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19th July 2012 – 25th July 2012
IN BRIEF ECONOMIC INDICATORS
COVER STORY MARUTI’S MANESAR PLANT: HOW TO ADDRESS BLUE COLLAR RAGE?
WPI Inflation: 7.25 per cent (June 2012)
– 16,918.08 pts (closing as on Tuesday, 24 July, 2012)
PERSONALITIES OF THE WEEK
FOOD & BEVERAGES
NEWS DIGEST… BUSINESS NEWS
RBI says mobile banking has been a failure in India
European Union’s trade concession talks with India go sour
World’s super rich have $32 trillion in tax havens
ECONOMIC INDICATORS 2 INDUSTRY ANALYSIS 5
COVER STORY 3 NEWS ANALYSIS 6
PERSONALITIES OF THE WEEK 4 NEO CORNER 11
K KN NO OW WY YO OU UR RB BA AS SIIC CS S
E EC CO ON NO OM MIIC C IIN ND DIIC CA AT TO OR RS S WPI Inflation – 7.25 per cent (June 2012) Source: BS Change from last month – 0.30 per cent (It was 7.55 per cent in May 2012) The Fundamentals: - Inflation is the general rise in prices or decrease in the purchasing power of a currency. - Inflation is measured using either the wholesale price index (WPI) or Consumer price Index (CPI). - CPI is calculated monthly & measures changes in price levels of consumer goods and services. - WPI is calculated weekly and measures changes in whole sale price of commodities. This system is used in India. - Though CPI is more relevant to the end consumer, WPI covers a wider range of commodities. However the prices of commodities shift at different points and different commodities have varied weightages assigned in WPI which means that price changes might not reflect real inflation accurately. Another problem with WPI is that it does not cover services. The oft cited reason for India‟s dependence on WPI seems to be that calculating WPI is easier and practical versus CPI. BSE – 16,918.08 pts (closing as on Tuesday, 24 July, 2012) Source: Moneycontrol, Firstpost The BSE sensitive index serves as the pulse of the economy. The 30 share benchmark index gained nearly 40.7 points on the 24th of July to close at 16,918 points. The markets did not show any wild movement as there were no major domestic or international cues. Most international markets also saw similar activity as they wait for developments in the Euro-zone crisis. On the domestic front, the market seemed to be waiting for news on the economic reforms front. The day‟s star attraction was HUL which rose by more than seven per cent (a 52 week high) to Rs 475 riding on a 114% increase in reported net profit. Wipro dropped by three percent after predicting flat growth for Q2FY13.
C CH HA AR RT TS S& &G GR RA AP PH HS S– –G GD DP P ((P PU UR RC CH HA AS SIIN NG GP PO OW WE ER RP PA AR RIIT TY Y))
Gross domestic product (GDP) is the market value of all goods and services produced within a country in a year. Puchasing Power Parity (PPP) is the adjusted exchange rate so that an identical good in two different countries has the same price when expressed in the same currency. GDP per capita (i.e. GDP divided by the population) is often considered an indicator of a country's standard of living.
C CO OV VE ER RS ST TO OR RY Y-- M MA AR RU UT TII’’S SM MA AN NE ES SA AR RP PLLA AN NT T:: H HO OW WT TO OA AD DD DR RE ES SS SB BLLU UE EC CO OLLLLA AR RR RA AG GE E?? Everybody knew that the discontent was simmering. But they (management) thought it was nothing to be worried about. Worker harmony is usually not a cherished goal on the check list of employers. All they want is a working worker and not a happy worker. Soon they realize their folly with a loss. Unfortunately, sometimes the loss becomes as big as the death of a General Manager HR.
Things turned violent when a worker was abused on the basis of his caste on the shop floor and fired. His colleagues went to the management to overturn the decision but failed. Razed and anguished, they went on a rampage. Exit doors were manned and every part a car is made up of was used to inflict injury. Workers mercilessly hunted the executives, assaulted them and set the plant ablaze. It was a move to incapacitate the management and make the plant defunct. Maruti‟s shares plummeted after the news of the violence. The company has announced a lockout till things come under control. It means the production of its DZire and Swift models will be considerably delayed. Maruti was appalled at the incident and says it was taken off guard. It believes there was nothing that could have led to this, which could be blamed on the management. It feels violence was stoked from the outside. Maruti also ruled out the possibility of shifting the Manesar plant to Gujarat amid Narendra Modi‟s talked about visit to Japan.
workers into killers?
is turning That workers are ill treated is no news. Many textile workers in the Manesar belt claim that they are fined for using the urinal more than twice a day. At Maruti Suzuki, workers have taken a seven minute break everyday for 29 years. Such things never make it to the media and even if they did, would never lead to anything. The heart of the problem lies in the labor laws. India‟s blue collar workforce is categorized into permanent and temporary workers. While both of them work the same amount, the payouts are very different. Temporary workers get half as much money compared to permanent workers. Moreover, they are not affiliated to any union. It simply means that they can be hired cheap and fired with ease. No wonder every employer wants to hire temporary workers. However Manesar had a union which featured both; this had come up after last year‟s protest. This new found union didn‟t get affiliation from the national trade union associations, which means there was no experienced body to calm down the ravaging workers when they felt alienated and consequently took refuge in violence. Also, experts feel that the culture in Maruti has increasingly become more „Japanese‟ and Indians are losing their say in crucial decisions. Indians and Japanese are culturally very diverse people and hence there is an apparent disconnect. Moreover Maruti is a volume player and it has to churn out more and more cars for its survival. This means high pressure for workers in an environment in which, they perhaps were not feeling at home.
Widening distance between boardroom & shop floor: The violence at the Manesar plant shows that communication
between boardroom and shop floor has come to a grinding halt in recent years. Communication between top and bottom of the pyramid is falling. Experts say, it is the consequence of the emergence of services sector which seems to have become the driver of Indian growth. Services sector has taken away much of the HR talent earlier available to manufacturing. Manufacturing seems to have lost its sheen and consequently „Industrial relations (IR)‟ is no longer a core priority among HR practitioners. Also, an „enabling‟ law enforcement environment and the near absence of efficient unions has eroded the fundamental skills in dealing with collective actions by employees. Young HR professionals are more inclined towards managerial posts and shop-floor assignments are on the decline. HR teams are focusing more on organization development, strategic initiatives and leadership pipeline management. They have simply taken their eyes off IR. The amalgamation of such disconnect, growing dissatisfaction of workers, local politics and cultural traits results in a Manesar like situation.
