Monday, October 15, 2012

ASBM Business Updates Vol.1(23) 15 Oct 2012, Monday from Chanakya Central Library, Asian School of Business Management, Bhubaneswar.






ASBM Business Updates is a Weekly Selective Compilation of Business News from Various Sources. To find details follow the links.
ASIAN BUSINESS
Asian stocks markets shrugged off yet another dismal prediction about global economic growth to mostly post solid gains Wednesday.
Hong Kong’s Hang Seng jumped 1.2 percent to 21,076.82 and South Korea’s Kospi rose 0.4 percent to 1,990.09. Mainland China’s Shanghai Composite Index climbed 1.6 percent to 2,109.39 and the smaller Shenzhen Composite Index added 1.8 percent to 864.44.
Benchmarks in Singapore, Taiwan and Australia also rose. But Japan’s Nikkei 225 index fell 0.4 percent to 8,831.31.
Stock markets gains in Asia came despite the International Monetary Fund cutting its forecast for global economic growth, just a day after the World Bank issued a warning about a slackening expansion in Asia.
Some analysts suggested that Asia still remained a bright stop and that investors should keep the big picture in mind.
‘‘Asia has grown nearly 32 (percent) in the four years since Lehman Brothers collapsed,’’ analysts at DBS Bank Ltd. in Singapore said in a market commentary. ‘‘That’s how big Asia is today and how fast it is growing. A weak Europe will never be a plus for Asia. But it’s never mattered less either.’’
Asian shares and the risk-sensitive Australian dollar edged higher in choppy trade on Thursday, with investors worrying about slow global growth and awaiting fresh U.S. economic data and a European Central Bank policy meeting later in the day.
U.S. stock futures rose 0.5 percent, as a CNN/ORC snap poll said 67 percent of registered voters surveyed thought Republican candidate Mitt Romney, seen as pro-business, won the first debate with President Barack Obama. Financial spreadbetters expect London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX to open as much as 0.5 percent higher.
The rise in U.S. stock futures bolstered Japan's Nikkei average, which was up 1.2 percent, adding to earlier gains made on better-than-expected U.S. labour and service-sector data overnight and a weaker yen.
The MSCI index of Asia-Pacific shares outside Japan erased earlier losses to edge up 0.3 percent. Chinese markets are closed this week for public holidays.
Australian shares were up 0.3 percent, after a 14-month closing high on Wednesday boosted by an interest rate cut and a weaker local dollar. But South Korean shares were flat while the Hong Kong market edged up 0.2 percent.

ASIAN MANAGEMENT
High yield bonds (90% overweight) and global emerging market bonds (70% overweight) are the most popular with Europe's recent bond buying scheme and QE3 in the US bringing some confidence back to the market and resulting in a search for yield.
Geoff Pidgeon, head of global asset management for HSBC Bank Australia said institutions are increasingly searching for alternate yields and debt including bank loans, RMBS and high-grade credit going at distressed prices.
The high levels of government debt at this point in the cycle have led to a pick up in interest at the corporate level although volatility is pushing institutional investors towards more hard currency debt.
"When you invest in emerging market or Asian debt from a USD point of view, you're not taking on currency risk as much as you are by investing in local currency," Pidgeon said.
"Typically when you're investing in local currency you're investing predominately in corporates whereas when you're investing in hard currency or USD you're predominately investing in Asian and Emerging Markets sovereign - so the risk and volatility profiles of those two asset classes are quite different."
The present risk on/risk off environment has led to more money flowing to hard currency bonds, which tend to be less volatile.
Services industries from Asia to Europe cooled last month, with China and Spain taking big hits, while the pace of growth in the vast US services sector picked up last month as new orders accelerated.
China’s purchasing managers’ index fell to 53.7 last month from 56.3 in August, the National Bureau of Statistics and China Federation of Logistics and Purchasing in Beijing said on Wednesday. That is the lowest since at least March last year.
In the euro area, a gauge slipped to 46.1 last month from 47.2 and a UK measure also fell. Readings below 50 indicate contraction.
China’s weaker services number underscores a slowdown that spurred the Asian Development Bank to lower its regional growth estimate for this year.
As Europe’s economic slump deepens amid a fiscal squeeze and weakening confidence, the bank said the threat of a "shock emanating from the unresolved euro-area sovereign debt crisis" is among the biggest downside risks to Asia.
In Britain, a services measure fell more than economists forecast to 52.2 last month from 53.7. Markit said the underlying trend in the UK economy is near stagnation.

