Tuesday, January 1, 2013

ASBM Business Updates Vol.1(31) 31 Dec 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 shares slid on Friday after a Republican proposal to fend off a U.S. fiscal crunch failed to get enough support, deepening uncertainty over prospects for the negotiations to avert automatic spending cuts and tax increases set to start in January.
"Markets disliked signs of further delay in talks, with the risk that a deal may not be reached by the end of the year deadline," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo. "It clearly hit risk sentiment."
Risk assets were sold off, from shares, oil to currencies such as the Australian dollar and the euro, while the yen rirmed slightly, though it was pinned near multi-month lows versus the dollar and the euro.
U.S. S&P 500 stock futures plunged 1.5 percent on worries over the U.S. "fiscal cliff".
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> fell 0.4 percent, after having traded up 0.2 percent at the open.
The U.S. House of Representatives will adjourn until after Christmas, Republican Representative Peter Roskam said on Thursday, after House Speaker John Boehner's proposed tax bill designed to avert the fiscal cliff failed to pass. The proposal was aimed at extracting concessions from the White House, which had threatened to veto it, and advance talks closer to a deal.
Asian buyers of Iranian crude will deepen import cuts in 2013 and struggle to send cash to Tehran to pay for oil as tightening Western sanctions choke the flow of hard currency to Iran's coffers.
Tough sanctions from the United States and Europe to force Iran to curb its nuclear programme have already cut Iran's oil exports by more than half this year, costing it more than $5 billion a month. The reduced cash flow has contributed to a plunge in the value of Iran's currency, the rial.
Iran says it is enriching uranium to fuel power plants, not make bombs.
Almost all of Iran's remaining exports flow to China, South Korea, Japan and India. The additional cuts Asian importers will make in 2013 would translate into a fall in sales of about 135,000 barrels per day (bpd), resulting in a loss of about $5 billion next year based on today's oil price, according to Reuters calculations.
The United States requires buyers of Iranian crude to progressively cut imports to ensure they secure exceptions to the sanctions when they come up for review every 180 days.
Making matters worse for Iran is a little-noticed provision in U.S. sanctions, which goes into effect on Feb. 6, that states funds being used to pay for oil must remain in a bank account in the purchasing country and can be used only for non-sanctioned, bilateral trade between that country and Iran.

BANKING
The State-owned Union Bank of India (UBI) today said it would raise up to Rs 1,500 crore from bonds over the next three months.
The decision to raise funds was taken at the Board meeting held on December 22, UBI said in a BSE filing.
The Board approved raising of additional capital funds not exceeding Rs 1,500 crore during the year 2012-13 by way of issue of Tier-I and Tier-II capital bonds as per eligibility, it said.
Meanwhile, another public sector lender Bank of Maharashtra (BoM) has cleared raising up to Rs 1,350 crore from various bonds.
BoM plans to raise up to Rs 350 crore from Tier-I unsecured, non convertible, subordinated, perpetual bonds (Innovative Perpetual Debt Instruments), the bank said in a separate filing to the BSE.
Besides, it intends to raise up to Rs 1,000 crore from lower Tier-II bonds in the nature of promissory notes. The bonds would have maturity period of 10 years.
The issue opens on December 26, 2012, closes on December 29, 2012 and the deemed date of allotment is December 31, 2012, it added.
The banking bill and the fast forward for Aadhaar are two forces which will shape the Indian banking industry from the New Year. Each is a game changer. Both of them introduce competition for the sector at a pace that has not happened for a long time.
The Banking Laws (amendment) bill introduces competition in the sector in the way it is understood in a mature market. Though RBI has kept the right to decide which company will be allowed to bid for a 26 per cent shareholding in a bank through the fit and proper criterion, it will be soon under pressure to accept all competing challenges, irrespective of the parentage of the bidder. For instance, how can a regulator say it is satisfied that a bid for a minority stake in a bank mounted by company A will be allowed to go through and say no to B, without getting involved in every possible way with the management of a bank, its politics and exercising judgement on the corporate sector that will compromise its neutrality. The choice for the regulator will become one of either allowing every bid or none at all. Also, as foreign banks have got the clarity to become wholly owned subsidiary in India, the competition they will mount for the established players will be awesome instead of being restricted to the Mumbai-Delhi market.

