SSIM

Issue No. : 9 Business News Letter

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Siva Sivani Institute of Management
Crafting Careers Since 1992
Business News Letter
A tribute to Nelson Mandela
Issue No. : 9 Date: 15th November, 2013 - 30th November, 2013
(For private circulation only)
Exceprts from Remarks by
President Obama at
Memorial Service for
Former South African
President Nelson Mandela
It is hard to eulogize any
man -- to capture in words
not just the facts and the
dates that make a life, but
the essential truth of a
person -- their private joys
and sorrows; the quiet
moments and unique
qualities that illuminate
someones soul. How much harder to do so for a giant
of history, who moved a nation toward justice, and in
the process moved billions around the world.
Born during World War I, far from the corridors of power,
a boy raised herding cattle and tutored by the elders of
his Thembu tribe, Madiba would emerge as the last
great liberator of the 20th century. Like Gandhi, he
would lead a resistance movement -- a movement that
at its start had little prospect for success. Like Dr. King,
he would give potent voice to the claims of the
oppressed and the moral necessity of racial justice. He
would endure a brutal imprisonment that began in the
time of Kennedy and Khrushchev, and reached the fnal
days of the Cold War. Emerging from prison, without
the force of arms, he would -- like Abraham Lincoln --
hold his country together when it threatened to break
apart. And like Americas Founding Fathers, he would
erect a constitutional order to preserve freedom for
future generations -- a commitment to democracy and
rule of law ratifed not only by his election, but by his
willingness to step down from power after only one term.
Given the sweep of his life, the scope of his
accomplishments, the adoration that he so rightly
earned, its tempting I think to remember Nelson
Mandela as an icon, smiling and serene, detached from
the tawdry affairs of lesser men. But Madiba himself
strongly resisted such a lifeless portrait. (Applause.)
Instead, Madiba insisted on sharing with us his doubts
and his fears; his miscalculations along with his
victories. I am not a saint, he said, unless you think
of a saint as a sinner who keeps on trying.
It was precisely because he could admit to imperfection
-- because he could be so full of good humor, even
mischief, despite the heavy burdens he carried -- that
we loved him so. He was not a bust made of marble; he
was a man of fesh and blood -- a son and a husband,
a father and a friend. And thats why we learned so
much from him, and thats why we can learn from him
still. For nothing he achieved was inevitable. In the arc
of his life, we see a man who earned his place in history
through struggle and shrewdness, and persistence and
faith. He tells us what is possible not just in the pages
of history books, but in our own lives as well.
Mandela showed us the power of action; of taking risks
on behalf of our ideals. Perhaps Madiba was right that
he inherited, a proud rebelliousness, a stubborn sense
Compiled by
Mrs. V. Annapurna, Asst. Professor, Mrs. Anita Rani, Asst. Professor & Mrs. Agnes Fernandez, Assoc. Professor
Student Committee
N. Lakshmi Sneha, K. Pradeep Kumar, S. Akhilesh, M. Harish {BIFAAS-Juniors(NRP)}
1
IN THIS ISSUE
v Corporate ............................................. 2
v Economy & Policy ................................ 4
v Money & Banking ................................. 5
v Markets ................................................. 8
v Mergers & Acquisitions ......................... 9
v Info-Tech ............................................... 9
v Marketing ............................................ 10
v People in the News .............................11
v Emerging Entrepreneurship ................11
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CORPORATE
of fairness from his father. And we know he shared
with millions of black and colored South Africans the
anger born of, a thousand slights, a thousand indignities,
a thousand unremembered momentsa desire to fght
the system that imprisoned my people, he said.
But like other early giants of the ANC -- the Sisulus and
Tambos -- Madiba disciplined his anger and channeled
his desire to fght into organization, and platforms, and
strategies for action, so men and women could stand
up for their God-given dignity. Moreover, he accepted
the consequences of his actions, knowing that standing
up to powerful interests and injustice carries a price. I
have fought against white domination and I have fought
against black domination. Ive cherished the ideal of a
democratic and free society in which all persons live
together in harmony and [with] equal opportunities. It is
an ideal which I hope to live for and to achieve. But if
needs be, it is an ideal for which I am prepared to die.
(Applause.)
Mandela taught us the power of action, but he also
taught us the power of ideas; the importance of reason
and arguments; the need to study not only those who
you agree with, but also those who you dont agree
with. He understood that ideas cannot be contained by
prison walls, or extinguished by a snipers bullet. He
turned his trial into an indictment of apartheid because
of his eloquence and his passion, but also because of
his training as an advocate. He used decades in prison
to sharpen his arguments, but also to spread his thirst
for knowledge to others in the movement. And he
learned the language and the customs of his oppressor
so that one day he might better convey to them how
their own freedom depend upon his. (Applause.)
Mandela demonstrated that action and ideas are not
enough. No matter how right, they must be chiseled
into law and institutions. He was practical, testing his
beliefs against the hard surface of circumstance and
history. On core principles he was unyielding, which is
why he could rebuff offers of unconditional release,
reminding the Apartheid regime that prisoners cannot
enter into contracts.
But as he showed in painstaking negotiations to transfer
power and draft new laws, he was not afraid to
compromise for the sake of a larger goal. And because
he was not only a leader of a movement but a skillful
politician, the Constitution that emerged was worthy of
this multiracial democracy, true to his vision of laws that
protect minority as well as majority rights, and the
precious freedoms of every South African.
And fnally, Mandela understood the ties that bind the
human spirit. There is a word in South Africa -- Ubuntu
-- (applause) -- a word that captures Mandelas greatest
gift: his recognition that we are all bound together in
ways that are invisible to the eye; that there is a oneness
to humanity; that we achieve ourselves by sharing
ourselves with others, and caring for those around us.