Manesar doesn‟t make Indian manufacturing proud. It has had its share of labor troubles in the past. However, this one in particular can severely damage its reputation as an industrial hub. If India has to scale up manufacturing, it will require a collaborative effort between management, workers, state and national union leadership. We also need HR leaders who are conscience keepers and advocates of employees view point and not only the chasers of profit seeking ideology. If the HR function cannot get its act together, we run the risk of more Manesars in the future. Incidentally, the fact that not even a single functional fire station was nearby the Maruti facility is indicative of the pathetic state of our industrial areas. And then we talk about making India a manufacturing hub. Isn‟t it wishful thinking?
P PE ER RS SO ON NA ALLIIT TIIE ES SO OFF T TH HE EW WE EE EK K
– CEO of Yahoo! Inc
Troubled Yahoo has a new leader, sixth in the past five years. Ex-Google executive, Marissa Mayer has taken over as the chief executive of the internet company which once saw heightened profits during the dotcom bubble, but witnessed a steep fall in the later years. Mayer‟s contribution in developing key technologies in Google made her a preferred candidate for the position which has been for a long time coveted by Yahoo‟s technology executive & interim CEO, Ross Levinsohn. Mayer has a tough job in hand - to revive the growth of the company which is struggling in its transition from a technology firm to a media company. This is her first position as the head of a big company and she believes that “inducing innovation” in once thought off as dead – Advertising business will put Yahoo back on its growth path.
“I look forward to bring innovative products, content and personalized experiences to users and advertisers all around the world”
Begining of Don’t be Evil!!! Wisconsin born Mayer completed her bachelor‟s of science degree in symbolic systems & masters in computer science with a specialization in Artificial Intelligence from Stanford University. After a short stint with UBS Research, she joined Google in 1999 as the 20 th employee and first female staff of the internet search giant – whose informal tagline was “Don‟t be Evil”. Over a span of 13 years, she worked her way up from starting off as an engineer to becoming the executive, managing several key products of Google. Unlike other leaders, who spend years working on a specific product or in a particular department, Mayer has wide ranging experience in overseeing the development of all Google‟s products like search engine, mail, images, maps, toolbar, news, books & iGoogle. She was also a member of the team that developed Google AdWords, a technology that linked search results to advertiser‟s keywords, which contributed to 96% of Google‟s revenue of over $10 billion in the first quarter of 2011. Late Success!!! Mayer has appeared in the Fortune magazine‟s list of America's 50 Most Powerful Women in Business, for four consecutive years since 2008. Although she was an integral part in the making of all Google products, she was pushed to the sidelines as the head of Google‟s location products that included places & street view in 2010. Neither was she considered for the role of chief executive – which ultimately went on to co-founder Larry Page in 2011, nor was she included in the board of directors. However, now at the age of 37, she is the youngest CEO of a fortune 500 company, is expecting her first child & shall earn $100 million as compensation in next five years.
“Foreign investments by MNCs will hijack the country's retail trade which would lead to closure of majority of small businesses and job losses for lakhs of people engaged in the sector.”
– Minister of Commerce & Industry and Textiles
India is being criticised by the world for its policy paralysis. Regulatory flip-flops in FDIs, GAAR (General Anti Avoidance Rules) and retrospective tax amendments have crippled cash flows in the country which was once sought of to be the most investor friendly nation by international companies. But Commerce & Industry minister, Anand Sharma has assured that the government is in fact working towards economic reforms and has an agenda of introducing investor supported regimes. He has put forth that the actions of the government are to make sure the Indian economy moves in the right direction amidst the global slowdown and has added that this strategy has worked – as India received the highest FDI of $50 billion in 2011 since economic liberalization in 1991. The minister, who is scheduled to meet Britain‟s minister of Business in London in next few days to discuss the issue of relaxing visa norms for Indian professionals, has also recently announced government investments of Rs 70,000 crore in infrastructure projects in Haryana. Empowering Young Minds!!! Sharma was born in Shimla, Himachal Pradesh and has completed his degree in Law. He was one of the politicians leading the student & youth movement in India. During his initial days, he worked in various roles to empower the youth of the nation. He was the member of the committee who founded the National Students‟ Union of India. As the president of the India Youth Congress, he actively participated in the fight against Apartheid in South Africa. Sharma participated in various conferences and voiced his opinions of abolishing the racial discriminatory practices in the South African region. He has also worked for setting up educational & housing centres for the differently-abled children & adults in India. Re-defining Trade Relations!!! A prominent spokesperson for Congress, Sharma has led various key cabinet ministries. He is known for heading two ministries simultaneously. Sharma was announced as the Foreign Affairs minister in 2006 and in 2008 he was also made the Minister of State for Information & Broadcasting. He joined office as the minister of Commerce & Industry in 2009 & was given additional responsibility of leading the Textile ministry in 2011. During his tenure as the commerce minister, he resolved the deadlock in the Doha rounds and issued a simplified policy for foreign direct investments in the country. He encouraged trade talks with other countries as the head of commerce ministry, and India has signed bilateral trade agreements with Korea, Japan, Malaysia & the ASEAN in the past three years. He was presented with the prestigious “The Order of the Companion of Volta” award – the highest award by Ghana‟s government for his contribution in increasing trade between the developing nations.
IIN ND DU US ST TR RY YA AN NA ALLY YS SIIS S– – IIN ND DIIA AN N FFO OO OD D& &B BE EV VE ER RA AG GE ES S IIN ND DU US ST TR RY Y
India is the world leader in milk production and is the second largest producer of vegetables & fruits. India has also emerged as a very good market for the food & beverage industry. The Indian food & beverages industry is expanding rapidly & estimated to touch $ 330 bn by 2013.
The FMCG sector can be classified into two segments
Food & Beverage Soaps & Detergents The Food & Beverage sector is very varied & has a huge product line which includes snacks, biscuits, processed food, Convenience food, Milk products, processed meat & beverages. The food and beverage (F&B) industry can be classified into three major subdivisions: Farming (involved in the collection & distribution of agricultural commodities such as rice, wheat and corn), Processing (involves the processing of raw food commodities into forms that can be easily distributed and sold to consumers) & Distribution (final stage of the F&B value chain and entails the distribution of finished or near-finished food products to consumers. The food & beverage industry has started to become organized with the increasing presence of various International companies in diverse segments, for example, Coco-Cola in beverages, Dominos in fast food segment & Heinz in the spices segment whereas domestic players such as Dabur, ITC, Amul & HUL are also expanding their presence in the foreign markets. Indian Food retail industry today stands at $ 70 bn & estimated to touch $ 150 bn by 2025. Studies on the impact of organized food retailing on the supply chain have shown that it helps in consolidation among farmers towards meeting consumer requirements, investments in infrastructure and a shift towards centralized distribution centers from the traditional wholesale markets.