BUSINESS
Japanese industrial solutions giant Hitachi will sign a contract with the Gujarat government next month for setting up of a sea water desalination plant in the state that will treat 3.36 lakh tonnes of water every day.
To be executed by four partners, the construction of the facility will largely be financed by the Japanese government under Indo-Japan joint investment strategy. We are going to sign the contract next month with the Gujarat government. The plant will be developed under Build-Own-Operate-Maintain (BOOM) method.
"The plant will have the capacity to desalinate 3,36,000 tonnes of water per day," Hitachi India Managing Director Ichiro Iino told PTI here.
The project will be executed by a consortium of four partners where apart from Hitachi, other parties include Hyflux from Singapore, Japan's Itochu Corporation and the Gujarat government, he added.
When asked how much could be the investment to build the plant, Iino said: "We have not decided it yet as the details are being worked out...The project will be developed by Indo-Japan joint investment and largely be financed by Japanese government.
Global retail giants such as Walmart, Carrefour, Tesco and others seeking a foothold in India’s $450 billion retail market may take years before earning profits, going by the experiences of big Indian players in domestic retail.
Between them, three of India’s leading domestic chains, Reliance Retail, Aditya Birla Retail and Bharti Retail, notched up combined losses touching Rs 1,200 crore in 2010-11, according to the latest available figures. Each of them has been in business for almost 10 years now.
Reliance Fresh, an arm of the Mukesh Ambani-led RIL group posted a net loss of Rs 345.82 crore in 2010-11, while Aditya Birla Retail, which runs the ‘more’ chain, posted a net loss of Rs 423.1 crore that year. Bharti Retail, which operates in partnership with Walmart, reported a net loss of 394.32 crore in calendar 2011. The figures were revealed by minister of state for commerce and industry S Jagathrakshakan in Parliament last week, in the wake of the parliamentary nod to 51 per cent foreign direct investment (FDI) in multibrand retail.
While none of the big foreign retail players have revealed their India-specific plans yet, not a single among them is known to have approached the foreign investment promotion board (FIPB) with investment proposals either, even a month after majority foreign ownership in multibrand retail was notified.

BUSINESS COMMUNICATION
1-800 numbers have become the most popular choice of contact number in business telecommunication. Toll free numbers became this popular because calls made to these numbers are actually free of charge. It is very appealing to the customers if they have a free phone call service. This feature is known as one of its prime benefits.
800 number’s free phone call service feature encourages your customers to make  business transactions to your company. If they have any inquiries about your products and/or services, they will no longer hesitate to contact you anytime since they know that the call will not cost them even a single penny. This telecommunication feature not only helps you increase the number of calls you receive but also increases the chances of having new clients and other business opportunities.
Tech blog DigitalOlympus.com recently released a new study about how businesses can save costs significantly on the telecoms side by switching to VoIP and adopting a unified communications (UC) architecture. Selecting VoIP business phones and integrating VoIP phone system equipment into a platform that supports unified communications is critical for cutting costs and boosting performance when it comes to hosted business communications networks.
According to the DigitalOlympus.com study, businesses can save costs on their telecommunications infrastructure by adopting VoIP (VoIP phones) as the backbone for both their Internet and phone system network services. A second wave of cost reduction can be achieved through the use of business telephone systems that support UC (unified communications).
Using VoIP ensures that both phone system voice services and other data services are supplied by the same connection – saving costs and boosting efficiency in the process. The use of UC (unified communications) systems allows business communication networks to support voice, data, SMS, IM and other communication streams on the same device and the same network – a plus for businesses as the cost of acquiring separate machines or configuring other devices and accessories can be avoided.

