ASIAN
BUSINESS
Asian
stock markets mostly struggled to advance Friday after data showed Europe
slipped back into recession and several big U.S. retailers disappointed
investors with weak forecasts.
The
European Union's statistics agency said Thursday that the combined economy of
the 17 countries that use the euro contracted 0.1 percent in the third quarter
from the previous quarter. Surveys pointing to difficult conditions ahead
suggest the recession could deepen.
"Although
unsurprising, data in Europe confirmed that the region fell back into
recession, an outcome that will do little to ease tensions," analysts at
Credit Agricole CIB in Hong Kong said in an email commentary.
In
the U.S., investors were dealt dual blows: worse-than-expected revenue from
global retailing giant Wal-Mart and data showing that manufacturing weakened in
the Philadelphia and New York regions, reflecting damage from Superstorm Sandy.
Wal-Mart, Ross Stores and Limited Brands, the owner of Victoria's Secret, also
disappointed investors by issuing profit forecasts that fell short of
expectations.
BHP
Billiton Ltd is considering a plan to ship a portion of its United States shale
gas reserves to Asia as part of a plan that would pose a direct threat to
exports from Australia's liquefied natural gas sector, according to The Australian Financial Review.
The
combination of a collapse in US gas prices after the global miner acquired
massive US gas reserves last year and rising appetite from Asian markets has
prompted BHP to say it is “studying closely” opportunities for LNG exports from
US to Asia.
“It's
not just us that want to do this,” said Michael Yeager, chief executive of BHP
petroleum division, according to the AFR.
“The
Asian companies are calling us every day, wanting us to help them do it.
Really, the pull is that strong.”
The
sharply rising cost of LNG projects in Australia could see BHP decide it is
more attractive to ship LNG to Asia from the US rather than from Western
Australia, though Mr Yeager said BHP's shale gas assets had not reduced the
company's interest for LNG from Australia.
“What's
going through our mind in WA is the cost and the economics of what is going
on,” Mr Yeager said, according to the AFR.
ASIAN MANAGEMENT
Goldman
Sachs Group Inc. plans to close its South Korean asset-management unit,
five years after moving into the market dominated by domestic companies.
"Our
expectations for the local Korean asset management business have not been
met," Niklas Ekholm, a London-based spokesman for Goldman Sachs Asset
Management, said in a statement.
A
spokesman at Goldman Sachs in Hong Kong said that some of the 40 employees at
the Korean unit will be relocated to Singapore, and others will be offered
positions in other parts of the Wall Street bank's Korean business. Singapore
and Hong Kong are key centers for the U.S. bank in the Asian-Pacific region.
He
said the bank will continue to sell funds to Korean investors, but its
asset-management business won't have an onshore presence in Korea.
Goldman
Sachs started its asset-management business in South Korea in September 2007
when it bought a joint venture between Macquarie
Group and IMM Investment Management. It has around $4 billion in assets
under management, most of which are from institutional investors.
"There
was a boom among Korean retail investors for overseas market investment back in
2007," said an official at South Korea's Financial Services Commission.
"Goldman Sachs, starting its asset-management business relatively late in
late 2007 or early 2008, didn't ride the boom."
The
United States has reiterated its commitment in its economic engagement with the
Asia-Pacific region. This includes updating its foreign policy priorities to
take economics more into account, noted US Secretary of State Hillary Clinton,
speaking at the Singapore Management University during her official visit to
Singapore.
Responding to threats will always be central to US foreign policy but it cannot be Washington's foreign policy, said Mrs Clinton, noting that the US had focused "enormous" time, resources and attention on two wars in the last decade.
Mrs Clinton said Washington has to seize opportunities that will shore up its strengths in the years to come. That means following through in intensified engagement in the Asia-Pacific and elevating the role of economics in its work around the world.
During her 30-minute speech, Mrs Clinton stressed the importance of economic engagement, especially in Asia. She said US President Barrack Obama's visit to the region for a series of government-level meetings over the next few days so soon after his re-election underscores this priority.
Mrs Clinton also touched on the importance of finding ways to tap economic solutions for strategic challenges.
Citing Myanmar as an example, she said the cost of economic sanctions and the benefits of rejoining the global economy helped spur the government to begin opening up.
The other areas of priority include boosting US exports, opening new markets, levelling the playing field for its businesses and building diplomatic capacity to achieve its agenda.
Responding to threats will always be central to US foreign policy but it cannot be Washington's foreign policy, said Mrs Clinton, noting that the US had focused "enormous" time, resources and attention on two wars in the last decade.
Mrs Clinton said Washington has to seize opportunities that will shore up its strengths in the years to come. That means following through in intensified engagement in the Asia-Pacific and elevating the role of economics in its work around the world.
During her 30-minute speech, Mrs Clinton stressed the importance of economic engagement, especially in Asia. She said US President Barrack Obama's visit to the region for a series of government-level meetings over the next few days so soon after his re-election underscores this priority.
Mrs Clinton also touched on the importance of finding ways to tap economic solutions for strategic challenges.
Citing Myanmar as an example, she said the cost of economic sanctions and the benefits of rejoining the global economy helped spur the government to begin opening up.
The other areas of priority include boosting US exports, opening new markets, levelling the playing field for its businesses and building diplomatic capacity to achieve its agenda.
BANKING
Karnataka
Bank today reduced base rate, or minimum lending rate, by 0.25 per cent to
10.75 per cent with effect from November 10, 2012.
“The
Bank’s base rate now stands reduced to 10.75 per cent from the earlier 11 per
cent,” it said in a filing to the BSE.
