ASBM Business
Updates is a Weekly Selective Compilation of Business News from Various
Sources. To find details follow the links.
ASIAN BUSINESS
BNP Paribas SA (BNP) is outpacing the wealth-management
businesses of French competitors Societe Generale SA (GLE) and Credit Agricole
SA (ACA) as the country’s largest bank targets the super-rich in Asia and
America. Net inflows more than doubled to 7.5 billion euros ($9.8 billion) last
year as the Paris-based company attracted money from clients in China, Singapore, Indonesia and Malaysia, wealth unit co-heads
Vincent Lecomte and Sofia Merlo said in an interview. Societe Generale lured a
net 1 billion euros, while Credit Agricole reported outflows of 2.7 billion
euros in 2012. French banks are fighting over rich emerging-market clients to
boost revenue as tougher capital requirements crimp investment-banking
profitability. BNP Paribas is expanding from its western European base, which
accounts for about 60 percent of its wealth assets, to vie with bigger
managers, including Switzerland’s UBS AG and Credit Suisse Group AG.
“BNP is in the Champions League of wealth management
and there’s a clear difference in terms of size with its nearest French peers,”
said Sebastian Dovey, founder of London-based research firm Scorpio
Partnership. “The challenge for the top private banks is to create truly global
ultra-high-net-worth businesses.”
While assets under management at BNP Paribas climbed
8.6 percent to 265 billion euros, that’s still barely a fifth of the funds at
UBS, the biggest Swiss bank.
A dozen
national credit information agencies across Asia have combined to provide a
single due diligence and business research service in the region. Asiagate's
collective offering of company financial information and credit investigation
reports provides a searchable database of nearly 13 million business records,
from China to Vietnam.
Other
countries covered include Hong Kong, India, Indonesia, Malaysia, New Zealand,
the Philippines, South Korea, Taiwan and Thailand.
Asiagate
chairman, Ben Wong of Total Credit Management Services Hong Kong, says:
"Globalization and emerging economies in Asia generate more and more
business opportunities every year, but the risks of doing business there are
also on the rise, therefore we are providing the ultimate resource for every
firm that wants to manage those risks and operate successfully there”.
Asiagate
business development manager, Adrian Ashurst of Worldbox, adds: "The best
credit reporting agencies have the widest experience and extensive local
knowledge of the business landscape in their respective countries, and members
of Asiagate are hand-picked for being leaders in their respective fields."
The
business intelligence powerhouse carefully selects members prior to inclusion,
based on their size, establishment, integrity and reputation within the
business information and investigations industry. It is adding new members
constantly, to provide cover in countries it does not yet have representation
within, and operates a strict ‘one-country, one-member’ system to eliminate
cross-over.
ASIAN MANAGEMENT
Public sector organisations in the Asia Pacific face
a myriad of needs and challenges in enhancing efficiency and improving
services. In partnership with VISA, FutureGov polled a cross-section of Asian public
sector leaders to better understand how innovation and technology had enhanced
the financial management capabilities of government organisations in
the region. Focusing on current and prospective ICT
investments, existing financial management practices, and opportunities for
public-private partnerships, government officials discussed their plans for
their organisations and examined the role of technology in
service transformation.
One major challenge discussed, for example, was
finding employees with the necessary skills to meet the demands of ICT initiatives while balancing funding cuts and privacy
concerns of employees and citizens.
Another interesting fact that emerged was that more
than 51 per cent of participants develop their ICT
initiatives in partnership with the private sector, while only 16 per cent use
off-the-shelf solutions. The officials agreed that a transparent understanding
of project requirements, deliverables, and budget is necessary for a successful
public-private partnership.
ASIAN SCHOOL OF BUSINESS MANAGEMENT
114 Management Graduates for 2011-13 batch of Asian
School of Business Management (ASBM) has been absorbed in various MNCs;
clocking a record performance in line with previous years, thereby maintaining
a consistent trend.
This is the first round of placement process in
ASBM, wherein 30 numbers of companies have participated. These include
companies like Nestle, Asian Paints, ITC, Vodafone, Colgate, UCO bank, ICICI,
HDFC Bank, Allahabad Bank, Indian Overseas Bank, Reliance Retail, Godrej &
Boyce and Gati Ltd among others. Also second round of placement process is on
swing.
Last year, the institute also achieved 100 placement
records. It is worth mentioning here that, ASBM has achieved excellence in
education and placement of students under the able guidance of visionary
management guru Prof. Dr. Biswajeet Pattanayak since its inception in 2006.
BANKING
Financial services major Srei group plans to apply
for a banking licence to set up a bank with strong rural presence and would not
rope in any domestic or foreign partner in this venture.
The group sees its already strong presence in rural
areas as a major advantage for its banking foray, as the RBI has proposed a
minimum of 25 per cent presence in rural areas for the new banks that might get
licences this year.
“Srei group is interested in setting up a bank as it
can tap the rural presence,” Srei Chairman and Managing Director Hemant Kanoria
told PTI.
“We will go alone in this banking venture and there
are no plans to rope in any partner,” he said.
Last month, the Reserve Bank of India (RBI) came out
with guidelines for issuing new banking licences and many private players have
expressed interest in setting up banks.
