Asian
stocks were mostly higher in choppy trading on Wednesday following a big rally
in US markets, though gains were limited by persistent worries over Europe's ability to contain a
simmering debt crisis.
Some markets zigzagged between gains and losses as investors weighed comments by a Federal Reserve official in support of more measures to stimulate the economy against the situation in Europe.
Japan's Nikkei 225 index gained 0.6 per cent to 8,588.18, while South Korea's Kospi swung temporarily into negative territory before climbing 0.3 per cent to 1,859.89. Hong Kong's Hang Seng also briefly dipped before rising 0.3 per cent to 18,935.85.
Australia's S&P/ASX 200 fell 0.3 per cent to 4,059.50. Benchmarks in New Zealand and Singapore fell. Taiwan and mainland China's Shanghai Composite Index rose.
In Spain, ratings agency Fitch downgraded 18 banks and the government's borrowing costs rose to the highest level since adopting the euro currency. Investors are also worried that a European bailout for Spain's banks won't solve the country's problems amid fears that the contagion could spread to Italy. In Greece, investors are nervously looking ahead to an election on Sunday to see if a party that has vowed to throw out the country's bailout agreement will win.
Some markets zigzagged between gains and losses as investors weighed comments by a Federal Reserve official in support of more measures to stimulate the economy against the situation in Europe.
Japan's Nikkei 225 index gained 0.6 per cent to 8,588.18, while South Korea's Kospi swung temporarily into negative territory before climbing 0.3 per cent to 1,859.89. Hong Kong's Hang Seng also briefly dipped before rising 0.3 per cent to 18,935.85.
Australia's S&P/ASX 200 fell 0.3 per cent to 4,059.50. Benchmarks in New Zealand and Singapore fell. Taiwan and mainland China's Shanghai Composite Index rose.
In Spain, ratings agency Fitch downgraded 18 banks and the government's borrowing costs rose to the highest level since adopting the euro currency. Investors are also worried that a European bailout for Spain's banks won't solve the country's problems amid fears that the contagion could spread to Italy. In Greece, investors are nervously looking ahead to an election on Sunday to see if a party that has vowed to throw out the country's bailout agreement will win.
The next wave of private investment in Africa is
likely to come from Asian funds, lured by sustained high growth rates and
increasing economic and political stability, according to the co-head of one of
the continent's top private equity groups.
By
contrast with the crisis in the euro zone and slower-than-expected economic
recovery in the United States, the International Monetary Fund forecasts
sub-Saharan Africa will grow by around 5.5 per cent in 2012 and include five of
the world's fastest-growing economies. "I've had the opportunity to
speak with a number of Asian funds, and they have an extremely large thirst for
knowledge on Africa and how Africa works," said Vicent Le Guennou, chief
executive and co-founder of Emerging Capital Partners (ECP). In an interview at
the group's Abidjan offices, he predicted Asia's annual private investment in
Africa would reach as high $10 billion in the coming years.
"They want to allocate a
growing share of their resources to this continent either as direct investments
or through funds like ours ... I'm convinced that in the next five years a very
significant proportion of our investors will be Asian." ECP, which manages
six funds dedicated to Africa amounting to a total of more than $1.8 billion,
has made more than 50 investments and 20 successful exits.
ASIAN MANAGEMENT
Arts Alliance Media (AAM) and
Bangkok, Thailand based Goldenduck Group (GDG) have announced a strategic
partnership whereby AAM will offer their Theatre Management System (TMS) and
their VPF management, asset management, NOC monitoring and maintenance
solutions through GDG's role as the leading cinema integrator and deployment
company in the region.
The deal will expand AAM's presence
in cinemas throughout Thailand, Malaysia, Brunei, the Philippines, Singapore
and Vietnam with great potential in Myanmar as business rapidly expands in that
country.
AAM’s digital cinema software presence already exceeds 12,000 screens worldwide with continued rapid expansion set to propel the number to 18,000 in the coming months. The GDG partnership is expected to add over 500 screens to this total. The TMS, version 2.0, which will be launched this month, offers cinemas a powerful way to operate their digital screens. The software refresh encompasses one-click content and KDM management, intuitive playlist creation and scheduling, intelligent CPL selection, and automated pre-show management. Further features include comprehensive equipment monitoring and reporting, and an optional enhanced advertising module to insert ads based on playlist templates.
AAM’s digital cinema software presence already exceeds 12,000 screens worldwide with continued rapid expansion set to propel the number to 18,000 in the coming months. The GDG partnership is expected to add over 500 screens to this total. The TMS, version 2.0, which will be launched this month, offers cinemas a powerful way to operate their digital screens. The software refresh encompasses one-click content and KDM management, intuitive playlist creation and scheduling, intelligent CPL selection, and automated pre-show management. Further features include comprehensive equipment monitoring and reporting, and an optional enhanced advertising module to insert ads based on playlist templates.
Constellation Software Inc.