Growth Drivers: The biggest growth driver for F&B industry in India
is India‟s population; however, per capita income of Indians is still very low as compared to that of Malaysia, China & USA. Population is an important growth driver because of the emergence of a strong middle class with high disposable income, median age of twenty eight & most importantly, Indians have developed an experimental palate. Another important factor is the abundance of raw materials, cost competitiveness, favourable climate & India‟s geographical position (being near Middle east countries, India is the largest exporter of fruits & vegetables to them).
Current Scenario & Govt. policies:
India being one of the leading producers of vegetables, fruits, milk, meat & sea food is an attractive market & in the last ten years it attracted huge investments. Recently aerated drink giant Coca-Cola announced its plans to invest $ 2 bn dollars in the next five years. According to analysts, Indian Food & Beverage industry will grow at 20 % annually in the next five years. Many private equity investors are investing in the local restaurant business & International brands with strong supply chain back up are increasing the number of outlets. To promote private sector activity and invite foreign investments in the sector the Government allows 100 % FDI in food processing & cold chain infrastructure.
Benefits of organized food retailing:
Retail food format is growing very rapidly & is expected to grow by 30 per cent in the next five years. The retail format reduces the number of intermediaries and transaction costs. It also aids better understanding of consumer preferences as it is a vital link between the processors and consumers. Among the key categories that constitute the organized retail market, the food and beverages segment make up a high 29%. Though current sales of processed foods through retail outlets are hardly 1% of total food sales, it is estimated to grow at an annual rate of 40% in the near future. Indian companies who have already ventured into this segment include ITC, Bharti, Reliance, Aditya Birla Group and Future Group.
Demand drivers such as urbanization, increase in the number of nuclear families, higher disposable income, favourable government policies, abundance of raw materials and increasing penetration of organized retail will fuel the industry growth. The future of the F&B industry looks good given rapid growth in the overall FMCG sector.
N NE EW WS SA AN NA ALLY YS SIIS S 1) Bajaj Auto falls on volume growth in April quarter. Eyes partners to improve exports – DNA/BS IMPACT: Bajaj is in talks with Kawasaki Heavy Machinery & KTM to enter markets in South America & Malaysia so that Bajaj can achieve its target of exporting 50 per cent of its bikes. The company has targeted 10 million units in sales by 2016, and wants half of it to be exported, due to falling sales in the domestic market. Bajaj Auto MD, Rajiv Bajaj has recently said that the company has been following its successful three-legged policy since 2009, which focuses on brand building, increasing global presence & variable cost. The company has focused more towards R&D and marketing rather than production, but still has been successfully maintaining the fixed cost below 10% of the total sales. The motorcycle market has seen single digit growth in the April quarter with flat growth in premium bikes but 22 per cent growth in commuter segment (less than 125 cc). Bajaj Auto which is leading in the premium segment with Avenger wants to increase its product portfolio in commuter segment and will launch 3rd 100 cc bike. Similarly, the commuter segment leader, Hero will launch premium segment bikes in next two years. KEY PLAYERS: Bajaj Auto, Hero MotoCorp WHY IT IS IMPORTANT? The largest Indian motorcycle manufacturer - Bajaj Auto saw a flat profit with only four percent sales growth & its volumes decreased by one percent in the first quarter of FY13. Whereas it‟s rival Hero MotoCorp displayed superior performance with a 10 per cent rise in y-o-y profits and seven percent growth in volumes. Bajaj which is the market leader in premium segment with 46 per cent market share, performed below industry standards, owing to increase in fuel prices & high interest rates that led consumers to turn towards lower segments (like 75-110 cc & 110-125 cc) which is dominated by Hero motorcycles. 2) Reliance sells its oil blocks in Iraq to Chevron – Wall Street Journal/ET/The Hindu IMPACT: Mukesh Ambani led Reliance Industries has signed a deal worth $200 million (according to industry experts) with the American multinational oil company, Chevron to sell its two oil blocks in Kurdistan in Iraq. RIL held 80% stake in the two blocks called Rovi & Sarta. The rest 20 per cent is held by Austria's OMV AG. The company has said the move was a part of its strategy for portfolio rationalization for its global assets. It is also going to look for future investments in other countries to enhance its Energy & Petroleum segment. Chevron in past had a 5 per cent stake in RIL‟s refinery in Gujarat. Chevron sold the stake back to RIL stating that it did not want to invest in refining & wanted to focus on exploration opportunities. Reliance had acquired the stake in the two Kurdish oil blocks believed to have over a billion barrels in oil reserves in 2007 for $15.5-17.5 million. With the sale of the two oil blocks to Chevron, RIL now has only 11 oil & gas assets: four in South America, five in Arab nations, one in Australia & one in South East Asia. KEY PLAYERS: Chevron, RIL WHY IT IS IMPORTANT? Kurdistan has potentially one of the largest oil deposits in the world. The Kurdish regional government has always been at odds with the Central government of Iraq over allocation of oil-exploration grants to global oil giants in the territory. The Iraqi government refused to grant access to global oil majors to direct stakes in the oil fields. It insisted on granting them oil production licenses, leading to unexplored opportunities. 3) Underperforming McDonalds reduces prices in India – ET/The Hindu Business Line/Reuters IMPACT: The world‟s largest hamburger chain McDonalds is struggling to retain its consumers in India. So it has come up with a strategy to reduce prices so as to generate greater appeal for the masses. The fast food giant has announced that it will cut prices of its food items by six to fifteen percent starting next month. It wants to push expansion and the pricing strategy was formed taking into consideration the company‟s policy to grow by volumes & not by margins. McDonalds wants the core menu which consists of burgers, meals & desserts to be affordable and is also making additions to its menu to cater to egg-loving consumer‟s who make up to 75 per cent of Indian population. In past six months, food prices have gone up by almost 30 per cent but McDonalds has been able to manage the price rise & has only increased its product prices by four per cent. But with the economic slowdown, consumers have further reduced their spending on restaurants, food etc. The company, which plans to set-up more outlets in tier-2 & tier-3 cities, has realised that the only way to attract masses is by cutting prices. KEY PLAYERS: McDonalds WHY IT IS IMPORTANT? McDonalds Corp earns over 30 per cent of its sales from India operations. The chain is growing by 40 per cent in Indian cities annually. It is way ahead of Yum! Restaurants India which operates Pizza Hut & KFC chains in India. McDonalds, which earned profits during the recession, is underperforming in India & globally and has posted four percent fall in net income in second quarter. The company blames strong dollar value against other currencies, frozen Eurozone & sluggish US & China markets for its bad performance.