It
also reduced rate of interest on deposits by 0.25 per cent.
With
the reduction in base rate, all loans linked to the base rate would be cheaper
by 25 basis points (0.25 per cent).
“The
said reduction is applicable to the existing loans and also for the future
loans. This will enable retail and MSME customers to avail funds at reduced
rates and to stay competitive in their market,” it said.
Also,
the housing loan up to Rs 25 lakh will attract interest rate of 10.75 per cent
and car loans 11.25 per cent per annum.
Indian
Overseas Bank is mulling to raise funds through a perpetual bond sale and will
soon seek approval from its board for the same, a top bank official said.
“We
are planning to raise some funds through perpetual bond issuance and had
already got the approval from our Alco (asset-liability committee). We will
soon seek board approval for this,” Chief Financial Officer T S Srinivasan told
PTI over the weekend.
He,
however, didn’t divulge how much the bank is planning to raise. Perpetual bonds
are quasi-equity in nature and are considered as part of the tier-I capital.
The
bond sale plan is part of its effort to ramp up the tier-I capital, which was
below 8 percent at the end of the September quarter.
The
public sector lender, which has sought Rs 1,500 crore from the government as
capital infusion this financial year to increase its capital adequacy ratio,
also said the amount of fund raising by the bank through alternate route will
depend on the amount received from the government.
Finance
Minister P Chidambaram, who held a meeting with public sector banks chairmen
last week, had also said IOB, Bank of Maharashtra and Central Bank of India
would need the maximum capital infusion from the government this year.
The
government has budgeted Rs 15,000 crore for fund infusion into its banks this
fiscal.
BUSINESS
India's
leading security solutions provider, has been empanelled by the country's
leading banks and public sector units (PSUs) in India to provide security
solutions to their premises across the nation.
The integrated security solutions include CCTV cameras, fire alarms and biometric access control systems. Micro Technologies (Q,N,C,F)* is the name in the industry that provides one-stop solution to all the security needs.
Banks prefer Micro Technologies' security products as these have end to end solution backed with certification and necessary approvals on industry standard for their quality, performance and efficacy. Commenting on the prestigious empanelment, Geetha V, director - business development of Micro Technologies said, "Security is central to Micro Technologies' vision, and we are glad to be awarded by leading Indian banks and PSUs to deliver our security products, services and solutions to them and to their various branches. This is an acknowledgement of our commitment to providing total security to safeguard the properties, assets, information and personnel from future mishaps".
The integrated security solutions include CCTV cameras, fire alarms and biometric access control systems. Micro Technologies (Q,N,C,F)* is the name in the industry that provides one-stop solution to all the security needs.
Banks prefer Micro Technologies' security products as these have end to end solution backed with certification and necessary approvals on industry standard for their quality, performance and efficacy. Commenting on the prestigious empanelment, Geetha V, director - business development of Micro Technologies said, "Security is central to Micro Technologies' vision, and we are glad to be awarded by leading Indian banks and PSUs to deliver our security products, services and solutions to them and to their various branches. This is an acknowledgement of our commitment to providing total security to safeguard the properties, assets, information and personnel from future mishaps".
General
Motors India Private Limited (GMIPL), the country's fifth largest automobile
manufacturer, has revealed intentions to increase its annual motor vehicle
yield to around 1.10 lakh units at its Halol based production unit in Gujarat.
The American auto major has also developed a new Multi Purpose Vehicle 'Enjoy'
and sedan variant of Chevy Sail U-VA dedicated at Indian consumers, which could
be launched in the country by end of December 2012. Reportedly, GMIPL's Halol
manufacturing unit is installed with a production output of around 85,000 units
per year. The upcoming Enjoy MPV is believed to be the latest product to be
assembled at Halol, which might be a major reason behind the company's
announcement of increasing its plant's annual capacity. Further, it has been
revealed that General Motors and its Chinese partner - Shanghai Automotive
Industries Corp. (SAIC) have jointly developed the yet-to-be launched eight
seater Enjoy MPV.
Expressing
his opinion on the company's latest declaration concerning Halol manufacturing
facility, P. Balendran, Vice President, Corporate Communication, General Motors
India, said, “Shortly, we would have 1.10 lakh units commissioned capacity
annually at Halol because Enjoy is proposed to be rolled out from this plant in
next couple of months. Halol capacity was short...so it is being expanded. With
the inauguration of a press shop at Halol, it is now an integrated
manufacturing plant.”
BUSINESS
COMMUNICATION
INXPO today announced that
the company has ushered in a new era of Social Business Broadcasting with an
offering that will bring to the workplace the same social features and
innovative technologies that television broadcast networks have adopted to make
TV viewing interactive. The next generation of INXPO's groundbreaking Social
Business TV (SBTV) webcasting platform is changing the dissemination of
business content – to both internal and external audiences – by combining the
benefits of traditional broadcasting and webcasting mediums with the power of
social media tools. This will allow brands of all sizes to interact with
employees, customers, partners and prospects in a single environment that
creates two-way dialogue and measures the impact of the communication.
"Businesses
today are relying more and more on the Internet for communication
purposes. While current Internet communication solutions present a
message, they don't engage the audience. Sitting at a computer exposes
the audience to many distractions thereby making the receipt, understanding and
retention of the message challenging. That's a problem in an age where
more than 46 million people worldwide work remotely and where employees,
customers and partners are just as likely to be across the globe as they are to
be right next door", said Malcolm Lotzof, CEO
of INXPO.