Kanoria said that Srei has around 28,000 rural
centres in different parts of the country and some of them could be converted
into bank branches if it gets a banking licence.
“We are doing the e-governance of the government and
they (our centres) are in Bihar, Uttar Pradesh, Assam, Orissa and some parts of
Tamil Nadu. These centres have computers, printers and are internet
connected... It provides all kinds of services,” he noted.
He said that the group is already at the bottom of
the pyramid and financial inclusion is already happening as the centres also
provide many services, including sale of insurance policies and mutual funds.
The deadline for applying new banking licence is
July 1 and among other criteria, the promoter is required to bring in an
initial capital of Rs 500 crore.
Srei Infrastructure Finance saw its consolidated
profit after tax nearly double to Rs 194.12 crore in the nine months ended
December 31, 2012.
Bank of Tatas, Bank of Birlas, Bank of Ambanis, Bank
of Mahindras and the like could soon be a reality, thanks to the government’s
decision to allow six more players - corporate and state-run firms - to enter
the banking sector.
It is estimated that one in every two Indians does
not have a bank account and the RBI has been trying to increase financial
access across the country, particularly in the rural areas.
The government’s announcement on February 22 to
issue six banking licences has spurred interest among several players,
including leading business houses like the Tatas and Birlas, infrastructure
major Larsen & Toubro, consumer electronics major Videocon, asset financier
Shriram Capital, state-run insurer LIC and India Post. All these have either
expressed interest or are tipped to contemplate an entry to the field of
banking.
It was around a decade ago that the RBI had last
issued bank licences.
Currently, there are 12 private sector players,
including HDFC, ICICI and Axis, offering the service.
However, the sector is dominated by state-run
lenders, which account for one-third of the sector’s assets. With new
players, the banking sector landscape is expected to transform with competition
heating up among existing bankers and new entrants.
The proposed entry of six new players will also help
penetrate banking services to smaller towns and cities, thanks to the
regulator’s one of the key rules mandating new banks to open one in four
branches in rural areas. Customer service is expected to take a new dimension
as both existing and new players will vie to attract and retain them.
BUSINESS
Reliance Power today said that it has connected the
first 660 megawatt unit of its 4,000 megawatt Sasan ultra mega power project,
to the grid.
The coal mines from two of the three the captive coal mines which came with the power project had started producing two quarters back. The third mine Chhatrasal has received forest clearance and is currently under development.
“I am confident that Sasan power project and coal mine would set new benchmarks in operational efficiency,” said J P Chalsani, chief executive officer of the power project. The project was bagged by RPower in 2007, at a levelised tariff of Rs 1.20 per unit.
Reliance Power has recently filed a petition with the Central Electricity Regulatory Commission (CERC) seeking compensation from the government due to cost escalation at its Sasan power plant. It quoted 'unprecedented depreciation of the rupee' as one of the reasons.
The total cost of setting-up the power plant as well as developing the mine is estimated at Rs 23,000 crore. RPower which bought all of its power equipment from Shanghai Electric, has also attained economical finance from Chinese banks, in a bulk deal signed across its large portfolio.
As many as 14 distribution companies will buy power from this ultra mega power project. Sasan is the second ultra mega power project to come on stream after Tata Power's UMPP in Mundra, Gujarat. Mundra UMPP recently synchronised the fifth and last unit of the project, taking the project to its full capacity of 4,000 megawatts.
The coal mines from two of the three the captive coal mines which came with the power project had started producing two quarters back. The third mine Chhatrasal has received forest clearance and is currently under development.
“I am confident that Sasan power project and coal mine would set new benchmarks in operational efficiency,” said J P Chalsani, chief executive officer of the power project. The project was bagged by RPower in 2007, at a levelised tariff of Rs 1.20 per unit.
Reliance Power has recently filed a petition with the Central Electricity Regulatory Commission (CERC) seeking compensation from the government due to cost escalation at its Sasan power plant. It quoted 'unprecedented depreciation of the rupee' as one of the reasons.
The total cost of setting-up the power plant as well as developing the mine is estimated at Rs 23,000 crore. RPower which bought all of its power equipment from Shanghai Electric, has also attained economical finance from Chinese banks, in a bulk deal signed across its large portfolio.
As many as 14 distribution companies will buy power from this ultra mega power project. Sasan is the second ultra mega power project to come on stream after Tata Power's UMPP in Mundra, Gujarat. Mundra UMPP recently synchronised the fifth and last unit of the project, taking the project to its full capacity of 4,000 megawatts.
Infrastructure major GVK today said that it sold
majority stake of 51 per cent interest in its Australian mine, Hancock's rail
and port infrastructure, to Aurizon.
Australian rail freight company, Aurizon would invest in Hancock Coal Infrastructure Ply, through upfront consideration at completion of the transaction and deferred consideration at financial close of each phase of the projects. The amount of investment was not revealed.
Hancock Coal Infrastructure is looking to develop a potential 60 million tonnes per annum port and a rail project, that would export coal from the Galilee basin, where Hancock is located. “Collectively, the proposed development of rail and port infrastructure could represent an investment for Queensland in the order of $6 billion (Rs 32,640 crore).
