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ASIAN BUSINESS
Prime Minister Datuk Seri Najib
Razak said the Economic Transformation Programme now included business
events as part of its plan to establish Malaysia as Asia’s business events hub.
He also said that business tourist arrivals would
increase from 1.2 million to 2.9 million by the year 2020.
Najib conveyed this on Thursday at the
seven-category International Dragon Awards 2013 (IDA 2013) in conjunction with
the 17th Malaysia Chinese Life Insurance Congress at the Kuala Lumpur
Convention Centre.
The event, which aims to honour insurance and
financial services professionals in Asia, was organised by Taiwanese insurance
association IMM International and was supported by the Malaysia Convention
& Exhibition Bureau (MyCEB), an agency under the Tourism and Culture
Ministry.
Malaysia’s envisioned growth into a high-income
economy would raise demand for risk and savings-type insurance products, Najib
added.
He told the audience that structural reforms and
improved efficiencies in the insurance sector were under way, and urged local
insurance industry players to consider the bigger picture in light of the
sector’s challenges and priorities in the wider region.
He also pointed out that the sector in East Asian
economies shared three common goals – sustaining growth and performance under
challenging economic circumstances, strengthening economic transformation
capacity and building resilience to withstand future shocks.
British insurer Prudential reported a 22 percent
jump in its first-half profits on Monday, underscoring the appeal of its Asian
business and bolstering chief executive Tidjane Thiam's decision to bet on the
fast-growing region. The results, which were slightly ahead of analyst
forecasts, helped push Prudential's shares to an all-time high. The 165-year
old company also cheered investors with a 16 percent hike in its interim
dividend.
The results will do much to restore the reputation of Thiam, which took a serious knock after an ill-fated Asian takeover attempt in 2010. While insurers from across Europe have enjoyed a strong start to 2013 - buoyed by rising investment returns and longer-term trends of an ageing population demanding more retirement income - Prudential has been among the sector's best performers because of its diversification beyond European shores.
More than four-fifths of Prudential's sales now come from outside of the UK. "The growth of the middle class in Asia...the US baby-boomer gliding into retirement and the UK population becoming more aware of its long-term savings needs, are all positive for current trading as well as longer term prospects," Hargreaves Lansdown Stockbrokers' Head of Equities Richard Hunter said.
In 2010 Prudential set out to make its units in Asia and the United States financially independent within three years, saying this would give it the option of breaking itself up if its share price did not reflect the full value of its businesses by then. However, the recent strong performance across the group has quelled talk of an imminent structural revamp, and Prudential has played down the possibility of disposals any time soon.
The results will do much to restore the reputation of Thiam, which took a serious knock after an ill-fated Asian takeover attempt in 2010. While insurers from across Europe have enjoyed a strong start to 2013 - buoyed by rising investment returns and longer-term trends of an ageing population demanding more retirement income - Prudential has been among the sector's best performers because of its diversification beyond European shores.
More than four-fifths of Prudential's sales now come from outside of the UK. "The growth of the middle class in Asia...the US baby-boomer gliding into retirement and the UK population becoming more aware of its long-term savings needs, are all positive for current trading as well as longer term prospects," Hargreaves Lansdown Stockbrokers' Head of Equities Richard Hunter said.
In 2010 Prudential set out to make its units in Asia and the United States financially independent within three years, saying this would give it the option of breaking itself up if its share price did not reflect the full value of its businesses by then. However, the recent strong performance across the group has quelled talk of an imminent structural revamp, and Prudential has played down the possibility of disposals any time soon.
BANKING
Banking shares are under pressure falling by up to
7% after the Reserve Bank of India (RBI) on Wednesday has announced additional measures to
support the Indian rupee by stemming foreign exchange outflows by Indian
residents.
Axis Bank, YES Bank, Bank of Baroda, ICICI Bank, IndusInd Bank, Bank of India and Federal Bank are down 3-6% on the Bombay Stock Exchange (BSE).