("Constellation") CA:CSU
-0.83% today announced that Trapeze Group, a subsidiary of its wholly-owned
division Volaris Group, has purchased Bacchus Management Holdings Pty Ltd
("Bacchus") based in Brisbane, Australia. The acquisition further
extends Trapeze's solution offering in the Australian market place and
strengthens the company's position as it continues to expand into the broader
Asian Market.
Bacchus provides integrated
operations and financial management, ticketing and RTPI (real-time passenger
information) solutions to the passenger transport industry. The company's core
product is TIMS(TM) - a comprehensive integrated transport solution for bus and
road transport operations. Bacchus clients include major operators in bus and
coach transport across Australia and New Zealand.
In addition to the new Brisbane
office location, Trapeze also has operations in Adelaide providing the
Australian transport market with integrated solutions for fixed route and
community transport scheduling, driver performance management, eco-driving and
journey planning.
BANKING
A 25-basis-point cut in the policy rate
by the Reserve Bank of India is unlikely to encourage lenders to bring down interest
rates in tandem.
On the eve of the mid-quarter monetary
policy review by the RBI, bankers and economists aver that banks are likely to
bring down lending and deposit rates only if the apex bank goes in for an
aggressive cut in the repo rate, or accompanies it with a reduction in the cash
reserve ratio (CRR).
The repo rate is the rate at which banks
borrow money from the RBI, while CRR is the portion of deposits that must be
kept with the central bank.
“A lending rate cut is unlikely if the
RBI were to bring down its repo rate only by 25 basis points. However, there
are strong chances of a reduction in both deposit and lending rates in the
event of the repo rate being brought down by 50 basis points,” a senior
official of a private bank said.
He added that the current liquidity
condition would hinder the passing on of the benefits of a repo rate cut to
borrowers.
Britain's government and the Bank of
England on Thursday outlined a series of emergency measures designed to
kick-start lending by banks and to protect the country's economy from the
worsening debt crisis in the eurozone.
Treasury chief George
Osborne said that one program, to be launched within weeks, would offer
British banks access to cheap multiyear loans, linked to their lending
performance. The aim is to encourage banks to increase lending to businesses
and individuals, amid concerns that caution sparked by worries over the fate of
the eurozone could cause a new squeeze on available credit.
Bank of England governor Mervyn King said that, separately,
the central bank would activate a liquidity facility announced last December,
but so far unused, to inject about 5 billion pounds (US$7.8 billion) per month
into the country's financial system.
Neither King nor Osborne offered precise details of how
much the programs could be worth, though the measures could involve loans
totaling up to 140 billion pounds (US$220 billion).
``We are not powerless in the face of the eurozone
debt storm,'' Osborne said, making his annual address to a glitzy dinner in London's
financial district. ``Together we can deploy new firepower to defend our
economy from the crisis on our doorstep.''
BUSINESS
The rupee crashed to a new intra-day low
of 57.30 to the dollar — losing almost 100 paise at one time from yesterday’s
close of 56.31 — as oil refiners continued to slurp dollars amid falling crude
prices and nervous global investors took comfort in the greenback to shield
themselves from the vicissitudes of the global economy.
After a brief recovery on dollar sales
by exporters and squaring off of long dollar position, the rupee ended the day
at 57.12 — still an all-time closing low; moreover, the 3 per cent depreciation
over the whole week is the rupee’s biggest weekly fall in nine months. Dealers
said the RBI had made a feeble attempt to shore up the rupee by selling
dollars.
Analysts said the rupee was unlikely to
come under severe pressure in the immediate term, but if the global turmoil
worsened it could flirt with the 58-level.
The analysts said the depreciation was
largely because of strong dollar demand from oil companies — a paradoxical
situation as even when crude prices rose the rupee had come under pressure.
Bid to ferry oil in Iran ships
India plans to allow Iran to ferry crude
oil in Iranian ships after the European Union’s sanctions come into force from
July, preventing domestic ships from bringing oil from the Islamic nation.
The move comes amid plans to reduce
imports from Iran by 11 per cent to 15.5 million tonnes in 2012-13.
“We have requested the ministry of
shipping to allow Iranian ships to ferry crude oil to Indian shores,” petroleum
oil secretary G.C. Chaturvedi said.
So far, Indian ships were transporting
the crude while insurance was offered by European companies. But domestic
shippers may not be able to transport the oil when the European Union’s
sanctions against Iran come into effect in July as they will not get insurance
cover.
Chaturvedi said the oil ministry was
also discussing with the finance ministry the scope for domestic insurance
companies such as General Insurance and Oriental Insurance to cover ships carrying
oil cargoes from Iran.
BUSINESS
MANAGEMENT
Mobile handset major Nokia today announced changes in
senior management following the resignation of three officials including Chief
Marketing Officer Jerri DeVard.
DeVard had joined the company in January 2011 and was
its Executive Vice President (EVP).
"Jerri has made a positive impact on
Nokia's advertising, marketing and brand efforts. Our marketing has made great
strides under her leadership. I will particularly miss the fresh insight and
new energy that Jerri injected into the Nokia brand," Nokia CEO Stephen
Elop said in a statement. Chris Weber who was senior VP
Markets for Americas at Nokia has been appointed as EVP of sales and marketing.
