ASBM Business Updates is a Weekly Selective Compilation of Business News from Various Sources. To find details follow the links.
ASIAN
BUSINESS
Oil was up
in Asian trade today as a completed US pipeline expansion project reduced
oversupplied US inventory stocks, giving oil futures a positive nudge, analysts
said.
New York’s
main contract, light sweet crude for delivery in February, rose 60 cents to
$94.16 a barrel and Brent North Sea crude for February delivery gained 34 cents
to $110.98.
The Seaway
Pipeline expansion completed on Friday means 400,000 barrels of crude oil can
now be brought each day from the oversupplied mid-continent market around
Cushing, Oklahoma, to refiners on the Gulf Coast.
Previously,
only 150,000 barrels could be transported to refiners, leading to a build-up in
stocks.
“Crude
prices have been going up because the pipeline started up with expanded
capacity, reducing the crude inventory in Cushing,” said Victor Shum, Managing
Director of IHS Purvin and Gertz in Singapore.
A fall in
inventory stocks usually indicates an increased demand for oil that supports
prices.
The demand
for oil in the US, which is the world’s largest oil consumer, has the ability
to affect global oil prices.
Asian
stocks posted modest gains Tuesday after Fed chief Ben Bernanke said the
central bank's bond buying is providing crucial support for the U.S. economy,
suggesting it will continue despite divisions with the Fed.
The Nikkei
225 in Tokyo, meanwhile, reached its highest intraday level in more than nine months
as investors scooped up shares amid a weaker yen and major stimulus measures
from the new government to help Japan's struggling economy.
The Nikkei
rose 1.3 percent to 10,936.14. Hong Kong's Hang Seng rose 0.1 percent to
23,443.35. Australia's S&P/ASX 200 added 0.2 percent to 4,726.60. South
Korea's Kospi fell 0.5 percent to 1,997.15.
In a
speech in the U.S. on Monday, Bernanke said the U.S. Federal Reserve's
bond-buying program, dubbed quantitative easing, was providing key support for
the economy and made no mention of winding the program down, even though some
Fed officials recently said they favor doing that.
The U.S.
central bank has been buying $85 billion a month in Treasurys and mortgage
bonds to try to keep borrowing costs low and encourage more spending.
Analysts
at Credit Agricole CIB in Hong Kong said in an email commentary that markets
found some relief in Bernanke's speech as it did not repeat the views of some
Fed officials in hinting at an early ending of quantitative easing.
This week,
investors will assess a slew of data for signs of growth in the U.S. and China,
the world's two largest economies. Retail sales in the U.S. for December are
due later Tuesday, as are quarterly earnings from big U.S. banks including
JPMorgan Chase, Citigroup and Bank of America.
BANKING
BankMuscat SAOG (BKMB), Oman’s biggest bank by assets,
received a license to offer services complying with Shariah as it seeks to
benefit from the industry’s growth prospects. The bank will open seven
so-called Islamic windows this year operating under the brand “Meethaq Islamic
Banking,” according to a regulatory filing today.
The move comes after the Persian Gulf country
approved licenses for two Islamic banks last year. Islamic banking assets in
Oman may account for a 10th of the total within a year of the lenders starting
services, Hilal Al Barwani, vice president of banking supervision at the
central bank, said in October. National Bank of Oman SAOG said in June its shareholders
approved starting Islamic banking.
Global Islamic financial assets may double to $3
trillion by 2015, according to Standard & Poor’s.
BankMuscat shares have gained 6.1 percent this year. The shares dropped 11
percent in 2012.
A study released in 2011 by the U.K.-based Islamic Finance
Advisory & Assurance Services found that of the 86 percent of Omanis who
bank with non-Islamic lenders, 60 percent are “bothered” by using products
based on interest. Islamic law bans the payment and receipt of interest as well
as investments in businesses such as those involving tobacco, alcohol, pork and
gambling.
Misys, the global financial
services software solutions, has launched mobile versions of its award-winning
trade finance and cash management products to help its regional banking
customers in the Middle East meet the growing demand from corporate clients for
such services. In
a recent Misys survey into global transaction banking trends, almost half of
all responding bank representatives stated that mobile channel development for
their corporate customers was a priority for the next 12 months, and nearly
two-thirds had it as a priority on which to focus in the next three years.
"The majority of consumers make payments, transfers and view statements online and increasingly via mobile devices," stated Tim Tyler, Global Product Manager at Misys.
"With this being the norm for consumers, corporate treasurers and transaction banking professionals now expect all their services from banks to be available to them via the same channels as their personal banking services. Misys Mobile for Transaction Banking will allow banks to enhance their service offering to their customers through this additional channel, providing another way in which users can view and manage transactions whenever they require and irrespective of their location," he added.
"The majority of consumers make payments, transfers and view statements online and increasingly via mobile devices," stated Tim Tyler, Global Product Manager at Misys.