“At full capacity, the proposed arrangement is intended to provide sufficient equity and debt funding for the projects to reach financial close. The parties will jointly leverage the work already completed by GVK, the significant potential for ECA financing,” said Sanjay Reddy, vice-chairman of GVK. GVK bought Hancock Coal wirth its two mines in Alpha West and Kevin's Corner in 2011.
“Both the companies will have equal management rights and an equal representation on the board and all key committees,” the press release said.
One of the railways line, yet to determined, could connect Hancock's rail project with Aurizon's Central Queensland Intergrated Rail Project, which takes coal to Abbot Point. After this transaction, Aurizon would gain rights to operate and jointly manage the rail infrastructure which will exclusively provide haulage from Hancock.
Australian rail freight company, Aurizon would invest in Hancock Coal Infrastructure Ply, through upfront consideration at completion of the transaction and deferred consideration at financial close of each phase of the projects. The amount of investment was not revealed.
Hancock Coal Infrastructure is looking to develop a potential 60 million tonnes per annum port and a rail project, that would export coal from the Galilee basin, where Hancock is located. “Collectively, the proposed development of rail and port infrastructure could represent an investment for Queensland in the order of $6 billion (Rs 32,640 crore).
“At full capacity, the proposed arrangement is intended to provide sufficient equity and debt funding for the projects to reach financial close. The parties will jointly leverage the work already completed by GVK, the significant potential for ECA financing,” said Sanjay Reddy, vice-chairman of GVK. GVK bought Hancock Coal wirth its two mines in Alpha West and Kevin's Corner in 2011.
“Both the companies will have equal management rights and an equal representation on the board and all key committees,” the press release said.
One of the railways line, yet to determined, could connect Hancock's rail project with Aurizon's Central Queensland Intergrated Rail Project, which takes coal to Abbot Point. After this transaction, Aurizon would gain rights to operate and jointly manage the rail infrastructure which will exclusively provide haulage from Hancock.
BUSINESS
COMMUNICATION
Today Vocalocity announced the launch of Vocalocity
for Communication Providers, a cloud-based platform that enables service
provider partners to offer advanced and hosted communications services to their
customers. With a projected annual growth rate of 30 percent in the total
number of hosted IP telephony and communications lines through 2018, service
providers can leverage Vocalocity’s platform to expand their portfolio of
offerings and create new revenue streams by tapping into the hosted IP PBX
market. The platform is based on the same award-winning technology that
Vocalocity uses to manage voice over IP (VoIP) services for nearly 20,000
customers and more than 120,000 end users. Service providers can leverage the
same back-end software as a service (SaaS) to better serve current customers
and acquire new subscribers. Cloud-based service contributes to low up-front
costs and the ability to generate revenue in as little as 90 days.
CornerStone, an advanced communications services
provider, is one of Vocalocity's first partners to use the platform to reach
small and midsized business customers throughout the US.
"CornerStone chose to partner with Vocalocity
on our custom cloud voice solution based on their out-of-the-box features
designed specifically for the SMB market. The ability to go to market without
extensive upfront costs was a major differentiator," stated Donald Walsh,
chief technology officer of CornerStone Telephone. "We benefit from
Vocalocity’s proven technology, and are able to provide a new solution to our
customers which complements the services that CornerStone currently offers.”
Vocalocity will provide marketing resources and
materials along with sales support so service providers can better target
customers and market services. Marketing materials include information sheets,
data sheets, user guides and whitepapers, as well as syndicated content for
partners to host on the web.
BUSINESS MANAGEMENT
SAP AG (NYSE: SAP) today announced SAP Business One, version for SAP
HANA, the first business management solution for small and midsize enterprises
(SMEs) running fully in memory. The application is a scalable, affordable
solution with embedded analytics capabilities and high-volume transactions to
empower SMEs to run their businesses in real time. The announcement was made at
CeBIT 2013, being held March 5-9 in Hanover, Germany.
The
version of SAP Business One for SAP HANA, in restricted shipment today, will
offer the complete small business essentials in one single user interface,
helping users operate their businesses from end to end -- from operational to
strategic level and with improved visibility and control. SAP Business One,
version for SAP HANA, will help companies dramatically reduce reporting
response times, enabling employees to be both more productive and more
effective in their decision-making. The speed offered by in-memory computing
will help small businesses to answer previously unsolvable problems, and will
allow all users to become more efficient by leveraging out-of-the-box features
of the application for enhanced user experience. These include enterprise
search and powerful interactive operational analysis, which enable business
workers to deal with information in their daily work more effectively.
FINANCE
State-run Dredging Corporation of India plans to
raise Rs 500 crore through tax-free bonds. The bonds are of 10-year tenure and
40 per cent of the issue is earmarked for retail investors. The issue opened on
Thursday and will close on March 15.
The bonds offer a coupon rate of 6.47 per cent for qualified institutional investors, domestic companies and high net worth individuals. For retail investors, the coupon rate is 7.47 per cent. “According to Bombay Stock Exchange figures, the issue has received applications worth Rs 58,55,000,” said K Aswini Sreekanth, company secretary, Dredging Corporation of India.
Funds raised through this issue will be utilised for augmenting the firm’s long-term resources and financing the capital expenditure plan.
