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ASIAN
BUSINESS
India's businesses, already facing high interest rates
and a global economic slowdown, worry that the finance ministry will ask them
to shoulder a bigger tax burden in the budget set for release on Friday to trim
the fiscal deficit.
After a drubbing in recent state elections, the
government has little room to cut subsidies costing 2.5% of GDP. But without
fiscal consolidation, the Reserve Bank of India will have a harder time
lowering interest rates without stoking inflation.
Growth in Asia's third-largest economy is expected to
dip below 7% in the current fiscal year ending March, the slowest pace in three
years, while manufacturing may cool to 4% from 7.2% in the previous year.
Britain’s largest insurance group said the division
contributed £709m of its £2.1bn in operating profits during the year ending
December 31, bringing it closer to the ambitious targets it set itself in 2010.
At the time, Prudential said it hoped to double the £719m in new business
profits it had registered across the region by 2013. In doing so, the company
said it hoped to double the £465m operating profit it made in the area during
the same period.
ASIAN
MANAGEMENT
SINGAPORE: Infrastructure funds are
set to play an increasingly important role in the asset management landscape in
Asia, says Monetary Authority of Singapore (MAS) managing director Ravi Menon.
He said one clear trend would be the
shift of investment portfolios to Asia, as the driving forces accentuated the
underlying shift in the world’s centre of economic gravity towards Asia.
“Given the size of developing Asia,
there is not enough portfolio investment in Asia and not enough portfolio
investment by Asia. There is scope for both to increase – dramatically.
“First, global investors will invest
more in Asia,” he said in his key note address at Investment Management
Association of Singapore’s annual conference here yesterday.
The ADB said Asian countries would require US$40
billion a year over the next four decades to cope with climate change, but the
world came up with just $4.4 billion during 2009-2010, or one-tenth of the
amount needed, said Bindu Lohani, ADB's vice-president for knowledge management
and sustainable development.
Mr Lohani was speaking yesterday at the Asia-Pacific
Climate Change Adaptation Forum in Bangkok attended by 800 participants from 50
countries.
The two-day forum wrapped up yesterday.
The additional costs to manage climate-related risks
to infrastructure will range from 5% to 15% of baseline investment costs for
infrastructure such as roads, sewers, bridges and pipelines, Mr Lohani said.
BANKING
The Reserve Bank of India (RBI), on
Thursday, kept the indicative rates unchanged as concerns about inflation
pressures persist.
The RBI also indicated that it would not
hike the rates but was not certain when it would be lowered. It said: “Recent
growth-inflation dynamics have prompted the Reserve Bank to indicate that no
further tightening is required and that future actions will be towards lowering
the rates.”
Further, it cautioned that
“notwithstanding the deceleration in growth, inflation risks remain, which will
influence both the timing and magnitude of future rate actions.” Notably,
Consumer Price Index (CPI) inflation for January 2012 was 7.7 per cent
“suggesting that price pressures persist at the retail level.”
Citigroup was one of four large US
banks that flunked stress tests aimed at seeing how they would hold up in a new
economic crisis, Federal Reserve data showed.
Three others — Ally, Suntrust and
MetLife — also failed the tests, while 15 other large bank holding companies
passed the exercise, the Fed said yesterday.
As a group, though, the 19 came
through strongly, said the Fed, thanks to pressure for them to boost capital
over the past three years as the financial sector digs its way out of the deep
2008-2009 recession.
“In fact, despite the significant
projected capital declines, 15 of the 19 bank holding companies were estimated
to maintain capital ratios above all four of the regulatory minimum levels
under the hypothetical stress scenario,” the Fed said.
BUSINESS
MANAGEMENT
Wastewater
management is fetching big business for treatment plant and equipment
manufacturers in Noida and Greater Noida. The twin townships house numerous
enterprises engaged in this business.
Some of the most prominent business houses are Fontus
Water, Swam
Pneumatic, Everest
Blowers, Dew
Envirotech and Speciality Chemicals, Anant Group, Triveni Engineers and
Doshion. Many of them also export their equipment.
Apptio, the leading provider of on-demand Technology
Business Management (TBM) solutions, today announced that it has closed a $50
million Series D funding round. Certain investment strategies managed by T.