BUSINESS MANAGEMENT
Groupon (http://www.groupon.com) (NASDAQ: GRPN) announced today it has acquired CommerceInterface (http://www.commerceinterface.com), a leading provider of web-based channel management technology that helps manufacturers, distributors and retailers succeed at managing their businesses and selling online. Terms of the deal were not disclosed. Groupon has used CommerceInterface technology since April 2012 to streamline operations of the growing Groupon Goods platform and automate interactions with thousands of existing vendors. The acquisition enables Groupon to leverage infrastructure provided by CommerceInterface to support and optimize the Groupon Goods business around the world in 2013.
“CommerceInterface has proven to be an important piece of Groupon Goods infrastructure in the U.S., quickly and reliably streamlining the execution of orders and other vendor interactions,” said Faisal Masud, head of Groupon Goods. “We look forward to enhancing our abilities to better support merchants overseas beginning early next year.”
CommerceInterface will no longer service other retail channels and current customers will have the option to transition to other vendors over the next six months with migration support from the company. n Q3 2012, Groupon Goods reached an annual run rate of nearly $1.5 billion in global billings. A wide variety of high quality inventory is featured, from diamond jewelry and designer sunglasses to mattresses, computer tablets, 3D HD televisions and the giant radio-controlled flying shark. New items are added every day of the week and often sell out. To find the perfect holiday gift or subscribe for email updates,
Businesses that have set up shop at the Eastman Business Park will have new management for their utilities.
Eastman Kodak announced the sale of its coal-fired power plant at the Eastman Business Park Friday.
Recycled Energy Development will operate the park's facilities.
The Illinois-based company also plans to invest $40 to $80 million to convert the old plant to cleaner-burning natural gas fuel.
The deal is still subject to approval from the U.S. Bankruptcy court. Kodak would get about $10 million in cash for the plant and the park's utility infrastructure.
In a statement released this morning, Kodak says it believes this will help foster continued economic growth at the budding business park.
Just this week, two businesses at the park were awarded grants from the state through the governor's Regional Economic Council awards.
RED has promised to offer "competitively priced, reliable and sustainable services" to the park's tenants.

FINANCE
The Rangarajan Committee is believed to have suggested a complex pricing formula that will lead to near doubling of natural gas price to about USD 8.
However, it is unclear if this will override the price discovery mechanism set out in current oil and gas contracts.
The six-member panel, which submitted its report to the Prime Minister’s Office on December 20, is believed to have suggested pricing of natural gas based on weighted average of the fuel in North America, Europe and Japan markets as well as imported liquefied natural gas (LNG).
Sources said the panel has suggested bringing gas-on-gas competition in five years, which essentially means deregulation of the sector. In the run-up to that, it wanted domestically produced gas to be priced based on a complex weighted average formula.
The formula translates into a gas price of just over USD 8 per million British thermal unit compared to the current rate of USD 4.2 per mmBtu for most of the gas produced in the country.
The panel headed by Prime Minister’s Economic Advisory Council Chairman C Rangarajan was tasked to suggest design of future contracts for exploration and production of oil and gas as well as basis or formula to price domestically produced gas.
Sources said it was unclear if the suggestion of the panel can override the arms-length price discovery set out in the Production Sharing Contracts (PSCs) signed by companies like Reliance Industries.
Under current PSC, a contractor is required to discover an arms length price of gas by calling bids from prospective users.
The third instalment of the Advance Tax collection recorded a growth of 10.44 per cent to Rs 78,226 crore, finance ministry said on Monday.
Advance Tax collections for the month of December 2012 (up to December 20) stood at Rs 78,226 crore, against Rs 70,826 crore in the corresponding period a year ago, it said.
So far in the current financial year (April 1-December 20), the advance tax collections grew 7.52 per cent over the corresponding period last year. It includes a 7 per cent growth in corporate tax and 12.3 per cent in personal Income Tax, the statement added.
The growth in advance tax collections in December follows government's stern warning to tax evaders earlier this month to either disclose their correct income and pay advance tax by December 15 or be prepared to face action.

"Government would urge all assesses to disclose their true income. There is no advantage in suppressing the true income or avoiding paying income tax that is due", revenue secretary Sumit Bose had said.
Regretting that there was "gross-understatement" in filing of advance tax by assesses, he said, "sooner than later, the information available with the income tax department will lead the department to the doors of such persons."
The direct tax collection during April-November worked out to Rs 3.25 lakh crore, showing an increase of 7.14 per cent as against the annual growth target of 15 per cent. The government proposes to collect Rs 5.70 lakh crore from direct taxes, which include income tax, corporate tax and wealth tax, this fiscal.
Advance tax payment is a reflection of performance of the economy and lower collection would suggest lower profitability. The economic growth rate in the first half of the current fiscal was 5.4 per cent as against 7.3 per cent in the same period of previous fiscal.

HUMAN RESOURCE MANAGEMENT
Atlanta-based ThePortNetwork, Inc., a leader in social networking technology for business, announced today it has acquired PowWowHR, LLC, a leading provider of human resource management software (HRMS) for small and mid-sized employers. The combined cloud technology will introduce the first natively integrated social collaboration solution with traditional HRMS.  Kevin Noland, former CEO of Atlanta-based A.D.A.M., Inc. has been named CEO. The new company will be renamed PowWowHR.