The bonds have been rated ‘BWR AA+ (SO) (outlook stable)’ by Brickwork, CARE AA by Care Ratings. SBI Capital Markets and AK Capital services are the lead managers to the issue.
Dredging Corporation provides integrated dredging services to India’s major ports, non-major ports, shipyards and Indian Navy.
The company has been declared a mini ratna-category I public sector enterprise under the administrative control of the shipping ministry.
The bonds offer a coupon rate of 6.47 per cent for qualified institutional investors, domestic companies and high net worth individuals. For retail investors, the coupon rate is 7.47 per cent. “According to Bombay Stock Exchange figures, the issue has received applications worth Rs 58,55,000,” said K Aswini Sreekanth, company secretary, Dredging Corporation of India.
Funds raised through this issue will be utilised for augmenting the firm’s long-term resources and financing the capital expenditure plan.
The bonds have been rated ‘BWR AA+ (SO) (outlook stable)’ by Brickwork, CARE AA by Care Ratings. SBI Capital Markets and AK Capital services are the lead managers to the issue.
Dredging Corporation provides integrated dredging services to India’s major ports, non-major ports, shipyards and Indian Navy.
The company has been declared a mini ratna-category I public sector enterprise under the administrative control of the shipping ministry.
The plans of soft drink major Coca-Cola to get the
maturity period of its redeemable preference shares extended are set for a
rough ride.
The view among some sections of the government is that such an extension is not permitted. And, the Reserve Bank of India (RBI) circular 73 and a Department of Economic Affairs press release of 2007 on the subject provide no clear direction, either. So, the Foreign Investment Promotion Board (FIPB) has deferred the proposal. This has, however, raised some key policy questions on the country’s foreign direct investment (FDI) rules.
Hindustan Coca-Cola Holdings (HCCH), a holding-cum-investee company of the soft drink major in India, was in 2003 given permission to invest up to Rs 803 crore to purchase one per cent redeemable, non-cumulative, non-participating preference shares of Rs 10 each in the downstream soft drinks company Hindustan Coca-Cola Beverages Pvt Ltd (HCCB), which produces and distributes non alcoholic beverages, with a maturity of seven years. The money came in 2005.
An extension of the maturity period for another seven years, until March 2019, was sought, with HCCB saying it had accumulated losses over a significant period of operations in India, though it had been reporting profits over the past three years. So, it was necessary to continue to invest in capabilities and resources.
However, after discussions, FIPB has asked the Department of Industrial Policy and Promotion (DIPP) to seek RBI’s comments on the matter and has deferred the proposal until then. A Coca-Cola spokesperson declined to comment on the issue.
Both the existing policy and the new FDI guidelines do not have rules to deal with such proposals.
The view among some sections of the government is that such an extension is not permitted. And, the Reserve Bank of India (RBI) circular 73 and a Department of Economic Affairs press release of 2007 on the subject provide no clear direction, either. So, the Foreign Investment Promotion Board (FIPB) has deferred the proposal. This has, however, raised some key policy questions on the country’s foreign direct investment (FDI) rules.
Hindustan Coca-Cola Holdings (HCCH), a holding-cum-investee company of the soft drink major in India, was in 2003 given permission to invest up to Rs 803 crore to purchase one per cent redeemable, non-cumulative, non-participating preference shares of Rs 10 each in the downstream soft drinks company Hindustan Coca-Cola Beverages Pvt Ltd (HCCB), which produces and distributes non alcoholic beverages, with a maturity of seven years. The money came in 2005.
An extension of the maturity period for another seven years, until March 2019, was sought, with HCCB saying it had accumulated losses over a significant period of operations in India, though it had been reporting profits over the past three years. So, it was necessary to continue to invest in capabilities and resources.
However, after discussions, FIPB has asked the Department of Industrial Policy and Promotion (DIPP) to seek RBI’s comments on the matter and has deferred the proposal until then. A Coca-Cola spokesperson declined to comment on the issue.
Both the existing policy and the new FDI guidelines do not have rules to deal with such proposals.
INDIA BUSINESS
German car maker Volkswagen on
Saturday announced that the company has moved its India head John Chacko, to
the headquarter of Audi, the luxury car brand of the Volkswagen group. In a
top-level management rejig at its Indian business, the company announced the
appointment of Gerasimos Dorizas as the Chief Representative of of Volkswagen
Group in the country.
Also, the company appointed Mahesh Kodumudi as the President and Managing Director of Volkswagen India Pvt Ltd.
"Gerasimos Dorizas (52), Managing Director of Volkswagen Group Sales India Pvt Ltd, has been appointed Chief Representative of the Volkswagen Group in India with effect from March 1," the company said in a statement.
Dorizas had joined the Volkswagen Group Sales India as Managing Director in 2012.
The company further said: "John Chacko (60), previously President, Managing Director and Group Chief Representative of Volkswagen India, is transferring to a responsible position with Audi AG with effect from April 1."
Chacko has been leading the European car maker's Indian operations since 2010.
Besides, Volkswagen said: "Effective March 1, Mahesh Kodumudi (47) has been appointed President and Managing Director of Volkswagen India Pvt Ltd."