We can never know how much of this sense was innate
in him, or how much was shaped in a dark and solitary
cell. But we remember the gestures, large and small
-- introducing his jailers as honored guests at his
inauguration; taking a pitch in a Springbok uniform;
turning his familys heartbreak into a call to confront
HIV/AIDS -- that revealed the depth of his empathy and
his understanding. He not only embodied Ubuntu, he
taught millions to fnd that truth within themselves.
It took a man like Madiba to free not just the prisoner,
but the jailer as well -- (applause) -- to show that you
must trust others so that they may trust you; to teach
that reconciliation is not a matter of ignoring a cruel
past, but a means of confronting it with inclusion and
generosity and truth. He changed laws, but he also
changed hearts.
GMR Infrastructure rejigs holdings in airports
GMR Infrastructure has changed the course of its
airports business. The infrastructure major has started
the process of transferring its shareholdings in three
airports to a holding company. The move is being seen
as a precursor to an initial public offering in the next
fnancial year and a platform for private equity investors
to exit. The listed infrastructure major and its step-down
subsidiary, GMR Energy, have direct stakes in the Delhi
International Airport (54 per cent), in the Hyderabad
International Airport (63 per cent), and the Istanbul
Sabiha Gokcen International Airport (40 per cent).The
Delhi airport holdings, worth Rs 2,500 crore at face
value, have been transferred to GMR Airports Ltd, the
holding company for the airport vertical. The other
airports holdings are yet to be transferred. GMR
Infrastructure now hold 97 per cent in GMR Airports
Limited. The rest would be held by the employee
welfare trust of GMR.
India@75 vision: 30 firms in Fortune 100 list
by 2022
Industry captains made a full-throated call to action in
Mumbai last evening, for creating an inclusive,
sustainable and developed India by 2022, when the
country completes 75 years of Independence. Called
the India@75 movement, the mission targets at least
30 Indian companies fnding a place on the Fortune 100
list. This year, only eight companies, including Indian
Oil Corp Ltd and Tata Motors Ltd, are featured on the
list. Under the Aegis of the Confederation of Indian
Industry (CII), business leaders such as Tata Group
Chairman Cyrus Mistry, Adi Godrej, Rahul Bajaj and
Infosys Kris Gopalakrishnan; Arun Maira from the
Planning Commission; and political leaders like Priya
Dutt and Suresh Prabhu resolved to make the best
effort to help empower the people of India.
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Saudis world's biggest Tweeters, India at 21st
position
In an unexpected fnding, Saudis have emerged as the
world's largest active Twitter users, while Indians
ranked among the lowest tweeters on the microblogging
site, according to a new research. According to
PeerReach, one-third or 32 per cent of the Saudi's
online population are active monthly Twitter users.
However, countries such as India, Nigeria and Germany
seem to have very little to tweet with only one per cent
active Twitter users in each nation.
The top ten countries with highest active monthly users
of Twitter are: 1 Saudi Arabia, 2 Indonesia, 3 Spain, 4
Venezuela, 5 Argentina, 6 UK, 7 Netherlands, 8 US, 9
Japan and 10 Colombia.
Axis Bank to be 'foreign-owned' after hike in
foreign investments
Axis Bank will become a foreign-owned lender, to be
governed by FDI (foreign direct investment) policy,
following the go-ahead to its proposed increase in
foreign investment holding to 62 per cent, entailing
infow of over Rs 6,200 crore. The lender seeks to raise
foreign investment holding from the existing 49 per cent
to 62 per cent. Following the hike in stake by foreign
investors, the bank will become foreign-owned,
whereby every future investment in seven subsidiaries
will be governed by FDI policy, according to sources.
The banks seven subsidiaries are Axis Capital, Axis
Finance, Axis Private Equity, Axis Trustee Services,
Axis Asset Management Company, Axis Mutual Fund
Trustee and Axis UK.
GMR in race to set up semiconductor unit
Infrastructure behemoth GMR Group has shown
interest in setting up a semiconductor fabrication unit
(fab) a complex technology project costing about Rs
25,000 crore, out of which 40 per cent is sponsored by
the Centre. According to two offcials aware of the
matter, GMR has approached the Department of
Electronics and Information Technology (DEIT) and is
currently looking to partner technology companies
interested in the project. GMRs entry into the race
could queer the pitch for its corporate rival Jaypee
Associates and home-grown chip frm Hindustan
Semiconductor Manufacturing Corporation (HSMC),
which have been in the fray to set up fab units since
2011.
Indian workers among most satisfied: Survey
One in fve people in India loves his job so much that he
would work for free, says an international survey by
online career and recruitment frm Monster India and
GfK, an independent global market research company.
According to the survey, released on Monday, 55 per
cent of workers in India love or like their jobs placing
India third in international happiness rankings, behind
Canada (64 per cent) and the Netherlands (57 per
cent). The survey noted that only fve per cent of Indian
workers admit they actively dislike their jobs and no
Indian said he hated his job the lowest percentage of
all countries surveyed.
Indian FDI in the US growing
India is the eighth fastest growing source of foreign
direct investments (FDIs) in the United States, according
to John M McCaslin, minister counselor for commercial
affairs, US Commercial Service, Delhi. He said that the
US was attracting a total of $300 billion FDIs a year and
India's investments were to the tune of $9 billion in
2012. In 2011, Indian FDIs in the US accounted for just
over $7 billion. At the same, the US FDI in India last
year increased to $28.38 billion from $24.66 billion in
2011. In India, McCaslin said, American companies
were looking at sectors like aerospace, aviation, airport
infrastructure, healthcare equipment and defence,
which were estimated to have large potential for
investments.