Rowe Price Associates, Inc. led the round and were also joined by existing
investors Andreessen Horowitz, Greylock Partners, Madrona Venture Group and
Shasta Ventures. The new round of capital will be used to further invest in the
development of the company's TBM platform, expand market penetration, drive
customer success, and maintain its independence as the industry's trusted
provider of TBM solutions. The Series D round brings the total amount raised by
Apptio to $91 million. In addition, the company also announced it has appointed
current Apptio Board Member Tom Bogan as Chairman of the Board. Bogan is
currently Chairman of the Board for Citrix (CTXS) and serves as an independent
Director for PTC (PMTC), in addition to several other private companies.
INDIA
BUSINESS
Washington: Presenting corporate
America's wish list for the Indian budget, a leading US-India trade association
wants India to press forward with bold economic reforms to make it easier for companies
to conduct business.
"Our member companies need to see in the Budget that India's reform process is moving forward - boldly," said Ron Somers, President of US-India Business Council (USIBC) representing about 400 top American and Indian companies seeking a stronger US-India commercial relationship.
"Our member companies need to see in the Budget that India's reform process is moving forward - boldly," said Ron Somers, President of US-India Business Council (USIBC) representing about 400 top American and Indian companies seeking a stronger US-India commercial relationship.
Korean consumer electronics major Samsung on Sunday
said it plans to aggressively push its flat panel TV business in India, a
segment which is expected to touch 50 lakh units in the current year.
The company which is present in India, through its wholly owned subsidiary Samsung India Electronics, currently has a market share of around 30 per cent of the 38 lakh units of flat panel TVs in the country.
"Of the 38 lakh units, we have a market share of 30 percent. We definitely intend to grow faster than the industry this year," Samsung India AV Business Vice President Raj Kumar Rishi told reporters here at the Samsung South West Asia Forum 2012.
The company which is present in India, through its wholly owned subsidiary Samsung India Electronics, currently has a market share of around 30 per cent of the 38 lakh units of flat panel TVs in the country.
"Of the 38 lakh units, we have a market share of 30 percent. We definitely intend to grow faster than the industry this year," Samsung India AV Business Vice President Raj Kumar Rishi told reporters here at the Samsung South West Asia Forum 2012.
INDIAN
MANAGEMENT
Simple storage godowns or warehouses in the country
are making way for big logistics parks that are not only getting private equity
(PE) funds, but are also catching the fancy of Indian companies.
Abhijit Malkani, managing director at Realterm
Everstone Development Management Pvt. Ltd, said his $240 million fund was
raised by PE firms Realterm Global and Everstone Capital in mid-2010 to start
IndoSpace Logistics Parks Ltd, which will invest in logistics parks in India.
“We are planning one more fund, considering the
demand,” said Malkani.
Brian Oravec, chief executive officer at Realterm
Everstone, reasoned that “current warehouses are below standards and it is
difficult to get insurance cover for such projects”.
Activist UK fund The
Children's Investment Fund Management (TCI) threatened legal action against
Coal India's directors for not protecting minority shareholder interests,
underlining investor dissatisfaction with state-run Indian companies.
TCI, which held a 1.01 percent stake in the world's
largest coal
miner at the end of 2011, said in a letter issued Monday that Coal India's
directors were acting against interests of stakeholders by " blindly
" accepting government instructions to roll back a recent increase in coal
prices.
INSURANCE
A
politically vulnerable Congress-led United Progressive Alliance (UPA) is likely
to drop the proposal for easier foreign direct investment (FDI) norms in
insurance and pension funds.
Accordingly,
the proposal to enhance FDI in insurance joint ventures to 49% is likely to be
dropped, and the government, as demanded by the opposition, may cap the FDI
ceiling in pension funds to 26% and guarantee assured returns, an official
associated with the developments said, requesting anonymity.
With increase in the service tax to 12%, insurance
premia are likely to become costlier for life insurance products. "With
the increase in service tax to 12% from 10%, the policyholders will have to pay
higher insurance premiums for general and traditional life insurance products.
The increase in tax on various charges in the
unit-linked products, premium allocation to policyholder fund will
reduce," global consultancy firm KPMG partner Shashwat Sharma said. Within
the existing limit for deduction (Rs 15,000 for individuals and Rs 20,000 for
senior citizens), a deduction of up to Rs 5,000 is being allowed for preventive
health check-up that will provide a fillip to preventive healthcare sector, he
said.