In 2012, the Volkswagen group witnessed a total sales of 1,14,045 units comprising five brands -- Volkswagen, Audi, Skoda, Lamborghini and Porsche. It had registered a sales of 1,11,637 units in 2011.
Also, the company appointed Mahesh Kodumudi as the President and Managing Director of Volkswagen India Pvt Ltd.
"Gerasimos Dorizas (52), Managing Director of Volkswagen Group Sales India Pvt Ltd, has been appointed Chief Representative of the Volkswagen Group in India with effect from March 1," the company said in a statement.
Dorizas had joined the Volkswagen Group Sales India as Managing Director in 2012.
The company further said: "John Chacko (60), previously President, Managing Director and Group Chief Representative of Volkswagen India, is transferring to a responsible position with Audi AG with effect from April 1."
Chacko has been leading the European car maker's Indian operations since 2010.
Besides, Volkswagen said: "Effective March 1, Mahesh Kodumudi (47) has been appointed President and Managing Director of Volkswagen India Pvt Ltd."
In 2012, the Volkswagen group witnessed a total sales of 1,14,045 units comprising five brands -- Volkswagen, Audi, Skoda, Lamborghini and Porsche. It had registered a sales of 1,11,637 units in 2011.
For the first time ever a powerful business
delegation comprising of 80 prominent Czech companies – from sector of
engineering (VÃtkovice), transportation (AŽD, Å koda Transportation, Bonatrans),
energy (FANS) etc., which are bidding for large industrial projects in India –
will be visiting the country next week.
Led by Minister of Industry and Trade of the Czech
Republic Martin Kuba, they will meet several ministers and business
representatives and inaugurate Czech-India business forums during the visit between
March 11 – 15.
This visit is aimed to boost the new generation of
bilateral Czech – Indian business ties and to establish a new collaboration
among the private sectors.
Mr Kuba will also be accompanied by a Member of
Parliament, officials from from the Ministry of Transportation and
representatives of main Czech associations (such as engineering or
electrotechnical association) and top-level dignitaries from government
institutions who are eager to negotiate deepening of the cooperation with the
promising Indian economy, such as Czech Export Bank, Export Guarantee and
Insurance Company or Czech Invest, which is going to sign a MoU with its
counterpart Invest India for future cooperation.
In Mumbai the visiting minister will inaugurate
together with Commerce Minister Anand Sharma the "India Engineering
Sourcing Show" (IESS) 2013, where the Czech Republic is a partner country
this year.
INDIA MANAGEMENT
In a major management rejig, German car maker,
Volkswagen promoted GerasimosDorizas as the chief representative of the Volkswagen
Group in India with effect from 1st of March.
Dorizas was the managing director of Volkswagen
Group Sales India Private Limited had taken over the reins from John Chacko who
has been transferred to a "responsible position" within group firm Audi AG with effect from April
1, a statement issued by the company on Friday said. As part of this management
rejig, the executive director for components purchasing for Volkswagen Group
India, Mahesh Kodumudi has been promoted as president and managing director of
Volkswagen India Private Limited. Kodumudi has assumed responsibility for
Volkswagen's Indian production company in Pune.
Kodumudi completed an engineering degree in India
and the USA. Following a successful career in the automotive components
industry, Kodumudi joined the Volkswagen Group in 2008 and was appointed ED,
purchasing of Volkswagen India Pvt. Ltd
This major management rejig takes place at a time
when Volkswagen India's sales has fallen 16.19% from April to January to 53,149
untis in FY-13.
A sales veteran Gerasimos
Dorizas joined the Volkswagen Group in 2007. After starting his career in
sales with Nixdorf in Greece in 1987, he transferred to the automobile industry
in 1992 and held responsible positions in the sales organizations of a number
of different manufacturers for several years. In 2007, he was appointed
Executive VP for sales and marketing of the Volkswagen Group Japan. From 2008,
he was President and CEO of Volkswagen Group Japan, before joining Volkswagen
Group Sales India as Managing Director in 2012.
INSURANCE
BK Modi-promoted Spice Group's e-commerce arm
Saholic.com is offering one-year worldwide theft insurance for mobile handsets
it sells in a bid to boost sales.
"Theft of mobile handsets is increasing at a rapid pace. But getting insurance for high-value handsets directly from insurance companies is a hassle. We have made it hassle-free," said Rajneesh Arora, chief executive officer of Saholic.com.
"At the time of buying the handset, the customer would be given an option to pay 1.5 per cent of the handset cost extra as premium for the theft insurance," he added. New India Assurance is the insurance provider.
During the trial, the company has recorded that more than 35 per cent of the handset buyers are buying the insurance at the time of purchase, Arora added.
Going forward, Saholic.com, which started operations in May 2011, will extend theft insurance to other mobility products that the company sells through the e-commerce portal. It sells mobile handsets, tablets, laptops, accessories and cameras. About 70 per cent of its revenue comes from mobile handset sales.
"We also have plans to introduce insurance for damage of mobility products sold through our e-commerce portal," Arora said, adding it would be introduced in the next four to eight weeks.
"Theft of mobile handsets is increasing at a rapid pace. But getting insurance for high-value handsets directly from insurance companies is a hassle. We have made it hassle-free," said Rajneesh Arora, chief executive officer of Saholic.com.