INDIA BUSINESS
India and Asean on Thursday extended their free trade pact to include services and investment, a move that will help Indian doctors, nurses and engineers get access to the vast markets in East Asia. The trading partners, however, decided on at least three set of rules — one for eight Asean members and two separate sets of norms for Philippines and Indonesia that feared adverse impact of India's entry into their markets.
India is learnt to have agreed to the Philippines's demand to ensure that contractual service supplier (CSS) are persons who are executives, managers or specialists and have been an employee of a local entity. Even Vietnam and Indonesia's concerns on the issue have been addressed, a source privy to the discussions said.
With the long-awaited deal out of the way, PM Manmohan Singh said trade between India and the 10-member trading bloc will exceed $100 billion by 2015 and set a target of reaching $200 billion over the next decade. India, whose services sector contributes about 55% in the country's economic growth, was very keen to enter the Asean market as it will help Indian companies tap the markets easily.
VistaJet, the Switzerland-based luxury aviation company that operates private jets for top corporates and business honchos, thinks some government regulations are working against this niche sector's growth and should be re-looked at.
Thomas Flohr, founder and chairman of VistaJet, said some of the issues faced by private operators include delays in getting statutory clearances, lengthy paper works in all destinations of port and cash payment hurdles.
"Schedules of our clients who happen to be business heads are not known in advance, but the regulation says that there needs to be an application before a certain number of days (six days). This either delays the trip or cancels it," Flohr said in an interaction with IANS.
"We operate nearly 10 times the number of operations from Moscow than, compared to India. This is not because India is a smaller market but because of some regulations that hinder the private jet industry," Flohr said.
VistaJet is one of the fastest growing private jet operators in the world and is eying to expand presence in the fast-growing Indian market, which itself is growing between 10-15 percent year-on-year and is expected to reach a market size of Rs.1,600 crore ($290.90 million) by 2017.
Flohr said the company has had an interaction with government officials and that he was confident that some changes may take place.
The company recently placed the biggest order in business aviation history. It ordered for 142 aircraft which includes a firm order for 56 jets and an optional 86 more worth over $7.8 billion from Canadian aircraft manufacturer Bombardier.

INDIA MANAGEMENT
Difficult times for someone could be the most opportune time for another. Daniel Chopra, managing director of Doehle Danautic, is setting another example with an innovative offering to Indian shipowners who find the goings tough due to the various pressures due to depressive climate prevailing in shipping trade.
The 11-year-old shipping service provider, Doehle Danautic is very much an India-focussed company and offers a plethora of services including crew management, technical management, commercial management, chartering, NVOCC / freight forwarding, training and ship agency. Its latest offering is an unique package that promises to take away some of the major worrisome elements that trouble shipowners while operating their fleet. While announcing the company's tie-up with Singapore-based Thome Ship Management, the 50-year-old provider of integrated ship management services to the international shipping and offshore industries, Mr Chopra, on Wednesday in Mumbai, said: "We have cargo available and Thome have ship management expertise. So we combine and offer commercial management, technical management and crew management together as a package out of a single office,".
"It is a package that any ship owner would find difficult to refuse," said Mr Chopra, implying the various advantages that such an engagement would entail, especially in these difficult times when every operator is trying to optimise and deploy various cost saving measures.

INSURANCE
The new Mobile Rhino app offers six points of protection including coverage for loss, theft, ID theft, accidental damage, electrical and mechanical malfunctions. The coverage is available to individuals, business and schools.
Many carriers offer buyer protection programs from companies like Asurion, but Mobile Rhino’s creator Dwight Stuckey says Asurion has a much higher deductible of $144 - $199 for device replacement versus the $99 Mobile Rhino charges for iPad or iPhone.
Another distinction is the inclusion of Mobile Rhino’s Digital Life protection that extends beyond device replacement. Once a claim is filed for a lost or stolen device, Mobile Rhino can help the user wipe their device and provides personal privacy monitoring to protect against ID theft.
“There are a ton of tablets out there, but no other insurance program is available through licensed agents, and there are warranties like Apple Care that’s not the same as insurance,” said Stuckey who’s company Stuckey & Company provides a range of specialty insurance products.
Mobile Rhino is sold and managed through a downloadable mobile app and is said to the first mobile device insurance product available for sale through licensed insurance agents. It’s underwritten by Chartis/AIG and Sedgwick serves as its third-party claims administrator.
A social security insurance scheme for the unorganised sector is likely to be the next big announcement the government will make as part of its inclusive politics agenda in the run-up to the 2014 general elections.
The government is gearing up to launch the scheme, flagged by the National Advisory Committee ( NAC) headed by Congress president and United Progressive Alliance ( UPA) chairperson Sonia Gandhi. She held a meeting of the NAC today, where department of financial services secretary D K Mittal and labour secretary M Sarangi made a presentation on the salient features, coverage planned, implementation plan and timelines for implementation of the Comprehensive Social Security Insurance Scheme ( CSSIS). In its meeting in March this year, the NAC had pulled up the government for its failure to formulate a social security programme for unorganised sector workers, estimated to be 430 million, though the Unorganised Workers’ Social Security Act was passed three years ago. NAC pointed out this lapse on the part of the government in a communication to the latter.