BANKING
The non-performing assets (NPA) of the banking sector rose sharply to 1.28 per cent in 2011-12 from 0.97 per cent a year ago due to high interest rate and slowdown in the economy.
The NPAs or bad loans of the public sector banks rose to 1.53 per cent in 2011-12, up from 1.09 per cent in the previous year, said the latest RBI report.
As per the Profile of Banks: 2011-12 released by the RBI, the NPA for India’s largest public sector lender SBI along with its associates rose to 1.76 per cent from 1.49 per cent in 2010-11.
SBI’s net NPA rose to 2.22 per cent in the first quarter of the current fiscal from 1.61 per cent a year earlier.
However, private sector banks managed to reduce their NPAs in 2011-12 to 0.46 per cent from 0.56 per cent in 2010-11, it said.
Non-performing assets of old private sector banks increased marginally to 0.58 per cent during the year from 0.53 per cent in the previous fiscal.
Also, foreign sector banks had their NPAs below one per cent at 0.61 per cent, down from 0.67 per cent in 2010-11, the RBI said.
The hackers behind the cyber attacks on major U.S. banks have repeatedly disrupted online banking by using sophisticated and diverse tools that point to a carefully coordinated campaign, according to security researchers.
The hackers, believed to be activists in the Middle East, were highly knowledgeable about the defensive equipment used by the banks and likely spent months on reconnaissance, said several researchers interviewed by Reuters, who viewed the assaults as among the strongest and most complex the world has seen to date.

In the past two weeks, customers of top U.S. banks including Bank of America Corp , JPMorgan Chase & Co , Wells Fargo & Co , U.S. Bancorp and PNC Financial Services have reported having trouble accessing their websites, as unusually high traffic volumes appeared to crash or slow down the systems.

No thefts have been tied to hacked sites, but an untold number of customers were not able to pay bills or transfer money from their computers, leaving banks with remediation expenses and customer irritation as the biggest costs.

BUSINESS
Shares in Indian housing finance companies gain after market regulator Securities and Exchange Board of India (SEBI) said it will allow debt-oriented mutual funds to invest up to 10 per cent of their net assets in companies in the sector.
Previously housing finance companies had been included as part of SEBI's broader 30 percent cap on debt investments in the financial sector.
As a result, funds had typically preferred to invest in bigger financial companies, such as lenders and insurers.
Giving housing finance companies their own cap on investments should steer money into the sector and lower funding costs, analysts say.
HDFC Ltd gains 0.6 percent, LIC Housing Finance rises 1.5 percent, while Dewan Housing Finance also gains 2.4 percent.
India's Mangalore Refinery and Petrochemicals Ltd sold a lower sulphur gasoil cargo and offered another, its first such cargoes in more than a year, as it moves away from exporting the polluting high sulphur grade, traders said on Monday.
The state-run refiner sold a gasoil cargo with a low 2500 parts-per-million, or 0.25 percent, sulphur content for loading from New Mangalore over Nov. 1-3 to BP at premiums of about $2.75 a barrel above Middle East quotes.
This is $1.25 a barrel, or about 83 percent, higher than a similar cargo sold a year ago.
MRPL also offered a low sulphur gasoil cargo for Nov. 6-8 loading.
MRPL normally offers high sulphur gasoil every month and is one of most regular exporters of the grade, so any cutbacks will likely push up prices of the grade, the traders added.

BUSINESS COMMUNICATION
In a deal that can accelerate Tata Communications' brand image across the world, the company's multi-year technology service and marketing arrangement with the Formula 1 management is running smoothly.
Tata Communication's large network of subsea cables has been transmitting uninterrupted streams across televisions and Web sites across the globe effectively taking care of the communications logistics of the sporting spectacle.
“We are showcasing all aspects of our technology in real-time. The relationship with Formula 1 goes beyond conventional marketing and sponsorship. It is a live case study of the market-leading work Tata Communications does,” Rozzyn Boy, global head of communications and brand, Tata Communications, told Business Line recently.
Boy led the negotiations for the multi-marketing agreement and global sponsorship of Tata Communications’ F1 deal from the brand perspective.
Ensuring a smooth, hiccup-free run for the four-million odd users on F1's official Web site over race weekends, which reportedly spikes to seven million during the race itself, has not been an easy task.
Momentum, a premier digital voice and broadband management provider, today at Interop New York announced a new unified communications service, Momentum Messenger, designed to make business communications more centralized and efficient. With Momentum Messenger, a wide array of business processes such as video conferencing, instant messaging, voicemail, softphone, and click-to-dial, can all be carried out from a single interface.