The BSE banking index, Bankex, is down nearly 3% as compared to 1.72% fall in benchmark S&P BSE Sensex at 1000 hours.
Overseas direct investment (ODI) by Indian companies has been cut three-fourths, 100% from 400%, making it more difficult for local corporates to buy overseas assets.
RBI reduced the limit for remittances made by Resident Individuals, under the Liberalised Remittance Scheme (LRS Scheme), to $75,000 from $200,000 per financial year.
Among the individual stocks, Axis Bank has slummed nearly 7% to Rs 1,075 on BSE. The private sector bank has been also dropped from the MSCI standard and large cap indexes effective September 2. Removal from the index means the shares will not be included in funds that mirror the index.
YES Bank has dipped 5.3% to Rs 276, followed by Bank of Baroda (4% at Rs 501), while ICICI Bank, Bank of India and Canara Bank are down 3% each.
Axis Bank, YES Bank, Bank of Baroda, ICICI Bank, IndusInd Bank, Bank of India and Federal Bank are down 3-6% on the Bombay Stock Exchange (BSE).
The BSE banking index, Bankex, is down nearly 3% as compared to 1.72% fall in benchmark S&P BSE Sensex at 1000 hours.
Overseas direct investment (ODI) by Indian companies has been cut three-fourths, 100% from 400%, making it more difficult for local corporates to buy overseas assets.
RBI reduced the limit for remittances made by Resident Individuals, under the Liberalised Remittance Scheme (LRS Scheme), to $75,000 from $200,000 per financial year.
Among the individual stocks, Axis Bank has slummed nearly 7% to Rs 1,075 on BSE. The private sector bank has been also dropped from the MSCI standard and large cap indexes effective September 2. Removal from the index means the shares will not be included in funds that mirror the index.
YES Bank has dipped 5.3% to Rs 276, followed by Bank of Baroda (4% at Rs 501), while ICICI Bank, Bank of India and Canara Bank are down 3% each.
Licences to open numerous small banks, a bigger role
for foreigners in the currency market, bank mergers, liberation for state-run
banks from government clutches - issues which had been anathema to the Reserve
Bank of India till now may take wings under new governor Raghuram Rajan.
The reform-resistant RBI, which has kept the
financial markets partly closed to developments despite two decades of economic
reform, may be open to treating global banks on a par with local ones, evolve a
stricter regime on loan defaulters, and even toy with the idea of sovereign
bonds. Rajan, a former finance professor at the University of Chicago's Booth
School of Business - the fountainhead of the efficient market cult - may tread,
though cautiously, on many subjects that the RBI has, so far, been less
enthusiastic about.
"Raghu is someone who would bring new
ideas," says Krishnamurthy Subramanian, assistant professor at the Indian
School of Business, whom Rajan advised on research at the Booth School.
"RBI has tended to be on the conservative side. That helped to keep risks
minimal. It is also a lost opportunity."
BUSINESS
Reliance Power may approach the Central Electricity
Regulatory Commission (CERC) seeking a higher tariff for its proposed
ultra-mega power project at Tilaiya due to an increase in raw material costs.
The company is expected to file a petition with the electricity regulator this week, seeking an upward revision in the power tariff, a source privy to the development told PTI.
The source also said that the reason for this may be rising input costs.
When contacted, a Reliance Power spokesperson declined to comment.
Reliance Power won the bid for the 4,000 MW, coal-based ultra-mega power project (UMPP) at Tilaiya in Jharkhand in January 2009, quoting a tariff of Rs. 1.77 a unit. This would be the second project for which it has sought a price revision.
The company has already filed four petitions with the CERC, seeking relief for the Sasan UMPP in Madhya Pradesh due to a rise in construction costs and depreciation in the rupee.
The company is expected to file a petition with the electricity regulator this week, seeking an upward revision in the power tariff, a source privy to the development told PTI.
The source also said that the reason for this may be rising input costs.