INTERNATIONAL BUSINESS
The PC maker's unusually designed laptop computer that doubles up as a tablet with a 360 degree swiveling screen, has created a buzz ever since its debut at the Consumer Electronics Show 2012. Techies and tablet lovers worldwide have been eagerly waiting to lay hands on the tablet computer. The device has stolen the spotlight for its unique hardware offering - laptop and tablet in a single device.
"The product is targeted at individuals who want to enhance their performance at work and play through one extraordinarily light device that offers flexible multi-modes. Despite having two devices rolled into one, the Yoga is unbelievably thin, offering the user great mobility and convenience," said Rajesh Thadani, Director, Consumer Business Segment, Lenovo India at the launch event in Bangalore, according to Business Today. Ideapad Yoga 13 ships with a 13.3 inch, 1600 x 900 pixel IPS display and is powered by an Ivy Bridge (3rd generation Core family) processor. The device weighs 1.54Kgs and measures 0.6 inch in thickness. On the connectivity front the hybrid device supports 1 USB 3.0 port, 1 USB 2.0 port, HDMI output, an SD card slot, 802.11n WIFI and Bluetooth 4.0.The device is designed to enable users to swivel its display in different angles, and hence use it as tablet, laptop and all-in-one desktop like configuration.
International Business Machines Corp. (NYSE:IBM) has been rated by Topeka Capital at an initial level of PT $ 245. However, the analysts working at Topeka consider IBM as a significant place for investment in coming year because of its tendency to cause an expected large scale innovation in cloud computing in future, which will definitely serve as a source for a noticeable surge in the income levels of the company.
Additionally, shareholders are inclined to sell their stocks in the company, as it is not offering favorable financial returns on the investment for the past few years.
But, according to analytical view it is not the case because, IBM is one of those companies which invested in R&D when financial outlook was grim due to recession, therefore, the company could offer sizable income in terms of dividends to the shareholders.
At the current trading session, International Business Machines Corp. (NYSE:IBM) shares are down -0.56% to $193.67 while the stocks are trading within the range of $191.57 – $194.50. In the past year, the stock has traded within a range of $177.35 – $211.79. Average daily trading volume is 3.92 million shares.
If we look at a few other stocks within industry, Hewlett-Packard Company, Teradata Corporation and Cray Inc were in the top volume leaders. Let’s have a quick look on their Market performance.
Hewlett-Packard Company (NYSE:HPQ) shares are down -1.46% to $14.22 while the stock is trading within the range of $14.05 – $14.32 in the current trading session. In the last 12 months the shares have traded between $11.35 and $30.00. The average daily trading volume is 35.40 million shares.

LOGISTICS
Kolkata-based Prayag Group on Saturday launched helicopter services in Bengal with an investment of nearly Rs 100 crore. The Group is involved in diversified businesses starting from food processing to real estate.
According to a release, the company will cater helicopter charter service mainly to corporate houses to locations across West Bengal, beginning next week. A Bell 407 helicopter with a capacity to carry six passengers will be used for the service.
An hour’s trip will cost approximately Rs 90,000, the release said. “It has been the need of the hour to provide a continued and safe helicopter services….The primary requirement in this case is a quick turnaround time in fulfilling business assignments in the not-so-well connected areas,” Avik Bagchi, Managing Director of Prayag Group said.
He added that the company is planning to expand the service to the North-Eastern region. It has also plans for joy ride services and pilgrim tourism.
With a British court awarding Rs 1,650 crore compensation in a law suit, defunct Paramount Airways is working on a revival plan and talking to overseas carriers for investment, according to industry sources.
“Paramount is quite upbeat over the Rs 1,650 crore compensation awarded by a London-based international arbitration court. With this money on the table, the carrier has initiated its efforts to take to wings again,” a source close to the development told PTI here.
With the aviation regulator DGCA giving its nod to the airline to restart operations a couple of months ago, the airline is now in discussion with certain foreign carriers, taking advantage of the recent liberalisation of the FDI policy in aviation.
In all probability, the airline may take off again by the early next fiscal, the sources said.
“Paramount promoters recently held preliminary discussions at the board level with some Far-East based carriers and a Gulf-headquartered airline to rope in one of them,” the source said, adding one top official of a low-cost carrier held deliberations in Coimbatore to explore investment possibilities.
“However, the airline has not yet decided whether it should re-launch the carrier with the same business model of full-business class or it should go with the trend of no-frills model,” the source said.
Director General of Civil Aviation (DGCA) had suspended Paramount Airways in April 2010 for its failure to maintain the mandatory minimum of five aircraft in its fleet.
Paramount, which had an original fleet of five leased aircraft, was operating with a single one at that time as three of its planes were de-registered on account of default in payment.

