Monday, April 22, 2013

ASBM Business Updates Vol. 2(14) 22 Apr 2013, Monday from Chanakya Central Library, Asian School of Business Management, Bhubaneswar.

   ASBM Business Updates is a Weekly Selective Compilation of Business News from Various Sources. To find details follow the links.

ASIAN BUSINESS
Japan’s benchmark stock index powered higher again Tuesday, extending a rally sparked last week after the Bank of Japan announced a bold program to revive the country’s moribund economy. Other Asian stock markets were modestly higher.
The head of Japan’s central bank, Haruhiko Kuroda, on Thursday delivered on promises to take aggressive action to shake Japan from nearly two decades of growth-crippling deflation. He unveiled plans to pump huge amounts of money into the economy via government bond purchases and pursue a 2 percent inflation target in order to spark lending and spending.
Japan’s Nikkei 225 index rose 0.5 percent to 13,260.04, extending gains for a fifth straight session, as the yen traded at its weakest since May 2009.
With Japan’s monetary battle plan now laid out, investors are turning to quarterly earnings reports from major U.S. companies. The reporting season began in earnest late Monday when Alcoa, a major maker of aluminum, turned in a mixed report. Its earnings were ahead of expectations but its revenue missed forecasts.
Later this week, Wells Fargo and JPMorgan Chase announce their first-quarter performance. Investors are expecting strong earnings in 2013.
‘‘If the banks can show credit growth over this period, then we may actually start to see real confidence returning to US markets,’’ said Evan Lucas of IG Markets.
Hong Kong’s Hang Seng rose 0.8 percent to 21,890.51. Australia’s S&P/ASX 200 advanced 1.3 percent to 4,967.70. Benchmarks in mainland China, Singapore, and Indonesia also rose.
South Korea’s Kospi went against the trend, dropping 0.4 percent to 1,910.09 as tension brewed on the Korean Peninsula amid joint U.S.-South Korean military drills. Pyongyang recalled all its workers from the Kaesong industrial complex, which is managed by South Koreans and staffed by North Korean workers.
Lack of awareness about non-tariff barriers among traders of the South Asian region is creating problems in enhancing intra-SAARC trade and commerce, a government official has said.
"Lack of awareness about Non-tariff barriers (NTBs) is creating lot of problems. Stakeholders like business associations should organise seminars to make traders aware of the procedures followed by each countries. The move would help in increasing trade," Director in the Commerce Ministry Indira Murthy today said at a seminar here.
She was addressing representatives from South Asian countries like Pakistan, Bangladesh, Sri Lanka and Nepal. The seminar on 'Participatory Approach to Address NTBs in Regional Trade' was organised by CUTS.
Murthy said the government is working to resolve all matters related with non-trade barriers to boost trade among South Asian Association for Regional Cooperation (SAARC).
"There is a sub-group who are looking at the issues related with land custom stations. Negotiations are on to remove them (NTBs)," she said.
She added that the governments are engaged to remove barriers related with infrastructure and facilitates at customs stations like testing laboratories.
The Director informed that India is not only spending money on developing infrastructure but also organising outreach programmes in the neighbouring countries informing traders about paper work and different procedures.

She said that SAARC members should focus on issues such as energy cooperation, Essential Services Maintenance Act (ESMA) and work closely to increase trade instead of competing with each other.
"Regional integration is the need of the hour. Why can't we have such agreement (ESMA) within the SAARC region," she said.

ASIAN MANAGEMENT
Deutsche Asset & Wealth Management (DeAWM), the investment management division of Deutsche Bank, has launched five new Asia-focused exchange-traded funds (ETFs) in Hong Kong. The launch includes the territory’s first ETFs to offer exposure to equity markets in Singapore, Bangladesh and Pakistan.
The other two ETFs provide exposure to Philippines equities and Asian (excluding Japan) high-dividend-yielding stocks.
DeAWM is the largest ETF provider in Hong Kong by number of funds, with a total of 35 products listed on the Stock Exchange of Hong Kong
The ETFs are linked to MSCI Investable Market (IM) Indices. These indices target approximately 99% of each market’s free-float-adjusted market capitalisation and cover all investable large, mid and small-cap securities, subject to minimum investability and size criteria.