When contacted, a Reliance Power spokesperson declined to comment.
Reliance Power won the bid for the 4,000 MW, coal-based ultra-mega power project (UMPP) at Tilaiya in Jharkhand in January 2009, quoting a tariff of Rs. 1.77 a unit. This would be the second project for which it has sought a price revision.
The company has already filed four petitions with the CERC, seeking relief for the Sasan UMPP in Madhya Pradesh due to a rise in construction costs and depreciation in the rupee.
Vodafone Group(VOD.L)
paid millions to Britain's tax authority as part of a settlement linked to its
Irish unit, the Guardian reported on Sunday.
The Guardian reported that accounts filed in Dublin
showed that in 2009 Her Majesty's Revenue and Customs (HMRC) settled a dispute
with the British telecoms provider over its Irish tax returns. (r.reuters.com/wuz42v).
The overall size of the settlement has not been
revealed but it involved Vodafone reclaiming 67 million euros from the Irish
government in tax that should have been paid in the UK, the Guardian reported.
"Vodafone conducts itself in full compliance
with the law and always operates under a policy of full transparency with the
tax authorities in all countries in which we operate," the company said in
statement in response to the article.
Vodafone has come under criticism in recent years
from campaigners after it said it had not paid any corporation tax in Britain
for two years due to tough operating conditions in its home market.
The Guardian said that Vodafone used an Irish
subsidiary, Vodafone Ireland Marketing Ltd (VIML), to collect royalty payments
from operating companies and joint ventures around the world for using its
brand.
BUSINESS
COMMUNICATION
Inflow Communications, an award-winning provider of
ShoreTel® unified communications in Portland, Seattle and the Bay Area, has
announced a new sales partnership with global cloud contact center provider
LiveOps.
LiveOps contact center adds social
media monitoring and response and a smooth transition across various customer
service channels using an integrated dashboard that empowers both customers and
customer service agents. LiveOps cloud contact center was created to serve
modern-day customers who no longer wish to rely solely on traditional customer
service channels such as phone and email.
The new partnership adds multi-channel customer
service and support capabilities to Inflows impressive list of unified communications and
VoIP business communications products. These communications products are
designed to improve internal workflow and collaboration for medium to large
enterprises. Inflow is built on the belief that helping customers prepare today
will create continued success in the future, says Inflow Communications
President Travis Dillard. Our customers realize that business communications
can offer real competitive advantage as part of an organizations business
strategy. This new partnership with LiveOps cloud contact center is another way
we can support that.
INDIA BUSINESS
South Africa is keen for Indian investments in its mining sector
for a mutually beneficial partnership, acting High Commissioner to India Malose W. Mogale says.
"South Africa is endowed with minerals and we want capital
equipment for mining. India should invest in South African mining so that a
mutually beneficial partnership leads to more employment in South Africa,"
Mogale told IANS in an interview.
Africa's biggest economy offers a very favourable
investment climate and in the areas of expertise of Indian businesses, the
acting high commissioner said.
Several Indian companies like Tata Steel, Jindal
Group and Essar are already in South Africa with large investments in the
mining and mineral sectors.
South Africa-based Hepzibar Mining has been
exploring partnerships with Indian business for developing a coal block in
Mozambique. The company is also looking for an Indian joint venture partner to
develop a diamond block in Namibia.
Training and capacity building is another area of
Indian expertise that South Africa hopes to benefit from to a greater degree.
"Indian investments in South Africa will also
result in training of local personnel. From there, students and those supported
by the ITEC (Indian Technical & Economic Cooperation Programme) are coming
to study in Indian universities," Mogale said.
He welcomed India's liberalising retail trade,
saying it would allow more market access, especially for South African agricultural
products.