"Chris has made tremendous
strides in kick starting our re-entry into the US and his track record of
driving results will serve Nokia well," Elop said.
Tuula Rytila, senior VP of portfolio
and business management has been appointed as the CMO. Rytila will report to
Weber.
Nokia Corporation EVP of Mobile
Phones, Mary McDowell and EVP of Markets, Niklas Savander also stepped down
from their post. Both were also board members for Nokia's subsidiary and
digital map company NAVTEQ.
Savander also represented Nokia on
the board of its joint venture firm Nokia Siemens Network. She will also step
down from NSN board from June 30, the statement said.
The
Optimum Business Account Center from Cablevision Systems offers one online
destination for all Optimum Business customers to manage their Internet, voice
and video services.
It offers intuitive user control through a product dashboard and internal management tools that enable service customization and the ability to make individual or bulk changes across a service. The Account Center offers a view of all products and services as well as video tutorials and helpful product descriptions.
Cablevision Portal Streamlines 'Optimum Business' Management
Notes Joseph Varello, Cablevision’s vice president/Business and Voice Product Management. “Whether a customer uses basic email, voice products or more complex services like Optimum Voice SIP Trunking, it is now easier to explore and control account and product features.”
The Account Center now includes delegated management, allowing small business owners to assign account management roles for specific services to specific employees. For instance, one or more management roles can be assigned to oversee phone, network and hosting services.
It offers intuitive user control through a product dashboard and internal management tools that enable service customization and the ability to make individual or bulk changes across a service. The Account Center offers a view of all products and services as well as video tutorials and helpful product descriptions.
Cablevision Portal Streamlines 'Optimum Business' Management
Notes Joseph Varello, Cablevision’s vice president/Business and Voice Product Management. “Whether a customer uses basic email, voice products or more complex services like Optimum Voice SIP Trunking, it is now easier to explore and control account and product features.”
The Account Center now includes delegated management, allowing small business owners to assign account management roles for specific services to specific employees. For instance, one or more management roles can be assigned to oversee phone, network and hosting services.
FINANCE
Government revives plan to convert 523 crore IFCI debt into equity
The government has revived a plan to convert its 523
crore debt to Industrial Finance Corporation of India into equity, an effort
seemingly aimed at acquiring greater control of the country's oldest
development financial institution.
The move comes days after the appointment of Atul Kumar Rai as chief executive and managing director of IFCI. Rai secured a second five-year term as the head of the financial institution despite stiff opposition from the two government nominees on its board. A finance ministry official said a committee headed by finance secretary R S Gujral would soon meet to map out the conversion of debt into equity.
"We are in favour of converting the government's debt into equity, and hope that a decision will soon be taken," the official said requesting anonymity. According to estimates, the government will get over 40% equity stake in IFCI, in which state-owned insurers and banks hold a 29.3% stake.
IFCI, which was established in 1948, has off late been plagued by allegations of financial and functional mismanagement. In September 2011, the Supreme Court had issued notice to the central government on a plea challenging the appointment of Rai as CEO and MD of IFCI in 2007 despite his alleged involvement in "serious corrupt practices".
The move comes days after the appointment of Atul Kumar Rai as chief executive and managing director of IFCI. Rai secured a second five-year term as the head of the financial institution despite stiff opposition from the two government nominees on its board. A finance ministry official said a committee headed by finance secretary R S Gujral would soon meet to map out the conversion of debt into equity.
"We are in favour of converting the government's debt into equity, and hope that a decision will soon be taken," the official said requesting anonymity. According to estimates, the government will get over 40% equity stake in IFCI, in which state-owned insurers and banks hold a 29.3% stake.
IFCI, which was established in 1948, has off late been plagued by allegations of financial and functional mismanagement. In September 2011, the Supreme Court had issued notice to the central government on a plea challenging the appointment of Rai as CEO and MD of IFCI in 2007 despite his alleged involvement in "serious corrupt practices".
Financial transaction tax on City would help rebalance Britain's ...
George Osborne is
adopting a crafty approach to European plans for a new tax on financial
transactions. The big four eurozone countries – Germany, France, Italy and
Spain – are now all in favour of a levy and the chancellor's response is to let
them get on with it.
Britain could have cut up rough about a so-called Tobin tax, but Osborne has
decided that the aggro is not worth it. His assumption is that a financial
transaction tax (FTT) will raise costs in Frankfurt, Paris, Milan and Madrid,
and so drive business to the City.
The chancellor is also dubious about claims that the
money will be spent on "good causes" such as development aid or
helping poor countries adapt to climate change. In the event that an FTT does
prove to be a cash cow, Osborne thinks hard-up European governments will use it
to reduce their budget deficits.
INDIA
BUSINESS
Anil Ambani Group company Reliance Capital is backing
a merger deal between Grover Vineyards and smaller rival Valle de Vin to create
India's second largest wine company. The financial services company will join
Singapore-based wine investor Ravi Viswanathan as a key stakeholder in the
combined entity, Grover Zampa Wines.