Women entrepreneurs' body to offer training
in social marketing
The Confederation of Women Entrepreneurs (Cowe)
would take up new skill-based training programmes for
women entrepreneurs in the state in the social and
digital marketing arenas. It is also encouraging them to
scale up their businesses by identifying export markets
and market linkages. The body has identifed areas
including textiles, handicrafts, event management
services, sanitary services management and green
businesses. For its 1,500 members, Cowe has been
annually organising around 20 training programmes
across various segments in collaboration with the
MSME board, National Small Industries Corporation
(NSIC).
Interface, world's largest carpet tile maker
plans India unit
Interface, the worlds largest maker of commercial
carpet tiles, is planning to start making products in
India, said Rob Coombs, president and chief executive
(Asia-Pacifc). Interface imports products from Thailand
for India. It had entered India in 2001.
PayUPaisa brings a middleman solution for
e-commerce
Indian e-commerce companies, struggling with high
costs on the cash-on-delivery platform, may now
explore another payment mode. PayUPaisa, a payment
gateway company, has introduced the option of release
on delivery. Currently, 60 per cent transactions are
carried through cash on delivery, which involves high
transaction costs. In the release-on-delivery format, an
escrow account with an authorised bank is to be placed
between the merchant and the end user. The payment
would be made once the buyer asked PayUPaisa to
release the payment, said Nitin Gupta, chief executive
of PayUPaisa, at the launch of the platform on
November 21, 2013. In case of no response from the
consumer, payments are released to the merchants by
default.
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Smartphones will be smarter than you by 2017
Smartphones will soon be able to predict a consumer's
next move, their next purchase or interpret actions
based on what it knows, according to information
technology research and advisory company Gartner
Inc. This insight will be performed based on an
individual's data gathered using cognisant computing,
the next step in personal cloud computing. Read more..
TCS to open largest delivery centre in Hyd in
next fiscal
Indias leading software frm Tata Consultancy Services
is likely to open its largest delivery centre at Adibatla
here by early next fscal. The centre would accommodate
26,000 employeesTCS expects 23,000 new employees
to join the frm by the end of the current fscal. Company
sources said meanwhile that the centre would be TCS
single largest faculty at a single location. The company
had announced that it will hire 50,000 new people in
2013-14 fscal, of which 25,000 are laterals.
Cadburys largest plant in Asia-Pacific to
come up in AP
Cadbury India on November 25, 2013 signed a
memorandum of understanding with the Andhra
Pradesh Government that will see it set up its largest
manufacturing plant in the Asia-Pacifc region. The
proposed plant, which is to come up on a 134-acre site
in SriCity, Chittoor, with an initial investment of Rs 1,000
crore, will be functional by mid-2015. Manu Anand,
President-India & South Asia, said the plant will be able
to serve the southern region and possibly other markets
as it gets implemented in phases. India is rated among
the top 10 markets in the companys global business.
The MoU was signed by Anand and K. Pradeep
Chandra, Andhra Pradeshs Industries Principal
Secretary, in the presence of Chief Minister N. Kiran
Kumar Reddy and others.
Hero Group to open University
The Hero Group on Wednesday announced the launch
of BML Munjal University, a fully residential university,
spread across 5 lakh sq ft on the Delhi-Jaipur Highway
near Manesar. The university will be operational next
year with the frst session starting in July 2014, said
Chairman Hero Corporate Services Sunil Kant Munjal.
The university plans to focus on all disciplines except
medicine.
ECONOMY AND POLICY
Slow decision making hurting economy, says
RBI Governor
The slowing down of the decision making process has
affected economic growth, RBI Governor Raghuram
Rajan said on November 15, 2013. Following the 2G
telecom scam and alleged corruption in coal block
allocation, offcials have become overly cautious about
taking decisions fearing they might invite scrutiny by
investigation agencies. As the economy has slowed to
below 5 per cent, Rajan said, Purposeful, unbiased
and effective action is needed also every policy is
greeted with suspicion and scrutinised for evidence of
malfeasance.
India's corporate tax
rates among highest'
Tax rates for companies in
India are among the highest
in the world and the number
of payments is also more
than the global average,
putting the country at a low
158th rank on the Paying
Taxes 2014 list. However,
the time taken for tax
payments is relatively less
in India, which is rated
ahead of China and Japan
where it takes 318 hours
and 330 hours, respectively,
to comply with tax regulations, according to a World
Bank and PwC report. According to the report, the total
tax rate in India can be as high as 62.8 per cent, there
are as many as 33 payments under the head of proft,
labour and other taxes, and the time taken to comply
with taxation requirements could be as much as 243
hours.
Indian economy to grow 3.4% in FY14: OECD
The Indian economy is expected to improve marginally
in the current fnancial year, with gross domestic product
(GDP) at market prices projected to expand by 3.4 per
cent, from 3.3 per cent in the previous fnancial year,
the Organisation for Economic Co-operation and
Development (OECD) said on November 19, 2013.
The countrys economic activity is expected to recover
gradually as the rupee depreciation supports exports,
infrastructure projects cleared by the Cabinet
Committee on Investment come on stream and political
uncertainty declines after the general election due in
2014, OECD said. OECD projects world economy to
grow 2.7 per cent this year before accelerating to 3.6
per cent in 2014.
