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THURSDAY, MARCH 08, 2012
‘I am much less autocratic now’
Adi Godrej, chairman, Godrej Group says leadership is no popularity contest >> P23
Subbarao: talking cash
SUBBARAO MEETS PRANAB AHEAD OF POLICY REVIEW NEW DELHI: Ahead of the
credit policy review on March 15 and the budget a day later, Reserve Bank governor D Subbarao on Wednesday met finance minister Pranab Mukherjee. It is believed that RBI may further reduce cash reserve ratio (CRR) to infuse liquidity into the system in its upcoming review. RBI, on January 24, had cut CRR, the portion of deposits banks have to keep with RBI, by half a percentage point to 5.5%. PTI
Three years after crisis, Lehman exits bankruptcy NEW YORK: Nearly three and half years after it went belly-up in September 2008, once-powerful investment bank Lehman Brothers has announced its exit from bankruptcy. STORY ON PAGE 23
HSBC to sell general insurance biz in 4 countries LONDON: Global financial services giant HSBC Holdings said it will sell its general insurance businesses in Hong Kong, Singapore, Mexico and Argentina for $914 million in two separate cash transactions with French insurer AXA and Australia’s QBE Insurance Group. PTI INSIDE: 3 Tender pages
Foreign SIMs a threat: IB ■
RED CARD SYNDROME
Security agencies have asked the department of telecommunications (DoT) to direct telecom service providers to use domestically manufactured SIM cards only. The intelligence bureau (IB) fears that foreign agencies can misuse SIM cards to track activities of telecom users. In an internal note, DoT has said that IB wants telecom service providers to use locally made SIM cards, and has sought rationalisation of import duty on SIM cards to discourage their import. “DoT is separately dealing with the issue of import of SIM cards in consultation with the MHA,” the note said. “A meeting was held with the telecom service providers for indigenisation of SIM cards.” According to DoT estimates, about 70% SIM cards are manufactured in India and the rest imported. IB fears that such imported SIM cards may be infected with malware programmes, using which users may be tracked and their activities monitored, which would be useful for foreign intelligence agencies or terrorist outfits. IB says the telecom service providers should be directed to
The intelligence bureau wants DoT to direct all telcos to use India-made SIM cards ■ They fear that software embedded in SIM cards may be misused by foreign agencies ■ About 30% of the SIM cards used in India are made overseas ■ DoT has proposed that import duty be restructured to so that local companies have incentive to manufacture SIM cards
T EC H PA RT N E R
HCL bags $300-mn Finnish deal HT Correspondent ■
Software services major HCL Technologies bagged a $300 million (R1,500 crore) five-year outsourcing deal from UPM — a Finland-based industrial conglomerate with interests in energy, paper and engineered materials. The deal involves outsourcing of IT infrastructure to HCL Tech wherein it will provide data centre, end user support, network services and professional IT services to UPM. “HCL has proven experience
in delivering complex, end-toend outsourcing engagements to globally dispersed organisations,” said Anant Gupta, president (infrastructure services division), HCL Technologies. “With this engagement, we aim to increase scalability and flexibility as well as ensure access to world class competences and best practices,” UPM chief information officer, Turkka Keskinen said in a statement. Around 250 UPM employees are expected to move to HCL by the end of August. HCL will also set up a data centre in Finland.