4) Base price for 2G spectrum set – BS/Reuters/NDTV Profit IMPACT: The empowered group of Ministers (EGoM) has finalised the reserve price for 2G spectrum. The recommendations made by EGoM during a meeting on 20th July are as follows: a) Reserve price: either Rs 14,111 crore or Rs 15,111 crore b) Spectrum Charge: either a flat five per cent of revenue or between three to eight per cent depending upon the amount of spectrum acquired. c) Payment terms: as one-time payment or even deferred payment is allowed (yet to be finalised) d) The reserve price of CDMA bandwidth to be 1.3 times of GSM bandwidth Telecom regulator TRAI had earlier set the 2G spectrum base price up to Rs. 18,000 crores. However the ministers‟ panel has put forth two options in front of cabinet ministry. One option is to charge 60%-65% of NPV of the spectrum and second is to charge a flat rate of 55%-65% of the value of the spectrum to be auctioned. KEY PLAYERS: EGoM, TRAI, Uninor WHY IT IS IMPORTANT? The Supreme Court had cancelled 122 licenses of 8 telecom operators stating that the spectrum was allotted in an illegal manner (on first-come-first serve basis) in February 2012. It had said auction based system should be adopted for granting airwaves. Telecom operators are gearing up to acquire the 2G airwaves. Telenor, the parent company of Uninor – which was amongst the eight operators who lost their licenses, is planning to stay in India & has now, restructured Uninor - scaling down its operations in four states. 5) European Union’s trade concession talks with India go sour – BS/Japan Times IMPACT: The European Union (EU) has asked the Indian government to grant more trade concessions to its member nations. India & EU are supposed to sign a trade agreement in November 2012 & both parties are negotiating the terms. But recent developments show that the negotiations are falling apart. EU, which consists of 27 European countries, has accused the Indian government of offering higher concessions in service sector to Japan & Korea and wants similar facilities for its member nations. It has demanded better deals in the service sector - banking, insurance, multi-brand retail and legal, accounting & postal services. However, India has refuted back saying that it has given more concessions to EU than any other nation. The authorities have said that the banking, aviation & retail sector are undergoing policy reformation. But it will not be possible to make reforms in legal, accounting & postal services. India has also demanded relaxation in the visa rules for Indian professionals and declaring the country as a “data-secure nation” – which will allow India access to large scale government contracts in EU. KEY PLAYERS: European Union, India, Japan WHY IT IS IMPORTANT? The Eurozone, which is undergoing a crisis, is negotiating with Asian countries to increase trade. It is also seeking approval from its member countries to start negotiations with Japan by October on economic partnership agreement. The proposed free trade agreement would aim at removing ban on imports in Japan‟s auto & medical equipment industry. Germany, Italy, Spain & France are reluctant as such an agreement will inadvertently open up their markets to Japanese cars further hampering the already sloppy domestic market. 6) RBI’s priority sector lending norms for Foreign Banks – BS/MoneyControl/FirstPost/ET IMPACT: The recent announcement by RBI that makes it mandatory for foreign banks to have 40% priority sector lending has put them in an uncomfortable position. The interest rate for priority sector loans does not exceed the base rate of the bank plus eight per cent annually. RBI has also excluded exports loans from priority sector lending which has raised eyebrows. Foreign banks were till date meeting their target of 32% of lending to priority sector by providing loans for exports. The new guideline states that banks which have more than 20 branches in India have to meet the 40% target. It also suggests loans to farmers, SMEs, small educational loans be included in priority sector. Foreign banks shy away from priority sector lending as the interest rates are very low and the risk of them turning into bad loans is very high. The banks have an option to reduce their branch strength, but it is nearly impossible. Standard Chartered has 97 branches, HSBC has 50 & Citi has 42 branches across India. These banks may also adopt the strategy of splitting its wholesale & consumer business and incorporate NBFC (Non Banking Financial Company) structure in either of the two businesses. KEY PLAYERS: RBI, Citi, Barclays WHY IT IS IMPORTANT? Barclays bank‟s executive has however said that the changes in norms and the increase in priority sector lending target will not make a substantial impact. Besides RBI has asked that the target is to be met by 2018 – which gives a period of six years for the foreign banks to either meet the target or convince the government to change the rules.
7) Southern Europeans happy to lose money on German bonds- Forbes/Reuters/TOI/CNN IMPACT: Many investors from southern Europe have started pulling cash out of troubled economies like Greece, Italy and Spain for investing the same in German Government Bonds. Interestingly, the German Bonds are consistently hitting record lows for a while, meaning the investors would actually get lesser than what they invested over a period of time. Two-year German yields stands at negative 0.08 percent while 10-year bunds are at 1.14 per cent. The economically unprofitable scheme of holding money in German securities & treasuries has become popular amidst an increasing environment of uncertainty. Investors fear that their leaders would force their country out of the common currency block any day. This would mean that their assets held in cash would devaluate instantly. Hence, losing a little makes better sense than losing it all. KEY PLAYERS: Germany, Eurozone investors WHY IT IS IMPORTANT? The investors would have looked towards US and China for the same security had their recent national „economy-numbers‟ been better & not worrying. In such a scenario some of these investors have turned towards the local-currency bonds of emerging economies like Brazil, India & Turkey. Meanwhile, the German Government Bonds received a blow on Monday as Moody‟s made changes in outlook of Germany, Netherlands and Luxembourg. Citing fears of Greek exit, Moody‟s has lowered the outlook from stable to negative. Moody‟s also advised Germany to increase its support for other troubled economies like Spain & Italy. 8) Jindal Steel to buy Canadian firm CIC Energy - ET/TOI/Bloomberg/ The Wall Street Journal IMPACT: Jindal steel will buy CIC Energy, a Canadian firm which holds coal assets in Botswana, in all cash offering of $114 million. Jindals have agreed to offer a premium of 27 per cent or 2 Canadian dollars per share. Both the companies have agreed on termination fee of about 3.5 million Canadian Dollars, in case deal is not completed. This deal comes days after JSPL, which is Indias biggest steelmaker by value after SAIL, announced its $6.3 billion expansion plan. The company plans to develop several projects in India as well as one in Oman (see box). Earlier on 17th July, JSPL terminated its $2.1 billion Iron project in Bolivia citing lack of support from the Bolivian government. The company claims that Bolivian government supplied only 2.5 million cubic meters of gas per day against the promised to 10 million cubic meters. Recently, it has also been reported that two of the JSPL‟s employee‟s are arrested in Bolivia after its announcement of scrapping the deal. KEY PLAYERS: Jindal Steel & Power Ltd, CIC Energy, Bolivian Government WHY IT IS IMPORTANT? Prior to scrapping the Bolivian project, the company had also received a setback when its efforts failed to secure coal blocks in Australia. At the same time, JSPL is not the only Indian company to receive such setbacks. Tata Steel Ltd and SAIL have also failed to develop projects overseas. The hunt for natural resources is part of company‟s plans to be self sufficient in terms of raw material requirements for steel production. Naveen Jindal recently told reporters that the company wants at least 80 to 90 percent sourcing of raw material to be in-house, which is at a level of 70 percent now. 9) RBI says mobile banking has been a failure in India- ET/Hindu Business Line IMPACT: RBI deputy governor H R Khan recently acknowledged the failure of collaboration efforts to bring banks, mobile companies and customers together. He said that mobile banking has not been a huge success as it was expected to be. RBI‟s policy framework which was laid out to improve coordination between the banks and mobile network operators did create some buzz for a while. Reports suggest that mobile banking transactions took off sharply in the first five months of 2012 (see box). In terms of transaction value, there was a five-fold increase between January and May, vis-a-vis same period a year ago. The corresponding figures for volumes (number of mobile transactions) also suggest a three-fold increase. However, in a country with more than 920 million subscribers, a three-fold rise translating to mere 3.34 mn transactions (in May 2012) does not seem very impressive. KEY PLAYERS: RBI, Banking Sector, Mobile Operators WHY IT IS IMPORTANT? The RBI recognises mobile banking as a vital tool to achieve the objective of financial inclusion. India with a large population still away from banking services cannot rely on traditional approach to providing banking services from scratch. Hence, banking services via mobiles is considered as a viable option for covering the entire population.