BANKING
European Finance Ministers are looking to make progress on the creation of a single supervisor to watch over banks — a task officials say has assumed even greater urgency since a banking crisis in Cyprus stoked renewed fears over the region’s debt crisis.
The meeting of the 27 Finance Ministers of the European Union countries in the Irish capital is the first since the chaos of the Cyprus bailout, which resulted in big bank depositors suffering big losses and the imposition of capital controls for the first time since the Euro was established in 1999. The meeting also takes place amid renewed market worries over Europe’s debt problems, particularly the size of other banking sectors, notably that of Slovenia’s.
Irish Finance Minister Michael Noonan said he expected the Finance Ministers to endorse a plan for a central authority for Europe’s banks that has been developed in Brussels by national representatives to the EU.
“I think the big breakthrough today will be that we have now got a political agreement on the single supervisory mechanism,” Mr. Noonan said on his way to the meetings on Friday. After that, he said, Ireland, which currently holds the six-month rotating presidency of the EU, will begin working to develop a policy on bank resolution.
The plan is to give the European Central Bank central oversight of all European banks, accompanied by a common bank resolution mechanism and a joint bailout fund. But the plan won’t take effect before next year, as Mr. Noonan acknowledged Friday.
With fees earned from facilitating tax collections doubling, IDBI Bank plans to step up its focus on government business.
In fiscal 2012-13 (FY13), the public sector bank earned Rs 60 crore fee income (Rs 30 crore in FY12) from government business, which includes facilitating collection of direct and indirect (Central) taxes, State sales tax and treasury business.
Direct tax includes corporate and personal income-tax while indirect tax includes Customs duty, excise duty and service tax.
IDBI Bank facilitated central tax collections aggregating Rs 1,42,776 crore in FY13 against Rs 1,12,543 crore in FY12, registering a 27 per cent growth. As per the revised budget numbers, the central tax collection in FY13 amounted to Rs 10,35,381 crore.
The bank also mopped up Rs 16,198 crore in FY13 for 14 States by way of sales tax/value-added tax against Rs 12,125 crore in FY12.
According to Viney Kumar, Executive Director, “We are proactively encouraging our customers to pay their taxes through us. This is part of our cross-sell activity.
“We want to leverage our technology as much as possible to facilitate e-payments to the Central and State Governments. Even non-IDBI customers can pay their taxes through us.”
Government business presents two-fold advantage for banks. While banks earn fee income, the funds collected also improve their overall low-cost CASA (current account, savings account) deposits, albeit only for a day.
“Any banking relationship is not just an asset relationship. It has to be seen holistically as asset plus liability plus whatever other cross-sell opportunities that a commercial bank can tap,” said Kumar.
The IDBI official pointed out that there was an over 200 per cent jump in Customs duty collection in FY13 to Rs 22,000 crore from Rs 7,000 crore a year ago.
“We introduced a system of multiple challan (receipt) payment facility for Customs duty through a single e-payment transaction (you can upload multiple challans in one go instead of uploading one by one). This facility helped push up Customs duty collection,” said Kumar.