Managed
communications provider, Foehn,
today launches guidance for SMEs on using business communications to help them
become more agile, productive, reduce costs and stay competitive. www.foehn.co.uk will feature
educational content such as videos, case studies and whitepapers for SMEs
looking to switch to cloud communications with soft phone systems and open
source telephony.
Specialist
VoIP analyst firm, illume Consulting, recently highlighted more than a 50%
growth in just three months in the UK VoIP[1] market which shows no signs of
slowing down. VoIP phones
and open source
technology, which work over the internet, are proving popular with SMEs
looking to reduce legacy costs such as ISDN lines or old phone systems which
are restrictive and inflexible. SMEs are increasingly turning to such services
like SIP trunks and VoIP phone systems to lower the total cost of ownership,
reduce maintenance resources and lower capital expenditure.
BUSINESS
MANAGEMENT
Officials
have reached a $210 million settlement with Ivy Asset Management, a BNY Mellon
subsidiary that advised clients to invest with Wall Street multibillion-dollar
swindler Bernard Madoff.
The
settlement of lawsuits filed by the New York attorney general, U.S. Labor
Department and private plaintiffs also provides for about $9 million in
payments by other defendants. Combined with anticipated future payments from
Madoff bankruptcy proceedings, New York Attorney General Eric Schneiderman said
it is expected to return nearly all of the original investments to those who
were defrauded, including union pension funds from upstate New York.
"Ivy
Asset Management violated its fundamental responsibility as an investment
adviser by putting its own pecuniary interests ahead of the interests of its
clients," Schneiderman said. "Ivy deliberately concealed negative
facts it uncovered in its due diligence of Madoff in order to keep earning millions
of dollars in fees. As a result, its clients suffered massive and avoidable
losses."
C
& J joins the majority of top printers in North America running MIS/ERP software
from EFI, the leader in productivity software
for businesses in the printing industry.
C
& J was previously an EFI Hagen™ Print Management System customer and
enjoyed success with the system and a great relationship with the EFI
employees. “The people at EFI were so knowledgeable and helpful. If we ever had
questions about the system, they were always there, ready to work us through
them,” says J.C. Calvert, president of C & J Forms and Label.
However,
C & J was aware that EFI’s Hagen PMS product was being transitioned into a
legacy system and would be succeeded by the EFI Monarch Suite, and they decided
to part ways and search out a new provider. They settled for non-EFI MIS
software and Calvert says that company’s service, support and system
capabilities were nowhere near what he was used to with EFI. Recounting the
attempt to work with a company outside of EFI, Calvert says, “It was the worst
experience we have ever had.”
FINANCE
Shares
in Maruti Suzuki and Mahindra & Mahindra gained on hopes for rising sales
this month as part of the festival season.
Brokerage
Sharekhan said both Maruti and Mahindra & Mahindra will outperform the
sector in the near-term, citing a "strong" order backlog, according
to an email to clients. Six models from the two companies, including the Maruti
Dzire and the Mahindra XUV 500, have pending orders of about 170,000 units, or
as much as 75 per cent of the average monthly passenger vehicle sales recorded
in the broader sector, as per Sharekhan calculations.
A
weakening Japanese yen is also helping Maruti Suzuki shares given expectations
that it will reduce the cost of royalty payments to Suzuki Motor. Maruti shares
gained 4.2 per cent, while Mahindra & Mahindra shares gained 1.5 per cent.
Maruti
Suzuki closed 3.8 per cent higher at Rs 1494.60. It has hit a low of Rs 1442.30
and a 52-week high of Rs 1505.80 in trade today. M&M ended 1.6 per cent
higher at Rs 908.80.
A
weakening Japanese yen will help Maruti Suzuki given expectations that it will
reduce the cost of royalty payments to Suzuki Motor.
Gautam
Chhaocharia, Head-India Small/Mid-Cap Research, UBS, is bullish on Maruti
Suzuki, but stays cautions on the macro environment that will be critical from
here on.
"The
stock, which is gaining momentum in the last couple of months, is supported
entirely on the back of Yen weakening against the rupee, which is definitely
working in favour of Maruti, unlike say early part of this year or last
year," added Chhaocharia.
Bharti
Airtel Ltd registered gains in a choppy market on Monday, after the failed
auction last week has forced government to make a reference to TRAI for fresh
recommendation on pricing.
Bharti
Airtel Ltd closed 2.8 per cent higher at Rs 309.80. It has hit an intraday
low of Rs 302.50 and a high of Rs 311.0. The stock has registered a rise of
over 15 per cent so far in the month of November backed by reduction in policy
overhang, under ownership of the stock and strong earnings growth. However, for
the year the stock has registered losses of over 10 per cent.
Credit
Sussie has upgraded Bharti
Airtel to 'outperform' from 'underperform' rating earlier. The brokerage has
also upped the price target from Rs 225 earlier to Rs 355.
Credit Suisse
has upped EPS estimates for FY14 & 15 by 3-6 per cent as it expects
increase in voice tariffs. The brokerage firm is also of the view that
the risk reward now is favourable for investors as EBIDTA estimates are nearing
the bottom and regulatory clarity emerging.
The
brokerage believes tower subsidiary Infratel listing could unlock value.
Last
week, UBS said in a report that it is positive on Bharti Airtel, Idea
Cellular as long term fundamentals still looks attractive for long term and
the regulatory overhang on the telecom stocks seems to be
getting over.
"We
believe that Bharti and Idea stocks are attractive for long term fundamental
growth investors. With the auctions now over, we believe the stage is now set
for a significant price hike," UBS said in a report.