Two Sacramento region technology executives have
partnered to launch Integrity
Global Management, a business management company focused on global business
expansion, strategy and execution for its clients. Integrity Global is designed
to help clients achieve their business growth objectives with a trio of expert
services focused on sales development, marketing and engineering. Integrity
Global managing partners, Peter Van Deventer and Daniel Francisco, bring
decades of global business and marketing experience to serve an expanding
client list ranging from Fortune 500 companies to dynamic startups.
Van Deventer most recently founded and served as
chief executive officer of SynapSense, a provider of energy efficient data
center infrastructure (DCIM) solutions. Francisco founded and served as
president of the Francisco Group, a leading technology marketing and public
relations company.
Integrity Global also announced that Jeff Boone has
joined the company as senior partner responsible for engineering services.
Boone, the former technology operations senior vice president at SynapSense,
has extensive technical and product development background including more than
25 years of experience developing successful commercial software and hardware
solutions.
INSURANCE
Insurance companies may be able to offer only
standard insurance products through the banking channel, a compromise worked
out by the finance
ministry to accommodate the concerns of the banking regulator on allowing
banks to become insurance brokers.
Finance
minister P
Chidambaram in his budget speech
this year had said that banks will be permitted to act as insurance brokers so
that their greater reach can be leveraged to increase insurance penetration in
the country that is as low as 4.4% of GDP in case of life
insurance.
The Insurance
Regulatory and Development Authority had earlier this month notified rules
allowing banks to act as brokers of insurance companies, a process termed as
bancassurance.
Under the current rules, banks can sell insurance
products as agents of insurance companies and one bank can sell product of only
one company under this agent-agency model. "While banks are well suited to
distribute insurance products because of their wide network, several issues
have arisen regarding their conduct in the process, generally pertaining to
mis-selling and certain restrictive/ unfair practices (such as linking
provision of locker facilities to purchase of insurance products, selling of
unsuitable and/or multiple policies etc.)," the RBI had said in Financial
Stability Report released in June.
The Financial Stability & Development Council
(FSDC), an inter-regulatory coordination body, had deliberated also the issue
of banks selling insurance products for more than one insurance company under
the bancassurance model on August 7, a day before the guidelines were announced
by IRDA.
The RBI is believed to have raised concerns again at
the FSDC. The finance ministry feels a standardized product fromall insurers
should take care of RB's concerns, and allow insurers to ride on bank networks
to increase insurance penetration.
"The aim of allowing banks to act as brokers
was to increase the insurance penetration. Same features product will not only
prevent mis-selling but also ensure that customers can chose a product based on
the performance and efficiency of the insurer," a finance ministry
official told ET. The insurance regulator will ensure that all products sold
through banks will be standardised in terms of features and commission
structure, the official said.
Eight months into the new financial year, most
insurance companies have failed to prepare their annual accounts for the year
ended December 2012. BusinessDay learnt that the companies are finding it
difficult to prepare their accounts in line with the international financial
reporting standards (IFRS) due to skill gaps on the part of consultants.
As at the last count only eight out of the over 50
operating insurance companies have submitted and gained approval from the
National Insurance Commission (NAICOM) for their 2012 accounts, while 20 others
are at various levels of completion.
While other financial institutions like banks have
since complied with IFRS in their 2012 financial accounts rendition, insurance
companies are lagging behind due largely to technical difficulty arising from
the uniqueness of their transactions which have a lot to do with actuary and
valuation, for which current consultants and experts are lacking.
An industry operator who spoke to BusinessDay said
the biggest challenge with compliance which has created a lot of apprehension
for insurance companies are shortage of IFRS experts to guide organisations on
compliance.
“The experts are very few and at the same time are
learning from the process and that is why we are having these challenges. But I
think we will get over it with time,” the operator stated.
Eddie Efekoha, managing director, Consolidated
Hallmark Insurance plc said that though the transition to the IFRS reporting
was not as seamless as envisaged in the industry, subsequent years would be
less problematic for the players because of lessons learnt so far. KPMG
Financial services had identified the challenges companies will face in the
adoption of IFRS to include expertise and companies’ underestimation of the
difficulty relating to the transition.