MANAGEMENET
IT hardware maker HCL Infosystems today partnered ESi Acquisitions to distribute the US-based firm's crisis information management software (CIMS) in the country.
The two companies have signed a Memorandum of Understanding (MOU) to co-operate for joint initiatives and the partnership is expected to create new market opportunities and contribute to the expansion of the crisis management solution market in the country, HCL Infosystems said in a statement. "We believe that there is a tremendous opportunity for both the companies to pursue in providing WebEOC software and services to government and private corporations," ESi Acquisition Director Paul Butler said.
Introduced in 1998, WebEOC is an Internet-enabled and locally-configurable incident and event management system. Using it, authorised executives and emergency managers can communicate and collaborate in managing daily operations and support emergency management functions.
WebEOC is currently installed in over 750 organisations globally in various languages. "The partnership will further strengthen our portfolio and together, we will be able to achieve robust success and create new benchmarks in the Indian market," HCL Infosystems President (Enterprise Solutions) Neeraj Jaitley said.
Ventas, Inc. (NYS: VTR) ("Ventas" or the "Company") announced today that it executed a transaction whereby Ventas and the management team of Atria Senior Living, Inc. ("Atria") own 100 percent of Atria, effective December 21. Atria's Chairman and Chief Executive Officer John A. Moore will continue to lead Atria, one of the nation's premier providers of senior living care services.
In the transaction, Ventas acquired 100 percent of various private investment funds (the "Funds") previously managed by Lazard Frères Real Estate Investors LLC ("LFREI") or its affiliates. The acquired Funds now own (a) a 34 percent interest in Atria and (b) 3.7 million shares of Ventas common stock. The total purchase price for these interests was approximately $242 million. Atria's executives and employees, including Moore, now own 66 percent of Atria.
"We are excited to complete this strategic transaction, creating additional alignment and capacity to grow our private pay senior housing business with Atria," Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. "Atria is one of the nation's premier providers of care to seniors, with a robust reporting and regulatory infrastructure. Its experienced team has delivered outstanding results. We are proud to expand our relationship with Atria, ensure its continued success and create additional opportunities for growth," she added.
MARKETING
MOBILE device applications (apps) are not marketed well enough in South Africa to make substantial money for their developers or companies, according to World Wide Worx.
Mobile apps are a multi billion-dollar industry in the US, Europe and Asia, but have not yet taken off commercially in South Africa.
Arthur Goldstuck, MD of business technology research company World Wide Worx, said on Thursday that online retail sales should do well next year, but downloadable apps for cellphones, tablets and other mobile devices had a long way to go before they broke out of a niche market.
He singled out FNB, News24 and Ster-Kinekor’s apps as being among the best locally produced. "These are apps which large companies have designed well and which customers have reacted to," Mr Goldstuck said.
"Our research found that South Africans do not get enough information … from applications used on cellphones, tablets and the like. This is especially with respect to applications used to encourage buying decisions."
Mr Goldstuck said PriceCheck, an app built in South Africa which allows comparisons of the prices of the same product at different shops, was well made.
Property24, appening, a gig guide for Johannesburg which can be downloaded onto cellphones and bidorbuy are also gaining popularity, the research showed.
The electronic gig guide’s founder, Dale Amler, said yesterday that success was a result of the strength of the idea.
"We have identified a need. People have asked what is there to do and I believe appening has answered that question. Anyone can add an event straight onto the app," Mr Amler said.
Volvo Auto India (VAI) will bring its Rs 25 lakh car, V40 Cross Country, unveiled recently in Paris, to India in March or April 2013 and increase its overall marketing budget in the country from Rs 16 crore to Rs 20 crore next year, a senior company official said here on Thursday.
Commercially, this car will become available in the country in May-June 2013.
Also, the company could take a call next month to increase prices by 5%, although other carmakers have already effected a 6-8% price hike in the country, said Sudeep Narayan, Director-Marketing and PR.
VAI, which appointed a dealer in Ahmedabad, hopes to sell 1,200 cars in Gujarat in 2013, as compared to 800-plus in the current calendar year. By 2020, it expects to sale 20,000 cars in the country, out of 150,000 luxury cars expected to be sold that year, said Tomas Ernberg, Managing Director.
Volvo Auto, which commenced operations in the country in 2007, currently has 11 dealers across India.
Globally, the Swedish major is targeting to increase its current sales of 440,000 to 800,000 by 2020.