The merger creates a new challenger to industry leader Sula Vineyards in the still nascent domestic wine market swelling over 1.5 million cases annually. Reliance Capital will have 18% stake in Grover Zampa. This would be its second wine investment after buying stake in the now troubled Indage Vintners. The Grover family and Valle de Vin promoters—Ravi Jain, Deepak Roy and Neeraj Deorah—will together own a little over 50% leaving the rest with new investors. Even as Reliance Capital and Ravi Viswanathan checks into the new entity, some initial investors in Grover Vineyards, like former Citi banker Jerry Rao and champagne house Veuve Clicquot, have made an exit. But celebrated oenologist Michel Rolland will continue to be an investor in the combined firm.
The merger creates a new challenger to industry leader Sula Vineyards in the still nascent domestic wine market swelling over 1.5 million cases annually. Reliance Capital will have 18% stake in Grover Zampa. This would be its second wine investment after buying stake in the now troubled Indage Vintners. The Grover family and Valle de Vin promoters—Ravi Jain, Deepak Roy and Neeraj Deorah—will together own a little over 50% leaving the rest with new investors. Even as Reliance Capital and Ravi Viswanathan checks into the new entity, some initial investors in Grover Vineyards, like former Citi banker Jerry Rao and champagne house Veuve Clicquot, have made an exit. But celebrated oenologist Michel Rolland will continue to be an investor in the combined firm.
The Bombay
Stock Exchange (BSE) sensitive index (sensex) closed 50.86 points lower
after rating agency Standard & Poor's (S&P) said India could lose its
investment grade status due to worsening economic fundamentals on Monday. The
30-scrip sensex which opened at 16,804.89 points, closed at 16,668.01 points --
down 0.30 per cent or 50.86 points from its previous close of 16,718.87 points.
The rupee too took a hit following S&P's warning and closed at 55.74/75 per US dollar as per SBI data, weaker than Friday's close of 55.42/43. It fell to 55.82 at one point in trade, its lowest since June 5. The rupee had rebounded last week from the record low of 56.52 against the dollar on May 31. Earlier, S&P had warned that India risks a sovereign downgrade which would result in the country dropping off the list of countries with an investment-grade rating. The statement came less then two months after the agency revised the outlook on India's rating to negative from stable and said that the country has a one-in-three chance of being downgraded in the next two years. India presently enjoys a BBB- which is the lowest investment grade rating.
The rupee too took a hit following S&P's warning and closed at 55.74/75 per US dollar as per SBI data, weaker than Friday's close of 55.42/43. It fell to 55.82 at one point in trade, its lowest since June 5. The rupee had rebounded last week from the record low of 56.52 against the dollar on May 31. Earlier, S&P had warned that India risks a sovereign downgrade which would result in the country dropping off the list of countries with an investment-grade rating. The statement came less then two months after the agency revised the outlook on India's rating to negative from stable and said that the country has a one-in-three chance of being downgraded in the next two years. India presently enjoys a BBB- which is the lowest investment grade rating.
INDIA
MANAGEMENT
Synergy bags $10 mn project for townships in Rwanda
Bangalore-based real estate consulting and turnkey
solution firm Synergy today said it has bagged design and project management
contracts for three townships in Rwanda for about $10 million (over Rs 55
crore).
The design and project management mandate is a part of
a $153 million township development contract from Rwanda Social Security Board
(RSSB) bagged by Blackstone-backed Synergy Property Development Services.
"Synergy's fee will be approximately $10 million for this project,"
the company said in a statement.
The selection was done through a global tendering process for the townships in Kigali, the capital and the largest city of the African nation, it added.
Under the contract, Synergy will manage the entire development of the projects, including design management and co-ordination, engineering, procurement management and construction management.
The Indian firm will be also be responsible for time, cost, quality and environmental health and safety standards, the statement said.
Work for all the projects will commence from July, with completion of the first phase targeted within 20 months.
Commenting on the order, Synergy Property Development Services Chairman and MD Sankey Prasad said: "Africa is a land of opportunities for housing and office space development work... The scope of work for these townships is massive and challenging and we are delighted to get an opportunity to demonstrate our capabilities."
The selection was done through a global tendering process for the townships in Kigali, the capital and the largest city of the African nation, it added.
Under the contract, Synergy will manage the entire development of the projects, including design management and co-ordination, engineering, procurement management and construction management.
The Indian firm will be also be responsible for time, cost, quality and environmental health and safety standards, the statement said.
Work for all the projects will commence from July, with completion of the first phase targeted within 20 months.
Commenting on the order, Synergy Property Development Services Chairman and MD Sankey Prasad said: "Africa is a land of opportunities for housing and office space development work... The scope of work for these townships is massive and challenging and we are delighted to get an opportunity to demonstrate our capabilities."
Indian IT finds it tough to hold on to expats
Indian information technology (IT) companies that have
turned to expatriates and foreigners to fill senior management positions — to
take advantage of their global experience and give the companies better global
branding — are facing challenges in retaining them. Despite a loaded
compensation package, some have hit the exit button even before they have
completed their contracted tenures.