10) FMCG companies led by HUL excel in turbulent times- TOI/Business today IMPACT: Amidst global slowdown & high inflation, FMCG sector has emerged as one of the very few sectors which have excelled beyond expectations. Companies like HUL, ITC, Dabur and Colgate-Palmolive have come out with numerous growth stories in recent days. HUL‟s net profit beats market predictions in first quarter of 2012 to touch Rs 1,331 crore up from Rs 627 crore during same quarter in last year. Dabur India has also witnessed a growth of 17 per cent in profits accounting to Rs 149 crore. The results are directly related to the expansion in advertising and promotion budgets of these companies. At the same time, they have shown no reservations in entering new product categories. Though these companies have shown consistent performance in turbulent times, market experts believe the testing times are yet not over. They believe that deficient monsoons may play spoil sport. However, a brief analysis of the sales distributions of these companies makes it clear that the profits from rural markets are not entirely dependent on monsoons anymore. This is because rural India has more sources of income now than it used to have a decade or two ago. ITC has in fact turned its FMCG operations profitable in less than five years by cashing in on rural India via its eChoupal initiative. KEY PLAYERS: FMCG Companies, HUL, ITC, Dabur WHY IT IS IMPORTANT? HUL Chairman, Mr Harish Manwani recently stated that rural India is becoming „epicentre‟ of India‟s growth story. The company plans to launch several products in varied categories in both urban and rural markets. The FMCG sector is often considered an evergreen sector, though pricing pressures and marketing poses considerable challenge for the companies. 11) To counter Chinese challenge US turns towards India- The Hindu/TOI/BS IMPACT: US Deputy Secretary of Defence Dr Ashton B Carter has said that US recognise India‟s pivotal position in maintaining regional balance in the Asia-pacific region. His recent visit comes less than a month after US Defence Secretary Leon Panetta‟s. Raising the pitch for US defence equipment ranging from ballistic missile defence (BMD), aeronautics and even advanced robotics & micro-UAVs, he said that relaxation in defence-FDI ceiling would remarkably strengthen Indo-US defence cooperation. Currently India allows 26 per cent FDI in the defence sector. In a related incident, presumptive Republican presidential nominee Mitt Romney has released a fact sheet ahead of elections calling China a foreign policy challenge. He also emphasized the need for better coordination with regional powers like India & Indonesia to counter Chinese challenge. Further, the fact sheet goes on to claim that China has violated several US & international trade norms and that on being elected he would stop China from „cheating‟ the world. KEY PLAYERS: US Defence Department, Dr Ashton B Carter, Leon Panetta WHY IT IS IMPORTANT? India will spend more than $100 billion in upgrading its military in the next decade. India‟s long time partner Russia is no more its big favourite as it has delayed or denied complete technology transfers at times. Additionally, it has raised the project costs midway on many occasions. Meanwhile, Indo-US defence cooperation has scaled new heights. India was the second largest foreign military sales customer of the US in 2011. Moreover, in May the government announced that such military procurement has bought in more than $4.2 billion to India since 2007, as these are bound by “offset contracts”. The offset policy, which was introduced in 2005, makes it mandatory for foreign defence contractors to source at least 30% of contract value to Indian manufacturers/suppliers in case the deal is above Rs 300 crore. 12) Nokia’s $1.68bn Q2 loss, worse-than-expected - Reuters/The Australian IMPACT: The Finnish giant which until recently ruled the mobile market, has reported a net loss of $1.72 billion in the second quarter, as it continues to lag behind Apple & Samsung in the smartphone-race. Its losses have more than quadrupled compared to losses in the same period a year ago. Nokia‟s alliance with Microsoft has not been as successful as it would have expected it to be, as Windows 7 mobile platform is not at all popular. The only positive fact that Nokia can associate with sales of its much hyped Lumia phones is that around four million of those were somehow shipped to the US market. The prices of those too were slashed to half the original rate within three months of the launch. Nokia‟s think tank has come up with plans like phasing out the old Symbian platform for mobiles as it believes that new Windows 8 upgrade for phones would help to correct the sales score. However, that still remains questionable, as Microsoft recently raised its doubts about the capabilities of Lumia to support Windows 8 upgrade. The company seems unperturbed by this fact. It has even announced plans to move away from its traditional mass marketing strategy for new Win-8 phones. KEY PLAYERS: Nokia, smart- phone manufacturers- Samsung, Apple, Blackberry WHY IT IS IMPORTANT? All major credit rating agencies have already bumped Nokia to junk status in recent days. Their assessments report considerable operating losses and consequent cash consumption by the company, as it continues its transition to smart phones.
M MIIS SC CE ELLLLA AN NE EO OU US SN NE EW WS S 13) Karbonn to launch Rajinikanth Kochadaiyaan mobile phones- ET/Hindu Business Line IMPACT: Tamil movie star Rajnikant has agreed to allow his name to be used for commercial activities. The star who never endorsed any brand will be forming brand tie-ups for his upcoming 3-D movie Kochadaiyaan. Collectabillia, a celebrity commerce firm, will be handling all such activities. The firm has similar brand extension contracts with Sachin Tendulkar and Sania Mirza. Anjana Reddy who started Collectabillia just few months ago said that such brand-tie ups do not include brand endorsements. Meanwhile, Karbonn Mobiles has announced that it will launch Kochadaiyaan themed mobile phones carrying the movie‟s screen savers, exclusive ring-tones as well as the star‟s autograph at the back panel of the phone. Eros International which is marketing the movie has said that the film is expected to be released by year end, with premieres planned in Los Angeles and London too. KEY PLAYERS: Rajnikant, Collectabillia, Eros International, Film Industry WHY IT IS IMPORTANT? Movie merchandising is a relatively new concept in India. Nevertheless, some of companies have already succeeded in using it to maximise their profits. One of the examples is Tanishq‟s Jodhaa Akbar line of jewellery, which was quite successful in 2008 at the time of the movie‟s launch. 14) Competition Commission of India announces leniency on whistleblowers – FE/MoneyControl/Reuters IMPACT: Competition regulator, Competition Commission of India (CCI) has recently announced that the companies or individuals who come forward with information on cartels will be shown leniency in terms of penalties. Though the Competition Act already has a “leniency rule” in place for whistleblowers, till date no company or individual has used it. Recently, the top ten cement companies in India were found guilty of forming a cartel by under-utilizing their resources, creating a scarcity in the market and ultimately fixing price. CCI has slapped a penalty of Rs. 6300 crore on those companies and Rs. 73 lakh on the Cement Manufacturers‟ Association for its failure to stop the formation of a cartel. As the government wants to reduce such instances in the future, CCI is now encouraging companies to expose anti-competitive agreements. During any investigation against cartels the evidence collected is substantial and hence it takes years to establish a concrete case. If companies come forward with information & their roles in such agreements, it would be easier for the government to build a case and take an early action. KEY PLAYERS: Competition Commission of India, Cement Cos WHY IT IS IMPORTANT? The companies sign anti-competitive agreements to mint money from the customers. Cartels not only affect consumers, but also the economy as a whole. In 2008, the European Commission had found nine petrochemical companies guilty of forming a “paraffin wax cartel” and had fined them $955 million. Paraffin wax is a household wax used in candles, plates, chemicals, tires etc. Shell which acted as a whistleblower and exposed the cartel was shown leniency by the European competition authorities and thus escaped a fine of 96 million Euros. 15) World’s super rich have $32 trillion in tax havens – MoneyControl/HuffingtonPost IMPACT: A research conducted by ex-McKinsey economist & consultant, James Henry, states that super rich individuals have financial assets worth $21- $31 trillion secretly hidden in their accounts in tax havens. This figure does not include their non-financial assets like mansions, yachts‟, gold & other precious stones & metals etc. Countries like Switzerland, Mauritius, Seychelles and Luxembourg amongst others are considered as tax havens as they either levy less tax or no tax on investments. The research has been conducted for Tax Justice Network – which campaigns against tax havens. Considering the amount of $32 trillion, the governments are losing out on taxes worth $280 billion. The data has been gathered from United Nations, International Monetary Fund, World Bank and the central banks. KEY PLAYERS: Billionaires, Tax Havens WHY IT IS IMPORTANT? The developing countries, which are in dire need of funds for their economic growth & development, are at a loss as they cannot collect taxes on these secret funds. It has also come to light that since 1970 to 2012, world‟s richest individuals have successfully amassed wealth of about 9.3 trillion dollars. Such huge unrecorded funds in offshore accounts also represent a black hole in the world economy.
N NE EO OC CO OR RN NE ER R Part 2
India, since the latter half of the 2000â€&#x;s has become an e-commerce battleground. In fact the start-up revolution in India probably owes most of its success to e-commerce becoming an accepted part of urban India. The e-commerce story in India has certain lead players, many of whom are now household names. One such player which has made a niche for itself, especially in a product super category which was considered tough for e-commerce to exploit, is Myntra.com. Myntra.com today, is synonymous with the lifestyle category with daily transactions numbering in the tens of thousands. It is a brand which has undergone a significant transformation considering what the original purpose behind the company was. Believe it or not, the lifestyle e-retailing giant was actually a product personalization specialist! The story of myntra.com offers valuable insights on when reengineering your very business model is a strategic risk that must be taken in order to access a larger and readier market. Myntra.com is also one of the most successful dot-coms in India, in terms of venture capital funding attracted. This is not without reason, as we shall see in the rest of the feature.
About the founders:
Mukesh Bansal: A computer science graduate from IIT Kanpur and entrepreneur,
Bansal returned from the US after 6 years of extensive experience with startups there in the Silicon Valley and started Myntra designs with the aim of exploiting the nascent personalization market in India. He started off his career with Deloitte Consulting in 1997 in the US. However, he always had entrepreneurial ambitions which led him to quit his job with Deloitte. He found himself working with start-ups like Centrata and Newscale in the Silicon Valley. His work with these organisations included quite a few visits to India whereupon he was impressed with the growth India was showcasing. He came back to India in 2006. Co-founders, Ashutosh Lawania and Vineet Saxena were his juniors from IIT Kanpur.
Designer Beginnings: The idea behind the company was the by-product of a brain storming session amongst friends. Personalization appealed to Bansal & co as they asked themselves, can they help consumers be more creative and help them make their own products? The company started off in the B2B segment by personalizing gifts, t-shirts, mugs etc for companies. Amazon.com, Accenture, Mphasis and IIM-B were some of the clients that Myntraâ€&#x;s personalization solutions attracted. The personalization market size in India was expected to be at around $1.2 billion which attracted Bansal in the first place.
It was in the US, that Bansal became aware of personalization as a business opportunity. Personalization of products is big business in the US. India on the other hand was a relatively untapped market on that front. Bansal wanted a piece of this lucrative pie. Myntra started in 2007 with Bansalâ€&#x;s own funding of roughly Rs 30 Lakh, in a three bedroom apartment. However, experience and credentials do pay. In a short span of time, from monthly revenues of Rs. 2 lakhs per month the firm moved to Rs. 10 lakhs per month and an enviable list of business partners and clients. Myntra provided personalized consumer products for companies as well as retail consumers through their website.
The primary target clientele were, Individuals (gifting or self expression), groups (theme parties, events), Organizations and Brand Managers. Myntra relied on a strong base of designers who worked on the customised merchandise and the site design itself drew inspiration from American counterparts. Business was good with nearly 50 per cent market share. In a country like India, volumes were high (expected) but margins were still thin rendering the business model vulnerable. The idea of product personalization was not without merit but technology wasn‟t ready to take this too far ahead. Further this being a niche category, developing the market would have been an additional cost. So why not tap an existing market with potential for much higher volumes and better ROI? This prompted Bansal to chart into unknown waters where the stakes were much higher.
Reinvention Selling apparel on an e-commerce platform tends to draw a look of concern from :those in the know. Compared to electronics or books which do not rely so much on touch and feel, apparels are a much tougher sell. In India where e-tailing is only now becoming an accepted format, apparel is probably the toughest play, with the exception of groceries perhaps.
Myntra made this intrepid move which saw its focus move from largely b2b to b2c. The transition was not based on mere faith though. Quite a few quantitative metrics were measured before the transition and on which the shift itself was based. Having dealt with personalizing t-shirts, apparel wasn‟t a completely alien move for the firm. However, defying trends, they did not take up a discounting strategy. The idea was simple; provide the best and the most lifestyle brands which are in season and charge MRP. For Myntra, the website was about to get a whole lot more important. They were now in that most demanding of playing fields called Lifestyle, where the discerning customer is king. A $45 billion category, which is growing at 15% CAGR, Lifestyle is touted to touch $100 billion by 2015. Post the decision to transform Myntra from a personalization centric portal to a web based lifestyle destination, the actual process was far from easy. According to Bansal, closing down departments and letting go of employees is always a tough call. It also meant simplifying how they reached their customers and new payment models such as cash on delivery. Expanding warehousing capacity was the next step. Bangalore was where the first warehouse came up followed by Delhi and a third one is being set up in Mumbai.
Myntra.com is perhaps India‟s most successfully funded venture along with Flipkart. The firm started off with Bansal‟s own funding of about Rs 30 Lakh. After a few hard months Myntra found its first round of seed funding from Accel Partners (earlier known as Erasmic Venture Fund) in 2007. In November 2008, it raised $ 5 million from NEA- IndoUS Ventures, IDG Ventures and Accel Partners. In another round of funding led by Tiger global, existing investors like IDG and IndoUs reaffirmed their trust in the business potential of Myntra by investing a further $14 million. By end of 2011, Myntra went for a further round of funding led by Tiger Global and raised a further $20 million, bringing the grand total to a significant $39 million. This wasn‟t enough for the lifestyle retailer as in July 2012, according to the Business Standard, Accel and Tiger Global (who have also backed the successful Flipkart) are set to put in $25 million more. This brings the total funding raised by Myntra to a whopping $63-65 million if the latest news turns out to be more than a rumor. The funding success of Myntra is a success story in itself as it affirms the faith that investors have in the future of Myntra and the space it is playing in. To be continued next week…
SOURCES SOURCES FOR COVER STORY http://www.business-standard.com/india/news/violence-erupts-at-maruti-unit-one-dead-90-injured/480864/ http://in.reuters.com/article/2012/07/18/india-maruti-manesar-factory-unrest-idINDEE86H0E520120718 http://www.business-standard.com/india/news/the-lessonsmanesar/481139/ http://www.business-standard.com/india/news/sreelatha-menon-wingsfire/481086/ http://economictimes.indiatimes.com/opinion/editorial/beyond-maruti-indias-progress-calls-for-a-new-set-of-labour-laws-andlabour-relations/articleshow/15100104.cms http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/maruti-suzuki-declares-lockout-at-manesarfactory/articleshow/15082063.cms http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/after-tata-nano-narendra-modi-to-convince-suzukibosses-to-shift-maruti-operations-to-gujarat/articleshow/15048133.cms?curpg=2 http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/four-reasons-behind-maruti-suzukis-manesarproblems/articleshow/15082609.cms http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/four-reasons-behind-maruti-suzukis-manesarproblems/articleshow/15082609.cms http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/maruti-workers-brutally-hunted-companybrass/articleshow/15064414.cms http://www.business-standard.com/india/news/boardroom-shop-floor-disconnect-behind-poor-industrial-relations/481186/ http://economictimes.indiatimes.com/opinion/comments-analysis/employee-and-labour-relations-skills-within-hr-must-be-renewedand-resuscitated-sripada-chandrasekhar/articleshow/15112817.cms?curpg=2 SOURCES FOR PERSONALITIES OF THE WEEK: http://en.wikipedia.org/wiki/Marissa_Mayer http://articles.latimes.com/2012/jul/18/business/la-fi-yahoo-marissa-mayer-biobox-20120718 http://www.guardian.co.uk/technology/2012/jul/17/google-marissa-mayer-yahoo-profile http://www.bbc.co.uk/news/business-18868409 http://www.theverge.com/2012/7/23/3178552/future-of-yahoo-media-marissa-mayer-era-is-in-new-york http://en.wikipedia.org/wiki/Anand_Sharma http://commerce.nic.in/bio/cabinetminister.asp http://articles.economictimes.indiatimes.com/2012-07-19/news/32747228_1_anand-sharma-reforms-agenda-foreign-investments http://articles.economictimes.indiatimes.com/2012-07-19/news/32747582_1_project-implementation-delhi-mumbai-industrialcorridor-haryana http://economictimes.indiatimes.com/news/news-by-industry/telecom/uk-may-raise-vodafone-tax-issue-with-india-tomorrow-inlondon/articleshow/15143451.cms INDUSTRY ANALYSIS http://www.google.co.in/search?sourceid=chrome&ie=UTF8&q=contribution+of+food+and+beverage+in+the+fmcg+sector#hl=en&gs_nf=1&pq=contribution%20of%20food%20and%20beve rage%20in%20the%20fmcg%20sector&cp=23&gs_id=q&xhr=t&q=contribution+of+indian+food+and+beverage+in+the+fmcg+sect or&pf=p&sclient=psyab&oq=contribution+of+indian+food+and+beverage+in+the+fmcg+sector&gs_l=&pbx=1&fp=1&biw=1360&bih=667&bav=on.2,or.r _gc.r_pw.r_qf.,cf.osb&cad=b&sei=v98QUMKqOcOzrAen8IHoDA http://www.equitymaster.com/research-it/sector-info/food/Beverages-Food-Tobacco-Sector-Analysis-Report.asp http://www.google.co.in/search?sourceid=chrome&ie=UTF8&q=google.co.infood+and+beverage+sector+in+india#hl=en&sclient=psyab&q=food+and+beverage+sector+in+india&oq=food+and+beverage+sector+in+india&gs_l=serp.3..0i30j0i8i30j0i22l2.9353.9353. 0.9818.104.22.168.0.0.0.171.171.0j1.1.0...0.0...1c.y1KygA1XQSU&pbx=1&fp=1&biw=1360&bih=624&bav=on.2,or.r_gc.r_pw.r_qf.,cf.osb &cad=b&sei=DOAQUOHPFY2HrAfNt4DgAg http://www.ibef.org/industry/foodindustry.aspx SOURCES FOR NEWS ANALYSIS (1-15) 1) Bajaj Auto falls on volume growth in April quarter. Eyes partners to improve exports – DNA/BS http://www.thehindubusinessline.com/companies/article3654320.ece?homepage=true&ref=wl_home http://www.thehindubusinessline.com/companies/article3658631.ece http://www.thehindubusinessline.com/companies/article3653614.ece http://www.dnaindia.com/money/report_2-wheeler-companies-soup-up-for-the-rough-road_1718433 http://www.business-standard.com/india/news/analysis-bajaj-auto-vs-hero-motocorp/179539/on 2) Reliance sells its oil blocks in Iraq to Chevron – Wall Street Journal/ET/The Hindu http://online.wsj.com/article/SB10000872396390444464304577536383141349596.html http://articles.economictimes.indiatimes.com/2012-07-20/news/32764592_1_rovi-and-sarta-blocks-reliance-exploration-productiondmcc http://www.thehindu.com/business/companies/article3658260.ece 3) Underperforming McDonalds reduces prices in India – ET/The Hindu Business Line/Reuters http://www.forbes.com/sites/kenrapoza/2012/07/22/mcdonalds-struggles-to-serve-in-india/ http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/mcdonalds-to-drop-prices-by-6-15-as-salesgrowth-plummets/articleshow/15098212.cms http://www.thehindubusinessline.com/industry-and-economy/marketing/article3653705.ece?ref=wl_industry-and-economy http://in.reuters.com/article/2012/07/23/mcdonalds-results-idINDEE86M09320120723 4) Base price for 2G spectrum set – BS/Reuters/NDTV Profit http://profit.ndtv.com/News/Article/telecom-panel-recommends-reserve-price-of-spectrum-up-to-rs15-111-sources-308267 http://business-standard.com/india/news/telenor-restructures-uninor-ahead2g-auction/179926/on http://in.reuters.com/article/2012/07/24/telenor-results-idINDEE86N02N20120724
5) European Union’s trade concession talks with India go sour – BS/Japan Times http://www.business-standard.com/india/news/eu-wants-more-trade-concessionsindia/480849/ http://www.japantimes.co.jp/text/nb20120720a4.html 6) RBI’s priority sector lending norms for Foreign Banks – BS/MoneyControl/FirstPost/ET http://www.business-standard.com/generalnews/news/priority-sector-lending-target-for-foreign-banks-raised-to-40/34754/ http://www.moneycontrol.com/news/cnbc-tv18-comments/foreign-banks-wary-about-new-priority-sector-norms-_734129.html http://www.firstpost.com/economy/priority-lending-norms-will-have-little-impact-barclays-387906.html http://economictimes.indiatimes.com/news/economy/policy/rbi-refuses-to-give-priority-lending-tag-to-refinancing-of-hfc-loans-bybanks/articleshow/15132454.cms 7) Southern Europeans happy to lose money on German bonds http://timesofindia.indiatimes.com/business/international-business/Eurozone-crisis-saves-Germany-tens-ofbillions/articleshow/15090805.cms http://www.forbes.com/sites/kenrapoza/2012/07/23/for-global-markets-the-world-is-flat/ http://www.forbes.com/sites/kenrapoza/2012/07/18/when-losing-money-sounds-like-a-good-idea/ http://www.reuters.com/article/2012/07/24/markets-bonds-euro-idUSL6E8IO1CU20120724 http://money.cnn.com/2012/07/23/investing/germany-moodys/index.htm 8) Jindal Steel to buy Canadian firm CIC Energy - ET/TOI/Bloomberg http://timesofindia.indiatimes.com/business/india-business/Jindal-Steel-employees-arrested-in-Bolivia/articleshow/15080213.cms http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/steel/jindal-steel-power-to-buy-canadas-cicenergy/articleshow/15118793.cms http://online.wsj.com/article/SB10001424052702303754904577532592283910030.html http://www.businessweek.com/news/2012-07-18/jindal-to-invest-6-dot-3-billion-as-bolivia-fails-corporate-india 9) RBI says mobile banking has been a failure in India- ET/Hindu Business Line http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/mobile-banking-has-failed-to-take-off-inindia-rbi/articleshow/15122488.cms http://www.thehindubusinessline.com/industry-and-economy/info-tech/article3643117.ece?homepage=true&ref=wl_home 10) FMCG companies led by HUL excel in turbulent times- TOI/Business today http://businesstoday.intoday.in/story/fmcg-companies-defy-inflation-global-economic-slowdown/1/186533.html http://timesofindia.indiatimes.com/business/india-business/ITCs-e-choupal-boosting-companys-FMCGbusiness/articleshow/15137235.cms 11) To counter Chinese challenge US turns towards India- The Hindu/TOI/BS http://www.thehindu.com/news/national/article3675792.ece http://business-standard.com/india/news/romney-for-strong-tiesindia-to-tackle-chinese-challenge/180048/on http://timesofindia.indiatimes.com/india/US-raises-arms-sales-pitch-to-India-to-contain-China/articleshow/15115203.cms http://articles.timesofindia.indiatimes.com/2012-05-15/india/31710669_1_defence-procurement-policy-defence-ministry-foreignarmament 12) Nokia’s $1.68bn Q2 loss, worse-than-expected - Reuters/The Australian http://www.reuters.com/article/2012/07/23/net-us-nokia-idUSBRE86I0F620120723 http://www.huffingtonpost.com/2012/07/19/nokia-q2-2012_n_1685386.html?utm_hp_ref=technology http://online.wsj.com/article/SB10001424052702303754904577528564085752838.html http://www.google.com/hostednews/afp/article/ALeqM5jADgPlqwr8SzN36e35eyHQxy21AA?docId=CNG.3fab33c2e7c8facc2c3351763 af178e8.3c1 http://www.reuters.com/article/2012/07/23/idUS106845+23-Jul-2012+HUG20120723 http://www.theaustralian.com.au/australian-it/nokia-nose-dives-with-massive-168bn-loss-in-a-quarter/story-e6frgakx1226430552666 13) Karbonn to launch Rajinikanth Kochadaiyaan mobile phones- ET/Hindu Business Line http://articles.economictimes.indiatimes.com/2012-07-20/news/32764351_1_rajinikanth-kochadaiyaan-global-brand-3-d-moviekochadaiyaan http://www.thehindubusinessline.com/industry-and-economy/marketing/article3601591.ece http://economictimes.indiatimes.com/features/business-of-bollywood/movie-merchandise-a-hit-withconsumers/articleshow/2909493.cms?curpg=4 14) Competition Commission of India announces leniency on whistleblowers – FE/MoneyControl/Reuters http://www.financialexpress.com/news/information-on-cartels-to-earn-cci-leniency/978952/ http://www.moneycontrol.com/news/features/ccicement-cartelindia_731864.html http://www.indianexpress.com/news/be-a-cartel-whistleblower-and-win-cci/978800/0 http://articles.economictimes.indiatimes.com/2012-07-16/news/32698360_1_competition-act-industry-bodies-abinash-verma http://www.reuters.com/article/2008/10/01/eu-wax-cartel-idUSL169440520081001 15) World’s super rich have $32 trillion in tax havens – MoneyControl/HuffingtonPost http://www.huffingtonpost.com/2012/07/22/super-rich-offshore-havens_n_1692608.html http://www.moneycontrol.com/smementor/news/indian-markets/super-rich-hold-32-trillionoffshore-havens-733767.html