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Asian Voice - Saturday 3rd December 2011

Cyrus Mistry to succeed Ratan Tata as Tata Group chief Dear Financial Voice Reader, My sense of financial optimism is finding a fan club. I know this because I am emailed about it. But some people remain unconvinced. So let me try again. Did you know the Greek economy is the size of the Washington State economy in the US? Or that the Italian economy over which so many people fret is the size of the California economy. Yet, the California economy has been pretty much in a worse state than the Italian economy for nearly a decade – needing bail outs and having shut downs. And the US government is not AAA rated by the ratings agencies. But France in the EU is. And did you know the EU and the US are the same size economically. But you don't see people saying the US will politically collapse do you? Why? Could it be that we happily ignore the facts and reality? That newspapers like to repeat doom and gloom? So why should the US be attractive? Because they have California? Because they are so large economically, because they have no Greece? Well as I have shown, none of these facts help differentiate the US and the EU. What of debt? Well the EU does lack something the US has. The EU does not have the power to print money. And it should. Imagine if the Italian debt repayment was paid off by freshly printed Euros. Then you suddenly don't have to pressure the poor Italian companies and consumers to pay more and more tax. But surely printing money would lead to other problems? Like inflation. Well inflation is negligible and given our lack of confidence, is hardly about to rise. What then what about devaluing the Euro? Well the Euro needs to devalue, not least because the Chinese by keeping their currency artificially pegged to the dollar have made their exports artificially cheap and therefore made European products price uncompetitive. If we in Europe devalue, since the Chinese won't appreciate, then we become more competitive. So what other objections do you have? Why should Italian debt only be wiped off? It shouldn't. We can pro-rata pay each State some printed notes. Billions of them. So that it is fair. Well won't that encourage them to be bad in the future? No, because before they get the money, they must abide by fiscal changes. These include no more siestas. Working till you drop of old age, or 67, whichever comes first. Public sector workers get 25 days maximum annual holidays and a whole host of other things to ensure people work hard, pay tax and the State does not spend on wasteful things, but rather only on investment in infrastructure which will lead to future growth. It really isn't complicated. It is just that vested interests make it appear so. Alpesh Patel alpesh.patel@tradermind.com

JLR eyes more 'made' in India cars Tata Motors-owned Jaguar Land Rover is evaluating options to assemble more models in India, including the Jaguar cars, as it aims at garnering about 20 per cent share of the luxury segment. "If there is a business case, we will consider assembling more models, even including the Jaguar cars, in India," Jaguar Land Rover (JLR) India Head of Premier Car Division Rohit Suri told reporters. Asked if the company has identified any models for assembly in India, he said: "No final decision has been taken and the evaluation process is ongoing." At present the Freelander 2 is assembled at Tata Motors' Pimpri plant near Pune. He also said the assembly location of other models could either be at the same plant or elsewhere

depending on the "business case". Commenting on the targets of JLR in India, Suri said: "We should have 20 per cent (market share) in the luxury segment." He, however, did not give timeline for the target. The company has a miniscule presence in the Indian luxury vehicle segment that is projected to touch around 1,50,000 units by 2020. The market is expected to be over 20,000 units this year. Suri said that considering the company's products, the target is achievable despite being "ambitious."

Tata Sons, the holding company of over $80 billion conglomerate Tata Group, has chosen Cyrus P Mistry, the 43-year-old MD of Shapoorji Pallonji Group, to succeed Ratan Tata. "The board of directors of Tata Sons at its meeting appointed Cyrus P Mistry as the deputy chairman. He will work with Ratan N Tata over the next year and take over from him when Tata retires in December 2012," Tata Sons said in a statement. This is as per the unanimous recommendation of the selection committee, it added. Shapoorji Pallonji

Cyrus P Mistry

Group holds 18 per cent stake in Tata Sons. Commenting on the appointment, Ratan N Tata, Chairman of Tata Sons, said: "The appoint-

ment of Cyrus P Mistry as Deputy Chairman of Tata Sons is a good and farsighted choice. "He has been on the Board of Tata Sons since August 2006 and I have been impressed with the quality and calibre of his participation, his astute observations and his humility." Tata further said: "I will be committed to working with him over the next year to give him the exposure, the involvement and the operating experience to equip him to undertake the full responsibility of the Group on my retirement."

Born on July 4, 1968, Mistry graduated from the Imperial College, London with a BE in civil engineering. He also holds a masters degree in management from the London Business School, and is a fellow of the Institution of Civil Engineers. Apart from the Tata Group, he also serves as a director on the board of several other companies, including Shapoorji Pallonji & Co, Forbes Gokak, Afcons Infrastructure and United Motors (India). At 38, he was one of the youngest directors of the company, set up as a trading firm in 1868.