Prasad Medury, partner at global executive search firm Amrop India, says there tends to be a serious mismatch between expectations projected at the time of recruitment and the actual working environment. "Indian IT firms over-commit job content and organization positioning at the time of recruitment, but this does not materialize in reality," he says.
Martha Bejar, who was the CEO of Wipro's US subsidiary Infocrossing, quit the company last year. She was paid Rs 5.5 crore in annual salary. She had joined Wipro in July 2009 to head the company's global sales and operations, but when the company undertook a restructuring under CEO T K Kurien, she was made CEO of Infocrossing.
Prasad Medury, partner at global executive search firm Amrop India, says there tends to be a serious mismatch between expectations projected at the time of recruitment and the actual working environment. "Indian IT firms over-commit job content and organization positioning at the time of recruitment, but this does not materialize in reality," he says.
Martha Bejar, who was the CEO of Wipro's US subsidiary Infocrossing, quit the company last year. She was paid Rs 5.5 crore in annual salary. She had joined Wipro in July 2009 to head the company's global sales and operations, but when the company undertook a restructuring under CEO T K Kurien, she was made CEO of Infocrossing.
INSURANCE
A section of insurance
employees has demanded that four PSU general insurers -- National
Insurance, Oriental
Insurance, New
India Assurance and United India Insurance -- be merged into one to bring
down costs.
The President of All India Insurance Employees
Association, the largest body of insurance employees, Amanullah Khan said that
unhealthy competition among the four PSUs would prove detrimental to the
interest of the public sector institutions. "The government should take a
call and initiate immediate steps for merger of the four PSU general insurance
companies into a single corporation akin to LIC," Khan told reporters here
last night.
The four companies together collected a premium of Rs
30,560.74 crore in the financial year 2011-12, an increase of Rs 5,408.49 crore
over the previous year, registering a combined growth of 21.50 per cent.
These four PSUs posted a combined gross profit of Rs
1334.19 crore for the financial year 2011-12 as against a loss of Rs 24.73 crore
in the previous year.
The public sector general insurance industry has
retained the market dominance with a share of 58.46 per cent, he said.
The association also opposed the proposed move of the
government to disinvest public sector general insurance companies.
He said that PSU insurers were financially very sound
and they have a large asset base and reserves. They are capable of meeting the
capital needs through internal resources as and when required.
Few Indians above the age of 55 enjoy the benefit of
employer-provided health insurance after they have retired. Apart from the
public-sector organisations, only a handful of private companies provide health
insurance cover to their employees after retirement. The awareness of health
insurance among self-employed individuals and families is at much lower levels.
Today, almost all employers terminate health insurance
benefit as soon as an employee retires. The golden
days when employees could extend the group health cover to parents and siblings
are long gone. In a hopeful scenario today, an employee would be allowed to
cover his spouse and children in the company health insurance plan. To add to
the misery, sum assured amount also has drastically gone down; this is ironical
given the rising cost of health care and inflation.
INTERNATIONAL
BUSINESS
Greek elections on Sunday could soon bring real-world
urgency to a debate that had been largely academic: whether the eurozone can
withstand the departure of one of its members.
With a good chance that the elections will produce
either a political stalemate or a populist left-wing government, even people
who do not believe Greece will drop out are digging in for the possibility that
sooner or later it might happen. Because there has been time to prepare, some
economists argue, Greece's departure from the euro would not be as much of a
shock as the collapse of Lehman
Brothers in 2008, which provoked a global financial crisis. Nor is it
likely to be as abrupt. Even if a new Greek government eventually decided it
could no longer stay in the euro union, no one expects any immediate, hasty
exit.
Lehman was a surprise. But Typhoon Greece has been
swirling offshore for months if not years, giving investors, governments and
eurozone citizens plenty of time to batten their financial hatches.
They have drained money from Greece and put it into
assets considered safe, like German or Swedish bonds. Foreign businesses with operations
in Greece have been demanding payment up front from local customers, lest they
later have to accept devalued drachmas. Some, like the French bank Credit
Agricole,A are putting their Greek operations under quarantine to keep any
infection from spreading.
World leaders, relieved that
pro-bailout parties won a narrow election victory in Greece, will pile pressure
on Europe at the G20
summit on Monday to outline a lasting strategy to save the euro currency and
end financial turmoil.
Group of 20 leaders from major industrialized and
developing economies, representing more than 80 percent of world output, start
a two-day meeting in this Pacific resort to prioritize growth and job creation
as the path to bolstering a world economy that is running out of steam.
Escalating violence in Syria and the near-collapse of a United Nations-brokered
peace plan also will be in focus when U.S. President Barack Obama
meets with Russian President Vladimir
Putin on the sidelines of the summit on Monday. The two super powers are
clashing over arming Syria and U.N. sanctions.
But Europe's progress toward lasting solutions for its
debt crisis will be the focal point when G20 leaders hold their opening session
on the global economy. While the Greek vote has eased immediate uncertainty
over a possible euro zone breakup, the relief in financial markets could
quickly evaporate.
G20 countries want to hear whether Europe is moving
toward adopting a firm roadmap with a timetable for achieving the huge leap of
financial, fiscal and political union in order to strengthen the resiliency of
monetary union -- a path that EU leaders as yet have been unready to take ahead
of their summit at the end of June.
"We're going to continue to make the case,"
said David Plouffe, a senior Obama adviser said in a television interview.
LOGISTICS
The Kolkata-based Bengal Shristi
Infrastructure Development Ltd is planning to set up an integrated warehousing
logistics hub at Raniganj in South Bengal.
To be developed on 24 acres of land
alongside the National Highway 2, the facility will have 1.35 lakh square feet
warehouse space, coupled with office space, hotel accommodation and
entertainment facilities.
While the entire project will entail an
investment of nearly Rs 90 crore, an estimated Rs 40 crore will be invested to
develop the warehouses. The hub is expected to accommodate 125 trucks at a
time.
Named ‘Raniganj Square' the hub is aimed
at catering to the transporters and travellers passing through NH-2 and
Delhi-Howrah rail route, according to Mr Sunil Jha, CEO, Bengal Shristi. A
50:50 joint venture between Bengal Shristi and Asansol Durgapur Development
Authority (ADDA), the logistics park is likely to be operational in the next
two years. ADDA will provide the land for the project.
The highway hub will have 60-room
multi-facility hotel, in association with Sarovar Portico.
A shopping mall with multiplex and dhaba
are also proposed to come up at Raniganj Square.
“We are also planning to bring in retail
stores like Metro Cash and Carry, Walmart,” Mr Jha pointed out
Once the logistics park becomes fully
operational, the company is likely to develop additional two lakh sq mt
warehouse capacity over the next couple of years, Mr Jha added.
Logistics player Shri
Kailash Logistics has acquired 51 acres of land in Chennai and has firmed
plans to expand operations in North Chennai, in addition to its presence in
warehousing at Oragadam near here.
Company director S Rajkumar told ET that the entire
3.25 lakh sq ft facility at Oragudam had been leased out to automobile players
Nippon Express India and Toyota Tsusho and that the expansion plan includes a
Rs 320-crore investment which will take the warehousing capacity to one million
sq ft under the Logicity brand. "The Oragadam facility has been completely
occupied, and we have now firmed plans for expansion in North Chennai as well
as in Bangalore. Coimbatore and Kochi could be the next destinations for warehousing
capacity addition", Rajkumar said.
Besides banking on automobiles for its warehousing
business, the company also feels the growth in verticals like floriculture
and agri-commodities will drive the warehousing market in Chennai and other
geographically-strategic cities.
The company is part of the Kerala-based Sri
Kailas group which claims to be the largest kraft paper maker in south
India, and hard a turnover of Rs 400 crore last year.
MANAGEMENT
Europe’s on-again, off-again progress in tackling its
debt problems has kept US investors on edge for the better part of
two-and-a-half years. It seems like this ride should be over by now, but it
isn’t. Risks continue to grow.
An election in Greece on Sunday could be a turning
point in the crisis. A newly popular leftist political party wants to
renegotiate or scrap austerity measures agreed to as part of Greece’s bailout.
If it wins, that could lead to Greece’s exit from the group of 17 countries
that use the euro.
Investors’ fears are also focused on a much larger
country due west of Greece: Spain. European leaders agreed last weekend to bail
out Spanish banks reeling from a real estate bust, but the relief was only
temporary. A stock market rally lasted just a few hours as investors balked at
the lack of detail in the program. Also, the deal leaves Spain’s government
with the responsibility to repay the banks’ rescue loans, and it’s hardly in a
strong position to take on more debt as it presides over a shrinking economy.
Escalating worries about Spain’s finances led bond
investors to demand higher interest rates on the country’s bonds. Spain’s
borrowing costs this week jumped to the highest level since the country joined
the euro in 1999. The yield on its 10-year bond spiked close to 7 percent.
That’s the level that led Greece, Ireland, and Portugal to seek financial
rescues from their European neighbors. Yields on Italy’s debt are also surging.
Employees of Bharat Sanchar Nigam Ltd
have agreed not to go on strike after the company's management assured of
immediate action to meet their demands.
The workers' union had threatened to go
on an indefinite strike from Tuesday onwards.
However, BSNL management agreed to their
primary demand of payment of 78.2 per cent industrial dearness allowance (IDA)
fitment. This was cleared by the Cabinet, but not implemented by BSNL
management till now.
In a meeting with the Union leaders,
BSNL's management has agreed to implement the IDA norm with prospective effect
with an assurance that arrears will be cleared when the financial health of the
company improves. Other demands raised by the employees union will also be
taken up by the telecom company.
MARKETING
Daiichi
Sankyo Company and Ranbaxy Laboratories Ltd today announced that Daiichi
Sankyo’s subsidiary, Daiichi Sankyo Venezuela, would begin marketing products
of Ranbaxy in Venezuela.