ODISHA BUSINESS
The National Green Tribunal (NGT) has sought replies of the Union and the Odisha governments and Essar Steel to a plea accusing the firm of drawing water from Baitarani river without forest clearance to facilitate iron ore transport.
An NGT bench of its acting Chairman Justice A S Naidu and expert member P C Mishra directed against use of the river water contrary to the agreement between the state government and the Essar Steel Orissa which was also ordered not to execute the project without Forest Clearance.
“Issue notice to the respondents both ways ie by registered post/acknowledgement due and by dasti. The water from river Baitarani shall not be used contrary to the agreement for the purpose for which the clearance has been granted. Respondent No 5 (Essar Steel) shall not go ahead with the construction of the project without obtaining Forest Clearance.
“List the matter on February 6, 2013, for appearance and filing replies,” the bench said.
The tribunal’s order came on a plea by Odisha natives Sarbeswar Mishra and Murli Manohar Sharma, through their counsel B P Tripathy, challenging as “illegal, arbitrary and unreasonable” the decision of the Centre and the Odisha government allowing Essar Steel to draw water from the river for transportation of iron ore through slurry pipelines and for other industrial purposes.
In their plea, they have also sought NGT’s directions to restrain construction of water intake wells and pumping stations by Essar Steel for drawing water from the river.
Referring to a Memorandum of Understanding signed between Essar Steel and Odisha Government on April 21, 2005 to set up a steel power plant at Paradeep in Jagatsinghpur district, the applicants said “under the project Essar Steel has proposed to set up a 10.7 MTPA capacity iron ore benefaction plant at village Dubuna in the district of Keonjhar, Odisha”.
Distribution companies (discoms) operating in Odisha have floated tenders of Rs 805.29 crore for implementing the capital expenditure (capex) programme aimed at slashing AT&C (aggregate technical and commercial) losses.
In a written reply to the state assembly, minister (energy) Arun Kumar Sahoo said work order of Rs 395.15 crore has been placed by the discoms. "Materials are now being received and some of the turnkey projects have already been started. The proposed date of completion of this programme is March 2014,” he added.
Inadequate counterpart funding from three distribution companies (discoms) - North-Eastern Electricity Supply Company of Odisha ( Nesco), Southern Electricity Supply Company of Odisha (Southco) and Western Electricity Supply Company of Odisha (Wesco) has hit implementation of the Rs 2,400-crore ambitious capital expenditure (Capex) programme in Odisha.
Nesco, Wesco and Southco controlled by Reliance Energy have managed to arrange counterpart funding of around Rs 80 crore against requirement of Rs 120 crore for Capex implementation in the first phase that was to be completed by March 2013.
The other discom- Central Electricity Supply Utility of Odisha Ltd (Cesu), currently managed by power regulator- Odisha Electricity Regulatory Commission (OERC), has contributed its share of counterpart funding of Rs 78 crore for the first phase.
The Capex programme was conceptualised in 2010-11 with an outlay of Rs 2400 crore.