AP may unveil Life Sciences policy at BioAsia
2014
The Andhra Pradesh government would likely announce
its life sciences policy as part of the industrial provision
policy at the BioAsia 2014, said Pradeep Chandra,
principal secretary - department of industry and
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MONEY & BANKING
commerce. The policy would help the state move to a
higher-level of life sciences products and R&D in areas
including biologicals, neutraceuticals and bio-medical
devices. Andhra Pradesh is among the top in the
country in bulk drugs production, he said. Announcing
BioAsia 2014 to be held here from February 17-19, he
said globally in 2-3 years, around $15 billion worth
biological drugs would be placed in the non-patent
segment. The theme at the technology and bio-business
platform is Fostering Innovations in Life Sciences
R&D.
Current account deficit will be 2.5-2.7%,
economic revival coming: Montek
Planning Commission Deputy Chairman Montek Singh
Ahluwalia on November 27, 2013 said the current
account defcit will be signifcantly below three per
cent of the GDP this fscal and it should be closer to 2.5
to 2.7 per cent with India continuing to have strong
fundamentals, he told mediapersons on the sidelines
of a lecture meet at Indian School of Business. The
current account defcit is the difference between infow
and outfow of foreign exchange, He was also optimistic
that fscal defcit would not cross 4.8 per cent of GDP.
Inclusion of Indian bonds in global indices
later: Arvind Mayaram
The government and the central bank are engaged in
talks aimed at getting Indian bonds included in global
debt indices, although its not clear when this will
happen. We are discussing it with different parties
involved, economic affairs secretary Arvind Mayaram
said at a conference organised by rating company
Crisil. RBI is fully engaged in this exercise and should
wait for the outcome of deliberations. The proposal
came up for discussion on attracting overseas
investment to help fnance the current account defcit
while giving support to local markets. In September this
year, a report by Standard Chartered had suggested
that Indias inclusion in global bond indices may result
in additional infows of $40 billion. Yields and prices
move in opposite directions. However, the government
needs to relax certain restrictions on foreign institutional
investors for this to happen.
Economy Outlook
Second quarter GDP for 2013-14 may get slight leg up
from good agriculture & better industry performance.
Karur Vysya opens ultra-small branch
Karur Vysya bank (KVB) has launched its frst ultra-
small branch at Balarajapuram village in Karur district.
The bank said this was part of its ongoing fnancial
inclusion programme. The branch will provide basic
banking services to the unserved population at an
unbaked rural centre according to the guidelines of the
RBI. An ultra-small branch will have a small area of
about 100 to 200 sft, and the business correspondent
appointed by the bank will open basic savings accounts
and do banking transactions, including receipt of cash,
payment of cash, opening of recurring deposit accounts
for people in the villages.
FM wants bank licences to go to those with
innovative models
Finance Minister P Chidambaram said on November
15, 2013 he hoped the new banking licences, expected
to be given in January, would be issued to applicants
with innovative and different banking models. Speaking
at BANCON 2013, an annual conference on banking,
Chidambaram said that he is happy some of the
applicants that have applied for private banking licences
to the Reserve Bank of India (RBI) have come up with
different models of banking and they need banks that
cater to communities and also to people in tribal
populations. Read more..
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Moody's maintains negative outlook on
Indian banks
Rating agency Moodys has maintained its negative
outlook on Indias banking system, refecting the effects
of the rupees volatility, persistent infation and slowing
economic growth. In a statement, Moodys said asset
quality would continue to deteriorate, particularly for
public sector banks (PSBs), while proftability was likely
to remain weak, limiting internal capital generation.
Moodys rates 15 banks in India 11 public sector
banks and four private sector banks. It also incorporates
government support in the ratings of all these banks. A
senior analyst at Moodys said that the operating
environment for Indias banking system continues to
exert negative pressure on the ratings of many PSBs.
While structural issues related to the infrastructure
sector are not new, the recent downturn in economic
growth has exacerbated these problems and increased
their negative effects on asset quality.
EC allows launch of first all-women Bharatiya
Mahila Bank
The Election Commission has allowed the launch of the
frst all-women Bharatiya Mahila Bank in the country on
November 19, 2013 but asked the government not to
open its branches in Delhi and Madhya Pradesh and
neither do publicity of the bank in these poll-bound
states. The government had earlier wanted to launch
the bank in Delhi but changed its plan in view of the
Model Code of Conduct in force in the capital.
Headquartered in Delhi, the bank proposes to have 25
branches by March 31, 2014. The fnance minister had
announced the setting up of the all-women bank in his
Budget speech this year. The bank will be set up with
initial capital of Rs 1,000 crore. The government
appointed Usha Ananthasubramanian as the bank's
Chairperson and Managing Director.
Tata AIA Life bets big on women insurance agents
Tata AIA Life Insurance expects to see higher
representation of its women agents at the million-dollar
round table (MDRT) this year. The round table is an
international association of high-performing agents.
During the September quarter of the current fscal, the
private life insurer hired 6,000 agents, of which 51 per
cent were women. Amitabh Tapadar, Vice-President,
Chief Marketing Offcer, said, Traditionally, we have
had 25 per cent of our advisors as women but what we
found in any convention is that 70 per cent of the prizes
are won by women agents. Also, for the 13th month
persistency is higher for policies sold by women agents.
The productivity of women is much higher as they are
better at multi-tasking.
FirstRand Bank mulls taking the subsidiary
route in India
South Africas FirstRand Bank might emerge as the
maiden foreign lender to adopt the wholly-owned
subsidiary route, following the Reserve Bank of India
(RBI) unveiling the fnal norms on the issue earlier this
month. Sources said the Indian arm of the lender would
start discussions with its South Africa-based parent to
secure the necessary approvals in this regard. After the
parents board approves the proposal, the Indian arm
will submit an application to RBI. Since South Africa
offers liberal bank branch access to foreign lenders,
FirstRand Bank is likely to gain from the reciprocity
clause in the wholly-owned subsidiary norms. RBI had
promised foreign lenders converting their branches into
subsidiaries would get near-national treatment, as far
as expanding branch presence was concerned and
they will have to fulfl stiff priority sector and fnancial
inclusion obligations.