"At the time of buying the handset, the customer would be given an option to pay 1.5 per cent of the handset cost extra as premium for the theft insurance," he added. New India Assurance is the insurance provider.
During the trial, the company has recorded that more than 35 per cent of the handset buyers are buying the insurance at the time of purchase, Arora added.
Going forward, Saholic.com, which started operations in May 2011, will extend theft insurance to other mobility products that the company sells through the e-commerce portal. It sells mobile handsets, tablets, laptops, accessories and cameras. About 70 per cent of its revenue comes from mobile handset sales.
"We also have plans to introduce insurance for damage of mobility products sold through our e-commerce portal," Arora said, adding it would be introduced in the next four to eight weeks.
The
much-delayed free trade agreement (FTA) between India and the European Union
(EU) may finally get through if the government is able to amend the law to
allow greater foreign investment in Indian insurance firms.
Chief
negotiators of the two sides are scheduled to meet next week in Brussels to
thrash out the remaining issues in the deal. This will be followed by a meeting
between trade ministers from both sides in April to close the deal.
Talks on
the bilateral trade and investment agreement started in 2007. The two sides
have missed at least four deadlines to complete negotiations.
“There is
a very good chance” of reaching a deal this time, a commerce ministry official
said, speaking on condition of anonymity. “Everyone knows they (EU) are
interested in opening up the insurance sector. Let’s see what happens in
Parliament.”
Of the 23
private life insurance companies operating in India, 11 are joint ventures with
European insurers. Of the 21 private general insurance companies in the
country, seven are partnerships with firms headquartered in Europe.
The
insurance amendment Bill proposes to raise the foreign direct investment (FDI)
cap for the sector to 49% from 26%, but the standing committee on finance,
headed by main opposition Bharatiya Janata Party leader Yashwant
Sinha, is against this.
The
government is trying to forge a consensus with opposition parties to ensure
passage of the Bill and may table the Bill in Parliament in the second half of
the budget session, said a finance ministry official, also declining to be
identified.
The
finance ministry is also exploring an option to allow foreign institutional
investors to hold up to a 23% stake in Indian insurance firms, maintaining the
FDI limit at 26%, if a consensus can’t be reached.
INTERNATIONAL
BUSINESS
Ever since the release of Microsoft's
Surface tablet, Silicon Valley is abuzz with rumours that Microsoft
would come up with its own series of smartphone. Now, Microsoft's loyal
smartphone partner Nokia in its recent filing to United States SEC (Security & Exchange
Commission), has expressed fears about the possibility of smartphone coming out
from the Redmond-based company, as it could affect its future smartphone
business.
Finnish smartphone maker Nokia in its 'Risk Factors'
assessment about the company's competitors said, "Other manufacturers also
produce competing mobile products which are based on the Windows Phone
operating system. We may face increased competition from other manufacturers,
including Microsoft, who already produce or may produce competing Windows Phone
based products. Increased competition within the Windows Phone ecosystem could
result for instance in lower sales of our devices or lower potential for a
profitable business model". Nokia further stated, "Microsoft may make
strategic decisions or changes that may be detrimental to us. For example, in
addition to the Surface tablet, Microsoft may broaden its strategy to sell
other mobile devices under its own brand, including smartphones. This could
lead Microsoft to focus more on their own devices and less on mobile devices of
other manufacturers that operate on the Windows Phone platform, including
Nokia."
Watson, International Business Machines
Corp.(NYSE:IBM)’s Jeopardy winning supercomputer has started out the size of a
master bedroom but it will shrink to the size of a smart phone. The
supercomputer is offering its data analytics capabilities for diagnosing and
suggesting patient treatments.
Watson will pass the U.S. Medical Licensing
Examination. IBM is also working to program Watson. Even now, a Watson
supercomputer with the same computational capabilities as the system that took
on Jeopardy all-time champions is a fraction of its former size. And, the
smaller Watson is almost two-and-a-half times faster than the original system.
Watson is capable of image recognition which is enough to determine the
difference between a life-threatening bug bite and a rash on a child in a
developing nation, which can be recommend treatment based on its diagnosis.
IBM has allocated $7 billion toward the Watson
supercomputer’s research and development.
IBM scientists are working to improve with Watson to
process unstructured data such as physicians’ notes, research published in
peer-reviewed medical and science journals, radiological images, biofeedback
from wireless monitoring devices, and even comment threads from online patient
communities, which can be used in the melting pot of data analytics.
LOGISTICS
Allcargo
Logistics' stock
may be under pressure in the coming months as it recently completed its buyback offer.
This is because the company's performance over the past few quarters has been
impacted due to slowdown in the economy.
From the buyback process, the Company has purchased
an aggregate of 41,36,449 Equity Shares, which is nearly 79% of the total
buy-back offer quantity. As a result, the promoter holding of the company
increased from 69.81% as of June 2012 to 72%.Allcargo operates in three major
segments - Container
Freight Stations (CFS), Multimodal
Transport Operations (MTO) and Project and Engineering Solutions (P&E).