Goldman
Sachs upgraded Bharti Airtel, to 'buy' from 'neutral', citing reduced
regulatory risk and potential for tariff hikes, according to a note dated on
Friday.
HUMAN
RESOURCE MANAGEMENT
The
Civil Service Commission (CSC) has developed and designed a web portal to serve
as technical support and assistance to human resource management (HRM)
practitioners in the government, according to the commission regional office
here.
The resource Portal for human resource management practitioners in the public service is a gateway for communicating, connecting and capacitating HRM practitioners that can be accessed through the CSC's official web site, www.csc.gov.ph.
Regional director Cecilia Nieto of CSC regional office here explained that the portal is basically an extension for learning using the reach and influence of the internet.
Nieto added that it also supports the roles of HRM practitioners in the Philippine Civil Service by way of information dissemination and knowledge build-up.
The contents include relevant case decisions and resolutions, HR policies, programs and tools, and a synopsis of relevant books.
It also contains external links to other websites such as the Civil Service of other countries, research/educational institutions, and HR-focused organizations which HRMPs may also find helpful.
Nieto stressed that one salient feature of the portal is the Discussion Forum - an avenue for interaction and conservation among HRMPs.
“Through the forum, we hope to foster a vast network of HRM practitioners engaging with one another and to promote an alternative way of enriching the knowledge and perspective on HR topics and concerns,” Nieto said.
The resource Portal for human resource management practitioners in the public service is a gateway for communicating, connecting and capacitating HRM practitioners that can be accessed through the CSC's official web site, www.csc.gov.ph.
Regional director Cecilia Nieto of CSC regional office here explained that the portal is basically an extension for learning using the reach and influence of the internet.
Nieto added that it also supports the roles of HRM practitioners in the Philippine Civil Service by way of information dissemination and knowledge build-up.
The contents include relevant case decisions and resolutions, HR policies, programs and tools, and a synopsis of relevant books.
It also contains external links to other websites such as the Civil Service of other countries, research/educational institutions, and HR-focused organizations which HRMPs may also find helpful.
Nieto stressed that one salient feature of the portal is the Discussion Forum - an avenue for interaction and conservation among HRMPs.
“Through the forum, we hope to foster a vast network of HRM practitioners engaging with one another and to promote an alternative way of enriching the knowledge and perspective on HR topics and concerns,” Nieto said.
INDIA
BUSINESS
The
Indian business process outsourcing industry in the recent times have been in
news due to renewed interest shown by private equity industry. However, the one
deal that missed creating the buzz was the acquisition of MModal , earlier known as CBay Systems, by One Equity
Partners, JPMorgan’s PE partner for $1.1 billion.
The deal that was announced in July this year would be one of the large PE deal in the BPO space this year. A month after that, in August, PE player Bain Capital announced the acquisition of 30 per cent of Genpact’s stock for $1 billion.
The acquisition saw the exit of founder V Raman Kumar and Private equity player SAC Private Equity Group, which together owned around 31 – 34 per cent.
MModal, started its journey in 1998 as CBay Systems, providing medical transcription services to hospitals, healthcare networks and physician practices across the US through its India based work force. It had operations in Annapolis, Maryland and Bangalore.
Kumar, who started his professional career as the Assistant Commissioner of Income Tax having joined the Indian Revenue Services, went on to work with Essar Group, and in 1998 started CBay with a capital of $100,000. By the time he sold his company to One Capital, MModal had revenue of around $475 million. The company's name was rebranded as it acquired MModal in Feburary 2012.
One Equity Partners, paid $14 a share in cash for MModal, or 8.3 per cent more than the stock’s July 2, closing price. The acquisition valued MModal at 8.46 times earnings before interest, taxes, depreciation and goodwill amortization and almost 30 times its net profits.
In 2007 when CBay Systems was listed on AIM exchange in London, it had a turnover of $60 million with a market capitalization of $90 million and employee strength of about 4000, most of them located in India. Post this listing Kumar set out on an aggressive acquisition path, first by bringing in SAC Private Equity Group to fund the acquisition of MedQuist, a company that was almost seven times larger by comparison, by acquiring 70 per cent stake of Royal Phillips of Netherlands in MedQuist. In 2011, CBay System was listed on the Nasdaq as MedQuist Holdings with a market cap of $500 million. In 2010, CBay Systems acquired Spheris, a Warburg Pincus invested company.
The deal that was announced in July this year would be one of the large PE deal in the BPO space this year. A month after that, in August, PE player Bain Capital announced the acquisition of 30 per cent of Genpact’s stock for $1 billion.
The acquisition saw the exit of founder V Raman Kumar and Private equity player SAC Private Equity Group, which together owned around 31 – 34 per cent.
MModal, started its journey in 1998 as CBay Systems, providing medical transcription services to hospitals, healthcare networks and physician practices across the US through its India based work force. It had operations in Annapolis, Maryland and Bangalore.
Kumar, who started his professional career as the Assistant Commissioner of Income Tax having joined the Indian Revenue Services, went on to work with Essar Group, and in 1998 started CBay with a capital of $100,000. By the time he sold his company to One Capital, MModal had revenue of around $475 million. The company's name was rebranded as it acquired MModal in Feburary 2012.
One Equity Partners, paid $14 a share in cash for MModal, or 8.3 per cent more than the stock’s July 2, closing price. The acquisition valued MModal at 8.46 times earnings before interest, taxes, depreciation and goodwill amortization and almost 30 times its net profits.
In 2007 when CBay Systems was listed on AIM exchange in London, it had a turnover of $60 million with a market capitalization of $90 million and employee strength of about 4000, most of them located in India. Post this listing Kumar set out on an aggressive acquisition path, first by bringing in SAC Private Equity Group to fund the acquisition of MedQuist, a company that was almost seven times larger by comparison, by acquiring 70 per cent stake of Royal Phillips of Netherlands in MedQuist. In 2011, CBay System was listed on the Nasdaq as MedQuist Holdings with a market cap of $500 million. In 2010, CBay Systems acquired Spheris, a Warburg Pincus invested company.
India and Japan today inked two strategic agreements
including one that will enable Tokyo to import rare earth minerals, a move
which will help it to reduce its heavy reliance on China for the key material
that is vital for producing a range of high-tech products.
The agreements, both of which were supposed to be
signed during the now cancelled trip of Prime Minister Manmohan Singh, were
inked by Japanese Foreign Minister Koichiro Gemba and India's Ambassador to
Japan Deepa Wadhwa here.
The
conclusion and signing of these agreements will further enhance and strengthen
the India-Japan strategic and global partnership, a statement released by the
Ministry of External Affairs said. Under the signed agreement, Japan
will import over 4,000 tonnes of rare earths a year from India. This is its second
deal this month to diversify supply from China for the metals used in mobile
phones and hybrid cars to missile guidance systems.
Japan has in the past imported all
its rare earth requirements from China but has been scouting for alternatives
after political turbulence hit its ties with Beijing.
India is expected to begin exporting
rare earths to Japan as early as next spring, officials of Japan's Ministry of
Economy, Trade and Industry said.
With rare earth production at full
throttle, India could supply around 4,100 tons annually, equivalent to around
10 percent of Japan's peak annual demand.
The production and exports will be
conducted by a joint venture between Japan's Toyota Tsusho Corp. And India's
state-run Indian Rare Earths Ltd.
The other deal - Social Security
Agreement - will immediately benefit about 30,000 citizens of both countries.
INDIA MANAGEMENT
Fair
trade regulator Competition Commission of India (CCI) today said it has
approved Religare group’s 49 per cent stake sale in its mutual fund (MF)
business to global investment management firm Invesco.
According
to the deal reached in September, the US-based Invesco is acquiring 49 per cent
stake in Religare Asset Management Company and Religare Trustee Company Pvt
Limited, which manage assets worth over Rs 14,600 crore for Religare group’s
mutual fund business.
Invesco
is acquiring the stake through a group entity, Invesco Hong Kong Ltd, from
Religare Securities Ltd and the deal is estimated to have valued Religare
group’s mutual fund business at about Rs 1,000 crore.
In
its order dated November 8 and released today, the CCI said that the deal is
not likely to have any “appreciable adverse effect on competition in India” as
Invesco does not have any direct or indirect presence in the Indian mutual fund
and portfolio management services in the country.
The
CCI further said that there are more than 40 other registered AMCs (Asset
Management Companies) in the country and more than 250 portfolio managers
providing their services, implying significant competition prevailing in these
markets.
Invesco
and Religare group had approached CCI for its approval to the deal in October,
pursuant to which the fair trade regulator had sought some additional
information. The replies to the CCI queries were submitted on November 1.
The
CCI observed that New York-listed Invesco is a global investment manager and
provides a wide range of investment products and services to retail and
institutional investors across the world.
India
Infoline has received approval from the Securities and Exchange Board of India
for launching its alternative investment funds (AIFs) — IIFL Venture Fund, IIFL
Private Equity Fund and IIFL Opportunities Fund. This takes the total tally of
AIFs registered with the SEBI to 12 from 9 at present.
“We
have received the approval from SEBI for all the three categories namely, IIFL
Venture Fund (Category I — Venture Capital Fund), IIFL Private Equity Fund
(Category II) and IIFL Opportunities Fund (Category III), of alternative
investment funds,” IIFL Managing Director R. Venkataraman said.
As
part of the various products offered by the IIFL Group, India Infoline will be
additionally offering alternate asset investment products by launching various
schemes, in due course, said a company statement. “India Infoline believes that
the newly opened up sector of pooled investment vehicles through AIFs under the
regulatory ambit of SEBI’s AIF regulations provide enormous opportunities for
providing fund management and advisory services to the growing HNI’s and
corporate segment,” Venkataraman said.
SEBI
had notified in May this year the guidelines for a new class of market
intermediaries named AIFs, which are funds established or incorporated in India
for the purpose of pooling in capital from Indian and foreign investors for
investing according to a pre-decided policy.
Under
SEBI guidelines, AIFs can operate in three categories. Category-I AIFs are
funds that get incentives from the Union Government, the SEBI or other
regulators and include social venture funds, infrastructure funds, venture
capital funds and SME funds.
INSURANCE
Private
insurer Max Life Insurance today reported 6 per cent growth in net profit at Rs
398 crore for the six months ended September 30, on the back of steady revenue
coupled with better productivity and cost efficiency. The net profit stood at
Rs 375 crore for the corresponding quarter last year, Max Life Insurance said
in a release issued here.
The total premium went up marginally
to Rs 2,900.88 crore for the quarter under review compared to Rs 2,872.84
crore. However, the new business premium declined by 3.7 per cent to Rs 812
crore from Rs 842.89 crore. The renewal premium recorded a growth of 2.9 per
cent to Rs 2,089 crore compared to Rs 2,029.95 crore.