BUSINESS COMMUNICATION
Today, SendHub launched its Android application, upgrading the business communication app to allow unlimited calls and added new features including call forwarding, call transfer, shared groups, and auto attendant.
SendHub graduated from Silicon Valley incubator Y Combinator a year ago with a $2 million check in its pocket — a sizeable amount to get the SMS-based product off the ground. The company billed itself as an SMS service for organizations and has morphed into a social business phone system.
The system works on a variety of devices and includes features such as VoIP calling and voicemail services as well as free SMS and calling. The company also offers simple text messaging and mobile marketing features, allowing business and organizations to broadcast messages to colleagues and customers through group text.
“Email is not really that medium anymore, it’s just such an overburdened channel. Social media is even worse. It’s often impractical to call people. So that leaves SMS. And nobody has really made SMS serious — and that’s what we do,” SendHub cofounder Ash Rust told VentureBeat last year.
SendHub joins other social business services like Yammer striving to engage and connect the workplace through social tools as networks like Facebook and Twitter permeate our personal lives.
However, some analysts are skeptical of the benefits of standalone social business software. Unproductive noise has begun to fill up the business network, writes entrepreneur Alastair Mitchell, and “useful business conversations that the platform was purchased to foster were made obsolete.”
But with a variety of devices and ways to connect, the growing social business software community could help simplify collaboration in the workspace through idea sharing, file exchange, and integrated communication. The SendHub Android application is the startup’s next step in creating a simple, fast, and reliable communications platform for organizations that want an easier and more social way of staying connected.
Comtrol Corporation, a leading manufacturer of industrial device communication products, today announces the official partnership with Axis Communications.
“The Axis Technology Partner Program is designed to bring to market the ‘best of class’ solutions for channel partners and their customers,” says Vince Ricco, Business Development Manager, TPP, Axis Communications, Inc. “We are excited to formally welcome Comtrol to the program and look forward to collaborating with such an interesting partner to offer true problem solving technology solutions that go beyond common capabilities.”
Axis is the global market leader in innovative network video products for retail, transportation, critical infrastructure, perimeter security and public surveillance applications. As a member of the Axis TPP, Comtrol will continue to improve product compatibility with Axis to increase successful product integration and enhance end user experience. Comtrol will also continue to participate in any joint marketing activities, education, and development opportunities to further both companies’ success within the security market. “Our customers have come to expect the very best in reliable networking solutions for the past thirty years,” says Bradford Beale, President of Comtrol, “We are pleased to be involved in Axis’ Technology Partner Program. Our ruggedized line of RocketLinx™ Power over Ethernet switches has proven to complement the physical security solutions that Axis and its partners provide in North America, South America and Europe.”

INDIA BUSINESS
Indian companies invested $1.88 billion (around Rs 10,260 crore today) in other countries last month, up from $1.65 billion in February, according to the Reserve Bank of India. Companies committed the money by the way of equity, loans and issuing guarantees to their wholly-owned subsidiaries and joint ventures in foreign countries.
The majority of money was invested in the form of guarantees. Companies issued guarantees worth $1.46 billion, while they had equity contribution of $217 million and gave loans worth $201 million.
Major companies that invested in foreign countries include Escorts Ltd, Videocon Industries Ltd, ILF&S Group and Glenmark Pharmaceuticals Ltd.
Videocon Group, in two different transactions, issued guarantees worth $853 million in its subsidiary Videocon Hydrocarbons Holdings Ltd. This company, which is into mining and agricultural activities, is located in the Cayman Islands in the Caribbean Sea. ILF&S gave guarantees worth $105 million to its subsidiary ITNL International Pte Ltd in the US.
Glenmark invested six different countries in March. Its biggest transaction among the six was the $60.58 million investment it made in its subsidiary Glenmark Holdings SA, located in Switzerland. Out of the $60.58 million, $57 million was in the form of guarantees, while it gave a loan of $3.58 million to this company. Kenya, Mexico, Peru, Russia and Venezuela are the other countries where Glenmark invested during the month.
Apple is stepping up its efforts to attract Indian businesspeople and targeting enterprises implementing Bring Your Own Device (BYOD) as it attempts to increase its share of the Indian smartphone market.
Canadian cell phone maker BlackBerry, which entered the Indian market about nine years ago, has sold more BlackBerry phones in India compared to any other country. Following the launch of its new line of BlackBerry 10 devices it is expecting to penetrate the market even more.  But while celebrating its new flagship, the company has threats to worry about.
One of its biggest rivals, Apple, is attempting to increase its Indian market share with a subtle shift in its strategy.  After selling iPhones for more than four years in India, a new distribution model comes into play which is helping Apple push sales of iPhones harder in India.
It has now expanded its sales through a number of distributors and premium resellers. “In terms of installed base, currently BlackBerry leads Apple in India. However, the rate of growth is much stronger for Apple than BlackBerry,” said Katyayan Gupta, mobility analyst at Forrester. This is the result of extensive marketing and payment plans which makes it more affordable.
As a result, iPhone shipments have increased significantly in the second half of 2012. Between October and December last year, Indian shipments have almost tripled from 90,000 units in the previous quarter to 250,000 units, making iPhone the second largest smartphone in terms of revenue and the fifth largest by volume in India.
“Apple is primarily growing in the enterprise segment because of the BYOD trend. The scope of a business smartphone has changed from company-buying-and-giving-to-employee, to employee-buying-and-getting-into-organization. This is where consumers have made a choice to go for Apple,” Gupta said. In India, 88% of director-and-above level executive employees choose the smartphones that they use at work and below this level, 80% of the employees enjoy the same freedom.

INDIAN MANAGEMENT
Even as the slowdown in the domestic economy continues to take its toll on car companies, global auto majors are increasingly turning to local managerial expertise to prepare for the next wave of growth in the Indian market.
In a major change of guard in its Indian operations, Italian car maker Fiat last week appointed Nagesh Basavanhalli as president and managing director of Fiat and Chrysler India. Basavanhalli, who earlier headed the group’s technical centre out of Chennai, succeeds Enrico Atanasio who is set to assume responsibilities for the company in the Asia-Pacific region.
Fiat stated the change was as part of ongoing efforts to strengthen its business position in India. The company - with two products on offer in its portfolio in India – registered a decline of 56 per cent to sell a mere 6,471 units in the India market between April and December last fiscal.
Basavanhalli’s appointment comes at a time when in a major product offensive Fiat is set to unleash nine new products badged under the Jeep, Abarth and home brands over the next three years in the Indian market.
It is not Atanasio alone who has in recent times relinquished charge to a local executive. In December last year, Ford India appointed Joginder Singh as president and managing director to step in in place of Australian Michael Boneham.
In Ford again, Vinay Piparsania was brought in from the Group’s operations in Philippines as executive director (marketing, sales & service) in place of Nigel Wark. In Renault too, Britisher Len Curran made way for Sumit Sawhney as head of sales & marketing at the French car maker.
“Automobile companies examine their strategies continuously and explore possibilities of shifts in top management to innovate in sales and marketing. Global auto majors are appointing executives with deep local knowledge to connect better with Indian consumers”, says Abdul Majeed, partner and leader (automotive practice), Pricewaterhousecoopers.
Indian outsourcer Infosys saw its profit drop even as revenue grew in the first quarter, as margins were hit by staff salary increases, and investments and acquisitions by the company in new technology areas and markets.
The company's CEO and managing director S.D. Shibulal told analysts on Friday that the company had a "soft quarter."
Infosys said it continues to be hit by an uneven economic recovery and slow decision-making by customers in its main market in the U.S. A decline in prices as customers focus on cost-cutting, and the weakening of the Indian rupee against the U.S. dollar also affected margins.
Revenue was US$1.9 billion for the quarter, up 9.4 percent from the same quarter last year, according to IFRS (International Financial Reporting Standards). Net profit fell by about 4 percent year-on-year to $444 million. Revenue growth in rupees was higher at 18 percent, while net profit grew 3.4 percent, reflecting the weakening of the rupee against the dollar.
Infosys' revenue for its fiscal year ended March 31 was $7.4 billion, up by about 6 percent from a year earlier, while net profit was flat at a little over $1.7 billion.
The company acquired Lodestone Holding, a management consultancy firm in Zurich specialized in SAP software, in the fourth quarter of last year as it tries to build up its presence in Europe, a market that is increasingly driven by the ability to deliver services from locations within the continent.
But margins from the Lodestone business will continue to be single-digit until Infosys moves some of the work offshore to low-cost locations in India, Shibulal told a TV channel. In the meantime, the company takes a charge each quarter towards payment for the acquisition, he said.
Infosys' results for the quarter were not in line with forecasts by National Association of Software and Services Companies, an Indian IT services trade body, which had estimated 10 percent growth in revenue from services exports in the Indian fiscal year ended March 31.

INSURANCE
Germany on Thursday pressed India to hike the foreign equity cap in the insurance sector and reduce tariffs on import of automobiles as a prelude to the much-awaited India-EU Free Trade Agreement even as the two countries signed six pacts including one under which a German loan of Euro one billion (Rs 7,000 crore) will be provided for a green energy corridor in India.
After talks with Prime Minister Manmohan Singh, German Chancellor Angela Merkel said that India and the EU have not yet overcome "all the difficulties" in reaching an agreement to conclude the FTA.
India is pressing Germany, the biggest economy in Europe, to provide a "strong political thrust" for inking of broad-based Bilateral Investment and Trade Agreement (BITA) with the 27-nation European block. Merkel, who jointly co-chaired the second round of Inter-Governmental Consultations (IGC) with Singh, however, minced no words when she said that the increase in the insurance cap by India was "undeniably" an important issue apart from resolution of issues such as tariff rate quota on imports of German cars, Services and Intellectual Property Rights. "We want progress in the signing of the EU-India free trade agreement. We are in a situation where it seems as if we can get there. We have not yet overcome all the difficulties," Merkel told reporters while appreciating Indian side to be "accommodating" in paving the way for inking of the pact.
Singh on his part said that he and Merkel were agreed on the "importance" of an early conclusion of a "balanced" India-EU FTA. "We agreed on the importance of an early conclusion of a balanced India-EU Broad Based Trade and Investment Agreement," he added.
Aircraft lease rentals for Indian carriers will go up, as leasing companies might opt for a re-possession risk insurance on planes leased  to local companies, said Uday Nayak, chairman of Veling, a Mauritius-based leasing company.
Re-possession risk insurance covers against loss due to non- recovery of aircraft from the lessee. Its need is being felt after airport operators and the service tax department held in custody Kingfisher’s planes upon termination of lease terms.
Recently civil aviation secretary K N Srivastava directed the Airports Authority of India (AAI) to release Kingfisher planes which were de-registered from the records due to a lease rental default. The government directive came in the wake of petitions filed by lessors and aviation finance companies, including ILFC and DVB, demanding release of their planes. Wary of the Indian government's actions and worried over the heightened risk of business in this country, leasing companies are considering an insurance cover against such actions.
"We will have to consider it (re-possession insurance) if we lease planes to Indian carriers,'' said Nayak. Veling had leased two ATR-72s to Kingfisher and terminated both leases. One of the planes flew out from Bangalore today, after five months of negotiations with the GVK group, AAI, the aviation regulator and the tax department
"Till now, we never considered India as a risk but recent developments have made us rethink. There will be higher finance costs for us as well, as those banks willing to finance aircraft for lease into India will be cautious. This will mean higher lease rentals for airlines,'' he said.

INTERNATIONAL BUSINESS
China and Australia on Wednesday started direct trading of their currencies, dealers said, in a move seen as a boost to business ties and international use of the Chinese yuan.
The move allows the Australian dollar and the yuan to be directly swapped without using the US dollar as an intermediary currency, making foreign trade settlement more convenient and cutting transaction costs. The Australian dollar was quoted at 6.5118 yuan at midday Wednesday on China's national foreign exchange market.
Australian Prime Minister Julia Gillard announced the move in a speech on Monday while on an official visit to China.
China, the world's number two economy, is Australia's largest trading partner according to Canberra, spending billions on resources it needs to fuel its growth, while Australia is China's seventh largest partner.
The China Foreign Exchange Trade System said late Tuesday that direct trading would "promote bilateral trade and investment between China and Australia".
China's foreign exchange market started direct trading between the yuan and Japanese yen in June last year, while the US dollar is also directly traded with the Chinese currency.
Australia and New Zealand Banking Group, one of the market makers for the new trade, called the move a "milestone", saying it would push forward convertibility of the yuan, according to a research report.
But Zhang Jianping, a researcher at China's Institute of International Economic Research, called for more government efforts to make the yuan a global currency by reaching more such agreements with trading partners.

LOGISTICS
Californian based Fox Head, Inc. owns the action sports apparel and clothing brand, Fox, which is rapidly expanding its reach in the European market.  Menlo Worldwide Logistics (Menlo) has recently established a new distribution centre for the company at its Eersel, (Netherlands) Logistics Centre.  During the last three decades, Fox has become an international leader in the youth lifestyle clothing market making the best motocross products money can buy.  With multi-channel retail distribution demands the Fox brand features fast-moving product lines that include protective gear and apparel for activity pursuits such as motocross, surfing, BMX and mountain-biking.  Fox Head, Inc. is headquartered in Irvine, CA, with additional offices in Morgan Hill, CA, Calgary, Canada, and Barcelona, Spain. The Fox brand is the most recognized and best-selling brand of motocross apparel in the world today. After a review of their supply chain requirements Fox have now relocated their European distribution hub from the UK to Menlo's Eersel Logistics Centre.
Menlo, the global logistics subsidiary of Con-way Inc. (NYSE: CNW), will provide transport management services for inbound product and distribution to the Fox dealer network; inventory and warehousing management and order fulfilment and dispatch.  The facility will utilize Fox's voice recognition technology.
Robby Dhesi, Fox's Vice President of Operations emphasizes the importance of the voice picking system to supply chain efficiency, "Menlo's flexibility and willingness to adopt our in-house voice recognition system for order fulfilment was critical to our decision to move to Eersel.  We have been impressed with the improvements in the speed of order filling when utilizing the system in our US and European operations," he said. "In addition, Menlo's process-driven approach to creating savings, their lean philosophy and Lean continuous improvement programs are consistent with the Fox culture."
DHL has announced it is the official logistics partner of the 2013 Formula 1 Gulf Air Bahrain Grand Prix, taking responsibility for various aspects including the transportation of racing cars, fuel, pit and TV equipment.
“Not a single wheel could turn in Formula One without logistics. No cars, engines or fuel would ever reach the race venues around the world. The drivers would not even have a driving suit in which to tear around the circuit,” said Nour Suliman chief executive of DHL Express Mena.
Over 30 tonnes of cargo per racing team has had to be quickly dispatched on the 6,833 km journey from Shanghai, where the previous race was held, to the Bahrain International Circuit, so that it would arrive in time for construction of the teams’ pits. During the course of the year, a team’s racing cars will be transported over 160,000 kilometres between the 19 Grand Prix venues.
“DHL is extremely well equipped for this race against time, a point that is reinforced by its backing of the DHL Fastest Lap Award. There are countless reasons why last minute deliveries become necessary, but the aim is always the same – to get to the track on time,” added Suliman.
DHL has an extra services team standing by to meet the special requirements of teams, organisers and sponsors, the statement said. Deliveries to and from the track can be made within 24 hours by express flights. An on-board courier accompanies any urgent package throughout the journey, expedites clearance through customs and can even take it by helicopter directly to the paddock.

MANAGEMENT
Microsoft has released the latest version of its Desktop Optimization Pack (MDOP) suite of IT management tools, an upgrade that deepens its ability to manage Windows 8 PC deployments.
MDOP 2013, available now via download for the company’s Software Assurance licensing program subscribers, boosts the product’s BitLocker administration capabilities and group policy management features for Windows 8, Microsoft said on Wednesday.
With the product’s previous upgrade, MDOP 1012, released in November of last year, Microsoft introduced Windows 8 support for three of the suite’s components: Microsoft User Experience Virtualization (UE-V), Microsoft Application Virtualization (App-V) 5.0, and Diagnostics and Recovery Toolset (DaRT) 8.0.
In MDOP 2013, the Microsoft BitLocker Administration and Monitoring (MBAM) tool gets a big upgrade to version 2.0, including Windows 8 support.
However, IDC analyst Al Gillen doesn’t see the Windows 8 support as a big attraction for the mostly large enterprises that subscribe to Software Assurance and use MDOP, because they haven’t widely deployed the new OS on their PCs.
“Given the adoption of Win8 in enterprise accounts, I don’t think that’s going to be the lead feature for a lot of customers today,” Gillen said. “The Windows 8 support in MDOP is probably not super critical for them.”
However, Microsoft is anticipating future demand, as it should. “Microsoft couldn’t possibly say: ‘We haven’t updated MDOP for Windows 8 because no one is using Windows 8 yet.’ They couldn’t send that message out. The correct presumption is that customers will over time move to Windows 8 and to the [Windows] versions that follow it,” Gillen said.
MBAM 2.0 features a new Self Service Portal for end users, integration with System Center Configuration Manager (SCCM) 2007 and 2012, reporting enhancements, and simplified provisioning for Windows 8.

RETAIL
India’s factory output slowed to 0.6% in February from 2.4% in January, signalling that economic recovery has yet to take firm root. Retail inflation, however, moderated in March for the first time in four months, though it remained in double digits.
The numbers encouraged some economists to maintain their forecast for a further cut in interest rates by the central bank at its next monetary policy review due on 3 May.
Data released by the Central Statistics Office showed consumer price inflation slowed to its lowest level in four months at 10.39% in March from 10.91% a month ago on the back of softening food prices.
Planning Commission deputy chairman Montek Singh Ahluwalia drew comfort from the fact that industrial production didn’t contract.
“I’m glad it’s not negative, it’s very low, not anything that one can point to as indicating a robust return of growth,” he said.
In February, mining contracted 8.1%, reflecting continued regulatory hurdles, while manufacturing showed signs of a revival with a growth of 2.2%. However, electricity production, which has been registering robust growth, contracted for the first time in seven years by 3.2%, indicating that the myriad constraints faced by the sector may be eroding its health.
In the April-February period, the Index of Industrial Production (IIP) slowed to 0.9% from 3.5% a year ago.
In February, while volatile capital goods grew 9.5%, signifying a swelling of investment demand in the economy, basic goods and intermediate goods contracted 1.8% and 0.7%, respectively. Consumer durables shrank 2.7%, indicating weak discretionary demand, while the consumer non-durables sector grew 2.9%.
In the fiscal year ended 31 March, car sales fell 6.7%, the first drop in 12 years. The Society of Indian Automobile Manufacturers lobby group expects car sales to pick up by 3-5% in 2013-14.
While economic activity remains weak, the better-than-expected reading of IIP supports the view of a gradual recovery in activity and the appearance of “green shoots” in the data, said Tushar Poddar, managing director and chief India economist at Goldman Sachs .
Wal-Mart WMT +1.46% is now a member of the National Retail Federation (NRF), according to representatives for the Bentonville, Ark., company and the business group. The addition of Wal-Mart to NRF’s ranks will bring some serious clout to the trade association, which has sought to raise its profile in Washington.
Brooke Buchanan, a Wal-Mart spokeswoman, said the retailer decided to join NRF this year.
There’s a long back-story to the relationship between the world’s biggest retailer and the world’s biggest retail federation. It dates to the early days of Sam Walton’s founding of the chain:
In the late 1960s, Sam Walton, Wal-Mart’s founder, tried to join the NRF but was rebuffed because “the department store owners didn’t want to mix with a discounter,” one retail source said. So in 1969, WalMart and 20 other companies co-founded the Mass Retailing Institute, which later became RILA. The group, based in Arlington, Va., represents some of the country’s largest retailers, among them Wal-Mart, Safeway, and Lowe’s. Wal-Mart never did become an NRF member.
In 2009 the NRF agreed in principle to a merger with the Wal-Mart supported Retail Industry Leaders Association (RILA), but the talks later broke down and the deal was scrapped. There was much talk that disagreements over issues including healthcare policy played their part in the failure. As Internet Retailer reported:
On June 30, six days after NRF and RILA called off the merger, Wal-Mart released a public letter to President Barack Obama supporting a requirement that all but the smallest companies offer health insurance to their employees, a position that ran counter to the views of most corporations.

SUPPLY CHAIN
The Pakistan State Oil (PSO) will set up a technologically advanced refinery as part of efforts to develop a self-reliant energy supply chain for the country.
The facility having a capacity of 40,000 Barrels Per Day (BPD) will be constructed on about 400 acres of land in district Kohat - Khyber Pakhtunkhwa.
The company's spokesperson said the facility which would be fully commissioned by 2016-17 is being set up as a part of the new vision company to make a leading public sector company with the determination to secure Pakistan's energy supply chain.
The official said the PSO has already signed a Memorandum of Understanding (MoU) with Government of Khyber Pakhtunkhwa (GoKP) for establishment of a state-of-the-art oil refinery in the province.
As per this MoU, the project will be set-up through a public private partnership and will utilize crude oil from nearby indigenous supply sources for production of POL products conforming to Euro IV standards.
The spokesperson said establishment of this refinery will help improve the overall availability of POL products across the country as well as result in sizeable foreign exchange savings for the nation.
It shall also increase PSO's operational base through diversification in the midstream segment and lower distribution cost in the related supply envelopes.
In addition to these benefits, this refinery will also help in creating job opportunities for local populace as well as professionals from various technical backgrounds.
It is also expected that substantial foreign direct investment will also take place as a result of this project.
The project will serve as the foundation for future initiatives and suggested to continue efforts to do more for future progress and prosperity of Pakistan.

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Source of Information for this issue: Google alert accessed on 15th  and 16th Apr 201­­­­­­­­­­­­­­­­­­­­3

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Compilation
 Sabita Sahu
Junior Librarian
Concept, Layout and Editing
Syamaghana Mohanty
Chief Librarian
Information and Documentation Division,  Chanakya Central Library
Asian School of Business Management
Shiksha Vihar Bhola,
Barang Khurda Road, Chandaka
Bhubaneswar-754012
                              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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