"Unified communications brings freedom and flexibility to the way people work. Adopting an activity-based solution that allows employees to receive calls and messages from anywhere, and on a multitude of platforms, results in quicker response times and ultimately helps improve customer satisfaction," said Brandon Hagood, Momentum's director of product development.

In the past, this type of service had only been a viable option for enterprises due to cost. Momentum has now solved that problem by offering a unified communications solution at a price point that is affordable for businesses of all sizes.

BUSINESS MANAGEMENT
For many small businesses an investment of capital can mean the difference between staying in business or closing for good.
But with banks unwilling to lend, Nexxus Management (www.nexxusmanagement.com) of Fort Lauderdale is stepping in with an infusion of financial and human capital designed to ensure that even the smallest mom and pop not only survives, but thrives.
Founded by a team of entrepreneurs who have experienced the success and failure of their own ventures, Nexxus Management devised a small business assistance strategy designed to give the smaller fish the tools to make a big impact.
Nexxus provides an array of partnerships, revenue-sharing plans and fee-based consulting services, as well as an experienced staff with expertise in e-commerce, marketing and sales, public relations and advertising, and technology development. Nexxus also offers small businesses the option of a free consultation to determine what they need to take their operations to the next level.
"What we do is take the burden off managing the day-to-day operations so small business owners can do what they do best – develop ideas and create innovative products," said Tim Keyes, CEO and founder of Nexxus Management, with offices also in Miami.
Microsoft on Wednesday launched enterprise resource planning (ERP) solution, Microsoft Dynamics NAV 2013, a comprehensive business management solution for small and midsize businesses (SMB).

It is the first Microsoft Dynamics ERP solution for Windows Azure giving customers the choice to move to the cloud on their own terms. Microsoft Dynamics NAV 2013 is simple to implement and use, with a familiar look and feel, great integration with other Microsoft technologies and a user interface tailored to the individual/specific organizational roles. Dynamics NAV 2013 combines business process, communications and collaboration capabilities to support SMB operations with secured, seamless integration and in turn enhance productivity. Highly adaptable and rich with features, Microsoft Dynamics NAV 2013 is easy to deploy because of its on-premises or in the cloud capabilities. It helps companies manage their business, including finance, manufacturing, sales, shipping, project management, services, and more. It also optimizes IT investments and shorten the time to value with easy-to-use flexible solution. It also provides enhanced reporting, business insight and streamlines various management tools. Microsoft Dynamics NAV 2013 works seamlessly with other Microsoft technologies such as Microsoft Office and SharePoint and other.

FINANCE
The Centre’s decision to limit the number of subsidised LPG cylinders per household to six annually could spell doom to those living in apartment complexes.
Following the government announcement, gas agencies have decided to restrict the number of subsidised cylinders for an entire flat society to six, irrespective of the number of families residing there.
Many flat societies in the state have centralised gas distribution or piped gas system. As per the system, LPG is stored at a particular place in the apartment complex and distributed to all the flats of that complex through pipelines.
With the new decision, an entire apartment complex or a housing society will be treated as a single consumer.
An official of Bharat Petroleum Corporation Limited said the regulation has been made as the Union Government reduced the number of subsidised cylinders per consumer.
“As of now, an apartment with a single connection will get only three subsidised LPG cylinders for the rest of the financial year,” he said.
The government took such a step to curb the misuse of subsidised LPG cylinders, he said.
If everything goes according to plan, the city will shortly have a Bus Rapid Transport System (BRTS) on the lines of Ahmedabad in Gujarat. After implementation of the programme, entry of two-wheelers and cars will be banned in the heart of the city, and public transport facilities will be developed in the city centre.
Plans have been made to shift the city bus stand to other places, and the place of the present bus stand will be developed as a historical place as it is adjacent to the  Palace.  The measures have been taken to keep the core area environment-friendly.
This decision was taken at a City Corporation Council meeting held in the city on Sunday, based on the Mysore Master Plan-2031.
City Town Planning director Chowdegowda explained the project in detail to Mayor M C Rajeshwari and Deputy Mayor Mahadevappa during the meeting. He further requested three to four months to make the project understood for the council members.
Apart from this, if the house owners have to obtain a completion report, they have to compulsorily equip their houses with solar power, rain water harvesting, and other environment-friendly measures. The move has been taken to protect the environment.