According to a press release this is
“part of the hybrid business model”.
Up until now, the Rs 10,000-crore
Ranbaxy has been marketing its products in Venezuela through a local
distributor. Daiichi Sankyo Venezuela will now take over this role.
To kick off the new arrangement,
Daiichi Sankyo Venezuela has already started promotion of Ranbaxy products in
the South American country, the release says.
The Venezuelan pharmaceutical market
is the third largest market in Latin America. Daiichi Sankyo had built up its
presence there with products such as Benicar, a hypertension medicine.
Now, Daiichi Sankyo will also focus
on expanding Ranbaxy’s portfolio of medicines. Ranbaxy Laboratories is a part
of the Daiichi Sankyo group.
Ever since the Japanese group, Daiichi
Sankyo, took over Ranbaxy Laboratories in 2008, Daiichi and Ranbaxy have been
exploring opportunities for leveraging the synergies between the two entities.
While the replacement of the local
distributor by Daiichi Sankyo Venezuela is the latest example, there have been
quite a few instances of the “hybrid business model” coming into play.
For example, in April, Ranbaxy
announced that its subsidiary in Romania, Terapia Ranbaxy, had launched a
anti-hypertensive drug, which was originally discovered by Daiichi.
SodaStream (SODA) International Ltd. already told Coca-Cola (KO) Co. it wouldn’t stop using Coke bottles in
its marketing. Now SodaStream is taking the fight to the company’s front door
-- or at least the park across the street from Coke’s World of Coca-Cola museum
in Atlanta. On June 22, SodaStream, which sells do-it-yourself soft- drink
machines, plans to erect a car-sized cage at Centennial Olympic Park, filled
with thousands of used soft-drink bottles and cans. The point: Buying packaged
drinks clogs up landfills, while making soda at home helps save the planet.
A similar display at a South Africa airport has drawn
threats of a lawsuit by Coca-Cola, the world’s largest beverage maker with a
market value of about $170 billion, 228 times larger than SodaStream. The
upstart uses 30 such displays around the globe to take issue with the waste
created by big soda companies.
“No one’s going to shut us up with a lawyer’s letter,”
SodaStream Chief Executive Officer Daniel Birnbaum said today in a telephone
interview. “Not in South Africa or anywhere.”
After SodaStream, based in Airport City, Israel, refused to
comply with a lawyer’s letter from Coca-Cola dated June 8, Coke hand-delivered
a second letter which Birnbaum got this week, he said. Coke went after a
display at O.R. Tambo International Airport in Johannesburg and demanded all
others be removed, as well, according to the first letter. The company alleged
trademark infringement and a breach of local advertising standards.
ODISHA
BUSINESS
With the Rs 28,000-crore refinery project of Indian
Oil Corporation Ltd (IOCL) at Paradip under a cloud of delay, the Odisha
government has decided to ink an MoU (Memorandum of Understanding) with the oil
marketing firm to stipulate timeline and milestones for commissioning of the
project.
IOCL being the anchor tenant for the PCPIR hub
(Petroleum, Chemical and Petrochemical Investment Region) to be set up in
70,214 acres of land spread over Jagatsinghpur and Kendrapara districts, the
timely commissioning of the refinery was vital for attracting investors for the
mega investment hub. “We are soon going to have an MoU with IOCL for the
refinery project as this will help us to fix milestones for ensuring
commissioning of the project in a stipulated time-frame. The refinery is now
expected to be completed by June 2013,” a top state official told Business Standard
after a review meeting on the Odisha PCPIR project by Department of Industrial
Policy & Promotion (DIPP) under Union ministry of commerce. IOCL had said
previously that it expected commissioning of its 15 million tonne per annum
refinery project at Paradip by the middle of 2012.
Vedanta Aluminium (VAL), a subsidiary of London-listed
Vedanta Resources, has acquired 24.5% stake in Larsen and Toubro-promoted
Raykal Aluminium, that holds certain bauxite mining licences in Odisha, for Rs
200.70 crore.
In phases, VAL will fully acquire Raykal Aluminium for
Rs 1,811 crore, although it is subject to certain milestones being achieved, a
filing made to US Securities and Exchange Commission (SEC) on May 31 by its
sister firm Sterlite Industries showed. As per the filing, the deal was signed
on February 23 this year, two days before a group restructuring exercise was
announced by its parent Vedanta Resources.
However, no announcement related to the deal has been made by VAL or Sterlite, which holds 30% stake in VAL, to the Indian regulatory authorities so far.
On February 23, 2012, the company entered into a tripartite agreement with Larsen & Toubro Limited and Raykal Aluminium Company Private Ltd (Raykal)... As on the balance sheet date, the company has acquired 24.5% of the share capital of Raykal for a consideration of Rs 200.70 crore," Sterlite said in its filing to the US SEC. Stating that L&T holds certain prospecting licences for bauxite mines located at Sijmali and Kurumali of Rayagad and Kalahandi districts of Odisha, Sterlite said that after this agreement, "entire bauxite excavated from the above mines will be available for the use of Raykal and/or to the company (VAL)".
However, no announcement related to the deal has been made by VAL or Sterlite, which holds 30% stake in VAL, to the Indian regulatory authorities so far.
On February 23, 2012, the company entered into a tripartite agreement with Larsen & Toubro Limited and Raykal Aluminium Company Private Ltd (Raykal)... As on the balance sheet date, the company has acquired 24.5% of the share capital of Raykal for a consideration of Rs 200.70 crore," Sterlite said in its filing to the US SEC. Stating that L&T holds certain prospecting licences for bauxite mines located at Sijmali and Kurumali of Rayagad and Kalahandi districts of Odisha, Sterlite said that after this agreement, "entire bauxite excavated from the above mines will be available for the use of Raykal and/or to the company (VAL)".
RETAIL
The execution hasn’t gone as per his original script,
but Mukesh Ambani’s passion for Reliance Retail is still intact. Or, so it
seems, going by the ambitious plans he laid out at Reliance’s 36th annual
general meeting last Thursday.
Consider this: in 2006, Raghu Pillai, former head of
Reliance Retail, had set a revenue target of $25 billion (Rs 112,500 crore) by
2010. What Reliance Retail has managed is Rs 7,600 crore in FY 12. The company
had plans to set up 4,000 stores by 2010; five years later, it has been able to
set up just 1,300 stores. There’s more: the much hyped ‘farm to fork’ strategy
just refused to take off following opposition in many states, dashing Ambani’s
high hopes. In 2008-09, Reliance Retail, in fact, had to shut 50 shops,
downsize its employee strength by over 1000 and exit two formats —Reliance
Kitchen, which sold modular kitchen furniture, and Reliance Wellness, a beauty
and lifestyle chain. But the fact that the man hasn’t lost any of his initial
enthusiasm was evident at the AGM when he laid out a grand expansion strategy
at a time that has seen some of his rivals curtail expansion and shut outlets.
Also, Ambani is talking profitability even though, Reliance Retail’s losses
widened to Rs 430 crore across 34 retail units in FY 2012.
US retail sales
fell for a second straight month in May and wholesale prices dropped by the
most in three years, raising prospects of additional monetary policy easing
from the Federal Reserve to spur economic growth.
The reports on Wednesday added to a raft of other
data, including employment and manufacturing, pointing to a downshift in the
economic recovery. Consumer spending had been one of the key pillars of support
for the economy in the first quarter, and the sales data led a number of
economists to cut forecasts for second-quarter growth. Analysts said the
darkening outlook opened the door a bit wider to the possibility of a third
round of so-called quantitative easing at a Fed meeting next week. "We
still believe the Fed would prefer to wait a bit longer on QE3 to see how the
domestic and global situations play out, but the weak data certainly strengthen
the argument for action," said Michelle Girard, senior economist at RBS in Stamford,
Connecticut.
April's sales were revised to show a 0.2% drop instead
of the previously reported 0.1% gain.
SUPPLY
CHAIN
GHX is one step closer to delivering
its Implantable Device Supply Chain solution to the GHX Global Network of
healthcare providers and suppliers. In an agreement announced today with
Meddius (Charlottesville, Va.), GHX will utilize the Meddius Integration
Platform to integrate and connect with hospital systems managing HL7 data, an
industry framework for moving patient data.
The Meddius Integration Platform
will simplify integration with clinical and financial systems in hospital
environments to accelerate the sharing of mission-critical information among
applications. The GHX Implantable Device Supply Chain solution will also use
the Meddius Integration Router® to deliver common data, communication and
routing functions, as well as SecureTransport®, a communication technology for
secure connectivity and data transfer between GHX and its hospital partners,
which has been designed to meet the requirements of the Health Insurance
Portability and Accountability Act (HIPAA) of 1996 Privacy and Security Rules.
A program to speed cross-border
logistics transportation by truck is marred by lack of documentation that
highway carriers comply with minimum security procedures, says the Homeland
Security Department office of inspector general.
In a report
(.pdf) released June 12, the DHS OIG also criticizes Customs and Border
Protection personnel for not following standard operating procedure by always
conducting secondary vetting procedures and the agency itself for being vague
in the training it provides to the personnel, known as supply chain security
specialists.
The program in question is C-TPAT,
the Customs-Trade Partnership Against Terrorism, which is open to trucking
firms active in border crossings to Canada or Mexico. C-TPAT participants gain
the incentive of fewer CBP inspections and priority processing when possible in
exchange for implementing a verifiable process for screening business partners
and implementing systematic conveyance inspections.
______________________________________________________________________
Source of
Information for this issue : Google alert accessed on 18th and 22nd June 2012, Google search accessed on 25th June 2012 & The Telegraph Newspaper accessed on 23rd June 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
Tel:0674-2374832, 2374833
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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This blog is really informative Interesting and important information. It is really beneficial for us. Thanks
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Thank you and Welcome. R.S.Devarai ASBM
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