Tuesday, February 25, 2014

ASBM Business Updates Vol. 3(8) 24 Feb 2014, 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
Private-sector lender HDFC Bank has launched its toll-free banking service which will help customers in carrying out six basic banking transactions just by dialling the numbers.
Customers will receive an instant SMS with the information requested including mini statement and balance enquiry on their registered mobile number, said Nitin Chugh, HDFC Bank head (digital banking).
Besides, other four services requests -- download mobile banking app, cheque book request, account statement and email statement -- can be made by dialling toll-free numbers.
"This is part of our efforts to expand convenience banking through digital initiatives," he said, adding that this service is completely free of cost and no charges are applicable to the customer either while making the call or receiving the SMS.
Customers with even the most basic mobile handset can use this service to access their accounts from any location at any time of the day or night.
For this service, the customer needs to register first via SMS, or net banking or by visiting the nearest branch or ATM. However, customers already registered for SMS banking can immediately avail of the service.
The full range of services ensures that every customer has access to their bank account in a manner they are most comfortable with, he said.

BUSINESS
Sunil Bharti Mittal-led Bharti Airtel looks set to become the largest mobile operator in Mumbai as the company is likely to announce the acquisition of Khaitans-owned Loop Telecom, the oldest mobile operator in the city.
Loop, which has over 3 million customers in the city, had not participated in the telecom auctions that concluded last week. Expiry of its airwaves at the end of the 20-year licence in the 900 MHz band would have meant the end of its operations. With Bharti taking over, its customer base as well as its tower infrastructure will now come under the ambit of the country's biggest mobile operator.
According to market data, Bharti had about 4 million customers in Mumbai in November. Acquisition of Loop will increase its customer base to over 7 million. Vodafone with 6.9 million customers (as of November) is currently the biggest operator in the city.

FINANCE
Online fashion retailer Myntra will allow local stores and boutiques to sell their products on a new marketplace that it plans to launch by April, in a move aimed at earning profits and expanding its reach in India's smaller towns and cities.
Myntra is the latest of India's large online retailers to launch a marketplace — where the company does not stock inventory but links sellers and buyers. Last April, multiproduct retailer Flipkart also switched to a hybrid model, by launching its own marketplace that now hosts about 1,000 retailers. The Bangalore-based company is the largest among the single-product portals to take this route and expects to have about 500 vendors signed up within the first year of its operations. "We would like to make a serious effort towards this (marketplace) direction," said Ashutosh Lawania, co-founder of Myntra, who expects about a fifth of the company's total business to come from the marketplace over the next one year.
According to Lawania, Myntra will continue to sell premium and private label brands through the inventory model, while local and boutique brands will be sold through its marketplace. "For us, both components are very important. In the future, while the (marketplace) could grow and grab a larger slice of the pie, both will co-exist," he said.

INDIA BUSINESS

One of the biggest Indian-owned businesses in the wider Gulf, the R.P. (Ravi Pillai) Group plans to deploy $1.5 billion (Dh5.5 billion) on real estate development in Dubai, with two projects in Business Bay and another at Downtown. It is the first time the $3 billion plus entity is getting into realty in these markets, with general and industrial construction having been its core focus until now.
Acquiring the plots came to a “few hundred millions of dirhams”, according to a top official. The Group is targeting real estate as contributing 10 per cent of overall turnover before the end of the decade. During this period, group turnover is projected to grow at between 5-10 per cent, according to the founder and chairman, Dr Ravi Pillai in a telephone interview from Bahrain where the Group is headquartered.
The 3 million square feet project will have serviced apartments, residences and a dedicated retail precinct as well as a five-star hotel. Others include a five-star hotel in Dubai Marina to be operated by Crowne Plaza, a four-star hotel in Bur Dubai to be managed by India’s ITC Group; and a serviced apartment complex near Downtown Dubai.
In India, the Group has in the recent past built up a property portfolio, but principally in hospitality and through management contracts with Leela Group and ITC Hotels.

INDIA MANAGEMENT
The Fleet Management service is tailored to suit each operator’s needs and this is the first of its kind in the country. The company has also displayed its latest heavy haulage truck - the Scania R 500 6x4 - with a top of the line V8 engine.
Part of Scania's comprehensive global service offering, supporting the driver, as well as managing the transport operation and the vehicle fleet, the Fleet Management service offers customers the possibility to monitor, analyse and control their fleet operations leading to maximised uptime and enhanced road safety.
This is a major benefit for operators running all kind of transport operations, comprising a number of independent services that can be combined to suit individual operators’ needs and can be installed in all Scania haulage trucks and buses.
The Scania R 500 6x4 features the first-ever V8 engine on Indian roads, offering high torque ratings at low speed, essential for super over-dimensional cargo (ODC) transport. With the automated gear changing system, Scania Opticruise, it will be the first vehicle of its kind on the Indian market to carry super ODC across the country under the most demanding of highway conditions.
Scania also showed off other products like the  Scania P 410 8x4 and the G 410 with new features such as the automated gear changing system for manual gearboxes which results in significant improvements with respect to precision, gear selection, performance and reliability.
Madison India Capital Management LLC, a mid-market private equity firm focused on media, communications and business services with a typical investment appetite of $5-20 million, has picked up a minority stake in Gurgaon- and New York-based iYogi Technical Services Pvt Ltd, a provider of  remote and on-site tech support services. The transaction includes a mix of primary and secondary investments. The exact quantum of the investment could not be immediately ascertained.
An email sent to iYogi co-founder and CEO Uday Challu to confirm the development did not elicit any response till the time of publishing this article.
Amarchand & Mangaldas & Suresh A. Shroff Co. (AMSS) acted as the Indian legal advisor while PricewaterhouseCoopers acted as the financial advisor to Madison India Capital Management on this deal.
VCCircle was the first to report that iYogi is raising $60 million in a pre-IPO round of funding from private equity investors.
In an earlier interview with VCCircle, Challu had said that the firm, mostly catering to the B2C market, is now planning to tap small and medium businesses (SMBs) in a big way across Indian and European markets. The firm is clocking $100 million in revenues.

