Tuesday, December 31, 2013

ASBM Business Updates Vol. 2(39) 30 Dec 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 link.
BANKING
Mumbai-headquartered Kotak Mahindra Bank Ltd on Tuesday rolled out its financial inclusion programme across 75 milk cooperative societies of Amul in West Bengal.
Called “Kotak Samridhi”, the initiative was rolled out across the districts of Burdwan and Hooghly.
It will see direct transfer of money to farmers' prepaid cards for their daily produce. The money transfer process will take place within the same day.
Earlier, the payment cycle would be of three days.
“Approximately, 8,000 farmers supplying milk to Amul through these cooperative will benefit through the programme,” Tushar Trivedi, Executive Vice President & Head Branch Banking, Kotak Mahindra Bank, said.
According to him, Kotak has tied up with National Payment Corporation of India (NPCI) for using their RuPay platform for issuing the prepaid cards.
Farmers need not necessarily have a bank account with Kotak Mahindra to obtain payments.
However, cooperative societies need to have accounts with the bank.
Replicating the model
Kotak, which began the pilot project on financial inclusion here in the State in August this year, will now roll out a similar scheme for Amul in Gujarat.
Roll out is expected to happen in two months time (around February).
Over three lakh dairy farmers across 1,200 cooperative societies in the State will be part of the programme.
“In Gujarat, roll out will happen in a phased manner,” Trivedi said.
Kotak is also talking to other cooperative societies in Haryana and Punjab for extending the roll out to wheat and paddy.
Talks are, however, in a nascent stage.
INTERNATIONAL BUSINESS
JPMorgan Chase & Co, which is pushing to simplify operations on its $2.46 trillion balance sheet, has put up for sale its Global Special Opportunities Group, an Asia-based unit that makes investments in mid-sized companies, according to a person familiar with the matter.
The group employs about 35 people and tends to take stakes in loans that rank low in the capital structures of companies smaller than the large multi-national corporations the bank usually courts for international business, the person said declining to be identified because they were not authorized to speak on the record. The bank is marketing the unit to private equity funds and credit-oriented hedge funds that make similar investments.
The unit is focused on real estate, impaired assets and principal finance and has expertise in distressed debt, according to a page on JPMorgan's website. It has its home office in Hong Kong.
The decision to sell the unit was reported earlier on Monday by the Financial Times.
JPMorgan, the biggest U.S. bank by assets, has been moving this year to unload ancillary businesses, or "hobbies," as CEO Jamie Dimon sometimes calls them.
JPMorgan is selling its physical commodities business after concluding its prospects were too dim in light of how much it complicated the relationship with regulators. It is also spinning off One Equity Partners, its private equity business, and has said it will quit making student loans.

The bank announced its drive to simplify after coming under pressure from regulators and politicians for its size amid questions about whether it can safely manage its diverse operations. Last year, the company lost more than $6.2 billion when a derivatives trading strategy went out of control in London.
RETAIL
British retailer Tesco is set to partner Tata-owned Trent to set up the first multi-brand retail venture with foreign equity since overseas investors were allowed over a year ago.
Sources said that the joint venture is planning to invest around $110 million (around Rs 700 crore) initially to set up stores in Karnataka and Maharashtra. The partners are expected to formally approach the Foreign Investment Promotion Board over the next few days. The department of industrial policy and promotion has already received the proposal, a senior government official said.
" We welcome the decision of TESCO to invest in India. We welcome this development and on our part assure them all support for expedited clearances. To begin with, they propose to establish their stores in Maharashtra and Karnataka. We hope that this will mark a new beginning in transforming India's retail industry. I am sure that the other global leaders will also look at investing in India," commerce and industry minister said in a statement.
Neither Trent nor Tesco could be reached for comment. While several foreign players such asWalmart and Carrefour have shown interest, none of them have made much progress.
The government currently allows 51 per cent FDI in multi-brand retail and has imposed conditions such as mandatory local sourcing and investment in back-end infrastructure for allowing foreign players in the business.
Reliance Retail has entered into a partnership with Samsung to manage its after-sales service, a precursor to the Mukesh Ambani-owned firm's bigger plan to form similar alliances with almost all top electronic, computer and phone makers to become the country's largest one-stop consumer electronics installation, maintenance and service venture. The deal between Samsung and Reliance resQ is the first such pact that the Indian company has signed, with a pilot having begun in Pune. Reliance resQ is envisaged as another of the group's big consumer facing businesses alongside retail and will play a crucial role when Reliance launches nationwide 4G mobile services, said a person aware of the plan. This is part of Reliance's strategy of becoming the conduit for the vast range of service contracts a home needs — from electronic items, kitchen appliances to phones, computers and laptops, he said.
"However, it will not be easy," this person said. "It is a people-driven industry where Reliance has to constantly skill and re-skill technicians and keep them motivated," he said. Nearly 2,000 people are already working at Reliance resQ and the company wants to raise the headcount to 10,000 in two years.

Reliance is trying to emulate US electronics retail giant Best Buy's Geek Squad that customers call for tech support and services irrespective of where they bought a product, said the person cited above.
SUPPLY CHAIN
AIAG announced that it secured an agreement from multiple automakers to utilize a communal platform to map the automotive supply chain. With support fromGeneral Motors, Chrysler Group and Toyota, according to AIAG, it is creating the first web-based industry database for identifying the physical movement of finished goods, parts and materials through the supply chain. The database, planned for launch in early 2014, is to initially map supplier shipments into the United States.
“The first casualty of globalization has been transparency,” said J. Scot Sharland, executive director of AIAG. “For the first time in the history of the auto industry, we have collaboration among key automakers to take the first big step toward creating a centralized supplier data platform for greater visibility into the global supply chain. Led by these three early adopters, we’re launching with a system that puts command and control of the data into the suppliers’ hands and is driven by a federal border security initiative.”

The first generation of the AIAG platform, named Supply Safe–Supplier Security Assessment, maps shipments via the Customs-Trade Partnership Against Terrorism (C-TPAT) certification program. C-TPAT is a federal government program by the U.S. Customs and Border Protection through the U.S. Department of Homeland Security. It allows companies shipping goods and materials into the United States to become certified as a low-risk security threat, which provides the benefit of faster-moving cargo through U.S. customs checkpoints. The frequency of truck and shipping container inspections decreases by a factor of five for C-TPAT-certified companies, and the expedited processing helps the auto industry improve the speed at which parts and material arrive at end destination points.
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Source of Information for this issue : Google alert accessed on 23rd Dec 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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