Indus Entreprenurs fosters entrepreneurship, wealth creation The Indus Entreprenurs (TiE), the world’s largest non-profit organization, is singularly focused on fostering entrepreneurship and wealth-creation. TiE fosters entrepreneurship globally through mentoring, networking and education. Dedicated to the virtuous cycle of wealth creation and giving back to the community, its main focus is on generating and nurturing our next generation of entrepreneurs. With 13,000 members, including over 2,500 charter members in 57 chapters across 14 countries, TiE hosts a wide range of programs and events, including TiEcon, the largest professional and networking conference for entrepreneurs. Within the circle of Charter Members are iconic individuals from both the business and social worlds, such Narayana Murthy, Kanwal Rekhi, Nandan Nilekani, Hussain Dawood, Desh Deshpande, Arun Sarin,

Anand Mahindra, Aditya Mittal, Kiran MazumdarShaw, Rahul Nanda, Sanjiv Ahuja, Shiv Nadar, Syed Babar Ali, Victor Menezes, Vindi Banga, and Vinod Khosla, who work relentlessly across its ecosystem of 57 chapters to further its cause. TiE UK was founded in 2000 and has since grown to become one of the largest chapters globally. It’s co-founder was Asian Voice’s very own columnist, Alpesh Patel. With two offices, in London (founded in March 2000) & Manchester (founded in December 2006), TiE UK today has 100 Charter Members, 500 Regular Members and 5 annual sponsors: ABN Amro, HSBC Bank, KPMG, Ontario International Marketing Centre and Gates and Partners. TiE UK holds educational and informative events, runs a very successful Mentoring programme, and for the last 3

Cairn India debt burden undermines Vedanta Vedanta Resources lost 2.8 per cent to 928p after Deutsche Bank voiced concerns about whether the miner could support the debt taken on for its $9.6bn deal to take control of Cairn India. Dividends would no longer cover the parent company’s debt costs if the oil price fell below $73 a barrel, Deutsche said. “The key question for investors on Vedanta is whether the subsidiaries can service the parent level debt,” Deutsche told clients. “In our view this depends increasingly on a robust oil price, as Cairn India will need to provide the majority of dividends to service parent level interest payments.” However, it argued that Vedanta management could avoid a breach by squeezing one-off pay-

ments from subsidiaries with net cash, such as Cairn India and Hindustan Zinc. Meanwhile, Cairn Energy lost 1.3 per cent to 264¼p amid concerns that its $1bn exploration programme off the coast of Greenland may continue to disappoint. “High impact activity in 2012 is uncertain and, rightly or wrongly, we believe Cairn’s execution of its exploration strategy will remain under-appreciated by investors without evidence of straightforward success,” said Davy Stockbrokers, which downgraded Cairn to “under perform”. The wider market rose for the first day in 10, with the FTSE closing up 0.7 per cent or 37.08 points to 5,164.65. For the week the index was off 3.7 per cent.

years has held TiE Young Entrepreneurs (TYE).The events held are not only “guest speaker” events but are also workshop style events helping TiE UK Members to gain further understanding of the sector in discussion and also enable them to share business ideas with other Members and Charter Members. The Mentoring Programme, one of the most successful throughout all the chapters, is aimed at supporting entrepreneurs at different stages of development within all sectors. Offered free to all TiE UK and TiE Manchester members the programme, with the time and knowledge of the Charter Members who are the mentors, has successfully helped over 200 entrepreneurs. TiE Global's International Youth Program called TiE Young Entrepreneurs (TYE) is aimed towards the future generation of entrepre-

neurs. TYE focuses on teaching entrepreneurship to young people and helping them discover the rewards and challenges of becoming an entrepreneur. The aim of the program is to empower the youth to become the next generation of entrepreneurs. TYE Global is a unique program that helps senior school children learn about the challenges and rewards of becoming an entrepreneur. Seasoned entrepreneurs and mentors coach senior school children (ages 1518) based on a businessfocused curriculum. The program comes to a close with a global Business Plan Competition. The TYE program nurtures the creativity, self-confidence, leadership and overall development of the students. Apart from sponsors and the strong membership base, TiE UK also capitalizes strongly on their core relationships with various universities and business schools.

Local Commercial Broker Wins Franchise Office of the Year Award Coversure (Kennington) has won a prestigious National Award. The husband and wife team, Rajan and Hina Amin collected the Franchise Office of the Year Award award at the glittering Community Broker Awards ceremony in Leicester on 15thOctober, attended by over 350 industry professionals from around the UK. The judges commented “These awards are all about recognising community based brokers for their service and for what they bring to the local economy. Coversure in Kennington has demonstrated that a franchise business can grow and prosper without compromising on service through the right leadership and investment.” Commenting on the award, Mr. Amin said “We have been providing a pro-

Rajan Amin receives the award from Mark Coversure Chairman of the Coversure Group

fessional local service to our clients since we opened and are surprised and delighted to have been recognised in this way. Coversure (Kennington) has gone from strength to strength without losing its client focus, and we will make sure that will continue.”

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