RETAIL
The government today said FDI in multi-brand retail would boost the growth of the food processing industries and invited private players to invest in this sector to tap the huge potential.
"The steady emergence of the organised food retail and the decision to allow FDI in multi-brand retail will surely take the Indian food processing industry to greater heights," Minister of State for Agriculture and Food Processing Tariq Anwar said at the Third International Potato Expo 2012 organised by Indian Chamber of Commerce. The private sector must join hands with the government in improving the prospects of the food processing sector, the minister added.
Potato and potato-based products, which contributes 85 per cent of the USD 3 billion Indian snack market, would be a major contributor to the growth in the food processing sector, he added.
"I would urge the Indian Chamber of Commerce to rope in investors and entrepreneurs interested to set up processing units for potato and also other food items," Anwar said, adding that Food processing Ministry is providing fiscal incentives for setting up projects.
The Minister saisd that the government is targeting to increase the level of processing of perishable items from 6 per cent to 20 per cent, value-addition from 20 per cent to 35 per cent and share in global food trade from 1.5 per cent to 3 per cent by 2015.

The back-and-forth over a safety net for investors is coming to an end. Market regulator Sebi is inclined to introduce a series of measures to beef-up retail investor safety in the New year, reports, CNBC-TV18’s Sajeet Manghat and Sandeep Srikanth.
Sebi chairman, UK Sinha's pet project -- investor protection -- is all set to get a leg-up. Nearly two months after releasing a draft paper on a safety net mechanism, indications are the market regulator is leaning towards increasing safety for retail investors. Once who invest in IPOs and especially against mispricing of issues.
"The safety net paper is not meant to actually compensate the investors. The whole rationale behind it is to ensure that there is some amount of sanity in pricing. My feeling is that if there is a good pricing and the disclosure are correct and well laid out, issues will be successful," he said.
Sebi's draft proposal seeks to shield any IPO investor who invests upto Rs 50,000 and caps the safety net at 5 percent of the issue proceeds. Exchanges have voted supporting the proposal, especially given the huge variance in information available about various issues, which affects pricing.
Ashish Kumar Chauhan, MD & CEO, BSE said, "Irrespective of the size of the prospectus there is huge asymmetry of information. That is between the company and the investment banker. What is transpiring in from a prospectus is even more asymmetry vis a vis what a person is going to read. Assuming a retail investor has enough time to read up 1000 pages, there is still a huge asymmetry of information. Some where along the line the pricing is not only about the fundamental of the company but also about variety of things."

SUPPLY CHAIN
Sharing is in vogue, and not just in social media networks.
Increasingly, corporations are opening up and reporting more of their non-financial information. In 2011, only around 20 percent of the Fortune 500 reported their performance on environmental, social and governance (ESG) issues, but that jumped to 57 percent this year, according to a new report from the Governance and Accountability (G&A) Institute, which saw similar growth among S&P 500 firms. What's more, this and other recent reports -- from research firm Verdantix and the Underwriters Lab (UL) -- show firms slow to embrace transparency are likely to suffer by losing the faith and patronage of an increasingly inquisitive and empowered consumer base. Manufacturers' supply chains used to be largely invisible and unimportant to consumers, but that is changing fast, in part because consumers both in developed and developing markets are demanding more transparency.
"Consumers are more informed than ever about what brands are responsible," says Sara Greenstein, president of UL Environment.
To grab more business opportunities in the Windows 8 touch-panel market, Chimei Innolux Corp. (CMI), the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, is developing its touch-panel integrated supply chain in the Southern Taiwan Science Park (STSP) to meet strong demand from tablet and notebook PC customers, according to industry sources.
The panel supplier has set up a production line with monthly production capacity of 500,000 WIS (Windows Integration System) panels.
Institutional investors pointed out that CMI aims to boost its market share in global tablet- and notebook-panel to more than 20% in 2013, from about 11% in 2010 and 16% in 2012. By the end of 2012, CMI aims to double its monthly touch-panel capacity to 200,000 to 220,000 panels.
Currently, CMI`s touch-panel shipments are mainly Glass-on-Glass (G/G) type products produced by a 4.5th-generation (4.5G) line in Chunan, northern Taiwan, and a new 4.5G touch-sensor line in STSP.
Industry sources said that touch-panel shipments enjoyed rapid increase in the past two years, and are expected to continue enjoying clear advancement in the next three years; while demand for such products for mainly small- and medium-sized applications in smartphones and tablet PCs will develop into larger-size applications thanks to the Windows 8 OS applications in other types of computing devices.
The sources said that CMI owns the most comprehensive generations of panel factories, making it very flexible to shift production lines to produce touch panels.

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Source of Information for this issue: Google alert accessed on 24th, 25th and 28th Dec 201­­­­­­­­­­­­­­­­­­­­2
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Compilation
 Sabita Sahu
Professional Library Trainee
Concept, Layout and Editing
Syamaghana Mohanty
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 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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