-size. Models like the Ford Fiesta, Suzuki Swift, Toyota Innova or Honda Civic were among the newer launches that emerged on top of the heap. Maruti and Honda came up as chart toppers in the survey as Maruti scored with older models like the Zen, M800 and Esteem. India’s old favourite M800 in fact scored slightly higher on the satisfaction scale, followed closely by the Alto, even though in sales volume terms, the latter now outscores the former. The premium compact segment was led by the Maruti Wagon-R, followed by Korean major Hyundai’s Santro. The upper middle segment was dominated by the Suzuki Swift. The Tata Indica continued its top-gear run in the small car diesel segment. In the mid-size car segment, another tried-and-tested model scored over its newer competitors. The Maruti Esteem topped this segment with the Honda City leading the mid-size segment. The Skoda Octavia and the Honda Civic led the premium mid-size car segment. The midsize diesel segment customers gave the highest score to Ford Fiesta diesel, followed by Hyundai Accent’s diesel variant. The Honda Accord outdid others in the satisfaction index in the entry luxury segment, while stablemate CRV was considered most satisfactory in the premium SUV segment. The Toyota Innova emerged number one in the SUVs and MPVs segment. Market information provider TNS Automotive quizzed a sample size of over 7,000 new car buyers for the study, which covered over 50 models with customer evaluations taken with respect to various factors like sales satisfaction, product quality, vehicle performance and design, after-sales service, brand image and the cost of ownership.
source: Economic Times (3 nov. 2006)
Our Bureau NEW DELHI
OLDER models dominated the latest TNS Customer Satisfaction survey in most car segments, including entry, premium compact and mid-size. Models like the Ford Fiesta, Suzuki Swift, Toyota Innova or Honda Civic were among the newer launches that emerged on top of the heap. Maruti and Honda came up as chart toppers in the survey as Maruti scored with older models like the Zen, M800 and Esteem. India’s old favourite M800 in fact scored slightly higher on the satisfaction scale, followed closely by the Alto, even though in sales volume terms, the latter now outscores the former. The premium compact segment was led by the Maruti Wagon-R, followed by Korean major Hyundai’s Santro. The upper middle segment was dominated by the Suzuki Swift. The Tata Indica continued its top-gear run in the small car diesel segment. In the mid-size car segment, another tried-and-tested model scored over its newer competitors. The Maruti Esteem topped this segment with the Honda City leading the mid-size segment. The Skoda Octavia and the Honda Civic led the premium mid-size car segment. The midsize diesel segment customers gave the highest score to Ford Fiesta diesel, followed by Hyundai Accent’s diesel variant. The Honda Accord outdid others in the satisfaction index in the entry luxury segment, while stablemate CRV was considered most satisfactory in the premium SUV segment. The Toyota Innova emerged number one in the SUVs and MPVs segment. Market information provider TNS Automotive quizzed a sample size of over 7,000 new car buyers for the study, which covered over 50 models with customer evaluations taken with respect to various factors like sales satisfaction, product quality, vehicle performance and design, after-sales service, brand image and the cost of ownership.
source: Economic Times (3 nov. 2006)
New industrial policy opens exit window for state’s sick cos
NON-VIABLE industrial units in Maharashtra, which have availed of government incentives and want to get out of the loss-making ventures, have an escape route now. For the first time, the government of Maharashtra has offered an early exit option to such units in the form of one - time settlement of government dues. So, a business venture that held promise earlier but turned non-viable for a number of reasons can clear government dues in one go under a special amnesty scheme offered by the government and stage an exit. The scheme is part of the new industrial, investment and infrastructure policy announced by the government of Maharashtra. “Under this scheme, non-viable units can take the exit option by going in for one-time settlement of government dues which they have taken in the form of incentives. In this case, government will grant a complete interest waiver on government dues. Make one-time settlement, avail of interest waiver on government dues and get out of it,” said industry minister Ashok Chavan. What is an ideal non-viable unit the scheme seeks to target? “There was this classic case of a unit manufacturing plastic floppies. Only some months into business, technology got upgraded to compact disks and later on to pen drives. So, this venture turned non-viable and it genuinely deserved an exit option,” explained industry secretary Vinesh Kumar Jairath. “There could be many genuine reasons for business turning non-viable, like changes in the market environment or labour problems,” Mr Chavan said. The scheme makes life a little easier for such business ventures in the sense that it provides for an early exit. At present, the plastic floppy manufacturer has to run his unit because there is a timeframe for getting out of it. No time limit for sick cos in new exit option MAHARASHTRA government has decided to offer an early exit option to sick and un-viable industrial units in the form of one-time settlement of government dues. “The difference between the earlier exit option and the amnesty scheme is that the latter offers the OTS option. Earlier, the exit option prescribed certain time-frame for the units depending upon their size,” said state industry secretary Vinesh Kumar Jairath. For large scale unit, the exit period was ten years, for medium scale seven years and for the small scale five years. The non-viable units, however, can avail of the amnesty scheme only up to March 31, ’08. Mr Chavan said the policy would go to the labour department which “hopefully will clear it soon.” The government officials, however, said the non-viable units which take the exit option would have to settle a lot of other issues as well besides clearing the government dues. “For electricity charges, the units would have to approach the authority concerned and the electricity regulatory commission,” Mr Jairath said. Not many in the government think the scheme would work wonders. “The OTS option for government dues is not enough to bail out a non-viable unit. There are also bank arrears and dues from other creditors which might take lot of time to settle,” an official said. Labour department officials said units would have to settle their labour dues first. “Along with the government dues, they also have to clear the claims of their staff if they want to take an early exit route,” said an official. But it’s unlikely that the labour department would not approve the scheme, sources said.
source: Economic Times ( Friday 3 nov. 2006 )
NON-VIABLE industrial units in Maharashtra, which have availed of government incentives and want to get out of the loss-making ventures, have an escape route now. For the first time, the government of Maharashtra has offered an early exit option to such units in the form of one - time settlement of government dues. So, a business venture that held promise earlier but turned non-viable for a number of reasons can clear government dues in one go under a special amnesty scheme offered by the government and stage an exit. The scheme is part of the new industrial, investment and infrastructure policy announced by the government of Maharashtra. “Under this scheme, non-viable units can take the exit option by going in for one-time settlement of government dues which they have taken in the form of incentives. In this case, government will grant a complete interest waiver on government dues. Make one-time settlement, avail of interest waiver on government dues and get out of it,” said industry minister Ashok Chavan. What is an ideal non-viable unit the scheme seeks to target? “There was this classic case of a unit manufacturing plastic floppies. Only some months into business, technology got upgraded to compact disks and later on to pen drives. So, this venture turned non-viable and it genuinely deserved an exit option,” explained industry secretary Vinesh Kumar Jairath. “There could be many genuine reasons for business turning non-viable, like changes in the market environment or labour problems,” Mr Chavan said. The scheme makes life a little easier for such business ventures in the sense that it provides for an early exit. At present, the plastic floppy manufacturer has to run his unit because there is a timeframe for getting out of it. No time limit for sick cos in new exit option MAHARASHTRA government has decided to offer an early exit option to sick and un-viable industrial units in the form of one-time settlement of government dues. “The difference between the earlier exit option and the amnesty scheme is that the latter offers the OTS option. Earlier, the exit option prescribed certain time-frame for the units depending upon their size,” said state industry secretary Vinesh Kumar Jairath. For large scale unit, the exit period was ten years, for medium scale seven years and for the small scale five years. The non-viable units, however, can avail of the amnesty scheme only up to March 31, ’08. Mr Chavan said the policy would go to the labour department which “hopefully will clear it soon.” The government officials, however, said the non-viable units which take the exit option would have to settle a lot of other issues as well besides clearing the government dues. “For electricity charges, the units would have to approach the authority concerned and the electricity regulatory commission,” Mr Jairath said. Not many in the government think the scheme would work wonders. “The OTS option for government dues is not enough to bail out a non-viable unit. There are also bank arrears and dues from other creditors which might take lot of time to settle,” an official said. Labour department officials said units would have to settle their labour dues first. “Along with the government dues, they also have to clear the claims of their staff if they want to take an early exit route,” said an official. But it’s unlikely that the labour department would not approve the scheme, sources said.
source: Economic Times ( Friday 3 nov. 2006 )
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