"With this being the norm for consumers, corporate treasurers and transaction banking professionals now expect all their services from banks to be available to them via the same channels as their personal banking services. Misys Mobile for Transaction Banking will allow banks to enhance their service offering to their customers through this additional channel, providing another way in which users can view and manage transactions whenever they require and irrespective of their location," he added.
BUSINESS
The Adani
group, 512599.BY +0.21% one
of India's largest infrastructure conglomerates, is looking to buy a private
sea port on India's eastern coast for around $1 billion, Chairman Gautam Adani
said.
The group expects to complete the acquisition by the
end of the current financial year through March, he said in a recent interview.
Mr. Adani didn't name the target port.
The Adani group, with annual revenue of $7.5 billion
and based in the western Indian city of Ahmedabad, is bullish on the ports
sector because it expects the country's merchandise trade to grow.
The group is a major player in the power and ports
sectors, and owns coal mines in Australia and Indonesia. Three of its
companies--Adani Enterprises Ltd., Adani Ports & Special Economic Zones
Ltd. and Adani
Power 533096.BY -1.15%
Ltd.--are listed on the Bombay Stock Exchange and the National Stock Exchange.
The group runs one of India's largest ports, at
Mundra in western India. It is also developing ports in Dahej, Hazira, Goa and
Visakhapatnam.
Mr. Adani, ranked India's 16th richest by the Forbes
magazine, said the group has bid for developing a container terminal at a
state-run port in the southern Indian city of Chennai, a project which if it
wins would involve an investment of around $1 billion.
The Nifty was hovering
near the day's high on Monday, led by gains in DLF, HCL Tech, Infosys and TCS,
as positive global markets and clarity on GAAR by finance
minister P Chidambaram provided support to the benchmarks.
Giving a big relief to overseas investors, the
government postponed implementation of controversial GAAR provisions by two
years to April 1, 2016. "Having considered all the circumstances and
relevant factors, the government has ...decided that provisions of Chapter 10A
of the Income Tax Act (dealing with GAAR) will come into force from April 1,
2016 as against April 1, 2014," Chidambaram said.
WPI inflation for December at 7.18 per cent against
7.24 per cent in November also raised hopes that the Reserve Bank of India may
announce a rate cut even as the inflation remains above the Reserve Bank of
India's comfort zone.
At 02:15 pm, the 50-share Nifty index was at
5,999.15, up 47.85 points or 0.80 per cent. It touched a high of 6,008.40 and a
low of 5,962.15 in trade today.
The Bombay Stock Exchange's Sensex was at
19,817.21, up 153.57 points or 0.78 per cent. The index touched a high of
19,864.86 and a low of 19,689.09 in trade today.
The BSE Midcap Index was
up 0.87 per cent and the BSE Smallcap Index moved 0.55 per cent higher.
The BSE Realty Index was up 3.65 per cent, the BSE
IT Index moved 2.44 per cent higher and the BSE Capital Goods Index gained 1
per cent. The BSE Auto Index was down 0.60 per cent and the BSE Healthcare
Index edged 0.01 per cent lower.
Shares of IT companies led the upmove on the back of
better-than-expected results from Infosys. Foreign brokerages have upgraded the
stock and increased target price as well.
BUSINESS
COMMUNICATION
Rogers Communications
announced today that it has signed agreements with Shaw Communications to
secure an Option to purchase Shaw's AWS spectrum holdings in 2014, and to
acquire Shaw's cable system in Hamilton, Ontario - Mountain Cablevision Limited
("Mountain"). Shaw will also acquire Rogers' one-third interest
in TVtropolis and will enter into negotiations with Rogers for the provision of
certain services in Western Canada. Rogers net cash investment is expected to
total approximately $700 million once all aspects of the transactions are
completed.
"The
agreements will benefit businesses and consumers across the country and fit
squarely within our focused, strategic game plan," said Nadir Mohamed,
President and Chief Executive Officer. "We're investing in spectrum to
ensure our customers continue to enjoy the incredibly fast speeds and
throughput they crave, while ensuring our continued network leadership. We're
also strengthening our Cable portfolio by acquiring a valuable cable business
which complements our existing Ontario cable system allowing us to deliver even
more value for our customers and shareholders."
Data usage
is exploding and additional wireless spectrum is needed to meet this growing
demand by consumers and businesses for mobile Internet services. The
acquisition of Shaw's unused spectrum will ensure Rogers maintains its network
leadership position, particularly in Western Canada where Rogers has a
significant share of the wireless market. Shaw's AWS spectrum holdings cover
188 million MHz POPs including 20 MHz across B.C., Alberta and Manitoba and 10
MHz in select B.C., Alberta, Saskatchewan and Northern Ontario markets.
Under this agreement Rogers has acquired an option to purchase this spectrum
and the option may be exercised only following receipt of Industry Canada and
Competition Bureau approval. If approved by Industry Canada and the
Competition Bureau, the purchase of the spectrum following an exercise of the
option would likely take place in late 2014.
XO
Communications announced today that TMC,
a global, integrated media company, has named XO
Hosted PBX as a recipient of the 2012 INTERNET
TELEPHONY Product of the Year Award for being one of the most
innovative IP communications services over the past year. XO Hosted PBX
can be fully integrated with the company’s Concentric Cloud
Contact Center service, which also received the 2012 INTERNET TELEPHONY
Product of the Year Award, to provide an end-to-end solution for customers’
communications and contact center needs.
“More and more businesses are moving to hosted VoIP
solutions because of the cost, easier management and productivity
benefits. XO Hosted PBX delivers on each of these needs by providing a
fully integrated solution, all the way from the network and IP phone sets to
the VoIP features hosted in the XO cloud, with the quality and reliability that
other hosted offerings just can’t deliver,” said Don MacNeil, chief marketing
officer at XO Communications. ”XO Communications is very proud to once
again be recognized by TMC as a leader in delivering innovative IP
communications solutions for businesses.
XO Hosted PBX helps businesses reduce costs,
simplify the management of their communications environment, and enjoy the
productivity benefits of VoIP. With features that include HD voice,
integrated messaging and mobility capabilities for on the go employees, XO
Hosted PBX is an end-to-end solution that combines IP phone sets and network
and voice services all for a predictable monthly price. In addition, because
the service is delivered over the XO nationwide fiber network, customers
benefit from superior quality and reliability compared to other services
delivered over the public Internet.
BUSINESS
MANAGEMENT
It should come as no surprise to learn that mobile
devices are outselling all other types of computing technology. iPhones, iPads,
Android phone, Android tablets, eReaders and, yes, even Windows phones and
tablets, are vastly outselling the traditional desktop or laptop computer.
This has been the case in the consumer sector for
some time now, and it's trending in the business marketplace as well.
With the proliferation of mobile devices, it was
inevitable that they would become mainstream in the workplace. Whether you
provide mobile devices to your staff or allow them to bring their own into your
workplace, you need to have appropriate policies in place to govern their use.
If you think a policy to govern the use of mobile
devices may not be necessary for your business, consider the following
statistics: 81 percent of people who have a mobile device use it for work
purposes, even if it is a personal device. That is, eight out of 10 people who
have a mobile device connect it to their work networks. Sixty percent of these
same people use a line-of-business application on their mobile device. Just to
be clear, in this case a mobile device is a smartphone or tablet, but when it
comes to basic services like e-mail, some eReaders may need to be taken into
consideration as well.
When I call something a line-of-business
application, sometimes referred to as an LOB, this could be your company sales
database, accounting application or other software system that performs a very
specific function in your business. This means that of eight people who use
their mobile device for work purposes, nearly five of them also have some very
specific company data on their mobile devices as well.
FINANCE
Petronet
LNG Ltd, the nation's largest liquefied natural gas importer, today
reported its highest ever quarterly profit of about Rs 319 crore on higher
imports.
Net profit in October-December quarter at Rs 318.50
crore was 8 per cent higher than Rs 314.79 crore in the same period a year ago,
Petronet Director (Finance) R K Garg said. The profit increased on account of
better margins for turning LNG (gas turned into liquid at minus 160 degrees
Celcisus) back into its gaseous state and handling of higher volumes, besides
greater operational efficiency.
"During the quarter, the company operated the
Dahej terminal at 110 per cent of its capacity," Garg said.
The 10 million tons a year import facility in
Gujarat handled 140 Trillion British thermal units of gas leading to a turnover
of Rs 8,423 crore, 33 per cent more than the turnover in the October-December
quarter of last fiscal .
Garg said Petronet will expand the Dahej terminal to
15 million tons by end of 2015 or early 2016.
Its 5 million tons Kochi terminal is expected to be
commissioned by April end but in absence of pipeline connecting Kochi to
Bangalore and Mangalore, the facility will operate at less than 10 per cent of
the capacity.
"We are ready more or less to begin Kochi
terminal. Initially, gas will be supplied through a 44-km line connecting to
local consumers," Garg said, adding that GAIL will complete the
Bangalore/Mangalore pipeline by 2015-16.
Also, the Board of Directors at its meeting in Goa
yesterday granted final investment decision to set up its third LNG terminal
with a capacity of 5 million tons per annum at Gangavaram in Andhra Pradesh.
On BSE, 57,000 shares were traded in the counter as
against average daily volume of 31,744 shares in the past one quarter.
The stock hit a high of Rs 264.05 so far during the
day, which is also a record high for the counter. The stock hit a low of Rs
250.70 so far during the day. The stock had hit a 52-week low of Rs 97.45 on 12
January 2012.
The stock had outperformed the market over the past
one month till 11 January 2013, surging 14.35% compared with the Sensex's 1.43%
rise. The scrip had also outperformed the market in past one quarter, jumping
37.88% as against Sensex's 4.57% surge.
The mid-cap company has equity capital of Rs 14.75
crore. Face value per share is Re 1.
Shares of Bajaj Corp had risen 6.73% in three
trading sessions to settle at Rs 255 on Friday, 11 January 2013, from a recent
low of Rs 238.90 on 8 January 2013. The stock had surged 4.21% to settle at Rs
255 on Friday, 11 January 2013, boosted by strong Q3 results announced by the
company during trading hours.
The company's net profit jumped 46.1% to Rs 42.20
crore on 31.8% growth in net sales to Rs 148.06 crore in Q3 December 2012 over
Q3 December 2011.
As a part of its growth strategy, Bajaj Corp will
seek inorganic growth opportunities in the FMCG and hair oil market. The
inorganic growth opportunities will focus on targeting niche brands which can
benefit from the company's strong distribution network so that the acquired
brands can be made pan India brands.
Bajaj Corp's board of directors at a meeting held on
Friday, 11 January 2013, recommended an interim dividend of Rs 6.50 per share
for the year ending March 2013. The company has set 25 January 2013 as the
record date for payment of dividend.
Bajaj Corp is an FMCG company with major brands in
hair care category. The company's product portfolio includes Bajaj Kailash
Parbat Thanda Tel, Bajaj Almond Drops Hair Oil, Bajaj Brahmi Amla Hair Oil,
Bajaj Amla Shikakai Hair Oil and Bajaj Jasmine Hair Oil.
INDIA BUSINESS
Sony
Corporation is looking to replicate its Indian subsidiary's style of working in
the European business by synchronizing different verticals to have better
growth, its Europe chief said.
Sony
Europe's President Masaru Tamagawa joined the operations of the region in July
last year and is highly appreciative of the business
model in India, where he had led the company for five years from 2007.
"We
want to replicate everything of India in Europe. The working style of various
divisions, including product strategy, distribution channel and marketing, are
very good in India and we want to replicate these in Europe," Tamagawa
said on the sidelines of the Consumer Electronics Show.
Sony
Europe wants to synchronize different verticals of the company like that in
India to have better growth in the region, he added.
Although
Sony India's revenue contribution is very small compared to Sony Europe,
Tamagwa said: "India is much ahead of Europe (in working style)."
Sony
Europe, which comprised the UK, France, Germany, Russia, Spain and Sweden,
recorded net sales of 300.24 billion yen (about Rs 18,930 crore) during the
quarter ending September 2012 compared to 293.49 billion yen (about Rs 15,100
crore) in the year-ago period, up 2.3 per cent.
The
British Columbia government is sponsoring a global business forum on B.C.-India
trade in March as part of a broader initiative aimed at taking advantage of the
growing trade links between this province and the sub-continent.
India’s
growing importance in B.C.’s resource-based economy is underscored by the rapid
increase in exports that at least one Indian business leader expects to top the
billion-dollar-a-year mark within five years.
“India
offers huge investment and export opportunities for B.C. business,” Barj
Dhahan, chairman of the Canada-India Foundation, said in a news release on the
forum. “I believe we can grow our exports to $1 billion per annum within the
next five years.
India is
the world’s 10th largest economy but in terms of purchasing power parity — a
measure of relative consumer prices across countries — it is the world’s third
largest. Canada is currently negotiating a free-trade agreement with India and
Pat Bell, B.C. Minister of Jobs, Tourism and Skills Training, said the province
is lobbying with Ottawa and major airline carriers to initiate direct flights
between Vancouver and India.
INDIA MANAGEMENT
Air India
Ltd might be the country’s oldest airline but the age of its fleet has
reduced to 2.5 years, which not only makes it one of the world’s youngest
fleets but also reduces maintenance cost by as much as 43%.
This is in
sharp contrast to the average fleet age of some 14 years when Indian Airlines
and Air India were merged into one entity in 2007.
At the
time of the merger, the erstwhile Air India
flew double-decked jumbo planes—Boeing 747-400—bought in 1993, and Indian
Airlines was flying Airbus planes bought in 1989.
Air India
has retired most of the older aircraft and kept only a few for VIP flights that
include flying the nation’s President and Prime Minister, for which the
government paid it Rs.532 crore in 2011.
The sudden
youthfulness is largely because of Air India’s mega order of 111 planes—68 from
Boeing Co.
and 43 from Airbus
SAS. Air India received the latest and sixth Boeing 787 Dreamliner on 4
January. The state-owned firm had ordered 27 Dreamliner aircraft, which were
originally scheduled to start joining its fleet by September 2008. At present,
out of 112 planes, 87 are new with an average age of 2.5 years.
Thomas
Cook (India) Limited, India’s largest integrated travel and travel
related financial services company was chosen the “Best Corporate Travel
Management Company" by World Travel Brands.
The World Travel Brands is one of the most coveted of Travel Awards, honouring powerful brands, exceptional individuals & innovative businesses from the Travel, Tourism & Hospitality industries, that have excelled in customer service and developed innovative ways to carve an emphatic identity for themselves. With the winners being selected on the basis of comprehensive profiling of the brand, quality of services and consumer perception, this award is yet another a reiteration of the leadership position of Thomas Cook (India) Ltd.
Representatives across Travel, Tourism & Hospitality industries, including travel agencies, tour and cruise operators, airlines, restaurants and hotels, were present at the event, and the awards were handed over by India’s leading ad film director & ad guru Prahlad Kakkar.
As one of the largest buyers of travel and travel related products and services countrywide, Thomas Cook India’s Corporate Travel Management offers an array of customized corporate solutions that leverage the power of negotiated pricing coupled with the diversity of its product service portfolio. Flexibility in the offering is enhanced by both online and offline solutions and the backing of Thomas Cook India’s 24x7 India Contact Centre. Today, Thomas Cook India effectively manages the travel budgets of business travellers across the corporate segment, including large multinationals, Indian Corporate Houses and SMEs.
The World Travel Brands is one of the most coveted of Travel Awards, honouring powerful brands, exceptional individuals & innovative businesses from the Travel, Tourism & Hospitality industries, that have excelled in customer service and developed innovative ways to carve an emphatic identity for themselves. With the winners being selected on the basis of comprehensive profiling of the brand, quality of services and consumer perception, this award is yet another a reiteration of the leadership position of Thomas Cook (India) Ltd.
Representatives across Travel, Tourism & Hospitality industries, including travel agencies, tour and cruise operators, airlines, restaurants and hotels, were present at the event, and the awards were handed over by India’s leading ad film director & ad guru Prahlad Kakkar.
As one of the largest buyers of travel and travel related products and services countrywide, Thomas Cook India’s Corporate Travel Management offers an array of customized corporate solutions that leverage the power of negotiated pricing coupled with the diversity of its product service portfolio. Flexibility in the offering is enhanced by both online and offline solutions and the backing of Thomas Cook India’s 24x7 India Contact Centre. Today, Thomas Cook India effectively manages the travel budgets of business travellers across the corporate segment, including large multinationals, Indian Corporate Houses and SMEs.
INSURANCE
There
could be a big cheer for India’s insurers in the national budget as the
government plans to reduce service tax on premiums, protect existing policies
from future tax changes, and relax rules on tax deducted at source to encourage
households into buying more insurance cover.
It is also
likely to propose additional tax breaks for pension products, in addition to
the current Rs.1 lakh savings cap, when finance minister P.
Chidambaram presents the budget for 2013-14 on 28 February.
The
revenue department has accepted most of the proposals the insurance industry
suggested during their meeting with Chidambaram a couple of months ago,
according to a finance ministry official.
“Most of
the demands do not have a large revenue implication. But they will provide a
huge push to the insurance sector in terms of cost savings and making
administration easier,” the official said, requesting anonymity. “The revenue
department has agreed to most of them.”
These
steps will be a part of the government’s efforts to funnel household savings
into long-term savings instruments such as insurance and mutual funds. In
September, the government held a series of discussions with life and general
insurance companies and the insurance regulator to suggest steps to revive the
industry.
IndiaFirst Life Insurance Company has launched the
second phase of its corporate social responsibility endeavour, AutoLife, to
promote road safety in association with the Federation of Automobile Dealers'
Association (FADA).
As part of the initiative, AutoLife will now develop
an online community of AutoLife members who enrol voluntarily by walking into
automobile showrooms and taking a pledge.
They would get a username and password to log in to
the AutoLife portal which would have many learning interactions and events on
driving safely and happily on the roads.
“AutoLife is actually a way of life. It’s not about
being enthusiastic about your automobiles, but also on safety,” P. Nandagopal,
Managing Director and CEO, IndiaFirst Life Insurance said at the launch here on
Saturday.
Mohan Himatsingka, President of FADA, said
automobiles dealers should work together with other stakeholders to promote
road safety.
In the first phase of the AutoLife launched last
year, IndiaFirst tied up with automobile dealers to promote the initiative.
INTERNATIONAL
BUSINESS
Mahindra Reva Electric Vehicles, a part of India's
leading auto maker Mahindra & Mahindra Ltd, is ready to take on the
electric car market yet again with its soon-to-be-launched solar-powered
electric vehicle. Mahindra's next generation electric car is named Mahindra e2o
and the car will hit the market in the near future. The company said the new
car has been christened e2o by keeping in mind Mahindra Reva's philosophy of
"inspired by orange to go green" for sustainable living. "The
Mahindra e2o is a game changing development within the personal mobility space
that will help the Mahindra Group usher in a positive change in the lives of
our customers. We are on the threshold of ushering in a new paradigm across the
automotive value chain, by bringing in products and mobility solutions which
will bear testimony to our commitment to create a cleaner environment on planet
Earth. This is significant step towards creating a comprehensive eco-system of
sustainable mobility solutions, encompassing alternative technologies such as
electric, hybrid and fuel cells into our research, development and
commercialisation plans," said Pawan Goenka, President, Automotive &
Farm Equipment Sectors, Mahindra & Mahindra Ltd.
LOGISTICS
Logistics companies operating in Indonesia are
expected to reap profit from rapid growth this year, driven mainly by buoyant
domestic consumption and high levels of foreign investment.
The Indonesian government has estimated that the country’s logistic expenditure would be equivalent to 27 percent of gross domestic product this year. At that level, it would be valued at around Rp 2,000 trillion ($207.3 billion).
The market value may increase by 13 percent to 15 percent this year, in line with the country’s robust domestic consumption, Nofrisel, managing director of JNE Logistics, said on Friday.
“Logistics just follows people’s activities and consumption. In addition, the country is so vast and dispersed, which is a big plus for our business,” Nofrisel said.
Last year, the country’s GDP grew by an estimated 6.3 percent according to Bank Indonesia, the central bank, and the Finance Ministry. Authorities expect the country’s GDP to grow at least 6.5 percent this year, in line with an improved global economy.
“In fact, Indonesia’s logistics business is very resilient, despite the global slowdown last year that hit our exports,” Nofrisel said.
Ahmad Mohamad, a senior technical adviser at DHL Express Indonesia, shared Nofrisel’s sentiments, noting that strong inflows in foreign direct investment would help boost the logistics industry. Rising economic activity also translates into rapid growth of distribution of goods and services across the nation, he added.
The Indonesian government has estimated that the country’s logistic expenditure would be equivalent to 27 percent of gross domestic product this year. At that level, it would be valued at around Rp 2,000 trillion ($207.3 billion).
The market value may increase by 13 percent to 15 percent this year, in line with the country’s robust domestic consumption, Nofrisel, managing director of JNE Logistics, said on Friday.
“Logistics just follows people’s activities and consumption. In addition, the country is so vast and dispersed, which is a big plus for our business,” Nofrisel said.
Last year, the country’s GDP grew by an estimated 6.3 percent according to Bank Indonesia, the central bank, and the Finance Ministry. Authorities expect the country’s GDP to grow at least 6.5 percent this year, in line with an improved global economy.
“In fact, Indonesia’s logistics business is very resilient, despite the global slowdown last year that hit our exports,” Nofrisel said.
Ahmad Mohamad, a senior technical adviser at DHL Express Indonesia, shared Nofrisel’s sentiments, noting that strong inflows in foreign direct investment would help boost the logistics industry. Rising economic activity also translates into rapid growth of distribution of goods and services across the nation, he added.
Amid calls
for economic democracy, more attention is being paid to the plans of Samsung SDS
and Hyundai Glovis to expand their operations in the area of logistics. Both of
the two companies are starting to look more and more like logistics companies.
While one assessment is that they are creating a new kind of business, the
actions are also being criticized as just another form of work funneling.
Most
notable is the fact that the main investors in both of these companies are the
heirs apparent to their respective groups: vice chairman of Samsung Electronics
Lee Jae-yong and vice chairman of Hyundai Motor Chung Eui-sun.
On Jan.
13, the Hankyoreh acquired Samsung SDS’s 2013 Air Freight Bid Proposal, which
indicates that Samsung SDS is gaining a monopoly over the logistics work for
companies in the group including Samsung Electronics, Samsung Display, and
Samsung SDI. The scope of logistics operations spans the entire globe, covering
Europe, the Americas, Southeast Asia, the Middle East, and Africa.
Until
recently, Samsung Electronics had been making direct contracts with logistics
companies, but starting this year Samsung SDS is pushing the other companies
out of the way. Logistics work inside Korea is still handled by Samsung
Electronics Logitech, but all of the overseas shipping is being handled by
Samsung SDS.
“Starting
this year, we have taken over the logistics for Samsung Display and Samsung
SDI, which are closely related to Samsung Electronics in terms of the parts
supply system,” a source from Samsung SDS said. “We are planning to expand our
operations to cover not only air freight but also ground and ocean
transportation as well.”
MARKETING
The world of marketing
and advertising can be challenging in today's economy. Basic online marketing
practices may get lost in the cluttered online marketing landscape due to the
sheer volume of marketers trying to get the point across on Facebook, Twitter,
LinkedIn, Pinterest and a seemingly unlimited number of social networks and
blogs. New Jersey's SolarCure has come up with a way to stand out in the
competitive marketing world with its one-of-a-kind Adopt-a-Solar-Panel™ program
and its accompanying Solar
Powered SEO™ press release distribution.
"Marketing online among millions of others
trying to accomplish similar goals can be very difficult," explains
SolarCure's Solar Powered SEO™ Marketing Director Rick Mulholland. "It
looks like everyone and their best friends are trying to accomplish their
marketing within the platform of social media. Yet just boasting about your
company or service is not enough. By participating in SolarCure's
Adopt-a-Solar-Panel™ program, almost any brand can help the environment by
supporting a renewable energy initiative. And the Solar Powered SEO™ press
release distribution aspect helps spread the word about your efforts quickly
and affordably. Potential customers can see what your brand is doing to help
the planet, how you have helped a non-profit organization install a solar panel
to reduce energy costs, and how you are lending assistance to the local
community overall."
MPULL, a cloud-based marketing software solution
incorporating operation and resource management and lead nurturing, began
development of its end-to-end solution, which having been in its beta phase for
over two years now, is now being used by South African brands. "An IDC
study carried out in 2012 shows that 29.2% of companies' annual marketing
budget is set out for digital marketing allocation, which includes a portion
for marketing automation that covers resource and operations management,
multi-channel marketing and lead nurturing. Though most marketing automation
solutions integrate into CRM systems, from where they source customer and
prospect data, they do however differ in functionality entirely," explains
Daryn Smith, director at MPULL.
"Any marketer can tell you stories of campaigns that almost failed because process was not followed. However, by using a system to manage marketing strategy, it allows companies to ensure that all resources are correctly allocated, there is no duplication and brand standards are met - all critical to the success of a campaign."
"Any marketer can tell you stories of campaigns that almost failed because process was not followed. However, by using a system to manage marketing strategy, it allows companies to ensure that all resources are correctly allocated, there is no duplication and brand standards are met - all critical to the success of a campaign."
ODISHA BUSINESS
Ahead of 2013-14 rail budget, Odisha government
today demanded a "sizable" allocation for improvement of railway
infrastructure in the state which is emerging as a mining and metal hub besides
attracting investment worth Rs 8.85 lakh core.
In a letter to Prime Minister Manmohan Singh, Chief
Minister Naveen Patnaik said, "The gross earning from various stations in
Odisha is estimated to be in excess of Rs 14,000 crore during 21012-13. I would
request you to ensure allocation of a sizable part of revenues generated from
Odisha within the state to strengthen rail infrastructure."
Though the state generated high revenue for
railways, the railway route length and rail density in Odisha is much below the
national average as also substantially lower than those of neighbouring states,
Patnaik said. Though central government has
initiated many ambitious projects like dedicated freight corridor aligned with
mega industrial hubs, national road expressway and high speed train projects,
it appeared to have bypassed Odisha, he said adding that some of the country's
largest investments in steel, aluminium and power sector are coming up here.
As
expected, Patnaik said, the growth in rail borne traffic will be in excess of
300 mtpa in next five years. "I have been requesting the ministry of
Railways to put in place a time-bound infrastructure upgradation arrangement
for the ports coming up on Odisha coast. A synchronised development plan
between that of the ports and related rail connectivity is a necessity for
maximising economic gains," he said.
Noting
that areas hit by left wing extremism lacked adequate rail link, the Chief
Minister sought national project status for proposed Bhadrachalam Road-Talcher
rail link via Malkangiri, Jeypore, Lanjigarh, Sambalpur-Berhampur rail link via
Phulbani and Rayagada-Gopalpur rail link via Bhismagiri.
The Odisha government today said its focus would be
on development of road, power and railway infrastructure under public-private
partnership (PPP) mode.
The decision in this regard was taken at a meeting
of the Governing Body of Odisha PPP Technical Society chaired by Planning and
Coordination Minister Maheswar Mohanty.
Stating that PPP initiatives of the state government
has achieved success with at least 12 projects made operational and 54 others
in the pipeline, Mohanty said the focus now would be on roads, power and
railway infrastructure. "Different special funds have
been created to achieve this target. These funds are Odisha Infrastructure
Project development Fund, Odisha Viability Gap Fund, Project Development and
Facility Fund for Road Sector and Odisha Urban Infrastructure Development Fund,"
the minister said.
About Rs
98 crore has been put in these funds for undertaking different technical
studies, matching support to central viability gap funding, engagement of
transaction advisors, conducting feasibility studies and activities, he said.
An
Empowered Committee under the chairmanship of the Chief Secretary has been
constituted to sanction the projects entailing investment up to Rs 500 crore.
The projects entailing investment above Rs 500 crore would be considered by
High Level Authority Chaired by the minister.
The 12 PPP
projects which have been made operational included a port project at Dhamara,
market-cum-residential complex at Sahidnagar, Bhubaneswar, AC market complex at
Unit-II, Bhubaneswar, upgradation of industrial infrastructure in steel &
metallurgical allied cluster at Jajpur, e-Registration system (e-dharani), etc.
RETAIL
A bevy of leading technology companies introduced an
array of new products at the National Retail Federation’s annual trade show,
illustrating how keen they are to target emerging marketing opportunities in
the largest sector of U.S. GDP. Leaders headed by Microsoft (NASDAQ MSFT), the
world's biggest software company; Oracle (NASDAQ: ORCL), the No. 1 database
developer, and International Business Machines Corp. (NYSE: IBM), the No. 2
computer maker, showed off new software and analysis tools to enable retailers
to make more from the consumer dollar.
Microsoft, of Redmond, Wash., brought its new
Windows 8 to a new “device bar” that shows how shoppers can use smartphones and
laptops to make purchases more easily. Using the cloud and handheld devices,
salespeople on the floor can instantly check for sizes and inventory as well as
use Microsoft Dynamics AX for Retail, which handles entries from point-of-sale
(POS) terminals to back-office systems. As well, Microsoft is partnering with
some top retail customers including Hallmark Inc., McDonald’s Corp. (NYSE:MCD)
and Lowe’s Companies (NYSE:LOW) to show completely integrated networks using
Office 365, SQL Server and Windows Azure products.
A new product released at this year's National
Retail Federation expo in New York lets retailers track in-store customer
activity through their smartphones. Security firm Fortinet's new network security appliances are designed for use in retail
locations; the products also integrate shopper analytics from provider Euclid.
Euclid Analytics' new Euclid Zero product captures shoppers' MAC addresses (which
are unique identifiers every device on a network has) as they walk into the
store, and uses this information to track store traffic, customer loyalty, and
customer activity inside the store. The process is entirely passive on a
customer's part; Fortinet and Euclid's product pings consumer smartphones even
if they don't log into a store's Wi-Fi or make a phone call.
Euclid has also signed licensing agreements with
other retail hardware providers including Aerohive, Aruba, and Xirrus. The
company's dashboard provides Google Analytics-like aggregate data on shopper
activity based entirely on mobile phone tracking. The growing ubiquity of
smartphones, combined with the ease of phone tracking for both public and
private parties, has meant an information-mining bonanza for marketers. In
recent months, services data-mining customer's in-store price comparison shopping
have popped up alongside smartphone ads targeting users by neighborhood.
SUPPLY CHAIN
If Marks & Spencer's supply chain agenda was
mirrored by all major retailers, the world would be a better place. With
suppliers in 70 countries and some two million people working for the company
across thousands of factories and farms, the giant high street retailer is
taking its social and environmental impact seriously – and with great success.
Launched at the beginning of 2007, M&S's Plan A sustainability
programme is renowned for it's comprehensive and far-reaching goals to
create step changes in its global supply chain. Its 180 commitments to be
achieved by 2015 include targets on ethical trade, sustainable sourcing and
energy efficiency, all backed by financial incentives for the M&S buying
teams.
The company boldly states that it wants to become
"the world's most sustainable major retailer" and after sweeping the
decks at several major sustainability awards in 2012, including winning the supply chain category at the Guardian
Sustainable Business Awards (GSBAs), it looks like the retailer is en route
to achieve just that.
Adam Elman, head of delivery Plan A and sustainable
business at M&S, puts the GSBA wind down to the "the scale,
integration and level of importance we put behind our supply chain work"
and the sheer scope of its goals.
But how does winning awards help the company and how
can this type of recognition prove useful to a business?
"The number one thing about winning an award is
the internal recognition, the pat on the back for the people who have really
been doing a great job, working to drive these decisions forward and giving
them the recognition they deserve," Elman says.
Rolls-Royce has bought PKMJ Technical Services, a
U.S. nuclear engineering services business, as the U.K.-based power equipment
supplier aims to accelerate growth for Rolls-Royce in the important nuclear
services market, it said.
Headquartered in Moon Township, Pa., PKMJ Technical
Services provides software and engineering solutions to nuclear power
companies.
In 2011, Rolls Royce purchased R. Brooks Associates,
a civil nuclear reactor services business based in the state of New York. The
company provides inspection and recovery systems for the nuclear power industry
and designs and manufactures remote and robotic tooling.
Rolls-Royce provides a number of services for the
nuclear power industry, including supply chain management and manufacturing and
technical engineering support, in 20 countries across Europe, North America and
Asia.
__________________________________________________________________
Source of
Information for this issue: Google alert accessed on 14th, 15th and 18th Jan 2013.
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
Junior Librarian
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 :Junior Librarian 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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