INDIA BUSINESS
Lufthansa airline is all set to introduce internet services on board its India flights. This truly high-speed on board internet service allows Lufthansa passengers, in all three classes, to enjoy the freedom of broadband communication during their flights between Germany and India. Initially, the services will be available on some Indian routes. The service will gradually expand to all flights between Lufthansa's 5 Indian destinations and Frankfurt as well as Munich. This investment comes close on the heels of Lufthansa launching the new B747-8 aircraft to India, introducing its new full lie-flat Business Class seats and opening an exclusive Lufthansa Lounge in Delhi for the Indian market.
A statement released by the airline stated that the internet service will give passengers travelling with a WLAN-enabled laptop or smartphone, unlimited online access. Using laptops, tablets such as an iPad or smartphones, passengers can connect to the Internet through a hotspot on board in the same way they would connect through any public hotspot on the ground. Thanks to the high bandwidth connection, e-mails - even with large file attachments - can be sent and received without time delay.
Caesars Entertainment, the world's biggest casino company, is entering India through non-gaming businesses such as luxury hotels and entertainment businesses such as managing Bollywood-centric events, concerts, musicals, drama and stand-up comedy.

India does not allow foreigners in the gaming business.

The Las Vegas-based Caesars Entertainment, which owns 50 hotels and casinos and several golf resorts around the world, plans to open up to 15 hotels in India in a decade and has already initiated talks with around half-a-dozen real estate developers, a top official of the $9-billion firm said. "We have spent the last one year in exploring the Indian market and there is a lot to offers," Neera Chanani, South Asia head at Caesars Entertainment Hospitality, said.

"In the non-gaming space we will focus on hotels and convention centres and building entertainment destinations within or adjacent to them," she said.

The company plans to bring its global brands and offerings such as upscale hotel brand Caesars Hotel and luxury offering Caesars Palace, and customise them for the local market.

"In the entertainment space one of the major focus areas will be Bollywood. We are looking to create content that is specific to the Indian market," Chanani said. Caesars is in talks with large event management companies as well as production houses in India for partnerships. Experts say it's a good time for Ceasars to enter the country.

INDIA MANAGEMENT
Indian mutual funds, private equity houses and wealth managers may run into a regulatory hurdle in the United Arab Emirates (UAE), a large offshore market for financial products.

In a recent order, the UAE's Securities & Commodities Authority (SCA) has instructed distributors and investment advisors to seek its approval before selling a product.

"Prior to any promotion, an application for the promotion of foreign mutual fund units must be submitted to the SCA by the local promoter (product distributor, banks selling third-party investment products, etc) ... enclosing the documents stated in the form for each fund wishing to promote its units within the UAE," the circular said. The UAE is an important fund-raising destination for Indian mutual funds, private equity funds and offshore pooled accounts.

According to rough estimates, India-focused 'private funds' - as private equity funds and offshore fund pools are classified by the SCA - mobilise over $4 billion from the UAE every year.

Public funds - classified by the Securities & Commodities Authority as retail-focused mutual funds from well-regulated markets - launched by Indian mutual funds manage around 1,000 crore belonging to UAE-based investors, fund industry sources said.

The UAE regulator has further said it would review product prospectuses and give approvals within 30 days of receiving the submissions. The SCA has also retained the right to disallow products that could potentially be detrimental for investors in the UAE.
Private equity and real estate advisor Everstone has entered into a contract with property consultancy firm Jones Lang LaSalle India for providing retail property management services to four of its shopping malls in India. The tie-up marks Jones Lang LaSalle India's entry into retail property management services business in the country. Under the contract, Jones Lang LaSalle will be responsible for operations and marketing , besides providing leasing, property and financial management services for the next five years to Everstone's malls in Pune, Kochi, Vadodara and Ahmedabad. The four malls are spread over nearly 2 million sq ft of leasable space.
"We are ramping up our business in the real estate domain and a global name in mall management will help us in enhancing retailer, customer experience and ensure strong mall occupancies," said Dhanpal Jhaveri, partner and chief executive officer at Everstone Capital Advisors , which advises private equity and realty funds of nearly $1.7 billion in assets.
Most of the leading international property consultants in India are already offering services like retail space leasing and facilities management. However, this will be the first time that a property consultant will be offering a consolidated retail property management services.

INSURANCE
The finance ministry’s proposal to allow insurance companies to invest in AA-rated securities will broaden investment options for insurance companies but is also likely to expose their policyholders to higher risk.
Currently, insurance companies only invest in AAA-rated securities, which restricts their choice to government bonds and debt instruments of top government-owned companies and a handful of the country’s largest private sector firms. The AA-rated universe is several times bigger and various kinds of companies are its members. This diversity, however, can cause policyholders to sweat as the balance sheet of a typical AA-rated company is more leveraged and it has lower earnings cushion to service debt than AAA-rated peers. Rating agencies and insurance companies, however, say the new norms will help insurers provide better returns to policyholders without sacrificing safety. “AA-rated securities give 50-100 basis points higher returns than AAA-rated paper and there’s no great difference in risk profile,” says Kartik Srinivasan, co-head, financial sector ratings at Icra. Sam Ghosh of Reliance Capital agrees.
Others point out its indirect benefit to India Inc. “It will help broaden and deepen the bond markets and from our perspective, the 'IND AA' rated universe of issuers represents a very high degree of safety,'' says Tarun Bansal, senior director and head, BRM, India Ratings & Research (formerly Fitch Ratings India).
Market regulator Sebi today proposed to bring more classes of financial instruments, including insurance policies and fixed deposits, under the ambit of asset categories that can be held in demat or electronic form.

The proposed move is expected to make it simpler to maintain and safe-keep various kinds of financial instruments, as the risks like loss and theft get minimised in demat form, as compared to the physical paper form.

At present, all the securities traded in capital markets such as equity shares and mutual funds can be held in demat accounts, maintained by two depositories NSDL and CDSL, which come under Sebi's jurisdiction.

After its board meeting here, Sebi said "there have been demands for dematerialization of assets/records other than securities, such as, Warehouse receipts, Fixed Deposits with banks and corporates, Insurance Policies, Investment products of Post Office, etc."

INTERNATIONAL BUSINESS
As Advertising Week 2012 continues in New York, a widely discussed topic is how to generate measurable business results for the brands sold by marketers. Coincidentally, a study to be released Tuesday addresses the value of powerful brands - and the problems of brands whose value is diminishing. The study is the 13th annual Best Global Brands report from Interbrand, a brand consulting company owned by the Omnicom Group. The report ranks what it deems the 100 most valuable brands on criteria that include financial performance, the role the brand plays in influencing the choices made by consumers and the brand's ability to help its parent's earnings.
Such measures ought to attract more attention on Madison Avenue, Christine Fruechte, president and chief executive at Colle & McVoy, an agency owned by MDC Partners, said during an Advertising Week panel Monday.
"When we put together advertising programs, we're constantly keeping in mind how to add shareholder value," Fruechte said. "We want to have a tangible impact on the client's business or services."
Fruechte cited as an example a client, the Caribou Coffee Co., whose stock, she said, has risen to more than $18 a share from $1.17 when the agency began its work.
Crisis-hit global Airline Industry may stem its growing losses and even record modest profits next year, with air carriers in Asia-Pacific estimated to post profits this year, IATA said today.
A major reason for this upward revision by the International Air Transport Association (IATA) was better performance by the airlines through better matching of capacity to demand and various cost-cutting measures, IATA estimated in its latest financial forecast titled ‘Downward Pressure Starting to Ease’.
Noting that the European sovereign debt crisis continued and China was experiencing moderate growth, IATA Director General and CEO Tony Tyler said, “While some of these risks have diminished slightly over recent months, they continue to take their toll on business confidence. The outlook improvement is due to airlines performing better in a difficult environment”.
The Global Airlines’ body estimated that Asia-Pacific airlines were set to post a $ 2.3 billion profit for 2012, which was $ 0.3 billion better than previously forecast.
But these carriers, which catered to 40 per cent of the global cargo market, were “the most exposed to weak cargo demand”.
While European Airlines were expected to post the largest loss of any region at $ 1.2 billion, worse than previously forecast, those from North America were estimated to post profits of $ 1.9 billion in 2012, up $ 0.5 billion from the previous forecast, IATA predicted.

LOGISTICS
One of the most important trends in logistics is considered to be the constant advances being achieved with ICT — in terms of speed, quality of service and flexibility to cater to customer demands for goods that are arrive cheaper, quicker or fresher.
Being able to do work faster and smarter is becoming vitally important in the sector; intelligent goods-handling systems and automated-pick warehouses, as well as wireless vehicle tracking and routing, all figure in this regard. The problem with this technology, especially in times when investment capital is tight, is that there is the high initial cost associated with its implementation.
Vehicle tracking, for instance, calls for the installation of GPS/GPRS equipment in each vehicle to be tracked. Additionally, it requires specialist software and display hardware to provide office-based logistics managers with constantlyupdated views of vehicle locations and up-to-the-minute reports on scheduling.
The good news is that the technology that used to cost in millions has been made affordable to small and medium businesses as a low-cost managed service. Thanks to the clever combination of GPS location systems, the mobile network and Web-based mapping applications, telco companies can now offer a full range of commercial options that include pay-as-you-use pricing, connectivity to the telco’s network, access to the tracking system, map and software updates, and the necessary in-vehicle hardware.
The UAE’s leading integrated healthcare provider, NMC Healthcare, today unveiled its new expanded logistics centre at the Dubai Investments Park.