JLR’s one millionth Discovery, which is on an expedition across Europe and Central Asia, reached Geneva on Tuesday. The expedition will end at the Beijing motor show on April 23. At centre (in red tie) is JLR’s CEO Ralph Speth. PHOTO: AP
JLR to set up engine facility in India, Tata cars to benefit
Sumant Banerji ■
GENEVA: Almost four years after
Tata Motors’ high profile acquisition of British marquee brands Jaguar Land Rover (JLR), the first signs of tangible synergy between the two firms are becoming visible. JLR chief executive Ralf Speth has said, it would look at building an engine manufacturing unit in India for lower specification engines that could also be used in some of Tata cars. “We are currently building a engine factory in England with an investment of 355million pounds (R2,840 crore) for low emission but high performance engines. Our next step would be to set up another facility in India for entry level engines,” said Speth. “We would see at how we can synergise our operations with Tata Motors and possibly look at making engines that would be suitable for their
R REBOUNDS FROM 7-WEEK LOW VS DOLLAR Press Trust of India ■
The rupee declined by 38 paise to hit a seven-week low of R50.74 against the American currency in early trade on Wednesday at the Interbank Foreign Exchange market on foreign fund outflows and strong dollar overseas. It recouped from its steep early lows to close the day at 50.28/29 amid reports of RBI’s intervention in the forex market. The rupee opened sharply lower at 50.55/56 a dollar from the previous close of 50.36/37.
(From left) Ashok Reddy, Dilip Chenoy, Gautam Chikermane, Vineet Nayyar and Vikram Chhachhi at the first Hindustan Times Shine HR Summit in the Capital on Wedenesday. PHOTO: WASEEM GASHROO/HT
HT Correspondent ■
While talent crunch remains a pressing headache for employers all across, an organisation needs to clearly spell out “in simple words” the growth path of its employees for effective organisational functioning. These were conclusions from a panel discussion of experts at the first Hindustan Times-Shine HR Summit, organised by Hindustan Times and Shine.com, HT Media’s job portal. Panelists at the discussion included HCL Technologies vice-chairman and CEO Vineet Nayar, National Skill Development Corporation (NSDC) managing director and CEO Dilip Chenoy, TeamLease Services MD and co-founder Ashok Reddy and DHR International executive vice-president Vikram Chhachhi. Hindustan Times executive editor (business) NEW DELHI:
TOP MANAGERS HIGHLIGHT THE NEED FOR A TALENT POOL ■ You hire a hero, you get a zero ■ An organisation needs to offer hope to its employees. ■ Simple articulation of a vision in plain words does catch the imagination of people/ employees. —VINEET NAYYAR
CEO, HCL Tech
needs to collaborate to create a talent pool ■ We need to have people ready for work from the first hour on the first day ■ There is a need to communicate the vision properly —DILIP CHENOY
MD & CEO, NSDC
Gautam Chikermane moderated the session. “As a parent one is collaborative when dealing with children, yet employers insist on command and control management styles when dealing with employees,” Nayar said. “This needs to change for effective organisational functioning. He stressed upon the need to hire low-profile employees with high aspirations. “You hire a hero and
is a need to correct the talent mismatch between supply and demand ■ Education system does not churn out employable people ■ Education needs to orient itself such that it provides jobs —ASHOK REDDY
get a zero,” he said. “The industry needs to ensure that it works in tandem to create a talent pool to draw talented individuals from,” Chenoy said. “There is an urgent need to have people who are ready to work from first hour on their first day.” Reddy elaborated the need to correct the existing mismatch between the supply of talent and demand. “Only 5% fresh grad-
is a huge talent crunch in India and a huge gap for good professionals ■ Indian professionals are the most mobile in the world. ■ Job rotation is a good idea, workers know what to follow —VIKRAM CHHACHHI Executive V-P, DHR
uates are directly employable in an industry,” he said. “An element of fitment needs to be developed for the remaining 95% employees.” According to Chhachhi there exists a huge gap for good professionals in India. He, however, favoured the idea of job rotation within an organisation. “Job rotation is a good idea such that employees know what track to follow in their careers,” he said.