INTERNATIONAL
BUSINESS
SkyCity Entertainment will focus
on growing earnings at its flagship Auckland casino and lifting international
business as it tackles flagging profits.
Shares in the casino operator dropped sharply on
Wednesday after its net profit fell more than 8% in the 12 months to the end of
June to $127 million.
The company blames weaker earnings and a strong New
Zealand dollar.
A group of absconding high rollers also dented
profits by nearly $3 million.
Chief executive Nigel Morrison said unpredictable
consumer spending in Auckland and Hamilton was also a factor and it wants to
continue to improve the performance of its businesses.
He said the company has taken on new senior
executives over the last six months and wants to see more growth in
international business even though SkyCity is already turning over $6 billion.
"We do think there's considerable growth
potential in that business and we want to continue to focus on that but then
obviously continue to execute our transactions and secure major growth projects
in terms of Adelaide and Auckland."
Mr Morrison said there is nothing firm on the
horizon in terms of acquisitions although it has looked at the Philippines and
it's just withdrawn from the Gold Coast cruise ship terminal development because
the Queensland government was unable to give surety about a licence.
LOGISTICS
Dubai based Mohebi Logistics, a leading third party
supply chain management company, has entered Indian market with a 100%
subsidiary in Pune.
Mohebi Logistics, which is part of the $1 billion Zainal Mohebi Group, will initially provide supply chain support to the Indian unit of Compass Group Plc, the world's largest contract food services company. Mohebi works with customers like Nestle, Compass, Starwood and McDonald's in the Arabian Gulf.
The group's diversified interests include retailing, food distribution, shipping and energy. "We will start Indian operations working with Compass and look to expand our customers going forward. India is a focus market for our logistics business, which is beginning to expand outside Middle East," Mohammed Mohebi, CEO, Mohebi Group, told TOI. Mohebi Logistics is in the process of entering South Africa through an acquisition, while it would look for organic growth in India. "There aren't good enough acquisition targets as quality infrastructure doesn't exist in Indian logistics sector," said Mohebi who is drawing up $300 million investments to steer the logistics play in the next three years.
Mohebi Logistics, which is part of the $1 billion Zainal Mohebi Group, will initially provide supply chain support to the Indian unit of Compass Group Plc, the world's largest contract food services company. Mohebi works with customers like Nestle, Compass, Starwood and McDonald's in the Arabian Gulf.
The group's diversified interests include retailing, food distribution, shipping and energy. "We will start Indian operations working with Compass and look to expand our customers going forward. India is a focus market for our logistics business, which is beginning to expand outside Middle East," Mohammed Mohebi, CEO, Mohebi Group, told TOI. Mohebi Logistics is in the process of entering South Africa through an acquisition, while it would look for organic growth in India. "There aren't good enough acquisition targets as quality infrastructure doesn't exist in Indian logistics sector," said Mohebi who is drawing up $300 million investments to steer the logistics play in the next three years.
NuStar Logistics, L.P., a wholly owned operating
subsidiary of NuStar Energy L.P. (NYSE: NS), today announced that it has priced
$300 million principal amount of 6.750% senior notes due February 1, 2021. The
senior notes were priced at 100% of par at a yield to maturity of 6.750%. The
settlement date for the offering is expected to be August 19, 2013, subject to
customary closing conditions. The notes will be fully and unconditionally
guaranteed by NuStar Energy, as parent guarantor, and NuStar Pipeline Operating
Partnership L.P. (NuPOP), a wholly owned operating subsidiary of NuStar Energy,
as affiliate guarantor. NuStar expects to receive aggregate net proceeds
(before expenses) of approximately $296.6 million from this offering, which it
intends to use for general partnership purposes, including the repayment of a
portion of the outstanding borrowings under NuStar Logistics' revolving credit
facility. NuStar used such borrowings for general partnership purposes,
including capital expenditures, working capital requirements, the repayment of
the $250 million outstanding principal amount of NuPOP's 5.875% senior notes on
June 3, 2013 and the repayment of the $229.9 million outstanding principal
amount of NuStar Logistics' 6.05% senior notes on March 15, 2013.