With more than 65,000 “stock keeping units”, or individual product lines, NMC Trading is a fully owned subsidiary of NMC Healthcare and is one of the largest distribution companies in the UAE with interests in FMCG, food stuffs, pharmaceuticals, veterinary medicine and scientific equipment.

The need for expanding NMC Trading’s warehouse capacity has been brought about by a rapidly expanding range of new products across all divisions, which has increased by 12% since December 2011. With the commissioning of the new Logistics Centre, NMC Trading will add another 20% of additional warehousing space and reduce the load on the existing facilities, increase inventory holding capacity and pave the way for additional products to be added to the distribution business.

Speaking on the occasion of the opening ceremony, Binay Shetty, Chief Operating Officer, NMC Healthcare and NMC Trading said, “Last year the company’s strategic team closely evaluated the evolving warehousing and distribution needs and signalled a logistics expansion to cater to the growing needs of the FMCG and food stuff divisions. The new expansion will help NMC Trading’s further expansion by expanding its warehousing and distribution capabilities.”

MANAGEMENT
Tata Teleservices will shortly expand its outsourcing pact with China's ZTE and award a contract to the Chinese gearmaker to manage and maintain CDMA mobile networks in the eastern region, executives familiar with the matter told ET.
Earlier this year, Tata Tele renewed its contract with ZTE to manage and maintain its GSM networks for three years in Orissa, West Bengal and Bihar (including Jharkhand). Now it is in advanced talks to give the world's fifth-largest telecom gearmaker the additional mandate of also managing its CDMA networks in these regions. Executives privy to these discussions did not reveal the deal size but said ZTE would have to scale up network management operations in these Tata Tele circles by roughly 20 per cent. "If the deal goes through, ZTE will manage an additional 3,500-odd CDMA sites alongside the 7,500 Tata DoCoMo sites that it is already managing in Orissa, West Bengal and Bihar," said a top executive, adding that the Chinese gearmaker's scale-up costs would be modest as it already delivers managed services in these regions. At present, Tata Tele directly manages its CDMA networks in these eastern circles. Accordingly, the ZTE-managed service deal size will hinge on the level of cost savings that the outsourcing model brings for Tatas.
The mutual fund industry saw a 7.9 per cent rise in assets at Rs 7.47 trillion (Rs 7.47 lakh crore) — the highest since September 2010 — in the second quarter of the current fiscal, according to Crisil Ratings.
The average assets under management (AUM) for the July-September quarter stood at Rs 7.47 trillion, up from Rs 6.93 trillion in the previous quarter.
“The rise in average assets under management in absolute as well as in percentage terms was the highest since September 2010 quarter, when the AMFI started declaring average AUMs on quarterly basis,” Crisil said.
“Rise in the average AUM was primarily due to inflows into income funds, ultra-short term debt funds and money market mutual funds,” it said.
Among the debt schemes, the money market, ultra-short term and short-term debt funds together saw a rise of 16 per cent in assets to Rs 3.34 trillion during the quarter under review.
“The rise in assets was on account of inflows due to an improvement in the liquidity situation following the Reserve Bank decision to cut the statutory liquidity ratio (SLR) and cash reserve ratio (CRR) during the quarter,” the credit rating agency said.
On the other hand, fixed maturity plans that had been witnessing inflows in the past few quarters saw assets shrinking by 7 per cent to Rs 1.19 trillion.