RBI Plans on to reduce banks' reliance on
G-secs gradually
The Reserve Bank of India (RBI) is planning to reduce
banks requirement of investing in government
securities (G-secs), in a calibrated manner. One of the
mandates for the Reserve Bank in the RBI Act is
ensuring the fow of credit to productive sectors of the
economy. In this context, it is necessary to reduce
banks requirements of investing in G-secs in a
calibrated way to what is strictly needed, from a
prudential perspective. It is recognised the scope for
such reduction will increase as government fnances
improve. Further, as the penetration of other fnancial
institutions such as pension funds and insurance
companies increases, it will be possible to reduce the
need for commercial banks to invest in G-Secs, RBI
said in its Trend and Progress of Banking in India 2012-
13 report. Currently, the statutory liquidity ratio (SLR),
the portion of deposits banks have to have as G-Secs,
is 24.5 per cent.
India leads in use of mobiles for payment
As many as 18,328 new automated teller machines
(ATMs) were deployed in India during 2012-13, taking
the total number to 114,014, a 19.15 per cent growth,
according to the Reserve Bank of India (RBI)s trend
and progress of banking in India report, 2012-13,
released on November 21, 2013. The report noted
private sector banks share in total ATMs grew
marginally from 37.7 per cent in March 2012 to 38 per
cent in March. The central bank said with white-label
ATMs (those owned and operated by non-bank entities)
expected to take off, the segment is set to see a lot of
action. RBI noted there has been tremendous growth in
off-site ATMs (machines set up on a stand-alone basis).
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The report also noted that India stands out globally in
terms of usage of mobile phones as a mode of payment
with data from 2011 showing use of mobile phone to
pay bills is much higher in India, compared to the rest of
the world.
RBI for diluting Govt stake in public sector
banks
The current level of Government shareholding in public
sector banks gives it suffcient headroom for diluting its
stake in many of these banks, according to the Reserve
Bank of India. The Governments shareholding in the
21 public sector banks ranges from 55 per cent to 82
per cent. According to the statute, the Governments
shareholding in public sector banks cannot fall below
51 per cent. The RBI referred to the dilution of
Government shareholding in the context of public sector
banks requiring additional capital to implement the
Basel-III capital regulation. RBI said the Basel III norms
lay more focus and importance on quality, consistency
and transparency of banks capital base.
`Private banks racing ahead of public sector
ones in setting up ATMs
The total number of ATMs in the country rose to 1.14
lakh in 2012-13, with the growth primarily driven by
private sector banks. Their share in the total increased
38 per cent as of March 2013.In its trends and progress
report, the RBI said although urban and metropolitan
centres accounted for over 65 per cent of the total
ATMs, there has been a rising trend in those located in
the rural and semi-urban centres in the recent years.
Indias largest lender State Bank of India topped in the
number of ATMs at 32,777 as on September 30. Among
the private sector banks, Axis Bank had the highest
number at 11,796. The overall growth in ATMs was at
19 per cent, the highest being in the rural areas at 34
per cent, as on March 30.
Sarfaesi Act most effective tool to recover
bad loans: Report
Amidst rising non-performing loans, the Securitisation
and Reconstruction of Financial Assets and
Enforcement of Security Interest Act (Sarfaesi Act) was
the most potent tool in the hands of banks for recovering
bad loans. The Sarfaesi Act empowers banks and
fnancial institutions to recover their non-performing
assets without the intervention of courts. The Act
provides three alternative methods for recovery of non-
performing assets securitisation, asset reconstruction
and enforcement of security without the intervention
of courts.
Now, you can withdraw money from the
neighbourhood grocery
For State Bank of Indias 14-crore debit card holders,
apart from ATMs, a new channel for withdrawing cash
has opened up. In a frst-of-its-kind initiative, SBI is
allowing cash withdrawal of up to Rs 1,000 from any
shop/trader with a point-of-sale (PoS) terminal.
Sadanand, a senior SBI offcial looking after ATMs and
alternative channels said that a fee of Rs 7.50 will be
charged to the customer, a part of which goes to the
trader. Actually, it is a win-win situation for all. From a
customers point of view, this will be yet another value-
add on debit card as most business establishments,
including some grocery stores, operate PoS machines.
From a traders point of view, it brings additional
revenue of about Rs 5 per transaction. Read more..
IndiaFirst Life plans micro-insurance foray
IndiaFirst Life Insurance is hopeful of rolling out a
micro-insurance product on a pilot basis this fscal and
the company is in talks with the Insurance Regulatory
and Development Authority (IRDA) for this. The
objective is to have a pan-India rollout of micro-
insurance and across all product categories. IndiaFirst
Life, which recently completed four years in business, is
looking to break even by the sixth year of its operations.
IndiaFirst, which is a three-way joint venture between
Bank of Baroda, Andhra Bank and UK-based Legal &
General, had commenced operations in November
2009.
Card swipe machines may raise banks' costs
For banks, compliance with the Reserve Bank of India
(RBI)s directive to install new card-swipe machines
(with biometric scanners to enable Aadhaar
authentication) would come at a cost. But experts say in
time, this would beneft banks. In a circular released on
November 26, 2013, the central bank told banks to
upgrade card-swipe machines to facilitate Aadhaar
authentication. Banks are, however, free to decide
whether to adopt Aadhaar as an additional authentication
factor or shift to the Europay, MasterCard and Visa
(EMV) chip-and-pin technology to secure card-present
payment infrastructure.
Stuck with a mis-sold insurance policy?
Heres what you can do
Complaints from life insurance policyholders about
unfair business practice by companies have grown by
over 67% in 2012-13, says the consumer affairs booklet
released on 27 November, 2013 by insurance regulator
IRDA. The nature of complaints includes malpractices,
difference in promised and actual features in products,
non-refund of premium on policies cancelled during the
free-look period, tampering or forgery of proposal forms
and alteration in policy tenure without consent.
Read more..
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MARKETS
Sebi to come out with tighter norms on
company disclosures
The Securities and Exchange Board of India (Sebi) was
likely to announce new norms to bring about greater
scrutiny of the way companies adhered to disclosure
requirements, said a senior regulatory offcial. The
guidelines, which would require stock exchanges to do
more to ensure companies met their obligations to
shareholders, were likely to be announced on November
11, 2013, said Sebi Chairman U K Sinha. A listing
agreement is a contract between the company and the
exchange on which it is listed. Clause 35 of the listing
agreement requires companies to fle their shareholding
pattern with the exchange prior to listing, as well as on
a quarterly basis or if there is capital restructuring,
according to information on exchange websites. A
number of companies are non-compliant with
disclosures on corporate governance, which require
companies to provide disclosures on various matters,
including related-party transactions and the use of
money raised by the company.
I-Sec launches e-voting for retail shareholders
ICICI Securities has launched an e-voting facility for
retail shareholders that would enable them to vote
online on company resolutions through ICICIdirect.
com. This move is in line with SEBIs directive to
companies to enable e-voting facility also to their
shareholders, in respect of those businesses which are
transacted through postal ballot of listed companies.
Shareholders have a right to vote on companies
decisions that involve issuing securities, initiating
corporate actions and making substantial changes in
the corporations operations. The process of e-voting
has been introduced to ensure wider participation of
shareholders in important decisions of the company.
This will result in transparency and greater corporate
governance in India, added Bagchi.
NSE extends cross margins to ETFs
The National Stock Exchange (NSE) has extended
cross margining to index-based exchange-traded funds
(ETFs). So far, the facility was available only in the
equity stocks, index futures and stock futures segment.
The National Stock Exchange (NSE) has extended
cross margining to index-based exchange-traded funds
(ETFs). So far, the facility was available only in the
equity stocks, index futures and stock futures segments.
Cross margining helps market participants, as it
reduces the margin requirement and trading costs.
Cross margining on ETFs has been allowed between
ETFs and constituent stock futures in the F&O segment
and the constituent stock position in the cash and index
futures segments.
After ESOPs, SEBI eyes regulating other
employee benefits
Regulator proposes to allow trusts to buy shares from
secondary market. To bring all types of employee
beneft schemes under its ambit, a SEBI discussion
paper has proposed that trusts set up, managed and
fnanced directly or indirectly by companies, should be
regulated. Trusts include those managing general
employee benefts such as education, scholarship,
medical, retirement benefts such as superannuation,
gratuity or any other schemes. Currently, SEBI regulates
only employee stock option plans (ESOP) and
employee stock purchase schemes.
Public sector ETFs likely by Jan
The Finance Ministry is expected to launch Central
Public Sector Enterprises Exchange Traded Fund
(CPSE ETF) in next two months. On May 2, the Cabinet
Committee on Economic Affairs approved setting up of
the fund. This instrument will comprise listed CPSE
stocks, each with a fxed weightage in the basket. The
instrument aims to minimise market disruptions seen in
public offerings of listed CPSEs. It will also increase the
Governments ability to monetise partial stakes in listed
CPSEs, some of which have low liquidity and free foat.
ETF is a trading instrument like shares on stock
exchanges.
MFs may shun investments from US
In the last three years, the US has been the biggest
contributor to the bulging assets under management of
various global funds, owing to the easy monetary policy
in that country. Soon, however, that will not be the case
for Indian mutual funds, which are likely to stop
accepting money from US investors with a new tax
regime set to come into force in JanuaryReadmore
Deveshwar of ITC gets 8.1 lakh shares via ESOP
Y.C. Deveshwar, Chairman and Wholetime Director of
ITC Ltd was allotted 8.1 lakh shares worth of Rs 16.39
crore. The shares were allotted to him under the ITC
Employees Stock Option Plan, the company said in a
release to the bourses.
Sebi aims to tighten grip on research analysts
Research analysts will soon have to obtain a certifcate
from the capital market regulator to continue giving
opinions and recommendations on listed companies.
The Securities and Exchange Board of India (Sebi) on
November 29, 2013 issued draft Research Analysts
Regulations, 2013, which mandated all research
analysts to obtain a certifcate of registration, have right
education qualifcation and also a minimum net worth.
Sebi has proposed research analysts, which are
corporate bodies, will have to have a maintain net worth
of at least Rs 0.5 crore, while individual or partnership
frms will have to have net tangible assets of
Rs 500,000. Read more..
PERSONAL FINANCE
Technology, pharma and FMCG stocks have moved up
sharply in the last one year. Technology and pharma
companies were riding on the back of rupee depreciation
and a recovery in the US market, while investors have
found safety in the FMCG sector due to its reputation as
a safe haven against high infation and interest rates.