"While the economic and
regulatory challenges continued, we continued to perform well due to our
continued focus on building a successful and differentiated life insurance
business to deliver the core value of long-term savings and protection in a Life
Insurance contract. We are confident of a sustained growth as we continue to
differentiate in the market through our advice based sales, diversified
distribution channel, comprehensive product portfolio and superior customer
experience through superior claims and complaint management," Max Life
Insurance CEO and Managing Director Rajesh Sud said.
In a bid to develop the corporate
bond market, insurance companies may be allowed to invest for a shorter period
in infrastructure bonds. Also, these firms, along with mutual funds, may be
permitted to act as market makers in the bond market.
“The Financial Stability and
Development Council (FSDC), in its meeting recently, discussed various measures
for development of the corporate bond market. Issues such as investment for
shorter period and market makers, among others, were suggested. Now, the authorities
concerned have to take a decision,” a highly placed Government source told Business
Line.
Apart from relaxing investment
norms, it was also suggested that the minimum tenure restrictions for insurance
companies in infrastructure bonds need to be reduced to five years from 10
years at present. “Now, the insurance regulator, IRDA, has to take a decision
and finalise the guidelines,” the source added. In the meeting, the insurance
regulator was represented not by its Chairman, but by a member, R.K.Nair.
A statement issued by the Finance
Ministry after the meeting said that the Council also discussed steps to be
taken to rationalise the framework for regulation of corporate debt to remove
constraints for issuers and protect investors, encourage participation of long-
term investors, reduce the cost of public issuance and increase liquidity
through improving market infrastructure.
A suggestion was also made for
rationalisation of stamp duty. It may be noted that a proposal for uniform duty
Act has been under consideration for long. Since stamp duty is a State subject,
the rate has to be agreed upon by all the States concerned. The Finance
Ministry has claimed that all the States are on board on this issue.
INTERNATIONAL BUSINESS
The
International
Monetary Fund wants a "real fix, not a quick fix" on Greek debt,
its managing director said Wednesday, days after publicly clashing with
European officials on the issue.
Christine
Lagarde also urged US legislators "at all costs" to avoid the
"fiscal cliff" of spending cuts and tax rises that will come into
effect January 1 unless the two parties can agree a deficit and debt reduction
deal.
Asked
at a press conference in Malaysia whether the IMF would insist on Greece's
debtors taking a "haircut", Lagarde said all partners "share the
same objectives and the same concern" to return the country to economic
stability. "And obviously from the IMF perspective we expect a real fix,
not a quick fix, and that means clearly a debt that is sustainable as quickly
as possible."
She
declined to take further questions on Greece.
The
country's debt crisis has revealed new strains between the IMF and European finance officials.
On
Monday Eurogroup president Jean-Claude
Juncker and Lagarde clashed openly on a key debt target in the bailout
programme.
Speaking
after a eurozone finance ministers' meeting in Brussels, Juncker said the
country's debt target of 120 percent of gross
domestic product should be put back two years to 2022. The current level is
170 percent.
Lagarde
told the same press conference she believed the target should remain at 2020,
the original date in the second bailout agreed earlier this year.
On
China, the IMF chief said Wednesday the Communist
Party congress that ended earlier in the day would clear uncertainties. The
meeting has put in place a new top leadership line-up to be formally announced
Thursday.
Wal-Mart
Stores Inc is taking its first legal step to stop months of protests and
rallies outside Walmart stores, targeting the union that it says is behind such
actions.
Wal-Mart
filed an unfair labor practice charge against the United Food and Commercial
Workers International Union, or UFCW, asking the National Labor Relations Board
to halt what the retailer says are unlawful attempts to disrupt its business.
The move comes just a week before what is expected to be the largest organized
action against the world's largest retailer, as a small group of Walmart
workers prepare to strike on Black Friday, typically the busiest shopping day
of the year.
"We
are taking this action now because we cannot allow the UFCW to continue to intentionally
seek to create an environment that could directly and adversely impact our
customers and associates," Wal-Mart spokesman David Tovar said on Friday.
"If they do, they will be held accountable."
The
union is undeterred. "Walmart is grasping at straws," said UFCW
Communications Director Jill Cashen. "There's nothing in the law that
gives an employer the right to silence workers and citizens."
Protests
and rallies outside Walmart stores around the country and other actions such as
flash mobs have been orchestrated by groups including OUR Walmart, a coalition
of thousands of current and former Walmart workers that wants to collectively
push for better wages, benefits and working conditions.
LOGISTICS
When
computer "hackers" working for the U.S. Navy succeeded in breaking
into the computer logistics system that controls the Lockheed Martin Corp F-35
Joint Strike Fighter earlier this year, they did the company a favor: allowing
it to fix a critical vulnerability in the $396 billion program.
Now,
as the Marine Corps prepares to set up its first operational squadron of F-35s
next week, some experts say other security risks may lurk within such a large
and highly networked weapons support system. One concern: Lockheed shored up
political backing for the F-35 by choosing suppliers in nearly every U.S.
state. But having such a large and widely dispersed group increases exposure to
cyber attacks, said Ben Freeman, national security investigator with the
non-profit Project on Government Oversight.
"Even
if Lockheed has top-notch cyber security, it's still vulnerable if its
subcontractors are vulnerable," he said.
The
military's move toward greater use of so-called autonomic weapons systems,
which rely heavily on computers, promises to revolutionize the way weapons are
maintained and operated, but also carries a new level of cyber risk.
And
the weapons designers are having difficulty keeping up with the hackers. While
it often takes years to field new weapons systems, cyber threats are evolving
and changing on a daily basis, said Raphael Mudge, a former Air Force engineer
and independent cyber expert.
"You
have to be continually assessing the risk," he said. The heightened
concern comes as computer attacks are on the rise. Lockheed cyber experts said
Monday that the company had seen a large increase in the number and
sophistication of attacks on its networks. It accused governments that it did
not name of targeting and breaking into the networks of its suppliers.
Global
Logistic Properties Ltd., a warehouse operator partly owned by Government of
Singapore Investment Corp., said it will list some of its Japanese assets in
Tokyo, in a deal that people with knowledge of the matter say could be worth
US$1.5 billion.
Also
Wednesday, the company said it has teamed up with sovereign-wealth funds from
Singapore and China, as well as the Canada Pension Plan Investment Board, to buy
properties in Brazil worth US$1.45 billion.
Global
Logistic didn't give a time or size for the public offering of J-Reit, but a
person with knowledge of the matter said earlier this month that the company
was looking to raise up to US$1.5 billion and that the IPO was likely to happen
this year. It would be Japan's second-biggest offering of 2012, after Japan
Airlines Co.'s 9201.TO -1.11% $8.5 billion flotation in September.
In
a separate statement, Global Logistic said it has formed a joint venture with
China Investment Corp., GIC and Canada Pension Plan to buy a portfolio of 40
logistics properties from three funds in Brazil. The partners will establish
two new investment funds. In the first, Global Logistic will hold a 41.3%
interest, Canada Pension Plan 39.6% and GIC 19.1%. In the other, Global
Logistic and CIC will each hold 34.2%, Canada Pension Plan 11.6% and GIC 20%.
MARKETING
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China
is trying to address the slowing foreign trade growth by picking up speed in
constructing an international marketing network highlighting trade
facilitation, officials said at a meeting on Thursday.
The world's second-largest economy should break the "bottleneck" of foreign trade by breeding "fresh advantages" in terms of technology, brands, quality and service, Chinese Vice Commerce Minister Zhong Shan told a meeting focused on international marketing network construction.
The Ministry of Commerce (MOC) forecast that China's foreign trade would grow 6 percent year on year in 2012, lower than the annual economic growth target of 7.5 percent.
In the first ten months, China's foreign trade increased 6.3 percent from the same period last year, while the growth rate further slipped in November, according to MOC data.
Chinese export-oriented enterprises should reduce export trade links, diversify competition and expand sales of brand products and products with high added value in a bid to improve business performance, said Zhong.
Currently, Chinese enterprises operate more than 26,700 liaison offices as part of the international marketing network. Of the total, 83 percent have been invested with less than 1 million U.S. dollars and 95 percent take in less than 10 million U.S. dollars in revenue, he said.
In 2011, the network's overseas sales revenue totaled 81.05 billion U.S. dollars, accounting for 4 percent of the country's gross export value, according to Zhong.
The world's second-largest economy should break the "bottleneck" of foreign trade by breeding "fresh advantages" in terms of technology, brands, quality and service, Chinese Vice Commerce Minister Zhong Shan told a meeting focused on international marketing network construction.
The Ministry of Commerce (MOC) forecast that China's foreign trade would grow 6 percent year on year in 2012, lower than the annual economic growth target of 7.5 percent.
In the first ten months, China's foreign trade increased 6.3 percent from the same period last year, while the growth rate further slipped in November, according to MOC data.
Chinese export-oriented enterprises should reduce export trade links, diversify competition and expand sales of brand products and products with high added value in a bid to improve business performance, said Zhong.
Currently, Chinese enterprises operate more than 26,700 liaison offices as part of the international marketing network. Of the total, 83 percent have been invested with less than 1 million U.S. dollars and 95 percent take in less than 10 million U.S. dollars in revenue, he said.
In 2011, the network's overseas sales revenue totaled 81.05 billion U.S. dollars, accounting for 4 percent of the country's gross export value, according to Zhong.
ODISHA
BUSINESS
With the Rs 1200-crore titanium
project in south Odisha, conceived as an Indo-Russian joint venture
(JV), still under a cloud of uncertainty, the Centre has sought status report
from the state government on the vexed project by November-end.
“The
Centre has sought information on areas like status of land already acquired,
people rehabilitated and progress made by the project. The project proponent
has submitted some documents to us which is under scrutiny,” said an official
source. Earlier, state Chief Secretary B K
Patnaik had asked Kolkata-based Saraf Agencies, one of the
promoters, to submit all relevant documents pertaining to the project including
sanction of Special Economic Zone (SEZ) status, allotment of land, memorandum
of understanding (MoU) signed, agreements between JV partners, litigation and
arbitration documents, necessary approvals obtained and correspondences made
with the Government of India.
Chief secretary has held that in
case of non encumbrance, Saraf Agencies may be allowed to start work on the
project.
The titanium project proposed to be
set up at Chhatrapur in south Odisha's Ganjam district has had a tortuous
journey for over four years.
Initially conceived as an
Indo-Russian joint venture, the project grounded to a halt after its Indian
promoter - Saraf Agencies walked out of the project following intractable
differences with the Russian partners. Of late, Saraf Agencies has revived its
interest in the project as land was in its possession. The company has
communicated its intent to the state government, stating that it was keen to
implement the titanium plant on its own.
Kolkata Port Trust (KoPT) and Odisha’s
Dhamra Port Company Limited (DPCL), which is a joint venture between Tata Steel
and L&T, have initiated moves to bury the hatchet. Both the ports are
working on a proposal for forming a joint venture (failing which entering into
some sort of MoUs) to undertake two-port operations for large bulk carriers.
Kolkata port (including Haldia) being a
river port does not have the draft required to handle large bulk carriers with
sizeable parcel load but can boast of good evacuation facilities while Dhamra
being sea port does not suffer from draft problem but has reasons to be worried
about its present evacuation facilities. “There are lots of synergies in our
operations and we’re exploring how best we can hammer out a solution for our
mutual benefit”, observe sources in both the ports. “Once we agree in
principle, the details can be worked out”.
The present moves follow a Supreme Court
order a few months ago emphasising the need for amicable settlement of the
dispute among the parties concerned. The dispute arose in the wake of the
shipping ministry’s notification a couple of years ago extending the limit of
Kolkata port ostensibly to help the port undertake cargo handling operation at
Kanika Sands, an island off Odisha coast.
The extension, DPCL had complained to
Odisha Government, would harm the interest of the port. The Odisha Government
went to court against the ministry’s notification, first Odisha High Court and
then Supreme Court and West Bengal Government, KoPT, DPCL, all got embroiled in
it.
Following the Supreme Court order, the
shipping ministry held a meeting of all the parties concerned to decide how to
go about it. Accordingly, a couple of meetings were held recently in
Bhubaneswar between the senior officials of both the ports, the last one being
in last week. While it will be too much to expect any quick solution to the
problem, both sides contend that the beginning has been good. “We’ve started on
a positive note”, a senior official of the KoPT told Business Line.
RETAIL
International
multi-brand retail
chains have all pushed their India plans to 2013, at least until
after Christmas
and New Year
holidays, it is learnt. The September euphoria, after the Cabinet cleared up to
51 per cent FDI (foreign direct investment) in multi-brand retail, is giving
way to doubt. Foreign players are expected to take critical business decisions
only next year, industry sources say.
The
Opposition call for a discussion and perhaps voting in Parliament on the issue
of retail FDI has made international companies cagey about their plans,
analysts say. That includes companies present in India across other retail
formats and those weighing the option of entering the country. The fact that
the world's largest retail chain, Walmart
, has admitted inquiries or investigations into corrupt practices in many
countries including India has complicated matters for the sector. In a separate
development, the Enforcement Directorate is investigating an investment by the
US chain in Bharti
group to scrutinise alleged Foreign Exchange Management Act (Fema)
violations.
Vindicating
Reserve Bank of India Governor D. Subbarao’s stand on not easing interest rates
during the monetary policy review last month on account of persistent
inflationary pressures, retail inflation moved closer to double digits at 9.75
per cent in October from 9.73 per cent in the previous month. As per the CPI
(consumer price index) data released here on Monday, even as the month-on-month
rise in the price spiral appears to be minuscule, the fact remains that there
is as yet no sign of a cooling-off to suggest a downtrend in inflation in the
near-term.
On
the contrary, the official data shows that the CPI-based inflation is inching
up towards the psychological 10 per cent mark, driven mainly by higher prices
of food items such as sugar, pulses and vegetables. On a yearly basis, the
sharpest rise during the month was in the prices of sugar, up by 19.61 per
cent, ostensibly due to increased demand for the sweetener in the festival
season.
Among
food items edible oils turned dearer by 17.92 per cent and pulses followed suit
with a 14.89 per cent increase in prices on a year-on-year basis. Alongside,
prices of vegetables were higher by 10.74 per cent as were meat, fish and eggs
dearer by 12.18 per cent.
In
non-food items, prices of clothing and footwear moved up by 10.47 per cent
during the month on an annual basis. Significantly, the segmented data revealed
that while retail inflation in urban areas eased markedly to 9.46 per cent in
October from 9.72 per cent in the previous month, the CPI inflation for rural
areas inched up to 9.98 per cent during the month from 9.79 per cent in
September 2012. Thus, it is the inflationary pressures in the rural areas that
has led to an uptrend in the average or combined retail inflation in October,
an issue that the RBI chief had specifically flagged as being the fall-out of
increase in rural wages and consequent higher all round demand for commodities.
SUPPLY
CHAIN
Companies will increasingly need to be
more agile and flexible in designing their distribution networks. Speaking at
commercial property adviser Jones Lang LaSalle’s agents briefing in Birmingham,
held on 9 November, Peter Ward, Cargo Supply Chain Commercial Manager, DP World
London Gateway, said that shifts in global sourcing combined with new and
multiple channels to market are likely to drive multiple stocking locations.
Peter Ward said: “In the UK it may prove
optimal for a major DC in the South to complement another operating in the
Midlands.”
Explaining the logic behind DP World’s
massive investment into London Gateway, the UK’s new international hub port and
Europe’s largest logistics park, Peter Ward said this approach would be
particularly relevant to companies whose key customer base is in London and the
South East, the country’s largest consumer market and population centre.
Peter added: “Against a background of
escalating fuel costs, London Gateway will save millions of pounds of avoidable
costs in UK supply chains.”
Meanwhile, Lisa Fitch, Associate
Director, Supply Chain Consulting, BNP Paribas, told delegates that the DP
World London Gateway port and logistics park development, which offers almost
860,000 sq metres of space and is located just 147 miles from Birmingham, was
well timed given current market conditions.
______________________________________________________________________
Source of
Information for this issue: Google alert accessed on 19th, 20th and 23rd Nov 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
Sabita Sahu
Professional Library
Trainee
Concept, Layout and
Editing
Syamaghana Mohanty
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 Syamaghana Mohanty : 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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