MARKETING
The Global marketing industry enjoyed generally
positive business conditions in August, despite some less optimistic results in
Europe and Asia, according to Warc’s Global Marketing Index.
The global index of marketing budgets held steady,
returning a reading of 51.5 this month, the same reading as in July. As Asia
Pacific experienced a net decline in budget expectations – after July’s sharp
drop to a flat 50.0, the region’s index is down further in August to 48.2.
Europe has been a slight improvement, reaching 50.0,
a 0.3 increase from July. Only the Americas, up 0.3 points from July to 55.8,
saw a net rise in marketing budgets for August.
The GMI is a unique indicator of the state of the
global marketing industry. Every month it tracks conditions among marketers
within their organisation and region. It tracks marketing budgets, trading
conditions and staffing levels. A reading of 50 indicates no change, and above
60 indicates rapid growth.
ODISHA BUSINESS
As many as five companies including Crompton Greaves Ltd (CGL) and Tata Power Delhi Distribution Ltd (TPDDL) have expressed
interest to work as power distribution franchisee in Odisha during a workshop organised by Gridco Ltd and Rural
Electrification Corporation (REC).
Others were Bombay Stock Exchange (BSE)-listed Spanco, Calcutta Electric Supply Corporation (CESC) and SPML Infra Ltd.
"One more company Essel Utility, a power distribution franchisee in Madhya Pradesh, is also keen to take up franchisee business in the state, but could not attend the workshop today,” said a spokesperson of Gridco.
The distribution franchisee business helps power distribution companies (discoms) to outsource some tasks by dividing their catchment area into small patches and engaging one of the franchisee.
The franchisee’s job would be to supply and distribute electricity, take down metre readings, distribute bills, collect revenue, maintain low-tension lines and attend fuse-off calls.
The workshop, Distribution Franchisee Models in India-Evolution and Future, was organised to understand the issues involved in the business across various states of India.
"During the presentation, the companies said that they need more hand holding support and a longer period of contract, up to 15 years, to participate in this type of business model. We will sit together with the government before coming up with RFP (request for proposal) tender,” said A K Bohra, chief executive officer of Nesco, Wesco and Southco, the three discoms managed by Reliance Infra in the state.
Others were Bombay Stock Exchange (BSE)-listed Spanco, Calcutta Electric Supply Corporation (CESC) and SPML Infra Ltd.
"One more company Essel Utility, a power distribution franchisee in Madhya Pradesh, is also keen to take up franchisee business in the state, but could not attend the workshop today,” said a spokesperson of Gridco.
The distribution franchisee business helps power distribution companies (discoms) to outsource some tasks by dividing their catchment area into small patches and engaging one of the franchisee.
The franchisee’s job would be to supply and distribute electricity, take down metre readings, distribute bills, collect revenue, maintain low-tension lines and attend fuse-off calls.
The workshop, Distribution Franchisee Models in India-Evolution and Future, was organised to understand the issues involved in the business across various states of India.
"During the presentation, the companies said that they need more hand holding support and a longer period of contract, up to 15 years, to participate in this type of business model. We will sit together with the government before coming up with RFP (request for proposal) tender,” said A K Bohra, chief executive officer of Nesco, Wesco and Southco, the three discoms managed by Reliance Infra in the state.
The country's largest car maker Maruti Suzuki India has joined hands with Bihar government to set up the first Institute of Driving
and Traffic Research (IDTR) in eastern India.
Two more such centres would be set up in Odisha and the company has already signed the Memorandum of Understanding with the two state governments, Maruti Suzuki India(MSI) General Manager (Driving Training) Mahesh Rajouria told PTI.