Read more
8
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MERGERS & ACQUISITIONS
INFOTECH & LOGISTICS
Tata Technologies to take M&A route to grow
revenues
Tata Technologies plans to make an acquisition in the
Construction and Heavy Engineering (C&HE) segment
in a bid to grow its revenues. The company, which has
set a target to reach $1 billion mark by 2017, is eyeing
a buy in one of the developed markets by this year-end.
It is in the process of wrapping up matters with regard
to regulatory approvals, according to company offcials.
Read more..
Pfizer-Wyeth to merge Indian arms, create a
single brand
Close to fve years after Pfzer acquired Wyeth globally
for $68 billion, the two drug companies have embarked
on the last mile of their legal merger in India to project a
single Pfzer brand. The boards of both companies, on
November 23, 2013, approved the merger proposal,
and arrived at a swap-ratio (post-interim-dividend) of
seven shares of Pfzer India for every 10 shares held by
the shareholders of Wyeth. Addressing the why now,
Pfzer and Wyeths India-head, Aijaz Tobaccowalla,
Airtel floats multi-million dollar tender for
buying 3G gear
Bharti Airtel has foated a request for proposal for
buying telecom equipment for upgrading its third
generation mobile network. The company has specifed
in the tender document that it wants to buy gear that
can operate in both 2100 MHz band and 900 MHz
band. The operators network is currently managed by
different vendors including Ericsson, Nokia Siemens
and Huawei. Though Airtel has not specifed the size of
the project, suppliers can look forward to a multi-million
dollar deal.
Green signal for first private airport
The countrys frst private-sector international airport, at
Aranmula in Pathanamthitta district of Kerala, has
received environmental clearance subject to conditions.
Promoted by KGS Aranmula International Airport Ltd,
the Rs 2,000-crore project has witnessed stiff resistance
from both the political Opposition and environmentalists.
Soon, vehicles can share info on traffic
Thanks to a novel solution developed by an Australian
university, soon our cars, buses and trains can talk to
one another and share tip-offs on traffc congestions.
Using this solution, which has passed through the pilot
stage, vehicles can exchange traffc information or
receive alerts about an approaching train within a radius
of one kilometre.
said that over the years the two companies did
harmonise operationally. But it still was not the most
effcient structure, in terms of operating, with two listed
companies, for instance, requiring separate tax-
payments, and so on, he explained.
TechM to merge Mahindra Engineering
Software services frm Tech Mahindra is to merge
Mahindra Engineering Services (MES), a group
company with itself, to create a formidable frm offering
engineering services from India. Under the proposal,
which is subject to regulatory approvals, fve shares of
Tech Mahindra would be exchanged for every 12 shares
of MES. Tech Mahindra would also issue 4.26 million
new shares, thereby increasing its outstanding shares
to 230 million. The entire merger process could take
about 8-9 months, even though it is diffcult to predict
the exact timeframe, Tech Mahindra said in a statement.
MES is an engineering consultant and service provider
catering to automotive, aerospace, defence and
manufacturing sectors.
ECIL unveils personal distress alarm device
Electronics Corporation of India Ltd (ECIL) on
November 22, 2013 launched a distress alarm device
called Nirbhaya. The device when activated in an
emergency situation will send text messages to fve
mobile numbers with latitude and longitude of the
person under attack. These geographical coordinates
will help the police track down the real-time movement
of the person. The device sends the distress signal to
the cellphone using bluetooth, which then gets
forwarded as an SMS to the numbers. For the device to
effective, it needs to be continuously connected with
handset using the bluetooth gateway. Weighing about
100 gm, the device can easily be carried inside a pocket
or purse.
Airtel, HCL, Tata Motors deploy IBMs cloud
software
IBM said that Bharti Airtel, HCL and Tata Motors are
using its cloud-based talent management software to
improve productivity. Financial details of IBMs
arrangements with the three Indian companies were
not disclosed. In partnership with IBM, HCL has
replaced its home grown candidate tracking system
with a new solution that automates the recruitment
process, according to a press statement. Tata Motors
has teamed up with IBM to study job ft within the
organisation by using an online system that can screen
candidates for the right position. Bharti Airtel is using
9
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10
MARKETING
Richard Bransons Virgin Produced zooms in
on India
Virgin Produced has entered into a partnership with
Indian flm fund Cinema Capital Venture Fund and the
Tantrik Group to launch Virgin Produced India. Virgin
Produced is the flm, television and entertainment arm
of Richard Bransons Virgin Group. In a statement, the
partners said that Virgin Produced India would function
as a creative content company, which will cater to the
Hindi-speaking population. It will have a full service
operation and will develop, produce and distribute
Bollywood flms and remake Hollywood content for
Indian audiences.
Dalmia to launch blended olive oil
Leading olive oil major Dalmia Continental plans to
launch a blended olive oil variant using rice bran oil.
This is to offset rising cost of imports due to the
depreciating rupee. Oliryze, the new blend, would be
launched under the economy brand of Marco Polo. It
will contain 30 per cent olive oil, the balance will be rice
bran oil, which will be locally sourced.
Mahindra Reva partners with BIAL
Mahindra Reva Electric Vehicles has partnered with
Bangalore International Airport Ltd (BIAL) to set up an
electric vehicle (EV) charging infrastructure at the
airport. With the tie-up, BIAL will become the frst Indian
airport to have EV charging infrastructure in the country.
The facilities are offered exclusively to Mahindra e2o
customers, free of cost with an additional beneft of 20
per cent discount on parking charges. While 95 per cent
of the charging is done at home, Mahindra Reva has
installed over 100 charge points at convenient locations
across the city. All the charging stations are strategically
located and customers will have access to at least one
every 5 km.