INTERNATIONAL
BUSINESS
The
BBC is launching an international search for a new role of Chief Business
Correspondent as part of a major drive to expand the breadth and depth of its
international business coverage.
Based in East Asia, the BBC is looking for a heavyweight journalist who can bring fresh global perspectives and break major stories from around the world.
Whilst their prime focus will be reporting for international outlets such as BBC World News, BBC World Service and BBC.com, the successful candidate will also bring major stories and reports to UK audiences across the BBC's flagship UK news services. They will report across all platforms - TV, radio and online.
Based in East Asia, the BBC is looking for a heavyweight journalist who can bring fresh global perspectives and break major stories from around the world.
Whilst their prime focus will be reporting for international outlets such as BBC World News, BBC World Service and BBC.com, the successful candidate will also bring major stories and reports to UK audiences across the BBC's flagship UK news services. They will report across all platforms - TV, radio and online.
United
Technologies said Thursday that it will sell its rocket engine and wind
power businesses to help finance its $16.5 billion purchase of aerospace
supplier Goodrich
Corp.
The Hartford, Connecticut-based
industrial conglomerate said it will sell Pratt & Whitney Rocketdyne,
Clipper Windpower and three businesses of its Hamilton Sundstrand aerospace
components manufacturer. It expects to raise $3 billion with the sales.
CEO Louis Chenevert said United Technologies is re-evaluating its portfolio to finance the deal to buy the Charlotte, North Carolina-based Goodrich as well as subsidiary Pratt & Whitney's $1.5 billion purchase of Rolls-Royce's stake in a joint venture that makes Airbus engines.
CEO Louis Chenevert said United Technologies is re-evaluating its portfolio to finance the deal to buy the Charlotte, North Carolina-based Goodrich as well as subsidiary Pratt & Whitney's $1.5 billion purchase of Rolls-Royce's stake in a joint venture that makes Airbus engines.
LOGISTICS
Railways
has proposed to create a Logistics Corporation for development and management
of existing railway goods sheds and multimodal logistics parks. Introducing the
Railway Budget for 2012-13 in Parliament today the Minister of Railways Shri
Dinesh Trivedi said, this Corporation would aim to provide total logistics
solutions to the rail-users, thereby cutting down on their operating costs.
The
Ministry of Railways proposes to set up an independent Railway Safety
Authority as a statutory regulatory body as recommended by Kakodkar
Committee. This was announced by the Minister of Railways Shri Dinesh Trivedi.
Introducing the Railway Budget for 2012-13 in Parliament today, he said, the
function of the authority would be worked out in greater details in line with
international practices in the best interest of passenger safety. The Minister
said since research and development activities are central to any tangible
results in the area of safety enhancement, he also proposed to set up a
Railway Research and Development Council at the apex level to spearhead
such efforts. Shri Trivedi said, his entire emphasis is going to be on strengthening
Safety.
MANAGEMENT
The Union Budget for fiscal 2013 is a
pragmatic exercise aimed at growth and stability in the backdrop of the
challenging year gone by and the broad consensus needed for various policy
measures.
Given the fiscal imperatives, it goes
further to set a direction for fiscal consolidation to ensure long term
stability and sustainability of the growth momentum in the economy.
Fiscal 2012 has been a challenging year
for the Indian economy. Both global and domestic factors resulted in a
moderation of economic activity, led to persistent inflationary pressures and
contributed to deterioration in the current account and fiscal position.
PepsiCo Inc revamped its global structure on Monday in
a move that deepens its management bench and could pave the way for an eventual
successor to Chief Executive Indra Nooyi.
The company named John Compton, currently CEO of its
Americas Foods division, to the newly created position of president of PepsiCo.
It also named Brian Cornell, a PepsiCo alum who most
recently ran the Sam's Club unit of Wal-Mart Stores Inc , to replace Compton.
He will be responsible for Frito-Lay North America, Quaker oatmeal and other
brands.
"The management moves are about Nooyi and PepsiCo
doing some 'bench strengthening' and bringing back a talented executive,"
said Beverage Digest Editor John Sicher, citing sources who also said Compton
should not be viewed as Nooyi's sole heir apparent.
ODISHA
BUSINESS
Maoist rebels have kidnapped two Italian
tourists in Odisha, police said Sunday, in what was believed to be the first
abduction of foreigners by the left-wing militants.