MARKETING
T-Mobile has removed the image of Apple Inc.’s iPhone one month into a marketing campaign that encourages people to bring their unlocked iPhone to the carrier.
The marketing push openly invited people to bring an unlocked iPhone from AT&T Inc. to the network and claimed savings of $50 in their monthly bill. Images of the iPhone as the bottom of an open padlock were featured prominently in stores.
T-Mobile is the only major U.S. carrier that doesn’t sell the iPhone, something it has cited as a reason for losing customers. The iPhone made for AT&T’s network can also run on T-Mobile, which has said there are more than one million iPhones operating on its network.
A T-Mobile spokeswoman said the reason for the change was a “natural progression” of the campaign. The company only used the imagery in September to capitalize on the excitement around the launch of the iPhone 5, she said. The company is switching out the iPhone image for “other AT&T smartphone images”, the spokeswoman said. The program, which includes having demonstration iPhones in stores, hasn’t changed.
Qatar Airways said Monday that it plans to join the Oneworld global marketing alliance, in a move that is likely to trigger further changes in the ties between other airlines and the way they transport passengers on intercontinental routes. The airline becomes the first of the trio of fast-growing Middle East carriers to join one of the three global pacts—Oneworld, Star and SkyTeam—that have dominated industry strategy for a decade, funneling passengers between members with coordinated schedules and common access to airport lounges and frequent-flier programs.
Qatar Airways' planned entry to the Oneworld grouping late next year or in early 2014 raises questions about the future membership of existing participants including AMR Corp.'s AAMRQ -0.52% American Airlines, which is in talks about a potentially conflicting deal with Dubai-based Emirates Airline, the largest carrier in the Middle East.
Etihad Airways, based in Abu Dhabi, on Monday announced a pact with SkyTeam member Air France-KLM and Oneworld's Air Berlin PLC in a further sign of how existing ties are breaking down. Emirates, which has vowed not to join an alliance, last month announced plans for an extensive alliance with another Oneworld member,Qantas Airways Ltd. QAN.AU +0.38% of Australia.

ODISHA BUSINESS
The government of Odisha has decided to form a separate company, Odisha Green Power Corporation Ltd (OGPCL), exclusively for the purpose of promoting large-scale solar power plants and other renewable energy projects.
The decision to form OGPCL was announced by the State’s Energy Minister, Mr Arun Kumar Sahu, at a solar conference organised in Bhubhaneswar by the local chapter of TiE along with Canyon Consultancy Pvt Ltd, a firm that focuses on renewable energy technologies on Saturday. (TiE, or The Indus Entrepreneurs, is a global non profit organization that aims to foster entrepreneurship.)
The new company is expected to be a subsidiary of Odisha Hydro Power Corporation (OHPC), which has substantial lands on which to put up solar projects. OHPC intends to put up a 22.5 MW solar project, spread over three of its hydro project locations, through its green power subsidiary. OHPC is also discussing with Water Resource department to have solar projects on the canals of Odisha for multiple benefits.
Speaking at the conference, Mr B K Misra, Member, Odisha Electricity Regulatory Commission, called upon the major industries in the State such as NALCO, Hindalco and Vedanta, to put up rooftop solar plants in their industrial units, which could help them meet their ‘renewable purchase obligation’.
TiE Bhubhaneswar has recommended to the State government to declare 2013 as the ‘Solar Year of Odisha’ and also to set up a 100 MW solar park during the year. It has further suggested that the solar plant capacity in the State could be raised to 1,000 MW by 2017.
The Odisha government expects the Biju Patnaik airport in the city to be upgraded to an international airport by 2013.
“The Centre has assured that the Biju Patnaik airport will be declared an international airport by 2013,” said Patnaik. The state government has been persistently demanding international status for the city airport.
During his recent meeting with civil aviation minister Ajit Singh in New Delhi, Patnaik pointed out that Odisha still remained deprived of international operations despite attracting a rush of investment proposals across sectors. Total investments proposed in Odisha in calendar 2011 stood at Rs 3.21 lakh crore, the highest among all states.
Patnaik had also stressed upon the need to provide adequate infrastructural support to the aviation sector in the state to ensure unhindered industrialisation and also keeping in view the growing inflow in domestic as well as international tourists.
Besides, Patnaik had pitched for air connectivity between Bhubaneswar and West Asian as well as South-East Asian nations while reiterating his demand for declaring the Biju Patnaik airport in the city as an international airport.
The Union minister had assured the Odisha chief minister that all necessary steps are being taken to upgrade Biju Patnaik domestic airport into an international airport at the earliest.
International airline operators like Fly Dubai and Air Asia had evinced interest in running their flight operations to and from the city, realizing the growing importance of Bhubaneswar as an important business destination. Work on a new domestic terminal at the city airport was nearing completion.

RETAIL
Multi-brand retail chain V-mart plans to raise Rs. 120 crore through an initial public offer to fund its expansion strategy, under which it will almost double its showrooms to 120 outlets by 2015.

The company is also looking to aggressively expand in the North Eastern region and aims to have a presence in all the states. To start with, it will open the first outlet in Assam in 2014.

"We have an aggressive expansion plan. We are looking to add 58 stores in 55 new locations by March 2015 and almost all of these will be opened in smaller Tier II and III cities," V-mart Retail Chairman and MD Lalit Agarwal told PTI.

The company currently operates 62 outlets at 52 different locations, he added.

"We are planning to invest Rs. 180 crore to fund this expansion programme. Out of this, Rs. 120 crore in expected to come from the proposed IPO, while rest will be from the internal accruals," Agarwal said, the company currently has a debt of around Rs. 45 crore.

V-mart Retail has already the filed the draft red herring prospectus with the capital market regulator SEBI and is currently awaiting approval.
Not long ago the creators of video games were declaring their medium the art form of the 21st century. Games could aspire to the drama and spectacle of movies but would captivate society with their irresistible interactivity .
More than 200 million Wii, Xbox 360 and PlayStation 3 systems were sold worldwide . Sales of portable gaming machines surged as well. Upward of 12 million subscribers were paying $15 a month to play the online game World of Warcraft , and competitors were plotting to develop worthy rivals. The motion-sensing Kinect system from Microsoft generated considerable buzz, with its promise of freeing players from having to push buttons and wave wands. And yet the gaming world has found itself teetering at the edge of a financial cliff.
In the first eight months of this year, retail sales of video games plummeted 20% in the United States. That followed a lackluster performance in 2011, when sales fell 8%.
An analysis on the website Gamasutra this year said it was possible that 2012 would be the worst year for retail video game software and hardware sales since 2005.
The struggling economy has certainly been a factor in the decline, especially considering that young men — long a core audience for games — were hit so hard during the recession.
Another development will sound familiar to anyone who once had a groovy record collection: the democratising , disrupting effect of less expensive digital downloads has changed the business model.
Nearly everywhere , it seems, people have been sharing Words With Friends, slinging Angry Birds at pigs or springing their creatures through a precarious Doodle universe .
All those games, made for smartphones, sure are popular, and the financial picture improves when their sales are included , but they can be had for pennies and seemingly become disposable almost as fast as they are released.

SUPPLY CHAIN


OVER the recent months our UFU Vegetable Committee have highlighted the continued pressures and challenges within their vegetable supply chain.  On exploring this further it became evident that these pressures were not unique to Northern Ireland.
The NFU launched their report ‘Catalyst for Change’ suggesting better ways of doing business in the Horticulture and potatoes sector earlier this year. NFU Chairman Sarah Dawson travelled to Northern Ireland, visited a number of local producers and presented the findings and recommendation from the report at a special Horticulture event in Greenmount Campus (CAFRE).
The UFU Vegetable Committee have reviewed the report and discussed the importance of delivering a charter for best business practice in the fresh produce sector. ‘The Fruit and Veg Pledge’ will promote best business practice and improve relationships and balance risk between retailers, intermediaries and growers. The pledge clearly sets out the behaviour and commitment that the supply chain must aspire to if it is to achieve a vision of a productive and profitable horticulture sector.
Our UFU Vegetable Growers welcomed the pledge, as it gives opportunity for the grower to highlight their commitment and ability  to produce the highest quality, traceable and farm assured fresh fruit and vegetables that consumers increasingly demand.
A new industry organisation has been launched in a bid to tackle trade, importation and port issues.
Freight forwarding industry advocate Paul Zalai has formed the Freight & Trade Alliance (FTA) to give voice to importer interests and representative bodies.
Zalai says the body, which encourages alliances with transport industry organisations on common issues, was formed in response to supply chain complexities facing customs brokers and freight forwarders.
According to Zalai, these supply chain complexities include increasing border security requirements, evolving global trade agreements, variations in international shipping practices and numerous domestic landside logistics issues requiring ongoing reform.
He says the new group’s focus will be on improved statutory compliance, processes and operational efficiency.
“These issues are intertwined requiring the need for a considered approach in representation to government and various sectors of commerce,” he says.
“In this contemporary environment, it is essential that advocacy is representative of a cross-section of Australia’s international trade sector.”
Zalai will look after the core advocacy role and will have expert support on insurance and finance issues, while the body’s website is presently being completed.
“Increasingly, so many of the issues flow on from one sector to the other and, increasingly, issues are intertwined,” Zalai says about the need to work with trucking bodies.
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Source of Information for this issue: Google alert accessed on 8th, 9th and 10th Oct 201­­­­­­­­­­­­­­­­­­­­2
We welcome your suggestions in improving this information updating service.
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Best wishes
Compilation
 Sabita Sahu, B.A., PGDCA, MLISc, 
Professional Library Trainee
Concept, Layout and Editing
Rajashekhar Devarai
Chief Librarian
Information and Documentation Division,  Chanakya Central Library
Asian School of Business Management
Shiksha Vihar Bhola,
Barang Khurda Road, Chandaka
Bhubaneswar-754012

 


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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