The three centres would be set up in the PPP model and will train around 60,000 people every year, he said.
"We are happy to expand our driving training and road safety initiatives in partnership with states like Bihar. In addition to driving training, we will also provide strategic support to government for implementation of road safety plan in the state," Rajoura said.
In Bihar the company will set up the facility on a 15-acre plot in Aurangabad.
MSI and the state government inked the agreement in April this year and construction is likely to start post-monsoon.
Asked when the centre would start functioning in Bihar, Rajouria said "Usually it takes 12-15 months. Therefore it is expected to be operational by the end of 2014."
In Odisha, the centres would be set up at Bhubaneswar and Korapur on 15 acres of land each.
"Our MoU with Commerce & Transport Ministry of Odisha in April... We expect these to be ready by late next year around October," Rajouria said.
Two more such centres would be set up in Odisha and the company has already signed the Memorandum of Understanding with the two state governments, Maruti Suzuki India(MSI) General Manager (Driving Training) Mahesh Rajouria told PTI.
The three centres would be set up in the PPP model and will train around 60,000 people every year, he said.
"We are happy to expand our driving training and road safety initiatives in partnership with states like Bihar. In addition to driving training, we will also provide strategic support to government for implementation of road safety plan in the state," Rajoura said.
In Bihar the company will set up the facility on a 15-acre plot in Aurangabad.
MSI and the state government inked the agreement in April this year and construction is likely to start post-monsoon.
Asked when the centre would start functioning in Bihar, Rajouria said "Usually it takes 12-15 months. Therefore it is expected to be operational by the end of 2014."
In Odisha, the centres would be set up at Bhubaneswar and Korapur on 15 acres of land each.
"Our MoU with Commerce & Transport Ministry of Odisha in April... We expect these to be ready by late next year around October," Rajouria said.
RETAIL
New Zealand retail sales grew faster than economists
were picking in the second three months of the year, led by record gains in the
hospitality sector.
The total volume of retail sales rose 1.7%,
seasonally adjusted, to $17.94 billion in the three months ended June 30, from
a 0.9% pace of growth in the first quarter, which was revised up from 0.5%,
according to Statistics New Zealand.
That beat the 1.25 percent growth expected in a
Reuters survey of economists.
Actual retail sales volumes rose 4.2 percent in the
June quarter from the same period a year earlier, and actual values were up 3.3
percent to $17.55 billion.
Food and beverage services industries, which consist
of cafes, restaurants and bars, led gains, reporting an increase of 4.5 percent
to $1.8 billion, seasonally adjusted, making it the sector's biggest quarterly
jump since the series began in 1995. The value of spending on hospitality rose
a seasonally adjusted 0.9 percent to $18.14 billion. "A record increase in
the food and beverage services industry topped off the widespread rise of
consumer spending," industry and labour statistics manager Blair Cardno
said in a statement.
Swedish retail major IKEA Group has identified four
states — Haryana, Andhra Pradesh, Maharashtra and Karnataka — to set up
single-brand retail stores as part of its Rs 10,500-crore investment in India.
IKEA CEO MikaelOhlsson apprised commerce and
industry minister Anand Sharma of the gorup's business plans on Monday.
"The CEO informed the minister of the investment plans in the four states
including land purchase process. The company is also looking at Noida in Uttar
Pradesh to set up stores," an official familiar with the developments
said. The firm has incorporated its Indian subsidiary as IKEA India Ltd. The
company would enhance its sourcing from India and would collaborate with
handicraft and handloom sector and also collaborate with the National Institute
of Design for its products.
The government had on May 2 approved IKEA's Rs
10,500 crore proposal for setting up home furnishing stores in the country.
IKEA's investment is the largest in the single-brand segment ever since the
government allowed 100% foreign investment in this sector last year.
_______________________________________________________________
Source of
Information for this issue: Google alert accessed on 19th, 20th and 23rd Aug 2013
We welcome your suggestions in improving this information updating service.
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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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