Reports said the kidnappers issued 13
demands for the release of the Italians, including the release an unspecified
number of prisoners and an end to the drive to root out extremism from the
region.
The abduction occurred on Wednesday in
Kandhamal district in Odisha, police said.
“Maoists have abducted two Italian
nationals from Daringbadi area of Kandhamal district,” the DIG of police, Mr
Radha Krishna Sharma, said.
The Odisha Assembly on Thursday adjourned eight times
due to acrimonious exchanges between ruling and opposition members. Due
to the ruckus, the House could run for only 26 minutes in the pre-lunch sitting
virtually with no transaction of business including question hour.
As the Speaker took up the question hour, Leader of
Opposition Bhupinder Singh raised a question of privilege stating that the
Revenue Minister had misled the House by giving two different replies on the
same issue of drought in the House and demanded discussion on the issue by
suspending business.
RETAIL
Retailers
who have been grappling with escalating rentals will now have to brace for an
increased occupation cost on the back of the service tax hike announced in
Friday's budget. Retailers will need to cough up an additional 2% on their
rental at a time when rising costs have hampered consumer sentiment.
A majority of modern retailers rent their stores on long-term lease and rentals account for almost 10-12% of a retailer's operating cost. Some retailers may look to increase prices of their private label goods to compensate for the additional 2% tax burden.
A majority of modern retailers rent their stores on long-term lease and rentals account for almost 10-12% of a retailer's operating cost. Some retailers may look to increase prices of their private label goods to compensate for the additional 2% tax burden.
Retail and consumer products are likely to be dearer
due to the hike in indirect taxes, industry players said today.
"Service tax is upped to 12% and so is the Excise
that is hiked across the board. This will definitely impact overall prices and
lead to moderation of demand," Shoppers Stop managing director Govind
Shrikhande said.
Expressing a similar sentiment, Ernst & Young
partner for retail & consumer products practice Paresh Parekh said,
"Increase in service tax to 12% is likely to have an adverse impact on the
already wafer-thin margins of retail companies, especially since service tax is
not offset-able against VAT. Also, increase in standard excise duty from 10% to
12% may increase the prices of products."
SUPPLY
CHAIN
Are organisations supply
chain-centric enough? This question should be at the top of C-level executives'
minds as the Asean Economic Community (AEC) nears its much-publicised 2015
deadline.As highly anticipated, by then Asean will become a single market,
production base and competitive economic region enabling easier movement of
goods, services, investment, capital and people.The obvious implication will be
democratisation of Asean supply chains, meaning growth in the outsourcing model
and its natural consequence, dispersed manufacturing to optimise the full potential
of regional integration and connectivity.
Company
supply chains are now better able to handle market uncertainty, according to
the 2012 Global Supply Chain Agenda study from Capgemini. The study reveals
that ongoing uncertainty around the global economy and euro zone crisis is
having a significant impact on supply chain strategies at every
level.Specifically, market volatility (52 percent) and the economic downturn
(39 percent) were cited as the biggest business challenges currently faced by
respondents, with just 17 percent optimistic about the outlook for the economy
in 2012. However, the survey suggests that companies will be better able to
handle this market uncertainty than during the previous economic slowdown of
2008-2009, with 52 percent of respondents indicating they are now better
prepared for a more volatile environment.
______________________________________________________________________
Source of
Information for this issue : Google alert accessed on March 19, 2012
We welcome your
suggestions in improving this information updating service.
Knowledge
Is Power. Be Informed, Be Knowledgeable, Be Powerful.
Best wishes
Compilation
Sabita Sahu, B.A., PGDCA, MLISc,
Professional Library Trainee
Sabita Sahu, B.A., PGDCA, MLISc,
Professional Library Trainee
Concept, Layout and
Editing
Rajashekhar Devarai
Chief Librarian
Chief Librarian
Information and
Documentation Division, Chanakya Central Library
Asian School of
Business Management
Shiksha Vihar Bhola,
Barang Khurda Road,
Chandaka
Bhubaneswar-754012
E-mail:library@asbm.ac.in, chieflibrarian@asbm.ac.in
Sabita Sahu : Professional Library Trainee and R.S.Devarai : Chief
Librarian, Knowledge and Information Services Unit, Chanakya Central
Library, Asian School of Business Management, Bhubaneswar.
chieflibrarian@asbm.ac.in ; www.asbm.ac.in
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