While earnings from CFS and MTO segments have remained flat, its P & E
division has taken a major hit due to slowdown in capex cycle. In the quarter
ending December 2012, the P&E reported an operating loss of Rs 15 crore as
against a profit of Rs 17 crore last year. Overall, its profits declined by 28%
to Rs 37 crore.
At present, the company's order book in P&E
segment stands at Rs 240 crore, which are nearly half the revenues from this
segment in the last twelve months. As a result, its P & E segment will
remain a drag to its financials in the coming quarters. A lot would depend on
the revival of the economy
for any improvement in the company's earnings.
US logistics firm Crane Worldwide Logistics (CWW)
opened its first African office in Johannesburg, while eyeing further
investments in Mozambique and beyond.
With an emphasis on the industrial diamond market,
which serves the mining and construction industry, Crane believes its
already-well-established relationships will grow even faster and stronger.
“This may be our first location in Africa, but our
employees are mature and well-connected in the industry,” said Gerard Ryan,
Crane Worldwide Logistics vice president for the region. “We anticipate
tremendous growth, and in fact, on opening day, we had two shipments booked
before we even opened the doors.
“We have target markets in the high-tech data
storage and natural resources industries and this gateway to the rest of Africa
will see us expanding our presence to Mozambique, Durbin and Capetown. The key
to this remarkable success is the people. “Our employees are customer-focused,
and a defining factor in our success. This dynamic group, headed by Kelvin
Ganas, structures their business dealings around the Crane Worldwide Value
Proposition, of people, information technology, compliance and quality, account
management and service execution. Customer satisfaction tops their priorities
and it makes all the difference in the world.
MARKETING
The government is planning to set up a marketing
organisation under public-private-partnership mode for promoting Khadi
products, Parliament was informed today.
"Under Khadi Reform and Development Programme
(KRDP), a marketing organisation under Public-Private-Partnership (PPP) mode is
envisaged to promote effective marketing of KVI products," Minister of
State for Micro, Small and Medium Enterprises (MSME) K H Muniappa said in a
written reply to the Lok Sabha. At present, the Khadi
and Village Industries Commission (KVIC) operates 10 departmental sales
outlets and organises exhibitions in different parts of the country at
district, state, regional and national levels in association with state
agencies.
KVIC also provides assistance to its departmental
outlets, outlets of Khadi and Village Industries Boards (KVIBs) of states and
Union territories, and institutions under the Scheme of Strengthening
Infrastructure of Existing Weak Khadi Institutions.
Besides, KVIC imparts training on various KVI trades
and entrepreneurship through a network of 17 departmental and 24
non-departmental training centres.
ODISHA BUSINESS
International Finance Corporation (IFC), an arm of
the World Bank, will work jointly with Odisha government to promote private
sector-led growth in the strategic sectors of agri-business and tourism,
catalysing investments and creating jobs.
As per the three-year partnership agreement between IFC and Odisha government, IFC will work with the state government to streamline regulation for investment, identify areas for improvement, and tap into opportunities in the private sector. In agri-business, the project aims to facilitate investments in food processing and warehousing, storage and cold chain facilities. The project will also help the state develop as a tourism destination.
This has come closer on the heels of IFC teaming up with Bihar government to simplify tax laws and procedures to reduce compliance burden and encourage small businesses to register as taxpayers, widening tax base and improving business climate. IFC is also supporting Rajasthan government in promoting private investments in sectors such as automotive, information technology, solar, and tourism.
IFC’s strategy in India is to work in priority states like Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and West Bengal, and also in the northeastern states, including Sikkim, according to IFC officials.
“Through this collaboration with the Odisha government, we hope to help the state widen economic opportunities, by focusing on sectors where the state enjoys a comparative advantage, and is well placed to create jobs. IFC will also work with the government to simplify regulatory requirement for small and medium businesses.” Thomas Davenport, IFC South Asia director, said.
As per the three-year partnership agreement between IFC and Odisha government, IFC will work with the state government to streamline regulation for investment, identify areas for improvement, and tap into opportunities in the private sector. In agri-business, the project aims to facilitate investments in food processing and warehousing, storage and cold chain facilities. The project will also help the state develop as a tourism destination.
This has come closer on the heels of IFC teaming up with Bihar government to simplify tax laws and procedures to reduce compliance burden and encourage small businesses to register as taxpayers, widening tax base and improving business climate. IFC is also supporting Rajasthan government in promoting private investments in sectors such as automotive, information technology, solar, and tourism.
IFC’s strategy in India is to work in priority states like Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and West Bengal, and also in the northeastern states, including Sikkim, according to IFC officials.
“Through this collaboration with the Odisha government, we hope to help the state widen economic opportunities, by focusing on sectors where the state enjoys a comparative advantage, and is well placed to create jobs. IFC will also work with the government to simplify regulatory requirement for small and medium businesses.” Thomas Davenport, IFC South Asia director, said.
RETAIL
New Zealand retail spending on electronic bank cards
rose for the fifth straight month in February, adding to signs consumers are
becoming more confident.
Retail spending on credit, debit and charge cards
rose 0.8 percent, seasonally adjusted, last month, according to Statistics New
Zealand.
That's the biggest gain since August last year and
beats the median forecast in a Reuters survey of 0.5 percent.