Parle targets bigger bite of cream biscuit
segment
After ruling the mass glucose segment, Parle is tilting
its portfolio towards premium biscuits, with a special
focus on the cream segment. With growth rates at 25
per cent in the premium cream segment, Parles nearest
competitor, Britannia, dominates with a 30 per cent
share, along with new competitors such as Kraft Foods
(Oreo) and ITC also rapidly gaining share in the
segment. Read more..
Technology can solve Indias garbage
disposal problem
Waste disposal is the bane of many a new-age city, and
bustling metros such as Chennai, Delhi, Mumbai and
Bangalore are no exception. The problem does not
entirely lie with garbage collection agencies, who are
doing their best to lift all the refuse. Rather, the
thousands of tonnes of solid and liquid waste generated
every day by the gargantuan population of these
thriving Indian cities pose the conundrum with respect
to waste disposal: where will it all go? Read more..
Madhuri Dixit to endorse Odonil
Dabur India Ltd, which has launched its refurbished air
freshener product, Odonil, has roped in Madhuri Dixit
as its new brand ambassador and will feature in the
brands new campaign. With Karishma Kapoor and
Southern star Samantha Ruth Prabhu already
endorsing Odonil, signing Madhuri Dixit as brand
ambassador is another frm step in the direction.
Adidas ropes in Rohit Sharma
Sport and apparels brand Adidas has roped in cricketer
Rohit Sharma to be endorse its range of products.
Sharma was welcomed into team Adidas by master
blaster Sachin Tendulkar.
TRAI moves to curb monopoly in cable TV
business
The Telecom Regulatory Authority of India (TRAI) has
recommended restrictions on market share held by a
single cable company in a State. It has also proposed
prior approval in mergers and acquisitions between
multi-system operators (MSOs) and local cable
operators (LCOs) if it results in dominant position, as
part of its recommendations on measures to check on
monopoly of cable distribution in the country. The
Information and Broadcasting Ministry had sought the
telecom and broadcasting regulators views after it was
observed that in some states a single player entity had
control over several MSOs and LCOs virtually
monopolising cable TV distribution in that area.
IBMs Kenexa survey to understand factors driving
employees to be more productive and stay with the
company for a longer period of time.
BlackBerry launches BBM channels
BlackBerry has launched BBM Channels, a forum for
active, real conversations between people, brands and
communities. The move is aimed at monetising the
BlackBerry messaging platform by getting big brands to
use it to network with users and potential consumers.
BlackBerry users can update to the newest version of
BBM to have access to the new feature. Channel
owners can post messages, share pictures, spark
discussions, post animated GIFs and chat directly with
subscribers. Integrated live chat allows channel owners
to offer scheduled chat hours where BBM users can
directly engage with their favorite channels one on one.
BBM Channels for iPhone and Android devices will
launch in the coming months.
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PEOPLE IN NEWS
11
Radisson to woo tech-savvy guests
Carlson-Rezidor Hotel Group owned Radisson Hotels
is focusing on enhancing the guest experience for tech-
savvy customers. Its new app called iConcierge will use
mobile, location-based technology to deliver hotel
services and amenities. A major component of the
programme is the check-in choice kiosk, which allows
guests to bypass the front desk by obtaining their keys
from a kiosk located in the lobby, it said in a statement.
Guests can enter their credit card information online
and check in within 24 hours in advance of their stay.
They will then be given a confrmation email containing
a bar code unique to their reservation. When the guests
arrive at the property, they scan the bar code into the
kiosk and receive their room keys.
Crowdfund a Car, Test Drive on Google Street
View
When Lindsay Frandsen thought about registering for
gifts for her wedding, she realised that what she and
her husband really needed was a car. Frandsen and
her husband, Christian Burris, opened an account with
a start-up company that lets potential car buyers reach
out to their social networks for gifts.One year later,the
couple had scraped together a down payment from
their savings and the gifts from the registry. Read more..
Usha
Ananthasubramanian
Usha Ananthasubramanian is
appointed as CMD of Bharatiya
Mahila Bank, the frst womens
bank.
Neeraj Sahai
The worlds largest credit rating
agency seems to have a particular
fascination for top-drawer talent
from India. In just over two years
since Jharkhand-born Deven
Sharma quit as president, Standard
& Poors has found another Indian - Citigroups old
warhorse, Neeraj Sahai - for the post. Sharma and
Sahai share another thing in common-both are huge
chess enthusiasts.
Tarun Tejpal
Tarun J Tejpal is an Indian journalist, publisher, novelist, philanthropist and former
editor-in-chief of Tehelka magazine. In November 2013, he stepped down as editor for
six months after a woman colleague accused him of sexual assault.
EMERGING ENTREPRENEURSHIP
How Prasad Dahapute and his team of five
IIM grads are raising Rs 500 cr for Dalit
businesses
Prasad Dahapute and his team of fve IIM graduates
took on the onerous challenge of raising Indias frst
venture capital fund dedicated to Dalit businesses, all of
Rs 500 crore. Even as they struggle to draw big-ticket
investors, having received commitments of just Rs 42
crore, Dahapute is hanging on. Read more..
NEW TECH MEANS NEW MOVES
Indias large software exporters are partnering with
startups to win outsourcing contracts in hottest
technology areas such as cloud computing, enterprise
mobility and data analytics.
Third-ranked Wipro, Noida-based HCL Technologies,
mid-sized frms Zensar and 3i Infotech,are all looking at
startups as a force multiplier to complement their
portfolio offerings as building their own solutions would
be time-consuming and resource-intensive.
Read more..
SSIM
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SOURCE:
Business Line, Business Standard & Economc Times | Period : 15th November, 2013 - 30th November, 2013
12