( ) We would see at how we can synergise our operations with Tata Motors and look at making engines that would be suitable for their cars as well. RALF SPETH
CEO, Jaguar Land Rover
cars as well.” At present, JLR relies solely on its erstwhile owners Ford Motor for all its engine requirements. Speth said building engine factories was in line with its future ambitions but the relationship with Ford would continue. “We are a very profitable company and are investing more in R&D now. We also want to be in the running in the big league of luxury car market worldwide and investment into building new factories is a logical step,” he said. The firm’s sales grew by 18%
in 2011 to 274,280 units. But it is still small when compared to others in the market. Its German rivals BMW, Mercedes Benz and Audi sold 1.7 million, 1.4 million and 1.3 million units respectively in 2011. It is also hampered by being a late entrant into key markets like China, India and Brazil but Speth said he is in no hurry. “We are setting up a plant in India, we are talking about one in China, another one in Brazil, but we are a small company,” he added. “I don’t have the skills and resources in-house to orchestrate everything in one step, and we have to move ahead carefully. The big car makers can do it, as they have the pockets to do it, but we have to do it a little more carefully. ” (The writer’s trip to Geneva Motor Show 2012 was sponsored by Tata Motors) >> RENAULT-NISSAN BAJAJ DEAL, GENEVA AUTO SHOW P 23
LME NICKEL 18,883.0 $/Tn +138.0
If unemployment exploded in so many countries, was it my fault it rose in France or did something happen?
NICOLAS SARKOZY, French President, in an election debate. He said that while Germany was a model to be emulated, France had held up better than much of Europe.
Unpaid pilots: Air India faces strike, Jet calls for talks firstname.lastname@example.org
NEW DELHI: There’s trouble in the
“personalise” SIM cards in India. Personalisation is the process by which user data is recorded in the SIM card using a software. Relecom companies outsource this process to overseas companies, which is what has the IB worried. “It was intimated by the telecom service providers that the present tax regime is not conducive for domestic manufacturing of personalised cards in India. Accordingly, DoT is taking up the issue of rationalisation of tax structure with the department of revenue. The matter is under process.” “We have suggested imposition of tax on import of SIM cards. We expect that this will be taken by the government in the budget,” said a DoT official.
LME COPPER 8,317.8 $/Tn +28.3
MALWARE PHOBIA DoT seeks tariff rejig to encourage local manufacturing Manoj Gairola
BRENT CRUDE $/Bbl 122.4 -0.4
‘You hire a hero and get a zero’
RUPEE/£ 79.1 +0.2
air for India’s bleeding airlines. The Indian Pilot’s Guild (IPG), an association of Air India (AI) pilots, has threatened the airline management that a large number of its pilots will not operate flights from next month if their dues aren’t cleared. Also, pilots of India’s largest domestic carrier, Jet Airways, who had decided to wear black arm bands to work from Thursday to protest delay in salaries, have been called for a meeting by chairman Naresh Goyal. “We have put our decision to wear black arm bands on hold till our meeting with the chairman. We get paid only by 15th of every month. We want our salaries on time,” a pilot said. Meanwhile, the IPG has said that AI hasn’t paid pilot salaries for the last three months and allowances for four months. The Indian Commercial Pilots’ Association, another association of AI, had recently left to individual pilots to decide the future course of action if dues aren’t cleared by March. “A large number of our members have informed us that owing to the psychological stress that they are undergoing and bearing in mind the safety of passengers, they will be unable to operate flights on and after April 1, unless the management clears all dues,” IPG’s letter to the airline’s CMD, and aviation and labour ministers and the aviation regulator said.
( ) Our members have informed us that owing to psychological stress, they will be unable to operate flights after April 1, unless management clears dues. I N D I A N P I LOTS ’ G U I L D
Higher levy may cripple Delhi airport: IATA
The International Air Transport Association (IATA) has objected to the proposed increase in Delhi airport charges, which it said would make Delhi the most expensive airport in Asia. The Airports Economic Regulatory Authority (AERA) has recommended a 340% hike in airport tariffs from April, against a 874% hike sought by Delhi International Airport Pvt Ltd, Delhi airport’s private operator. “One critical factor for Delhi is its ability to compete for transit traffic with the likes of Dubai, Singapore, Hong Kong and Bangkok. As such, Delhi’s tariffs should be comparable if not lower than the tariffs at these airports,” IATA said.
HTC, NEW DELHI