Retail spending in February was up 2.5 percent from
a year earlier, slowing from a 5.8 percent gain in January from a year earlier.
The survey covers about two thirds of all retail spending and provides the only
government estimate of monthly spending after the retail sales series was
reduced to a quarterly survey.
Spending on durables, which includes furniture and
home appliances, rose 1.4 percent in the latest month, while spending on
consumables such as food and liquor gained 0.6 percent. Spending on fuel fell
1.5 percent.
Core retailing, which excludes motor vehicle-related
industries, rose 0.7 percent and total electronic card spending gained 0.8
percent.
Actual spending amounted to 101 million transactions
with an average value of $54 for a total spend of $5.4 billion.
India's top retailer Future Group has agreed to sell
22.5% stake in its life insurance joint
venture with Italy's Generali Group to Industrial
Investment Trust Ltd in a deal estimated at 280-300 crore.
The deal will value Future
Generali India Life Insurance Co at approximately 1,250 crore.
In a filing to Bombay Stock Exchange, Future Group's
listed firm Pantaloon
Retail said that it has entered into a share-purchase agreement with
non-banking finance company Industrial Investment Trust (IITL) to sell 22.5%
holding in the life insurance venture. After the transaction, Future Group's
holding in the firm will slip to 51.5%. Generali holds 26%. The Italian firm is
expected to raise it to 49% once India raises the foreign investment limit in
insurance.
Mumbai-based IITL
is in the insurance broking business with 14 branches and 250 employees. It
plans to have 25 branches by the end of the year.
Company insiders said promoters will finance part of
the deal while funds raised through global depository receipts will take care
of the rest. IITL had raised 325 crore through a GDR issue.
The stake sale in Future Generali will help Future
Group pare its debt levels that stood at 5,500 crore in June last. Biyani has
managed to bring it down to half trough a series of deals and restructuring
initiatives across his businesses. Last year, it sold its stake in Future Capital
to private equity firm Warburg Pincus.
Future Generali India Life Insurance reported 42%
decline in new business premium income to 147.28 crore during April-January. It
has a share capital of 1,260 crore.
The industry hit by economic slowdown and regulatory
changes has seen a drop of 6% in income from sale of new policies.
The highly capital-intensive nature of life
insurance business is forcing promoters to pare stake or consolidate. Most
companies missed their break-even target due to economic slowdown and
regulatory changes.
SUPPLY CHAIN
The RSB Services Foundation, which is responsible
for the distribution and implementation of the Roundtable on Sustainable
Biofuels global sustainability standard for biofuel production, is pleased to
announce that SkyNRG is the first biofuel operator worldwide to earn the RSB
certification for their supply chain of renewable jet fuel including
separation, blending and logistics.
SkyNRG is the world's market leader for sustainable
kerosene, supplying more than 15 carriers worldwide. Founded in 2009 by Air
France KLM Group, Argos and Spring Associates, SkyNRG works with all
technologies and suppliers as long as it is sustainable. SkyNRG plays an active
and pioneering role in making the market for sustainable jet fuel by
aggregating demand and by bringing different technologies to commercial scale
by setting up regional, sustainable jet fuel supply chains. SkyNRG is aware
that sustainability is a dynamic field and that today's choices will be replaced
by more sustainable options in the future. However, they do everything in their
power to guarantee the most sustainable choice at every moment in time.
"Curbing the carbon dioxide footprint of jet
fuel is key with the continuous growth in aviation around the world," says
Peter Ryus, CEO of RSB Services Foundation. "That is why what SkyNRG has
done with certifying their jet fuel supply chain to adhere to RSB's rigorous
standards is so important. SkyNRG is setting a new precedent for aviation
sustainability practices."
Samsung has shipped up in Apple's pitch by taking a
three per cent stake in cash-strapped component supplier Sharp for ¥10.4bn
($111m).
Instead of top iDevice manufacturer Foxconn nabbing
a bit of Sharp, an idea that had previously been floated, the fruity firm
will see Sammy screens being made side by side with its own components. The
share purchase means Samsung can now be sure of a secure supply of LCD panels
from Sharp. Sharp is framing the deal as a "strengthening of the LCD
business alliance" between the two firms, a phrase that hints at
bolstering both Samsung's growth in tellies as its Japanese competitors have
lost ground and its newly minted status as a leading mobe maker.
Chai-Gi Lee, research director for Gartner in South
Korea, told The Register that things had changed for Samsung since its
Galaxy range clawed their way to the top of the Android device heap.
"The competition paradigm changed when Samsung
took the market leader position in several markets including smartphone, TV and
so on. Now, the demand for Samsung’s products exceeds the supply limit of
Samsung’s components," he said.
While Apple and Samsung duke it out over mobiles, they're also stuck in the rather
odd frenemy territory - where the latter company is one of Cupertino's biggest
suppliers of chips. Now that relationship is going to become even more
complicated, with Samsung also getting Sharp to help with its screen supply
while the Japanese company makes other displays for Apple.
_________________________________________________________________
Source of
Information for this issue: Google alert accessed on 11th, 12th and 15th March 2013
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suggestions in improving this information updating service.
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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
E-mail:library@asbm.ac.in, chieflibrarian@asbm.ac.in
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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