LOGISTICS
Menlo Logistics (Menlo), the US$1.6 billion global logistics subsidiary of Con-way Inc. CNW +0.72% , today announced a new partnership with Starbucks Corp. to provide logistics management services for the global coffee company's growing operations in Thailand. Specifically, Menlo will provide warehousing, inventory and transportation management services for Starbucks' chilled, frozen, air-conditioned and ambient products from a new 7,635-square-meter dedicated warehouse located at Bangna Km.23 in Bangkok. The scope of the relationship with Starbucks includes warehouse returns, transfer management, pick and pack, labeling and kitting, and repackaging as needed. Menlo will also manage nighttime product delivery to Starbucks stores and will design the daily and weekly delivery routing for chilled and ambient products to all Starbucks stores throughout Thailand.
"We needed a reliable partner in Thailand that could analyze our specific needs and execute a plan to reduce costs, further streamline our operations and improve service tracking," said Ravee Purananda, Senior Manager of Supply Chain Operations at Starbucks. "Menlo is providing us with a comprehensive logistics solution designed to meet those needs, and we look forward to further developing our presence in Thailand with their support."

MARKETING

Japanese auto firm Nissan today terminated its agreement with Hover Automotive India for exclusive sales, marketing and distribution of Nissan branded vehicles and parts in India, ahead of the market launch of its Datsun brand in the country.
Without specifying reasons, the company said in a statement that its Indian subsidiary - Nissan Motor India Private Ltd (NMIPL) - has assumed full responsibility for the sales, marketing and distribution of all Nissan-branded vehicles and parts in India, with immediate effect from February 14, 2014. It further said "agreement with Hover Automotive India Pvt Ltd for exclusive sales, marketing and distribution of Nissan branded vehicles and parts in India has been terminated."
Commenting on the development, Nissan President (India Operations) Kenichiro Yomura said: "Nissan is now at a point of maturity in India where the time is right to establish our own marketing and distribution operations. Nissan's priority will be to ensure a smooth transition from current operations. We remain committed to our customers and will continue to deliver high quality products and services."
Further details about the business structure will be announced in due course, the company said.
Comments from Hover could not be obtained as calls to spokesperson remained unanswered.
The development follows Nissan's announcement last November that Datsun vehicles would be sold directly through Nissan Motor in India and not its erstwhile partner Hover.

RETAIL
Retail lending at major private and public sector banks is growing faster than corporate advances, as lenders worry about the impact of a slowing economy on business houses, show data until December, 2013.
Banks are increasingly relying on retail loans to drive credit growth as they feel their chances of turning into non-performing assets (NPA) are much lower. Retail loans are also an avenue for portfolio diversification, thanks to their smaller size and distributed customer base.
According to RBI data, gross outstanding credit to the retail sector as on December 27, 2013 stood at R9.99 lakh crore, up 15.8% y-o-y. In the same period leading to December 27, 2013, outstanding credit to industry was up 14.1% y-o-y at R24.11 lakh crore.
In case of state-run Bank of Baroda (BoB), the retail loan book stood at R42,777 crore as of December 2013 mainly led by home loans of R18,398 crore.
In an analyst call after its latest earnings announcement, the bank had said that continued to expect higher-than-industry loan growth for 2013-14, focussing on retail and small and medium enterprises (SME) loans. The bank's total domestic lending as of December 2013 was up 18.1% y-o-y.
“We have renewed focus on retail loans as we believe the risk of NPAs are much less here. As home loans consist of the largest chunk of the retail loan segment, the bank feels safe as the house could always be used for recoveries,” said BB Joshi, executive director, Bank of Baroda.
For private sector lender Axis Bank, loan growth was 33% in retail segment y-o-y, taking the bank's domestic retail loan book to R64,126 crore in December 2013. However, the bank’s corporate loan growth was a meager 3% at R97,407 crore during the same period.

______________________________________________________________

Source of Information for this issue :  Google alert accessed on 17th and 18th Feb 2014
 
We welcome your suggestions in improving this information updating service.
 
Knowledge Is Power. Be Informed, Be Knowledgeable, Be Powerful.
 
Best wishes
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
www.asbm.ac.in
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

No comments: