News: Mukesh Ambani eyes organic farming

(NDTV 31/03/2006) Jamnagar - Mukesh Ambani may be making quiet plans behind the world's third largest oil refinery in Jamnagar to enter the agricultural sector through organic farming.

Having announced his formal plans to enter the retail sector, one knows Mukesh Ambani now wants to produce his own vegetables.

The Ambanis are already looking for a tag line to sell these products at their own retail chain. They want to bring the prices down of every fruit and vegetable by at least 30-40 per cent.

And organic farms being experimented with at Jamnagar could be the start up points for subsequent mass scale production.

The organic farms are being managed by a small team of agricultural experts at present.

These experts manage to control the climate artificially in the water-starved region of Jamnagar, but there are indications that products from these organic farms will soon hit the markets.

Within the Jamnagar refinery complex is also one of the largest mango orchards of more than one lakh trees spread over 400 acres, where more than 600 tonnes of mangoes are to be produced this year.

And if history is anything to go by, it is clear Mukesh Ambani is all set to make this experiment of organic farms his backbone of producing high quality vegetables on a large scale and selling them very soon through his own retail chains.

Interview: Nimesh Kampani - Chairman JM Morgan Stanley

(Rediff 31/03/2006) Mumbai - It will not be an exaggeration to say that Nimesh Kampani, Chairman, JM Morgan Stanley, knows the Bombay Stock Exchange like the back of his hand. His father Nagindas and uncle Jamnadas Morarjee were names to reckon with at the BSE, but Kampani -- the ace merchant banker -- surprises us saying that he has never speculated in the market. That, however, has not stopped him from carrying forward a rich legacy.

One of the key players in making the BSE the engine of growth for the new Indian economy, Kampani has attained fame over the years for making possible mega acquisitions and mergers. He has come to be known as one of India's foremost votaries of liberalisation.

Kampani was one of the leaders who propelled the stock exchange boom in early 1980s when Reliance Industries founder and visionary Dhirubhai Ambani entered the world of equities.

Those who invest in shares cannot forget how Telco's (now named Tata Motors) public issue changed the world of investment forever. Kampani was the merchant banker for that historic issue.

Nimeshbhai, as he is popularly known, is media-shy and a man of few words. For a change, however, he agrees to a rare and exclusive interview with Managing Editor (National Affairs) Sheela Bhatt over dinner in New Delhi and talks about what can bring about changes in India and about the do's and don'ts of investing in the stock market.

The first of a three-part interview:

Please share with us your early memories of the Bombay Stock Exchange.

During the China War in 1962, the market was practically closed for more than a year and share brokers had no income. Again in 1965 -- I was a student, then -- when war broke out with Pakistan, we had a bad time. It was an awful one for Indian stocks.

I started investing in the market around 1973 to earn a living. I have never speculated in my life.

Everything changed in the stock market after 1980. It started with the government's order to foreign companies -- which fell under the purview of Foreign Exchange Regulation Act -- to dilute their holdings in Indian companies.

The government asked foreign companies to sell their stakes and to bring it down to 40 per cent of the total market share. That led to the public issues of Colgate, Hindustan lever, Nestle and others.

The then industry minister George Fernandes told Coca-Cola to get out of the country. Despite the socialistic pattern of the country, some foreign companies wanted to live in India and hence they brought down their shareholding to 40 per cent.

I remember in the 1970s the biggest public issue my company handled was worth Rs 4.5 crore (Rs 45 million) of Southern PetroChemicals. It was a huge task for us.

Also, during this time, I got to manage the public issue of Lakshmi Niwas Mittal's family. It was worth Rs 40 lakh to Rs 50 lakh (Rs 4 million to Rs 5 million). Their family firm, Andhra Steel Corporation, came out with the issue during the war with Bangladesh in 1971.

I can't forget how we filled in our clients forms in candlelit rooms at Mumbai's Natraj Hotel.

How and when did people's perception of the stock market change?

That started with the Tatas' issue of Telco. In 1980, the Tatas called us and said they wanted to have a public issue worth Rs 50 crore (Rs 500 million). It was a startling proposition. I think the issue was worth little less than Rs 50 crore.

Everyone had doubts about raising such a huge amount from the Indian market. The share was finally oversubscribed by five to six times!

It was the first time company leaders said, 'My God, we do not know how to raise money! Indians do have money.' We held some 48 conferences all over India, including small towns. We went to Dubai and Abu Dhabi and got a whopping $10 million.

I went to the Government of India's Company Affairs department to get permission to raise money abroad. The company thought I was insane. It said I won't even get permission for it. Why would someone pay money with repatriation rights?

I showed the Reserve Bank of India's manual to the sceptics. We talked to the ministry of finance. I sent an application. The ministry asked me, 'How can you raise funds like that from abroad?' I said, 'It is written in your manual. Either change it or give me permission.' It gave me permission, but while handing over the papers, I was told, 'Nimesh, we are watching you! You better bring in the money! Don't run away with the permission!'

We worked very hard. We filed a prospectus in London. I flew to West Asia to meet the Tatas' export executives to know which countries they exported to.

I wanted to know who could invest in the Tatas' public issue. The company said it was exporting to West Asia and Africa. I wasn't sure of getting funds from Africa. Therefore, I concentrated on Indians living in West Asia. We arranged meetings among salaried Indians over there.

In our first meeting, we found people laughing at us. What are repatriation rights, they asked.

Earlier, they had a bitter experience of National Defence Remittances bonds. The Government of India had changed its stance over the same. We told them the Tatas are involved and that JM Finance is the merchant banker who would share criminal liability along with the Tatas. We urged them to read the prospectus.

Gradually, we managed to create trust and got $14 million to $15 million for that issue. I had promised the Tatas we would get $10 million.

Looking back, how do you see the issue?

People have earned like anything from the issue. What we sold for Rs 22.50 per share is now valued at Rs 800. The share of Rs 100 was sold for Rs 225. Later, it was spilt into 10. The company has given bonus and other advantages.

Recently, when I went to Kuwait, some Indians met me and said they are yet to sell Telco shares they bought in 1980. Why would anybody complain if your share of Rs 5 has a market value of Rs 800? I myself haven't sold those shares.

Which are the other factors that lifted the Indian stock market?

In 1980, Indian market capitalisation was merely Rs 5,000 crore (Rs 50 billion). Now, it is approximately Rs 27,00,000 crore (Rs 27 trillion). Just imagine the profit of those people who invested in Indian stocks in 1980. After Telco, I managed the issue of Tata Power shares.

We sold a share for Rs 10 which is now priced at Rs 300, not including bonus shares and other advantages. In 1978, ICICI managed Reliance's first public issue.

They sold Reliance share of Rs 10 which is now selling at Rs 700 and investors have earned out of its bonus shares. Reliance and Tata launched the beginning of a great change. (Dhirubhai) Ambani decided to let shareholders earn money. They wanted to create wealth via the equity market. The money that investors invest should be used in growing your industry.

In 1985, Rajiv Gandhi got a 75 per cent majority in Parliament. It raised people's hopes. We all thought Rajiv will do something, that he will change India.

Somehow, India missed the bus. Rajiv exited and V P Singh came to power. One crisis followed another. Rajiv died amidst economic turmoil. We had to pledge gold and we had foreign exchange to buy oil only for a week.

Then entered P V Narasimha Rao and Finance Minister Dr Manmohan Singh. Dr Singh devalued the rupee to make the market attractive to exporters. He told Indian business houses to increase exports as he felt only then would we have foreign reserves. The trade situation was grim.

In retrospect, I feel Dr Singh then played his cards right. He devalued the rupee from Rs 14 to Rs 18 per dollar. In just two days, he devalued it further to Rs 23 against the dollar and then to Rs 27. Thereafter, the rupee remained stable at Rs 33.

The exporters earned and got us the most desired foreign exchange. For, they were earning Rs 33 instead of Rs 13 for every dollar of exported goods.

Thanks to Dr Singh, Indian exporters, who were exporting goods worth $100 million before liberalisation, started earning Rs 140 crore (Rs 1.4 billion). Now, they are earning Rs 440 crore (Rs 44 billion).

Liberalisation, though it propelled growth, was a very painful process. At that time most people did not understand what it meant.

Indians suffered during the process of consolidation from 1991 to 2004. The survival of the fittest became the norm. Sick units closed down as liberalisation meant competition with the world.

Liberalisation also had an advantage. Children of businessmen, professionals and bureaucrats who were studying in the United States or the United Kingdom, started coming back. We have a large number of executives, who have studied abroad and now work in India. They are world class and think in global terms.

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We suffered like China suffered after 1978. The real growth in that country came around the 1990s. For more than a decade now, they have been growing at 10 per cent. Our real growth started from 2003 to 2004 and I am sure we will not have difficulty in surging ahead, as we are dreaming, for the next eight years or so.

I think we will win the game if our gross domestic product continues to grow at 7.5 to 8 per cent. I don't think ups and downs in the stock market are important, but the market should remain healthy so that Indian companies can raise money to withstand competition.

Take Infosys, for example. The company's chief Narayana Murthy had to borrow his wife's money initially, but today Infosys is a Rs 4,500 crore (Rs 45 billion) company. Indian markets now supports entrepreneurs like him who want to compete in the global market. India has arrived!

News: Nasscom, Dutch agency sign outsourcing pact

(BL 31/03/2006) New Delhi - IT association Nasscom in collaboration with Dutch Centre for the Promotion of Imports from Developing Countries (CBI) on Thursday announced an export development programme, that would enable small and medium enterprises (SMEs) in the European Union to outsource business process outsourcing (BPO) opportunities to India.

"The two organisations will work closely to provide BPO expertise to the European SMEs and help selected Indian IT companies to access the European markets," a Nasscom release said here.

Kiran Karnik, President, Nasscom, said, "We are pleased to announce our collaboration with the CBI to promote business activities between two regions. Through agreements like this, we aim to achieve the success of the IT and BPO sectors to drip down from the major industrial cities to smaller cities that will benefit the industries and economies of Europe and India."

On signing the agreement Ton Lansink, Managing Director, CBI, said "For European buyers, the CBI and Nasscom will be on hand as knowledge centres to help them formulate exactly what their outsourcing demand is and to help them find a perfectly matching partner. Indian entrepreneurs can count on us to provide maximum assistance exporting to Europe. It's a double-edged sword from which all parties will benefit."

The export development programme for the BPO sector was launched last year in India.

News: Prime Property in tie up for Mumbai mall

(BL 31/03/2006) Mumbai - Prime Property Development Corporation Ltd on Friday said that it has signed a development agreement with Plaza Panchshil Properties Pvt Ltd and others, to develop a shopping mall in Mumbai.

The company's share in the project will be 30 per cent and it is expected to be completed in about 18-24 months, in two phases, it informed the Bombay Stock Exchange.

The project will be named 'Prime Down Town Mall,' and will encompass more than 2,50,000 square feet saleable area of commercial shops and showrooms, multiplex screens, food plaza, entertainment-park and games park, among other facilities, it said.

The company said it has fully paid secured loans availed from 'Development Credit Bank Ltd,' it added.

News: Thirty-three Indian companies in Forbes 2000

(PTI 31/03/2006) New York: Oil and Natural Gas Corporation leads the pack of 33 Indian companies, mostly in banking and software sectors, which have found place on Forbes magazine’s coveted list of top 2,000 corporate titans across the world.

HDFC Bank, Industrial Development Bank of India, National Aluminum, Bajaj Auto and UCO Bank joined the list which shows that 17 Indian companies gained in rank but 11, mostly in banking sector, lost ground compared with last year’s list.

ONGC is at 256th position among the 2,000 and is followed by Reliance Industries, State Bank of India, Indian Oil, NTPC, ICICI Bank, Steel Authority of India, Bharat Petroleum, Tata Steel, Tata Consultancy services and ITC to claim the top ten spots for India.

Infosys Technologies, Hindustan Petroleum, HDFC, Tata Motors, Wipro, Punjab National Bank, GAIL, Canara Bank, Bharti Tele Ventures, Larsen and Toubro, Bharat Heavy Electricals Ltd, Oriental Bank of Commerce, Hindalco Industries and Indian Overseas Bank are among others who make the grade.

Citigroup topped the list followed by General Electric, Bank of America, American International Group, HSBC group, ExxonMobil, Royal Dutch/Shell Group, BP, JPMorgan Chase and UBS.

More than 50 companies based in China and Hong Kong and two Pakistani companies, also find place among the 2,000.

The global giants, ranked on a composite score for sales, profits, assets and market value, had a good year. Combined, they show a 10 per cent gain in sales, 32 per cent in profits, 10 per cent in assets and 17 per cent in market capitalisation over last year.

News: Reliance Infocomm slashes ISD rates

(BL 31/03/2006) Mumbai - Anil Ambani-controlled Reliance Infocomm, on Friday slashed international call tariff by 45-69 per cent for calls to various countries including the US, Canada, Middle East, and Europe.

The new rates are spread across all plans and schemes under the pre-paid and post-paid categories, enabling Reliance customers to make the cheapest international calls from India, the company said in a release issued here.

ISD rates for calls to the US, Canada, fixed lines in Europe, Australia, New Zealand and south-east Asia have been reduced to Rs 6 per minute from the present Rs 14.25 under all 'One Nation' plans, it said.

The rates for ISD calls to these countries under all other plans have been brought down to Rs 7.20 per minute from Rs 12.99-14.25 per minute earlier, the release said.

Rates for calls to the Gulf, Middle East and Africa have been brought down to Rs 8 per minute from Rs 17.25 under 'One Nation' plans, it said, adding that rates under other plans have been brought down to Rs 9.99 per minute from Rs 17.25-19.99 per minute earlier, the statement added.

News: GoAir takes tariff war to different plane

(BL 31/03/2006) New Delhi - Taking the tariff war in the Indian aviation sector to a different plane, budget carrier GoAir on Friday announced that it would offer concessions on its tickets to customers, who succeed in getting a ticket from a rival airline that is cheaper than its own on the same sector.

The airline, owned by the Wadia group, would also reimburse the cost of immediate cancellation of its competitor's tickets.

Announcing the competitive move to 'commoditise' air travel, Jeh Wadia, Managing Director, GoAir, said: "If the price paid for the ticket bought on a competing airline is lower than the price paid for the GoAir ticket, then GoAir will adjust double the difference between its fare and the fare of the competing carrier as credit," which can be used to purchase GoAir tickets.

"GoAir will also reimburse the cost of cancellation done immediately of the other airline's ticket as credit, which can be used to purchase GoAir tickets," he said, adding that this "challenge will give the customer value for money which no other airline offers."

He said that the tickets of the airline at present ranged from Rs 999 to Rs 2,999 and announced that the Delhi-Mumbai flight would range between Rs 999 till Rs 4,999 asking the passengers to book early to get the concessional fares.

News: An India full of economic principalities

(DNA 31/03/2006) Harshad Daswani is a happy man. As the business development manager of Fountainhead Exports, making beachwear and swimwear to global retailers like Wal-Mart, his company has already booked a one acre plot at one of the country’s most ambitious special economic zones (SEZ) being built around the Navi Mumbai-Maha Mumbai (NM-MM) stretch on the outskirts of Mumbai city, by Reliance Industries.

This will be Fountainhead’s second manufacturing facility after Surat. “When we commence operations, we can cut costs by 18% and boost sales by 20%,” says Daswani.

Even German auto giant BMW zeroed in on the Mahindra group’s eponymous Mahindra World City, the 3,000 acre SEZ, 45 kms off Chennai. “They chose it because it was the Detroit of India, besides the proximity to a harbour and airport was important,” says Bernhard Steinruecke, the director general of the Indo German Chamber of Commerce.

The company will churn out 1,000 of its 3 and 5 series of cars a year.

Or for that matter, see what’s common between Grasim Industries, Uttam Galva Steel, Prince Plastics, Suzlon Energy India, Fountainhead Exports, Cbay Systems and a host of foreign banks? They have all applied for land at Reliance’s Mumbai SEZ.

“The future is in SEZs,” says a close confidante of Mukesh Ambani associated with the project. That’s why, ever since the government identified SEZs as catalysts of economic growth two years ago — and the more recent moves towards capital account convertibility — both corporates and real estate firms have embarked on SEZ dreams. They all want to provide holistic solutions of industrial, commercial and residential options.

And even as Mahindra was the first to set up an SEZ in Chennai, and has identified similar projects in Jaipur, Maharashtra and the east, the entry of big names like Mukesh Ambani, chairman of the Rs 70,000 crore Reliance Industries, appears to have changed the dynamics of the SEZ scale.

Until now, SEZs, which were earlier designated export-oriented units, stretched across 1,000 to 3,000 acres.

Today, they go beyond 25,000 acres with outlays that are mindboggling. Typically, the acquisition costs in these projects is 10% of the total outlay with a lot of captive infrastructure like power plants thrown in.

And while most of the applications are from IT companies, the developers claim that they will target the manufacturing and services sectors in a big way. To complete the townships, investments from hotels, hospitals and educational institutions, they say, are pouring in.

Today, Reliance is building a 25,000 acre petrochemical SEZ in Jamnagar and has bagged the deal for a similar-sized project in Gurgaon. It just withdrew from another deal in Hyderabad this week, claiming that it already has too much on its plate.

The reported outlay for these projects? Rs 50,000 crore.

But its most ambitious blueprint, which it “wants to showcase”, is the Rs 25,000 crore state-of-the-art project which will sprawl over 35,000 acres to build the twin NM-MM cities.

“Mumbai has a problem of immigration. We are looking at building a landmark city which will help people to migrate,” says a Reliance manager.

So it will have a trans-harbour bridges, broad roads, the basic infrastructure replicating China’s economic experience, particularly in its premier Shenzhen SEZ.

So charged is Ambani about the project, that industry folklore has it that he pipped Tata Group chairman Ratan Tata to buy out NM-MM from the earlier promoter Nikhil Gandhi. Gandhi’s Skil still retains 26% and 10% stakes in the NM-MM zones. He is glad he sold out to Reliance. “They will do in four years what I would have taken 15 years,” he says.

Even real estate companies want to leverage their residential and commercial expertise to SEZs. The New Delhi-based DLF Constructions has already announced plans for its 2,500-acre SEZ in the north.

Surendra Hiranandani, the Mumbai-based real estate developer of the eponymous group says there are plans to enter the 25-acre to 2,500-acre SEZ arena. “The move is of course tax driven,” he says.

“In fact, every corporate with an iota of real estate development expertise wants to set up an SEZ,” says the real estate head of a leading business house.

But not many have announced it, as they call for huge investments. The Godrej group is said to be looking at a smaller export-oriented unit.

A major attraction for the players is the independent status of the SEZs, which affords easier labour laws and special legislations. Says the Ambani confidante: “When the government permits private participation, the Indian industry begins with a clean mandate.”

Arun Nanda, the Mahindra director heading the group’s SEZ projects, says, “For us, it is a great opportunity to create world-class integrated cities and townships.”

In fact, town planning experts say that there are three models in play in the SEZ game. One is to secure licenses for the project and then flip them.

Then there is the investment game, like the Reliance blueprint.The Mahindra model is to develop and move on.

So far, Mahindra’s ventures are with local state governments. “It helps me in land acquisition and in marketing the project. Our model works best as a public-private partnership,” says Nanda.

While its Chennai SEZ is focused on IT and auto industry, Jaipur will be a logistics hub with Maharashtra focusing on electronics, IT hardware, food processing and light electricals.

Already, Infosys Technologies is planning one of the world’s largest software-development centres in Mahindra World city. Two years ago, Mohandas Pai, the chief financial officer of Infosys, claimed that they plan to have at least 25,000 people on campus and claimed that what attracted the company was the infrastructure.

Reliance, which wants to “become the financial hub of India”, will develop clusters of 5,000 acres in its Mumbai SEZs.

The first cluster will include a biotech park, financial services, IT and IT enabled services, apparel, gem and jewellery and a diamond park, besides the regular healthcare, hotels and educational institutions.

Company executives claim that Reliance has already signed 250 memorandums of understanding (MoUs) covering 1,500 acres.

Today, Singapore’s Jurong Town Corporation is the favourite town planners for the SEZ players. First Mahindra tied up and now, Jurong is giving the finishing touches to Reliance’s Mumbai SEZ. Reliance is also one of the three shortlisted to build the trans-harbour bridge along with the Larsen & Toubro consortium.

Adds the Ambani confidante: “We will bring a revolutionary change contributing 2% to the GDP (gross domestic product).”

With almost 75 SEZs sanctioned by the government, it will be a while before India becomes another China.At least the process has begun.

News: Aryan lines up Rs 45 cr for 55 Nike stores

(BS 31/03/2006) New Delhi - Aryan Lifestyle Pvt Ltd, a wholly owned retail subsidiary of real estate developer MGF, is planning to open 55 Nike stores across the country in the next financial year at an investment of Rs 45 crore.

The company has raised Rs 5 crore through 50 per cent equity and 50 per cent through soft loans from the directors of MGF.

“With MGF promoting us, we do not see the need of borrowing from outsiders,” said Deepak Chhabra, chief operating officer, Aryan Lifestyle.

He said MGF would funding the company for the next three years, after which internal funds will start being generated.

Nike India, which entered the country in 2004, has not engaged a master franchisee. Instead, the multinational company opted for direct tie-ups with local partners.

It also tied up with strategic partners, such as Aryan Lifestyle, as national partners. Nike currently has close to 100 single-branded outlets in the country.

In contrast, Reebok India follows the franchisee model and currently has approximately 260 single-branded stores in the country.

The recent Union Cabinet decision to allow 51 per cent foreign direct investment has not impacted Nike India’s strategy.

“While we welcome the move, we prefer our current model. We believe our partners have the financial assets for the required investment,” said Sanjay Mehra, general manager, South Asia.

As of now, Aryan’s Chhabra is planning to open 1,000-4,000 square feet exclusive Nike outlets. However, he is also in touch with “other non-contradictory foreign brands for opening other single-branded stores”. He hinted that one such brand could be a fashion line for casual clothing.

In the next 40 days the company plans to open 12 stores which include three each in Bangalore and Pune, two each in New Delhi and Vadodara, and one each in Dehradun and Ahmedabad.

News: How Pune malls' tricks work

(TNN 31/03/2006) Pune - When college lecturer Sunita Rao decided to go mall shopping last week, she did something unusual. She gathered 15 kg of old clothes, a broken mixer and some other worthless things, boarded a rickshaw and brought her junk to Pune's Big Baazar.

At this "very happening" 40,000 sq. ft hypermarket, Rao exchanged her junk for Rs 3,155 worth of coupons, which she could redeem against purchases, four times their value.

The previous Sunday, Big Bazaar managers were ecstatic when hundreds of shoppers like Rao descended with tonnes of junk and picked up coupons worth over Rs 7 lakh — the highest in a single day among all the 24 other Big Bazaars in the country.

If it's this immensely innovative "junk-forcoupons" exchange mela that's generating footfalls at Big Bazaar, freebie diamonds at Shopper's Stop, iPods, motorcycles, holiday packages and other gifts at Central were among the offers that proved immensely popular with mall shoppers in Pune.

With nearly two dozen superstores, malls and hypermarkets in Pune, international property consultants Knight Frank say that Pune's retail sector is witnessing "tremendous growth", with 20 major projects in the pipeline.

News: Indian job sites in overdrive

(DB 31/03/2006) Chennai - As employees keep switching jobs as fast as companies are able to fill the vacancies, job portals seem to be enjoying a boom, says Venkatchari jagannathan. Domestic job portals are witnessing increased business, thanks to the various surveys predicting a boom in jobs across sectors and non-IT companies embracing online recruitment.

Says N Muralidharan, managing director, JobStreet.com India Pvt Ltd, "We are seeing an increase in the recruitment needs of non-IT companies. There is a 70 per cent month-on- month increase in resumes for non IT sector jobs and 56 per cent growth in the number of job postings on the site by the companies." Jobstreet is listed on the Mesdaq market of Bursa Malaysia.

Adds R Guhan, country manager, Jobsdb.com, "Many companies are switching over to e-recruitment in a big way. Nearly 30 per cent of job postings on our site are by manufacturing companies." Another Chennai-based job site, Clickjobs.com claims 45 per cent non-IT job postings.

The overall recruitment market — including the cost of paper advertisements, consultant fees and others — is around Rs1,300 crore. "The online recruitment industry is around Rs150 crore and is growing by at least 50 per cent. The growth rate will remain the same for the next five years," he adds. However, none of the sites are willing to share their revenue figures.

Not long ago, job portals received the bulk of their business from the IT sector. With increasing employee attrition, soon companies in the fast moving consumer goods (FMCG) sector, telecom, pharma, banking and financial services, too, began moving on to e-recruitments to widen the base of respondents and simultaneously save on costs. And now even manufacturing companies like Flex Industries, LG Electronics, Goldstar Enterprises, Havell's, Ashok Leyland and others have been following suit.

It is a natural transition from traditional recruitment to technology-enabled solutions that simplify the recruitment process since employees have been increasingly frequenting job search sites for newer employment avenues. "We currently offer our website users exhaustive job search options as well as through SMSs on mobiles. Combined with the regular job fairs that these portals organize, there emerges an ideal mix of online and offline options," explains Rajeev Gaur, CEO, TimesJobs.com.

According to Gaur, the idea is to provide 24x7 access to jobs for a job seeker and the reduced recruitment cycle for the employers. For employees on the prowl for new opportunities, job portals are an attractive medium to enable employers to locate them, while for companies, these sites enable them to position themselves as preferred employers.

"Entry level and middle management position are some of the popular vacancies filling the portals, says Guhan." This year he expects banking, financial services and insurance sector, retail, airlines and manufacturing to be the largest employers apart from the IT and ITeS sectors.

But switching over to online recruitment is not like surfing the net. Explains Michael M Bala, business head, ClickJobs, "Online recruitment requires dealing with large volumes of applications, choices are many and so it is critical to have necessary tools to identify the right kind of candidates. Also, a better understanding of what the candidate intends to communicate is needed."

For the employers who opt for online recruitment Muralidharan has a word of advice,. "The top management should be committed to this method of recruitment and ensure dedicated resource to use this medium. Similarly, it should devote enough time and energy to design the advertisement for the advertised positions. In order to derive the full benefit companies should put all its positions online and decide to be committed to long term."

With the market dotted with several players, job sites offering value added solutions have an edge over others. For instance JobStreet offers a software, Impact, which helps in streamlining the entire recruitment process. According to Muralidharan, around 35 Indian corporates are using this software installed in the website of the client as an application software provider (ASP).

On its part, TimesJobs offers a solution called Empower, a holistic tool for sourcing candidates as well as managing applications.

Though their core offering is online, the job portals conduct offline promotions like having strategic tie-up with newspapers, conduct and participate in job fairs.

Says Gaur, "We are the pioneers in organising job fairs, branded as Big Leap Job Fairs, enabling direct interaction between job seekers and employers. Another first has been the initiation of virtual job fairs online, which allow employers the facility of quality talent acquisition from the convenience of their offices besides giving job seekers the opportunity to respond to job openings from several companies from the comfort of their homes." The site spends around Rs20 crore on promotional its campaign.

Interestingly, only Naukri.com spends money on television commercials while others advertise online and in the print media.

These sites do not consider recruitment consultants entering this space as a major threat. Remarks Muralidharan, "The portal business is transaction-based where as a consultancy is relationship-based. Both require different skill sets."

On the other hand, it is the prospect of newspaper groups launching job sites that is is a major threat, since online sites eat in to the ad revenues of newspapers. Except for The Times of India group, no other news organisation has launched a job site. Explains Gaur, "This business is essentially a media business, and therefore it is best done by a media company. Reach is a constraint for most players in the business."

The site leverages The Times group's resources like the print, internet, television, and the radio. Consequently, within just two years of its launch, Timesjobs has emerged as one of the leading jobs portal in the country.

How do corporates measure the effectiveness of job portals?

"A job portal is essentially a medium which helps bring employers and job seekers together. In this respect, the success of any job portal is measured by how effectively it is able to accomplish the task of matchmaking and the satisfaction that it is able to provide its customers," responds Gaur.

The other measures of effectiveness are:

* The number of people recruited through the portal
* Comparing the cost of recruitment on the level of positions
* The number of resumes in the database and
* The number of page views.

The freshness of the resumes is a major advantage that sites have over print publications because of the frequency of daily uploads that is possible.

Gaur claims his portal has a registered a database of 4.2 million job-seekers, with 16,000 new resumes added every day.

On the other hand, JobStreet's Muralidharan claims a monthly page viewership of 85 million and 1.5 million resumes. "We systematically purge our database to keep the resumes current. Every 90 days we encourage people to update and we also run schemes." JobStreet according to him is a value player rather than a volume player. "Our site is used for recruiting middle and senior middle management cadres and in some cases even the top management."

According to Clickjobs' Bala, since the site was launched in August 2005, around 750 candidates who applied through his site have been placed at various levels. "We have about one lakh jobseekers, 1,500 employers and 6,000 requirements on our site."

With phenomenal growth potential, foreign portals like Monster.com are coming to India. Predicting a shake-up in the industry Guhan says, "Only serious players will survive the onslaught."

The other interesting possibility is the emergence of regional language job portals. "The regional-isation of job portals is an interesting possibility, which could perhaps start happening soon," says Gaur.

So far, Jobsdb seems to be taking the initiative by launching a Tamil job portal soon.

"Online recruitment is dependent on computer literacy and internet penetration. Today these portals are known amongst those having email accounts. Further, going by the kind of positions that are recruited online now I don't think there is a need for regional language job portal. However in Malaysia, even drivers are recruited online," says Muralidharan.

Concurring with him Bala says, "It is highly cumbersome for a candidate to post his profile using assisted tools."

Meanwhile, the players are expanding their operations. Says Muralidharan, "In India we are in five cities — Mumbai, Hyderabad, Pune, Bangalore and Chennai. We haven't gone to second tier cities in south and to few first tier cities in the north. We have plans to open offices in Gujarat, Delhi and in the National Capital Region in couple of month's. We will also open offices in Coimbatore and parts of Tamil Nadu, Karnataka and Andhra Pradesh."

Naukri has started a new online venture for the Gulf , Naukri Gulf. The site will assist recruiters and jobseekers in the Middle East region targetting jobs in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE and other countries in the region.

Present in all major Indian cities now, even Timesjobs will soon start operations in the Gulf and the Middle Eastern.

On its part, ClickJobs, which is present in Chennai, Delhi, Mumbai, send this article to a friend Hyderabad and Bangalore will be expanding to Trivandrum, Pune and Kolkata. Incidentally the country's first ISO 9000 certified site is fine-tuning its features in line with the demands of the market.

News: Taiwan says 'go India', firms aren't rushing

(RTR 31/03/2006) Taipei - It may be the world's second most populous country and have an economy growing at 8 per cent a year, but there are plenty of reasons why Taiwan companies are wary about their government's exhortations to invest in India.

Cultural differences, restrictions on foreign investment, poor infrastructure and government inefficiency mean India has a long way to go before it can come close to rivalling China as the favourite place to invest for Taiwan firms.

But ties between Taiwan and China have been tense under the administration of pro-independence Taiwan President Chen Shui-bian, who plans to tighten the rules on major investments in China and make firms jump through more hoops to get approval.

In some ways, India seems like a natural alternative.

News: Bata to increase Indian retail presence

(F2F 31/03/2006) Mumbai - After the market was opened up to foreign single-brand stores by the centre for footwear segment Bata India Ltd, the largest shoe company in India, feels the need to evolve new retail strategy in order to face the competition.

The company plans to be more visible in shopping malls, bring in franchisee model and create shop-in-shop experience in a multi-branded store.

Bata needs to bring in innovation to be ahead in competition, said P M Sinha, Chairman of Bata.

Bata has 1100 stores in India at present with plans to open 40 new stores by 2006.

Of the 10 shops opened by the company during first quarter of 2006, five are in malls.

The strategy to create international feel in its new stores along with modernising of the existing ones seems to have been successful with sales growth of 20 to 40 percent recorded in modernised shops, Sinha explained.

The company is undergoing discussions with mall developers for space in the new malls and is looking at pushing sales through flagship stores.

In 2005, it had restricted sales through wholesale channels sales were restricted in 2005 due to very high outstandings resulting into sales going down by Rs 20 crore.

Strict measures and modern stores helped Bata return to the black after three years.

Sinha said, the turnaround was due to bringing down costs and innovative product mix introduced during the year.

Net sales grew marginally from Rs 694 crore in 2004 to Rs 706.7 crore in 2005. Bata was able to make profit of Rs 12.4 crore against a loss of Rs 6.27 crore in 2004. He is confident that sales growth would be more robust in 2006.

Sinha said that, a 10 percent growth in topline would be achieved with profitability posting a better performance than 2005.

The company offered Voluntary Retirement Scheme (VRS) to about 1,000 people in 2005 reducing staff cost.

Manufacturing of products in 2005 was planned keeping in mind market needs, focusing on women’s shoe segment where Bata was historically weak.

Bata has plans to explore opportunities in institutional space like hospitals, hotels and defence establishments.

News: Trent announces association with DLF

(PTI 31/03/2006) New Delhi - Tata Group retail arm Trent Ltd, and real estate developer DLF Universal Ltd announced on Friday that the former through either one or more of its brands of Westside, Landmark and Star India Bazaar would anchor the next 12 DLF malls across various cities of India.

"Trent through either one or more of its brands of Westside, Landmark and Star India Bazaar has agreed to anchor the next 12 DLF malls across various cities of India with 27 stores totaling to about a million square feet of space," Trent said in a release.

Meanwhile, fashion and lifestyle store Westside has launched its first store at the DLF's Grand Mall in Gurgaon.

With this launch, Westside is now present in 13 cities and has 22 outlets across the country.

News: On auspicious Indian day, a record sale of cars

(KRT 31/03/2006) New Delhi - Thursday was a day of big festivity for the Indian car bazaar. Sales across the country recorded an all-time high -- average daily retail offtake witnessed a 10-fold hike.

The reason: Thursday was the first day of Navratra in North India, Gudi Padwa in western markets and Ugadi in the south.

That's not all. The end of the current fiscal has also seen demand from corporates boosting sales. Add to this the hefty discounts and freebies offered by car-makers and you know why Maruti's sale was up eight times on Thursday and Honda reported an over five-fold growth. Hyundai and General Motors also witnessed a 10-times surge.

"The rare occurrence of three festivals on the same day resulted in a record growth in car sales on a single day. Buyers have been holding back purchases over the past few weeks to take delivery of their cars on Thursday," Honda Siel Cars India marketing head Rajive Saharia told TOI.

"The trend was witnessed across the country and across all product segments. Maruti, on average, sells around 1,700-1,800 nits per day. On Thursday, its sales went up by nearly eight times," said a Maruti dealer.

Honda sold around 1,010 cars on Thursday compared with 100-odd cars on an average day. Even General Motors reported its highest-ever sale on a single day, which would help the firm end the month at a record high, said its spokesperson P Balendran.

News: Puma Sports India expansion plans kick off

(BT 31/03/2006) Mumbai - The sporting goods manufacturer from Germany, Puma plans to introduce larger range of products in the country through its newly-launched subsidiary Puma Sports India Pvt Ltd, Rajiv Mehta, General Manager Puma Sports India said here on March 31.

The GM further clarifies that the company will introduce nearly 250 products in footwear, 200 in apparel and 100 in accessories and the products will be in line with its international range in sports, lifestyle and fashion.

The company plans to open stores in the country with retail and wholesale partners and expects to open the first one in the second quarter of 2006.

Puma has been selling in the country for the past three years through multi-brand retail stores supplied by its franchisee Planet Retail Holdings, known earlier as Planet Sports India Pvt Ltd.

The company further expects the business in the country to account a large part of its $1.05 billion revenue target from the Asia-Pacific region by 2010.

The first three phases involved establishing a strong financial footing, improving brand equity and generating growth.

"We are looking at Bangalore or Chennai as options," Martyn Bowen, Puma's general manager for Eastern Europe, Middle East and Africa further added.

News: Reliance MF plans fund for overseas investors

(ACERC 30/03/2006) Mumbai - Reliance Mutual Fund on March 29 filed prospectus to launch a fund for overseas investors. Christened Reliance Emergent India Fund, the fund will open to investors in the US, the UK and West Asia. Several other domestic fund management companies have been thinking of tapping this market for a while with limited success though.

UTI Mutual Fund and Birla Mutual Fund are the other domestic funds being advisors to off-shore funds although their fund size is not huge compared with their foreign counterparts.

With growing interest in Indian equities, there has been a growing demand for capable fund managers. There is a lot of demand for fund managers with good track record and credibility. Domestic fund managers so far have managed to provide better returns than off-shore fund managers which make a strong case in favour of them.

Reliance Emergent India will have only one investor called Emergent which is a company incorporated in Mauritius in September 2004 with limited liability. This is the route taken by all domestic funds managing off-shore funds.

News: 'Indian economy to grow by 8 pct up to 2008'

(RTR 30/03/2006) New Delhi - India should be able to sustain a GDP growth rate of 8 percent for the next two years but high oil prices remain a concern, a UN report said on Thursday.

The high rate would be supported by expansion of the agricultural sector by 2.5-3.0 percent, 8 percent growth in industry and 8.5 percent in services, said the report by the United Nations' Economic and Social Commission for Asia and the Pacific.

It said India's inflation rate was likely to remain at about 4 percent in this period due to the government's commitment to reform, including strict fiscal prudence.

Industrial and services sectors were expected to sustain the growth momentum, helped by cyclical factors, rising rural incomes and increased public spending on physical and social infrastructure.

But it said that high global oil prices were exerting more inflationary pressure and eroding the country's balance of payments.

"If oil prices rise further by $10 a barrel, GDP growth of a developing country such as India can drop by 0.5 percent, inflation can rise up to 1 percent and current account deficit can widen up to 0.3 percent of GDP," the report added.

Oil prices held above $66 on Thursday after a steeper-than-expected fall in gasoline stocks in the United States ahead of peak summer demand.

Prices have stayed above $60 for more than a month on worries that geopolitical risks in oil exporters such as Nigeria, Iran and Iraq would keep supplies tight.

News: Lufthansa may add new destinations in India

(PTI 30/03/2006) Bangalore - Bullish on the Indian market, which contributed 21 per cent to its Asia Pacific passenger business revenue, Lufthansa, German Airlines, is exploring the possibility of operating to new destinations in the western and eastern region of this country, including Kolkata.

Lufthansa Vice-President, Asia & Pacific, Uwe Mueller, said here the European carrier was evaluating new destinations and a decision is expected within the next four to five weeks.

General Manager Passenger Sales India & Director South Asia, Werner Heesen, said expert teams from Lufthansa were "scanning and screening" the markets, and "airport infrastructure and profitability of the routes are being looked at."

"Kolkata is one of the important candidates," Heesen said. "There are a lot of development taking place in Maharashtra and Gujarat," he added in the context of likely new destinations that Lufthansa may add.

Lufthansa currently operates 42 flights out of India per week; twice daily flights from Delhi to Frankfurt and Munich, and once daily flight to Frankfurt from Mumbai, Chennai, Bangalore, and Hyderabad.

Japan contributed 35 per cent to Lufthansa’s Asia Pacific revenues, followed by India 21 per cent, and China 17 per cent.

He said while Europe continues to be Lufthansa’s "bread and butter" market contributing 38.1 per cent of the revenues, Asia Pacific, now at 17.2 per cent, "is the growth market."

General Manager Passenger Sales Karnataka Region, Deepak Biswas said the carriers business here has not dented after the starting of flights by British Airways and Air France out of here to Europe. The carrier, in fact, was thinking of bringing bigger planes here to address the growing demand.

News: Bajaj Capital plans wider geographical presence

(BL 30/03/2006) Ludhiana - Financial services company Bajaj Capital Limited plans to open 40 new branches in the next fiscal, aiming to add one lakh new retail investors for its investment advisory services.

"We are planning to open 40 more branches, including 2 branches in Punjab, in the next financial year. In addition, we wish to take the total strength of our retail investor base to 8 lakh as against 7 lakh retail investors at present," Anil Chopra, CEO & Director, Bajaj Capital, said here.

The company, promoted by K K Bajaj, at present has 110 branches in 52 cities. Last year, it opened 20 new branches across the country. "We have fixed a target to grow our business size by 50 per cent in the next fiscal," Chopra added.

Bajaj Capital is engaged in the business of merchant banking, resource mobilisation, distribution of financial products, investment advisory service, buying and selling of money market investments and tailor-made financial planning for individuals and corporate clients.

Bajaj Capital also offers need-based investment advice to retail investors, high net-worth investors and institutional investors and serving to 7,00,000 retail investors throughout country including 12,000 NRIs.

News: Foreign fabric cos plan local tie-ups to set up Indian shop

(TNN 30/03/2006) Mumbai - After readymade garments, India is all set to give China a run for its money in its traditional forte, fabrics. A number of foreign fabric manufacturers are entering into partnerships with Indian companies and looking at setting up units here, as they find it more cost-effective to supply garment manufacturers in India than importing the fabrics.

Banswara Syntex, a manufacturer of synthetic yarns, has announced a 50:50 JV with European fabrics-maker, Carreman Michel Thierry, to set up a plant in Rajasthan for weaving and exporting high-value lycra-based designer fabrics. Raymond recently spun off its denim business into a separate 50:50 JV with UCO NV of Belgium, giving the company entry into India.

Tessitura Monti India, a subsidiary of the Italian Gruppo Tessile Monti SPA, which manufactures dyed yarn and fine count premium shirting fabric for Italy, Europe and the US, already has a plant in Kolhapur with processing and finishing facilities. More companies, including Gangotri Textiles, are expected to announce joint ventures.

This year’s Budget has also given a major boost to the fabrics industry by reducing the excise duty on all man-made fibre yarns and filament yarn from 16% to 8% and the import duty on raw materials from 15% to 10%.

According to industry estimates, manufacturing fabric in India offers a margin of at least $1 per metre, compared to Europe. These companies are not looking for volume production in India, as is the case with China. This is an incentive to set up operations in India.

Exports of fabrics, fibres and made-ups have risen progressively from $6,470m in ’02-03 to $8,015m in ’04-05, according to the Federation of All India Textile Manufacturers Association.

According to Premal Udani, president, Clothing Manufacturers Association of India (CMAI), that is co-organising the upcoming the Intex Fabrics and Accessories Show, “India can become the gateway to international companies for the high-potential South Asian markets including India, Pakistan, Sri Lanka, Bangladesh, Mauritius and Nepal.”

The production of fabrics in India is expected to go up to 47,000m square metres in ’05-06 from 44,991m square metres in ’04-05. India’s imports of fabrics, fibres and made-ups are not likely to increase drastically.

News: East Caribbean for Economic Union

(PL 29/03/2006) Basseterre - Organization of Eastern Caribbean States leaders (OECS) are clinching a declaration to set an Economic Union Treaty and strengthen sub-regional integration.

They have agreed on the need to have a body that protects their interests and takes into account the existing differences among them and other CARICOM partners.

The document, to be signed June 21 in Basseterre on the occasion of the 25th anniversary of the OECS, must be ratified by all member states before the Economic Union takes effect.

The OECS´s unification is fundamental for the bloc´s entry into the Caribbean Single Market June 30.

As part of the 25th anniversary celebrations, the OECS flag will be raised for the first time at the Eastern Caribbean Central Bank headquarters.

This will be site for meetings among executives of the body and international development agencies from June 18.

News: Trinidad central bank moves to fight inflation

(CNN 29/03/2006) Port of Spain - The Central Bank of Trinidad and Tobago has decided to increase the 'Repo' rate by 25 basis points from 6.5 percent to 6.75 percent with effect from Tuesday March 28, 2006.

An official statement from the Central Bank says this decision comes against the background of what is being termed by financial and economic experts as "persistent inflationary pressures," the continued sharp growth in private sector credit and the narrowing of the differential between TT and US dollar, along with short-term interest rates as US rates continue their upward climb.

The bank says the latest available data on prices released by the Trinidad Central Statistical Office indicate that headline inflation measured 6.5 percent year-on-year to February 2006, down from 7.04 per cent in January, but still outside of the Bank's target range of 4–5 per cent. It says core inflation held steady at 2.5 per cent.

In an effort to deal with the inflationary trend the bank says it has intensified its efforts at absorbing liquidity, through the use of longer term debt instruments. It adds that the bank will continue to keep monetary conditions under close review. The next 'Repo' rate announcement is scheduled for April 28, 2006.

News: Staatsolie starts production at new oil field

(CNN 29/03/2006) Paramaribo - Staatsolie, Suriname’s state oil company, has launched production at a second onshore oil field in Suriname.

At the opening ceremony, the new Operations Minister of Natural Resources, Gregory Rusland, announced the oil company and the government will aim for higher oil production to meet the growing needs of the developing country.

In order for the company to continue expanding production, Minister Rusland urged management to increase research and development activities.

Officials estimate that the new Calcutta production field holds 23 million barrels of crude oil. According to Calcutta’s field chief, Patrick Brunings, peak production of 5.000 barrels a day will occur over a continuous development period of 20 years.

Already 12 wells have been drilled in the field and this number is expected to increase to 160 over the next two years. As explorations continue, there are indications that the field may hold more crude oil than the original estimate of 23 million barrels.

The Calcutta field is located in a swamp area and Staatsolie officials publicized that minimal damage will be caused to the environment. The drilling installations are small structures in the swamp, which has no roads. All transportation to the wells and throughout the area requires boats, air boats or other marine vehicles.

Since 1983, most of Staatsolie’s oil has been produced at the Tambaredjo field. This month, the company reported 2005 record sales of US $201.3 million, which reflects a 51.5 percent increase compared to 2004. Staatsolie also reported 2005 pretax profits of US $105.2 million compared to US $59.7 million during 2004.

Higher crude oil prices in 2005 contributed to the landmark results and production increased more than six-fold, to 4.38 million barrels.

Staatsolie recently began investigating potential offshore locations on the Surinamese coast. Hoping these efforts reveal commercial findings, Occidental Petroleum Corporation of the US and Spanish Repsol/YPF have already signed production sharing agreements with Staatsolie.

News: Thomas Cook India plans overseas buyouts

(RTR 29/03/2006) Mumbai - Travel and foreign exchange firm, Thomas Cook India Ltd., plans to buy three overseas companies next financial year, Chairman, Udayan Bose, said on Tuesday.

"The acquisitions will be within the areas we are in," Bose told reporters before the start of its annual general meeting said, without offering further details.

“Dubai Financial LLC, a subsidiary of Dubai Investment Group, acquired 60 per cent in Thomas Cook India in December. Dubai Financial then acquired a further 8 per cent through an open offer made to the shareholders,” Bose said.

Europe's Thomas Cook is jointly owned by airline Deutsche Lufthansa and German retailer KarstadtQuelle.

News: Sanyo to increase presence in India

(BL 29/03/2006) Mumbai - Japanese consumer electronics major, Sanyo Electric Company Ltd, announced plans to increase its presence in India.

The company, which has already launched its consumer products in the Indian market last year, plans to bring in its commercial and industrial equipment business to the country.

"We have big plans for India and after building a firm foundation using our initial investment we hope to make it a pillar of our growth in the future," Toshimasa Iue, President, Sanyo, said.

Iue has selected India as his very first overseas destination since taking over the reigns of the company last year. "I have been closely watching the immense growth opportunities India offers.

"We have big plans for India and after building a firm foundation using our initial investment we hope to make it a pillar of our growth in the future,'' he said.

Iue met the Prime Minister Dr Manmohan Singh. He also had a meeting with Ajit G. Nambiar, Chairman and Managing Director, BPL Ltd.

The company sees overwhelming potential for its environment and energy-related products in India.

Investment

Goldman Sachs along with two other investment banks have invested $3 billion in Sanyo. Of this $73 million will be invested in Sanyo BPL Private Ltd, the joint venture between Sanyo and BPL.

Another $ 27 million has been set aside for working capital requirements for use over the next 12 months.

The company has set a turnover target of Rs 2,000 crore to be achieved in the next three years.

In the future, Sanyo is eyeing a 50 per cent share in the global hybrid electric vehicle battery market.

Power solutions

Sanyo has identified power solutions — HEV batteries, rechargeable batteries and solar modules — commercial and HVAC-R equipment — industrial air-conditioners, showcases and biomedical equipment - and personal mobile devices as its core businesses.

Sanyo plans to introduce these technologies through its subsidiaries — Sanyo India Private Ltd and Sanyo BPL Private Ltd.

News: Fidelity launches India Special Situations Fund

(BL 29/03/2006) Mumbai - Fidelity Fund Management today launched the Fidelity India Special Situations Fund. This open-ended equity fund would invest in Indian companies that are in special situations. The fund house has termed special situations as companies that are in turnarounds, those with under appreciated growth, with new products or new business streams.

These situations present an investment opportunity to a fund manager who can foresee and interpret the implications of the opportunity early enough, according to fund house officials. Fidelity has similar funds in other parts of the world, including Japan and the UK, said Ashu Suyash, its Country Head.

The minimum application amount is Rs 5,000. The fund charges an entry load of 2.25 per cent for purchases less than Rs 5 crore and an exit load of 1 per cent for redemptions within the six months. The NFO remains open till April 26.

News: 'It is India's time in the limelight'

(BL 29/03/2006) Mumbai - The Sensex at 11,079 is just a short distance away from the Dow Jones Industrial Average. Is this just a numerical landmark, given that the Dow's market cap is 27 times that of the Sensex? Are we comparing apples to oranges?

Dalal Street wizard Rakesh Jhunjhunwala says history is finally shifting from the Western markets to the emerging ones.

On the other hand, the BSE member, Ramesh Damani explains, "Are we comparing apples and oranges, perhaps in a sense, yes?

Excerpts from an interview given to CNBC-TV18

Are there any points of comparison or are they just two different things and cannot be compared at all?

Jhunjhunwala: I don't think we are looking at two different things, which cannot be compared, but we are looking at the cusp of history shifting from the western world to the emerging markets.

My view is that economic growth is going to be far greater and there is going to be a shift to the emerging markets, with India being one of the largest ones.

One must not forget that the Dow was 100 in 1900 and today it is 12,000 and the base of the Sensex is 100 in 1979. Therefore, if we compare the rise from 1900 to 2006 and compare the rise from 1979 to 2006, the Sensex has given a far greater result, rather than the Dow.

The growth of Sensex has been stunning and in case of the Dow, not so much. Does that really point to a shift in the economic balance?

Damani: Are we comparing apples and oranges, perhaps in a sense, yes? The Dow is a price-weighted index. There is a 100 rule among Dow company stocks. When the stock goes to a 100, you split the stock and bring it back to 50. So the absolute price of the stock is more important. Whereas, with the Sensex, it is a free float market cap weighted index. So in that sense they are different.

One must remember that we were denominated by a weaker currency for most of the time. So the returns in terms of dollar and in terms of gold would be substantially less because Indian rupee has been consistently weak between 1979 and 2000.

Jhunjhunwala: Even if one takes into account the inflation and weak rupee, then I think the return of the Dow and Sensex could be quite equivalent.

Is it a concern that Sensex P/E is at 18.9 and Dow P/E is 18.5?

Jhunjhunwala: Well but the growth rates are different and may be interest rates in America are still lower than in India. But growth rates in India are much higher than in America. One must also not forget that there is vast domestic underexposure to equity in India.

Is that a valid point that the American market has almost 70 million investors, India just a fraction of that?

Damani: Of course, it is a great point but my sense is rather than going into Sensex stocks, they might go into IPOs, which now has a strong pipeline.

The Dow Jones had been at 10000-11000 for almost five years? Any worry that the Sensex could go the same way?

Damani: It is a well-known axiom when you follow indices, for example, the DJ hit 1,000 for the first time in 1968, it didn't cross that level again until 1982. Then when it broke out of that range, it went to 10,000, the next 10 years or so. Similarly, our Index in 1992, we made a top of 4,500 but we didn't cross that top decisively until 2003. So once we have broken out, it tends to be a huge move.

News: Big Bazaar bags more customers with exchange offer

(BL 29/03/2006) Bangalore - Spring-cleaning is something most people put off, if they can. But novelty and innovation in retailing has changed this humdrum task into yet another exciting shopping experience for consumers across the country. Big Bazaar's `The Great Exchange Offer' has mobilised more than two lakh families to actually carry the junk of the house and offload it at the nearest Big Bazaar.

Sanjeev Agrawal, President, Marketing, Pantaloon Retail, talks about the excitement it has created among housewives, "We at Big Bazaar had found that the housewife is really excited if she is able to dispose the `kachra' of her house at a value price. Thus to add excitement to our customers who are mainly housewives, we hit upon this idea where the exchange value is higher by 4 to 8 times than that of the road side kabari wala."

Other than regular throw-aways such as clothes and newspapers, people across the country have been dumping old TV sets, furniture, used mattresses and vehicle tyres at exchange counters at the retail store.

Retail analysts say that generally February and March are dull months for consumer buying in the country and therefore this kind of a promotion campaign is needed to boost sales during the period. Though exact sales figures for the two months were not available, Agrawal pointed said that the same store year-on-year growth registered by their value retail business in the month is approximately 30 per cent. "Shopping in terms of buying season and spending is very different in the months of January, February and March," he says and therefore a comparison with the previous month would be inaccurate.

Pantaloon currently has 24 Big Bazaar hypermarkets across the country and revenues from value retailing in February '06 stood at Rs 91.49 crore.

News: Planet Retail plans 10 Debenhams stores

(BL 29/03/2006) New Delhi - Planet Retail Holdings Pvt Ltd has said it plans to set up ten `Debenhams' stores across major cities in India by 2010, envisaging an overall investment of $30-50 million.

Planet Retail Holdings, which is the master franchisee for a host of international brands including Marks and Spencer, Guess, Women's Secret, Debenhams, and Body Shop, said the first Body Shop store would come up in India during May this year, in Delhi and Mumbai.

"The first Debenhams store will come up in Gurgaon, followed by a second store in Delhi. By 2010, Debenhams stores will come up in locations such as Delhi, Mumbai, Bangalore, Kolkata, Chennai, Hyderabad and Ludhiana," said Arun Bhardwaj, Managing Director of Planet Retail Holdings.

The investment for each Debenhams store is pegged at $3-5 million, taking the overall investments to $30-50 million.

Debenhams, a department store chain with over 50 exclusive designers and its own brands and labels, has a retail market share of about 20 per cent in the UK and Ireland. Debenhams also has franchise stores in Bahrain, Cyprus, Czech Republic, Denmark, Dubai, Iceland, Kuwait, Indonesia, Malaysia, Qatar, Saudi Arabia, Sharjah and Sweden.

"Planet Retail Holdings has 55 stores for various brands and we plan to increase it to 250 stores by 2008," he said adding that the company plans to set up as many as 40 Body Shop stores by 2010.

The Rs 140 crore project is expected to be completed by June 2008.

News: Escort India to foray into Bangladesh

(PTI 29/03/2006) New Delhi - Escort India Limited is set to make foray into Bangladesh to manufacture tractors through a joint venture with the Nitol-Niloy group.

The project, to be set up in Kishoregunj district of Bangladesh, is expected to go into production by this year-end with 1,000 tractors, which is half of the estimated demand in the neighbouring country, Nitol-Niloy Group Chairman Mohd Abdul Matlub Ahmed said.

Escorts and the Bangladeshi group had signed a Memorandum of Understanding here during Prime Minister Khaleda Zia's visit to India a little over a week ago and the two companies are to sign a formal agreement on the joint venture in May, Ahmed said.

He said Nitol-Niloy group would be the major partner in the joint venture which is the Bangladeshi company's fourth with an Indian company. The group had earlier tied up with the Tatas in automobile sector, the Birlas for Grasim cement and Blowplast.

According to Ahmed, an attractive export market for the tractors exists in Myanmar and northeastern states and plans are afoot to export 3,000 tractors to Myanmar.

Each tractor will be priced at $ six thousand, he said.

Ahmed said his company would also go for manufacture of agriculture implements.

He said given the narrow manufacturing base of Bangladesh, the country needed such joint venture projects.

News: British Airways to expand India operations

(ACERC 29/03/2006) London - As foreign carriers like Malaysia Airlines close shop in Kolkata, British Airways plans to woo passengers by providing three weekly flights to Heathrow London from Kolkata and a soon to be introduced online boarding pass facility. This was announced at a press meet by company delegates.

The airline has plans of operating five flights a week from Chennai and six flights a week from Bangalore from May 4, 2006. Double-daily flights would be introduced on the Delhi-London route from April 8, 2006, said Charles Carneiro, Marketing Manager, South Asia. The total number of flights operating from five cities in India would also be increased to 42 from April this year.

The flights from Kolkata had good passenger volumes. However, flights from Bangalore always ran to full capacity. 80 per cent of the business class passengers from Bangalore were repeat flyers.

News: Intel launches PCs for rural India

(PTI 29/03/2006) New Delhi - World's largest chipmaker Intel on Wednesday launched a personal computer platform that was conceived and largely designed in India to suit the rural environment.

The PC, conceived by the Platform Definition Centre set up in India in June last year, is one of the many platforms for specific uses that the group is working on.

"The group is working on more affordable solutions and PC platforms for specific uses like in area of education. A series of new platforms are coming up," Amar Babu, Managing Director (Sales and Marketing) for South Asia said.

Apart from India, Intel had set up platform definition group in Sao Paulo in Brazil, Cairo and Shanghai, William M Siu, Vice President and General Manager (Channel Platforms Group) at Intel said.

The sturdy PC launched today can work in temperatures of up to 50 deg. celsius and can even run on a battery that can be charged by pedalling (as in a bicycle dynamo) and other means.

The battery works as a back up in areas where power supply is erratic. The PC can also operate in high dust environment and in surroundings, where there are lot of insects.

Intel has positioned the personal computer as a community PC that can be used in citizen service centres and other applications like education, Babu said.

The government has set a target of setting up 1,00,000 citizen service centres all over the country.

He said the platform has been provided to computer manufacturers like HCL and Wipro, who were expected to roll them out in a few weeks.

The PCs will be priced between Rs 20,000 and Rs 30,000, Babu said.

News: AIG to set up real estate development firm

(ACERC 29/03/2006) Mumbai - American Insurance Group (AIG), the world's largest insurer by market value, plans to set up a real estate development company and a consumer finance arm this year.

The group, which has been selling insurance in India since 2000, recently set up the country's first mutual fund with 100 per cent foreign investment. AIG India said that a JV for commercial real estate development will be floated this year.

Last week, the government cleared AIG Capital Corp's Rs 225-crore proposal to peddle consumer finance and asset management services. AIG Global Real Estate comprises a group of international companies within AIG Global Investment Group that invests in and manages real estate for clients and group companies around the world.

On December 31 last year, AIG Global Real Estate was managing assets over $10 billion. AIG Global Real Estate's property portfolio includes over 53m square feet of retail, residential, industrial, office and hospitality properties owned, managed, or being developed in more than 50 countries.

AIG Real Estate has offices in Atlanta, Dublin, Hong Kong, London, Los Angeles, Mexico City, San Francisco, Seoul, Singapore, and Tokyo. In consumer finance, AIG is looking to emulate Citifinance, which funds purchases of consumer durables, cars and home loans. In the US, AIG provides consumer loans through American General Finance.

News: Planet Retail Holdings to set up 500 stores by 2010

(TNN 29/03/2006) New Delhi - Planet Retail Holdings, master franchisee for several premium lifestyle brands in India such as Debenhams, Marks&Spencer, Guess, Next, Women’s Secret and The Body Shop, plans to set up around 500 stores by 2010, that is expected to generate sales turnover of around Rs 1,000 crore.

This includes opening 10 Debenhams departmental stores, 40 Marks&Spencer and Body Shop outlets, around 20 exclusive stores of Next and Women’s Secret, apart from around 100 Planet Sports stores, across all major metros in the country. This is estimated to require investments to the tune of another Rs 200 crore, majority of which will be met through internal accruals.

Planet Retail, a venture in which the Pantaloon group has 49% stake with the majority held by an NRI investor, currently has around 55 stores which generate around Rs 100 crore in sales. Plans are to have at least 250 stores in place by 2008 which would generate revenues to the tune of Rs 500 crore with an investment of around Rs 120 crore.

According to Arun Bhardwaj, managing director, Planet Retail Holding, the first two Debenhams departmental stores, a leading brand from UK, will come up in Gurgaon and Delhi in 2006.

This will be followed up with presence in Mumbai, Bangalore, Kolkata, Chennai, Ludhiana and Hyderabad. Debenhams has recently signed up as anchor store in MBD Neopolis, a premium mall in Ludhiana that will house a multiplex and five-star hotel, set to open in ’08.

“Punjab has a strong association with UK and we want to built on that,” Mr Bharadwaj added. Each Debenhams departmental store would require an investment to the tune of around $5million and should be in a position to pay for themselves over a three year time-frame.

Of the health and beauty segment brands under its portfolio, the first Body Shop store will open in Delhi in May this year followed by one in Mumbai. The company currently has 30 Planet Sports stores, nine Marks&Spencers outlets and 11 Guess stores under its portfolio.

News: Tupperware India plans to enter beauty care

(BL 28/03/2006) New Delhi - Direct marketing company Tupperware India Private Ltd has finalised plans to set foot, in a big way, into the beauty and personal care and home care product segments. The company will also enter the clothing and nutritional product segments simultaneously.

In August 2005, the parent company, Tupperware Corporation, had entered into an agreement with Sara Lee for buying its direct marketing business for $557 million in cash. Sara Lee operated in the beauty and personal care business. This acquisition has given the company the advantage of Sara Lee's existing market with established products.

Earlier this month, the Foreign Investment Promotion Board (FIPB) permitted Tupperware to expand its product range.

The company sells its storage and serving products for the kitchen and home through the Tupperware brand and beauty and personal care products through its Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgarde brands.

The company will fund its expansion from profits from its Indian operations alone and it does not plan to bring in fresh investments from its parent company for this purpose, sources said.

Till now, the company had restricted its activities to food containers, toys, cookware and kitchen aids. With the introduction of its new products, the company would pose severe competition to other direct marketing companies such as Amway, Avon, Herbalife, Hindustan Lever, Modicare, Oriflame, Quantum and Sunrider.

According to the company's plans, it would enter into joint venture agreements with third party manufacturers for beauty and personal care products, home care items, clothing and nutritional food supplements as it had done in the case of its existing products such as plastic containers, cooking and kitchenware.

Tupperware India will operate with small-scale manufacturers for sourcing SSI reserved items as per FIPB specifications and will sell its products through the commonly practiced network marketing system.

Tupperware India is a wholly owned subsidiary of Tupperware Asia Pacific and started operations in 1996.

News: RBI eases overseas investment norms

(BL 28/03/2006) Mumbai - Indian corporates will now find it much more easier to provide guarantee for their overseas investment or to disinvest from their foreign venture. The Reserve Bank of India today issued a notification liberalising the procedure for overseas investment.

As per the new norms, corporates can offer any form of guarantee for their overseas investment under the automatic route, provided all financial commitments are within 200 per cent of their net worth and the guarantee amount is specified upfront.

Accordingly, companies can offer corporate, personal, primary or collateral guarantees. Guarantees by wholly-owned subsidiaries (WOS), sister concerns, joint ventures (JVs) or associates of a company will also be permitted. At present, only the promoter company is permitted to offer guarantees on behalf of its wholly-owned subsidiaries or joint ventures under the automatic route. Personal, collateral and third party guarantees require prior approval of the RBI on a case-by-case basis.

Guarantees issued by banks in India in favour of subsidiaries or joint ventures abroad will be outside this ceiling and subject to prudential norms issued by the RBI.

The RBI has also permitted Indian companies to disinvest without its approval where the JV or WOS are listed on the overseas stock exchange, the Indian promoter company is listed in India and has a net worth of not less than Rs 100 crore, the Indian promoter is an unlisted company and the investment in overseas venture does not exceed $10 million.

In order to allow recognised exporters with a proven track record and a consistently high export performance to enjoy the benefits of globalisation and liberalisation, the RBI has allowed proprietary and unregistered partnership firms to set up a JV or WOS outside India. Until now, only registered firms were allowed to invest in or set up JVs abroad.

News: Deutsche Bank to move jobs to India

(PTI 28/03/2006) London - Deutsche Bank, one of the leading international financial service providers, plans to move almost half of its back-office jobs to India by the end of next year, according to a media report.

The bank's plan to move the jobs in its sales and trading operations is part of its reorganisation efforts that has already helped boost revenues by about 1.3 billion pounds, the Financial Times reported.

Deutsche Bank intends to triple its global markets staff offshore to nearly 2,000. The bank is also looking to increase offshore research staff from 350 to 500, more than half the present global total of 900, it said.

The move comes as other big investment banks are also rushing to take advantage of the low cost of highly educated staff in India.

JPMorgan Chase hopes to hire 4,500 graduates in India in the next two years with the aim of transferring 30 per cent of back-office jobs at its investment bank offshore by the end of next year.

These moves highlight the shift in the use of offshore facilities from traditional areas such as information technology support and call centers to more high-value tasks.

About 15 per cent of operational staff in Deutsche's markets business are offshore and the bank plans to lift this to 40 to 50 per cent by the end of next year.

News: Cairn to invest $760 m in India

(ACERC 28/03/2006) Mumbai - Britain's Cairn Energy will invest $760 million in two years for oil exploration and production activities in India. The company has also allotted $560 million for its Rajasthan operations.

The risk capital of $200 million will also be invested in the various oil and gas assets across the country.

Couple of weeks ago, Cairn had announced that it was considering a part float for funding its exploration and production activities in India. This public issue is expected to hit the capital market by 2008, before its main Mangala field in Rajasthan begins production.

Sources said the amount to be raised would be determined by the then prevailing market conditions.

News: Genius to open 40 Indian retail outlets

(BL 28/03/2006) New Delhi - Consumer electronics and IT products major Genius announced on Tuesday that it would open 40 retail outlets across the country by this year-end and said it targeted a revenue of $3.5 million in 2006.

"We will have 20 outlets in cities such as Delhi, Mumbai, Chennai, Kolkata and Bangalore by June 2006 and the remaining 20 showrooms would be opened in Tier-II cities such as Ahmedabad, Chandigarh, Cochin, Hyderabad, Jaipur and Pune," Sales Specialist As ian Sales Division of Genius Boris Chang told reporters here today.

The Taiwan-based company, which has four manufacturing units in China, also introduced waterproof, anti-bacteria keyboard.

''Through our innovative products both in entry and middle level segment, we aim to capture 15 per cent market share by this year end, which could be around 3.5 million dollars,'' Country Manager Sales Division Genius Sandeep Ramani said.

The company aims at about Rs 15 crore sales by this year-end through the outlets, he said, adding: "We are not going for exclusive outlets. We are in talks with retail stores in the country and will display our products through their outlets."

On adding headcount, he said: "We will invest in headcount, who will work in sync with the distributors to increase the brand awareness and generate leads."

News: Universal Empire plans Rs 1,750 cr investments

(UNI 28/03/2006) Kochi - Kerala-based Universal Empire Group has said it plans investments worth Rs 1,750 crore in various infrastructure projects, including an airline in the North-East and a mega tourism project in Kerala, in the next five years.

Addressing a press conference here last night, Universal CMD K Balachandran Nair and International Affairs Director, P V Vivekanand, said the group was at present running medical and dental colleges, a 700-bed hospital in Nepal, the Tripura Medical College in Agartala and the Thamath Institute of Management and Technology at Alappuzha, Kerala.

It was now planning to make a major foray into the infrastructure sector with an airline service, a knowledge hub and global university, a mega tourism project, a hydro-electric project, medical colleges and healthcare facilities.

The Group's 'Surya Air' would be the first dedicated airline service for the North-East. The Rs 150 crore project was expected to take off by October this year.

To be started in collaboration with Buddha Air of Nepal, 'Surya Air' will, in the first phase, operate five 19-seater fixed wing pressurised Beechcraft aircraft, manufactured by Raytheon of US, to connect major cities and towns in the North-East and eastern India.

In the subsequent phases, services would be extended to the western and southern parts of the country, he said.

On its home turf, Kerala, the Kochi-based Group planned to put up a mega tourism project at a cost of Rs 300 crore in Alappuzha district.

It will include an eco-resort, a convention centre, a golf course, an art, culture and heritage zone and other tourist attractions such as a 'dolphanium' and an 'ice city', Vivekanand said.

For the knowledge hub and global university, meant primarily to cater to non-resident Indians and 'people of Indian origin,' the group was holding talks with the Goa Government.

A 700-acre site, close to capital Panaji and NH 17, had been identified. The National Capital Region (NCR) Delhi was also under consideration for the project entailing an investment of Rs 1,000 crore.

It was intended as a knowledge cluster in which various universities, R&D set-ups of companies, townships housing students, faculty and companies would be present.

The group was also planning to invest Rs 300 crore to set up medical colleges and healthcare facilities in states lacking these services on a public-private partnership model.

It had also carried out initial discussions with the Arunachal Pradesh Government to set up a hydro-electric project.

To a question, Nair said the group with an asset base of Rs 150 crore will mobilise money from overseas for the investments.

News: Debenhams 'anchor' store at MBD Neopolis

(TNN 28/03/2006) New Delhi - Debenhams, UK's popular departmental store, will be the 'anchor' store at 'MBD Neopolis', the MBD Group's mall project in Ludhiana.

"The UK group, Debenhams will be launched with an average store size of 25,000 square feet with MBD Neopolis in Ludhiana and will have major international brands including luxury, premium and speciality brands," said, MBD Group managing director and chairman Ashok Kumar Malhotra.

Keeping in with their commitment to bring some of the best national and international high-end retail brands in Ludhiana, he said, "by this tie-up, we will seek make MBD Neopolis the most preferred destination amongst the elite and affluent of Punjab."

He said the other retail brands signed up by the group include home solutions by Pantaloons, Marks and Spencer, Guess, Next, Women's secret, Archies and many others. The group is also planning to bring MBD Neopolis to Jalandhar, Patiala and Amritsar.

Planet Retail Holdings Ltd managing director Arun Bhardwaj said, "MBD Neopolis scores very high on the parameters which an international department store such as Debenhams looks for. We will together provide the consumers of Punjab some of the best labels of the UK."

News: State seeks to fly over delays in Mumbai mega projects

(DNA 28/03/2006) Mumbai - The state government’s tardiness in implementing mega transport projects in the city is creating a need to look at flyovers as a quick-fix solution, the controversial Peddar Road project being a prime example.

With the mega projects running up to 15 years behind schedule — thanks to poor planning and execution — the state has had to resort to the flyover as an immediate solution to the massive traffic congestion in the area.

Consider this: the Mumbai Metro, planned way back in the late 1970s, was only initiated in 2002. Even now, issues like gauge size (standard or broad) and rehabilitation are stalling the process.

Similarly, the passenger water transit system between Nariman Point and Borivli remains a non-starter since July 2003, when financial bids were submitted for a hovercraft service. The Maharashtra State Road Development Corporation took an entire year to issue a letter of intent to Mumbai-based Satyagiri Shipping, which won the contract. Parts of the project still await environmental clearance.

“Ideally, the project should have started by now,” said Satyagiri director Dinesh Joshi. “Also, we need single window clearance for the multiple clearances needed.”

The Worli-Bandra sea link has already missed its 2004 deadline, pushing its cost up from Rs420 crore to Rs1070 crore. The Western Island Freeway is also delayed, with doubts as to how the state will raise the Rs3,600 crore required. Technical consultants for the Mumbai Trans Harbour Link, connecting the city to Navi Mumbai, have only just been appointed.

The project, estimated to cost Rs4000 crore, was conceived in the 1970s.

“There is no will or vision in the leadership to implement these projects,” says BJP leader Nitin Gadkari. “Frankly, no one really cares for the ordinary commuter.”

But Gadkari favours persuading singer Lata Mangeshkar not to protest against the Peddar Road flyover.

“I am sure if its advantages of low pollution and ease in traffic movement are explained to her, she would agree,” he says.

State Public Works Minister Anil Deshmukh may call on Mangeshkar on Tuesday to hear her arguments against the flyover and present the government’s view.

News: Mumbai hovercraft project stuck in babudom

(DNA 28/03/2006) Mumbai - The delay in the Passenger Water Transport project for western suburbs is a classic example of the way the Maharashtra government is hampering mega transportation projects.

The Rs1,400-crore, eco-friendly project, part of the Mumbai redevelopment plan, has been locked in bureaucratic wrangles and delays since the financial bids were opened in December 2003. The delay and lack of initiative means commuters will have to wait for another three years to whiz across the sea from Borivali to Nariman Point in just 50 minutes in air-conditioned hovercrafts.

Ministry of Environment and Forests (MoEF) has allowed passenger water terminals at Bandra, Juhu, Versova and Borivali, while those at Nariman Point and Marve are awaiting nod for want of more geo-technical investigation and sub-soil exploration.

A consortium, led by Mumbai-based Satyagiri Shipping Co Ltd, which won the contract, is now in the final stages of getting the project financing report prepared by a leading international consultant. Indian financial and infrastructure institutions are evaluating the project.

The consortium, comprising KJMC Financial Services, Gammon India, Videocon International, Hiranandani Group, along with ABS Hovercraft Ltd (UK) and Hoverline AB (Sweden), is planning to bring high-speed hovercraft and catamarans with capacities to carry 60 to 300 people. It is planned to operate hovercrafts every 15 minutes during peak hours.

The project will be implemented on a ‘Built-Operate-Transfer’ (BoT) basis, with a 30-year lease. Initial estimates show that the services would carry one lakh people daily for a Rs130 one-way fare (from Borivali to Nariman Point) and would be operational 300 days a year.

“We are expecting the ‘letter of award’ from the state government by April 2006. We will be finalising criteria for shareholding and technical evaluation shortly,” said Dinesh Joshi, director, Satyagiri.

However, the feasibility of this project lies on the concession agreement between Satyagiri and the Maharashtra government. The former wants the project to made part of the Inland Water Transport (IWT) policy to get subsidies on fuel and reduction in import duties. “We need subsidies so that the fares can be made affordable The passenger terminals must have cafeterias and other entertainment avenues for revenues,” explained Joshi.

It looks like the city’s wait for a sea ride to work will continue for some more time.

News: Goldman MD sets up consumer-focused Indian private equity fund

(FA 27/03/2006) Mumbai - Ex-Goldman Sachs MD, Sameer Sain, moves to India to set up a financial services company with a consumer centric edge. Ex-Goldman Sachs MD, Sameer Sain, was formerly co-head of wealth management for Europe, Middle East and Africa at the US firm, as well as head of the special investments group in London. He recently moved to Mumbai as CEO of Future Capital Holdings (FCH), the financial services arm of Pantaloon Retail.

What attracted you to the Pantaloon Retail group?
After 11 years with Goldman Sachs at various international offices, I had a strong personal desire to return to India. I also wanted to do something entrepreneurial and build a business in the financial services area. I’ve known Kishore Biyani, (promoter of India’s largest retailing chain Pantaloon Retail) for 20 years. We discussed his vision for the country and travelled across India together. The country is changing dramatically. Kishore wanted to build a finance-led business leveraging his success in retail and his pulse on the Indian consumer. I share this vision and passion.

What's the ownership structure of FCH?
FCH is majority-owned by the Pantaloon Group. Other partners include myself and Alok Oberoi, an ex-Goldman Sachs partner, who's currently running ACP Partners in London. There's also a couple of other investors. I can't share financial data with you at this juncture, but we intend to strongly capitalize FCH and scale its various businesses.

What type of investors are you in dialogue with?
Investors who can enhance our value proposition, as well as provide capital. This might comprise an international consumer company, or a retail-oriented family who can provide insight and possibly international distribution capabilities for our portfolio of Indian companies.

What kinds of businesses will FCH invest in?
FCH is a holding company and so far we have three business lines up and running.

In the real estate sector we have two funds. The first is called Kshitij and we raised $80 million for it in 2005. It's now fully deployed. We also have a second fund called Horizon ($300 million), which we're planning to close this month.

In the private equity division we have Indivision India Partners Fund. We're currently raising money for this fund and targetting $350 million.

Then there's the asset management division. We're in discussion with a management team and plan to get this division going shortly.

In addition to these three areas, we're also finalizing our strategy before launching a significant credit business (microfinance, mortgage, auto, credit cards) within our retail formats.

What's FCH’s role?
While each business will run independently, FCH will provide shared resources - developing strategy, establishing JVs/strategic relationships, fund raising, investor relations, business synergy, business operations and financial structuring. Our intention is that each individual business should focus on the deployment of its capital, leaving FCH too look after everything else.

What's the strategy for real estate?
We're developing a retail-led project with some mixed use (commercial, residential and hotel). When legislation permits, we want to launch a REIT around the $500 million mark in partnership with a global investor. We've also mapped 50 Indian towns with a population of more than one million people living within an 8km radius. We want to create malls in the centre of town that are leisure-cum-shopping destinations. A store from the Pantaloon stable could be an anchor tenant and that should ensure a strong footfall for other tenantts.

The Asian private equity space is very crowded. How can you differentiate yourselves?
Kishore Biyani made a success of Pantaloon Retail because he understood retail markets and the consumer psyche. We'll use this platform to differentiate Indivision. The strategy is consumer-centric and will leverage the strong distribution capabilities of Pantaloon, as well as the mentoring ability of our team. We've also hired world-class private equity investing talent and developed strong research capabilities.

Will your private equity investments have a sectoral bias?
We expect a large proportion of investments to be in the fast moving consumer goods (FMCG) sector - media, retail, logistics, entertainment and financial services.

What's the management structure for Indivision?
Within Indivision, Sanjiv Gupta and I are joint MDs. Prior to joining Indivision, Sanjiv was CEO of Coca Cola in India and South Asia. He's also worked with Unilever’s Indian subsidiary, Hindustan Lever and in the media space. Sanjiv has an exceptional network and deep understanding of companies in the consumer space, which we aim to invest in.

What's your strategy for investee companies in the FMCG and consumer space?
Internally we call the strategy ‘mentor capital’, as opposed to traditional venture capital. Rather than being passive investors we target companies where we can add value with hands-on mentoring.

We'll provide inputs on marketing (including branding, distribution, supply chain, logistics) organisation development as well as capital structure. Combined with our nationwide reach, this will place our companies on a strong growth trajectory. Indivision has already made its first investment in a branded food-product company, Capital Foods. We've doubled its revenues in just six months.

Over the next two years, we believe we can grown revenues another two to three times by leveraging our relationships via joint ventures, intelligent investing in capacity and developing complementary product lines. For a small food company to get the focused attention of someone with Sanjiv’s caliber and the full distribution strength of the Pantaloon Group is quite rare and therefore very impactful.

What's the strategy for private equity investments in the financial services space?
Given that less than 50% of Indians have a bank account, we see great synergies between retail finance and shopping at a Pantaloon “Big Bazaar” store. In addition, our access to almost 25% of all modern retail space in India provides with a point of sale for financial producs. This is an area where I will focus given my own background.

To your mind, what is the critical success factor for FCH?
Two simple things: vision and talent. Kishore had the vision to do something that changed the way people think about consumption in India. FCH has the same vision with a financial edge. The other key to success will come from our ability to attract and retain talent.

Our strategy is quite simple. We want to empower talent we hire to act like owners rather than employees. We want to give them the width and space to operate and the right financial incentives. We are rolling out a unique programme, LTWC (Long Term Wealth Creation) – a variation of certain Western compensation models, tailored for India.

News: Wal-Mart takes its China lessons to India

(RTR 27/03/2006) Shenzhen - When Wal-Mart Stores Inc. opened its first store in Shenzhen a decade ago, the local newspaper headline proclaimed, "The Wolf is Coming."

The world's biggest retailer has not exactly devoured China's retail sector since then, opening just 56 stores, but it has learned a few lessons that may prove useful for its next major project -- India.

"China and India really represent the future of Wal-Mart," Joe Hatfield, chief executive officer for Wal-Mart Asia, told Reuters in Shenzhen, the retailer's China headquarters.

Foreign retailers are not permitted to directly invest in India's retail sector, but they have been lobbying hard for a change to those rules.

Analysts say that will likely happen within a year or two.

Wal-Mart's opponents in India fear the "wolf" would demolish competitors and drive up unemployment in a country already struggling to feed and house its one billion citizens.

But Wal-Mart believes India, like China before it, will embrace Western retailers. The key is to show an understanding of local tastes, whether that means stocking popular spices, the right baked goods, or just the top-selling brand of soap.

Easier said than done.

In China, Wal-Mart tried to sell paint, something that works well in the United States. But customers weren't used to buying paint and food from the same place, and Wal-Mart eventually stopped carrying it.

Analysts and economists in India say the retail sector and its supply chain are in dire need of modernisation. India's farm goods typically pass through six or seven intermediaries before reaching consumers, and some 40 percent of produce spoils along the way.

'STEAL SHAMELESSLY'

Wall Street is eager for signs Wal-Mart is making progress in China and India at a time when growth at home is sluggish.

The United States accounts for about 80 percent of Wal-Mart's annual sales, which topped $312 billion in the latest fiscal year, but rival Target Corp. has posted faster sales growth in recent quarters.

Investors have noticed. Target's shares are up more than 6 percent over the past year, and trade at 17.2 times analysts' profit forecasts for the current year, according to Reuters Estimates. Wal-Mart's stock has fallen about 5 percent in that time, and is valued at 16.5 times earnings.

Wal-Mart has already taken steps to prepare for India. The retailer has applied to open a liaison office in Bangalore to study the market, and recently hired a head of Asian strategy who will oversee expansion in India, among other things.

Wal-Mart Vice Chairman Mike Duke met Indian officials earlier in March, marking the retailer's second round of high-level talks in less than a year.

Hatfield himself may be one of the best resources. He opened Wal-Mart's China operations in 1994, so he is well aware of the potential pitfalls in a developing economy.

His best advice? "Steal shamelessly," Hatfield said, quoting from Wal-Mart founder Sam Walton, who routinely visited competitors' stores to get new ideas.

He spent his first months in China walking around and talking to shopkeepers about which items sold well.

In China, Wal-Mart got off to a slow start, and trails rivals such as France's Carrefour, which did a better job of adapting stores to meet local tastes.

Hatfield says it is unlikely he will be in charge of Wal-Mart's India business, because a major China expansion will keep him busy. But he has some ideas about how a Wal-Mart store in India should look.

For starters, it should have an expansive spice section, where employees can custom grind orders while shoppers wait. It would also boast a large bakery section.

In India, as in China, few households have ovens, so baked goods must be purchased.

Stores would probably be smaller than they are in China -- no more than 140,000 square feet, instead of the 200,000 square-foot supercenters in China and the United States.

WHERE TO GO?

Figuring out what to put on the shelves is one thing -- the bigger task will be figuring out where to put the stores.

Analysts in India say it will be tough for Wal-Mart to get into the mega-cities such as New Delhi or Mumbai, where real estate is pricey and large parcels of land are hard to come by.

Severe traffic congestion will also be a problem. How many shoppers will be willing to brave hours in a car just to visit a Wal-Mart store, particularly when a multitude of small, corner shops offer convenience and service?

Millions of those small stores currently account for some 97 percent of India's retail market. Most of them accept telephone orders and will deliver to homes.

Raman Mangalorkar, a principal with consulting firm A.T. Kearney in Mumbai, said small, corner shops will survive because of the convenience factor, but some will need to change their merchandise offerings to compete.

"They'll have to evolve, just like they've done in China," he said. "They will cater to needs that are not being served by the Wal-Marts and Carrefours."

Mangalorkar, whose firm ranks India number one on its annual list of the top markets for international retail expansion, said he would advise foreign retailers to focus on the second-tier cities such as Lucknow.

Hatfield said Wal-Mart was interested in cities both large and small. He said his strategy would be to make a big splash early on, opening 12 to 18 stores in the first 18 months, to show consumers that Wal-Mart was committed to India.

News: India's corporate tax collections rise 19 pct

(RTR 27/03/2006) New Delhi - India's corporate tax receipts between April and March 22, 2005/06 amounted to 897 billion rupees ($20.10 billion), up 19 percent from the same period a year ago, a senior finance ministry official said on Monday.

News: India, Korea begin talks on economic pact

(BL 27/03/2006) New Delhi - India and Korea have commenced negotiations towards a Comprehensive Economic Partnership Agreement (CEPA), with the India-Korea Joint Task Force (JTF) holding its first meeting over the last two days in the Capital.

An official release said that the JTF discussed the modalities of the negotiations and that seven working groups have been constituted to carry out the negotiations in specific areas. These areas are — trade in goods; trade in services; investments; other rules and economic cooperation; general provision and dispute settlement mechanism; rules of origin and Customs administration and procedures.

This meeting was co-chaired by the Commerce Secretary, S.N. Menon, and the Korean Deputy Minister for Trade, Kim Joong Keun. The next meeting of the JTF would be held in May in Seoul.

News: India, GCC to accelerate finalisation of FTA

(PTI 27/03/2006) Dubai - Entering a new era of partnership, India and the six Gulf Cooperation Council (GCC) countries have decided to accelerate finalisation of the free trade area agreement and enforce the framework agreement for economic cooperation, which includes joint ventures in the sectors of energy, communications and petrochemicals.

Both sides have agreed to enforce the GCC-India Framework Agreement for Economic Co-operation, and expedite the finalisation of the free trade area agreement, which includes other economical sectors, Mohsin bin Khamis al Balushi, advisor at the Ministry of Commerce and Industry, Oman, said.

The FTA is expected to be ready by 2007, he said. The bilateral relationship between the GCC and India has entered into a new era of partnership this year, a declaration issued after the conclusion of the two-day India-GCC Business Summit in Omani capital, Muscat, said.

Minister of Commerce and Industry Kamal Nath and commerce ministers from the six GCC countries, Saudi Arabia, the UAE, Oman, Qatar, Bahrain and Kuwait attended the summit.

News: Liberty Shoes plans expansion

(BL 27/03/2006) Karnal - Liberty Shoes Ltd will set up three new manufacturing units to double its production capacity to one lakh pairs of footwear per day in next three years and would invest Rs 160 crore for the expansion plans.

"We are coming up with three plants in 2006-07. We are increasing our capacity from 50,000 pairs per day to 75,000 pairs within the year and to one lakh pairs in three years," Liberty Shoes CEO Adesh Gupta told reporters here.

While one unit would be at Roorkee in Uttaranchal, two units would be located at Ponta Sahib in Himachal Pradesh.

The company would invest Rs 50 crore for the Roorkee plant for manufacturing leather footwear and Rs 30 crore for the two units at Ponta Sahib for non-leather shoes, he added.

Besides, the company would invest another Rs 80 crore by 2008 for further expansion, he said adding the funds would be sourced through internal accruals and bank loans in 1:1 ratio.

When asked about the export strategy, he said the company was looking to increase its presence in the US through its tie up with Wal-Mart, the world's largest retailer, and termed it as one of the reason for ramping up the capacity.

"We had tied up with Wal-Mart a year ago and our footwears are on display on trial basis in 35 of their stores," Gupta said, adding that the company would be supplying more to the retail giant from next financial year.

News: Sharp India to trade in electronics

(RTR 27/03/2006) Mumbai - Indian consumer electronics goods maker, Sharp India Ltd said on Monday that it has received the Foreign Investment Promotion Board's approval to trade in electronic goods.

Shares in Sharp India were 1.1 per cent lower at Rs 17.55 in a firm Mumbai market.

News: Shell disowns oil drums as Trinidad's panmen gather for soccer World Cup

(Bloomberg 27/03/2006) Paris - Royal Dutch Shell Plc has one word to offer on the subject of its musical oil barrels. "What?" says Shell spokeswoman Alexandra Wright in London. The World Cup is about to change Shell's tune.

"Oil drum music is infectious," says Sepp Blatter, the president of FIFA, soccer's global governing body and organizer of the 2006 World Cup in Germany in June.

Blatter envisions the rum poured and a conga line ensuing around the 10,000 steel-drum "panmen" expected to follow the Trinidad and Tobago "Soca Warriors" soccer team.

"Over a billion people will see this on television," Blatter says. "Fantastic for Trinidad and the World Cup. The audience will go wild."

And therein lies the corporate dilemma of Gerard Mitchell, country head of Shell Trinidad Ltd. More than a few thousand of those World Cup drummers will probably be beating Shell oil barrels.

"It's officially against corporate policy for us to hand out oil barrels," the 37-year-old Mitchell frets. "We really don't know what to do about all this."

For many of the world's estimated 35,000 panmen, the sweetest-sounding music comes from the 55-gallon, 20-gauge red steel oil barrels made in Shell's lubricant mixing plant on Barracones Bay in Trinidad.

A few miles up the road in Port of Spain, beneath the shade of the big breadfruit tree at 147 Tragarete Road, a Shell executive in 1946 made history's first steel drum from an empty barrel of tractor lubricant bearing the company's distinctive clamshell insignia.

Stradivari Reputation

According to American jazz musician Andy Narrell, Shell oil-barrel pans made between 1946 and 1967 are as renowned and desirable as the Cremonese violins of Antonio Stradivari, Nicolo Amati and Giuseppe Guarneri.

Even the barrels made today are in high demand among pan players. "We kind of have a reputation," Mitchell says.

Adds William Rosales, Shell Trinidad's 36-year-old engineer charged with overseeing the manufacture of more than 42,000 Shell oil barrels annually: "Let me state for the record that our used drums are disposed of properly and that Shell health and safety regulations prevent the use of empty drums for anything but Shell oil products."

That wasn't always the case. Sixty years ago, Shell bankrolled the invention of the modern pan drum, the only new acoustic instrument to hit the music scene since Adolph Sax came up with the saxophone in 1841.

'Mr. Alexis'

Shell's archivists in London and The Hague have no record of the pan or its inventor, Ellie Mannette. Shell executives in Trinidad suspect the company's documentation for both was lost when the government nationalized the oil industry in 1974, and Shell's presence was reduced from 4,000 employees to its current 55-member operation.

Old-timers on the island say Shell got into the music business in 1951, when a Shell Caribbean managing director they remember as "Mr. Alexis" put Mannette on the payroll with an annual salary of $2,000 to stop him and his pals -- Birdie, Puddin' and Cobo Jack -- from stealing the company's empty and toxic oil drums.

Mannette remained with Shell until 1967, as a sales manager, steel-drum maker and leader of pan band the Shell Invaders. "They called me Cairo," says Mannette, now 80 and the artist-in-residence and a professor of music at West Virginia University in Morgantown.

"We were teenage gang members, all viewed as social outcasts until Shell took an interest in us and our music. They gave us barrels and money and made the music happen."

The Barracuda

Mannette named the world's first 55-gallon Shell drum "the barracuda." It was last seen in August 1946, stuck in the high branches of the breadfruit tree.

"The big kids beat me up and stole barracuda because it made a better sound than their drums," Mannette says. "They threw it up in that tree and I wasn't going up there for it."

By the early 1960s, Jeff Chandler, Shell Trinidad's British managing director, and fellow Englishman Michael Smallbone were spending their off hours as managers for the Shell Invaders. The group even played at New York's Madison Square Garden.

"They carried the beer and made sure it was cold," recalls 70-year-old George Martin, Shell's Caribbean public relations director from 1966 to 1996. "Chandler and Smallbone loved hanging out at the Shell pan yard. They arranged scholarships and helped all the musicians study abroad."

Bonfire Treatment

One of the early Shell Invaders, Malcolm Weekes, received an annual $2,000 scholarship to attend Howard University in Washington, where he played the double alto (two drums with 16 notes on each pan) for the school's Trinidad Steel Band and graduated with a degree in chemical engineering.

Now retired after a career as a chemist at Bechtel Group Inc., Weekes remembers when he and Mannette forged pans out of toxic barrels. "We built bonfires to burn out all the crap stuck inside the drums," Weekes, 65, says.

"It was dangerous work. We all inhaled the fumes. But what the barrel had contained also helped define the sound of the drum."

Mannette now builds about 100 pans annually from the unsoiled barrels that roll off the line at North Coast Container Corp. in Cleveland.

"Weird thing is, nobody's really sure why a 55-gallon oil drum can be crafted into a musical instrument or why my early Shells have a distinctive sound," Mannette says. "I once made a drum out of a Shell barrel that had stored perfume. Now that was really exceptional."

It's the Solvent

Back in the lab at Shell Trinidad, chemist Saira Joseph says the sound is in the solvent. "A lighter oil would lend itself to higher notes and a heavier oil to lower notes," Joseph explains.

"The gauge of the steel is the most critical factor. Shell stayed with the heavier 20-gauge, while the other oil companies mostly went to 15- and 18-gauge steel."

Panman Chanler Bailey, who spent six years at Mannette's side studying steel-drum construction, says the oil companies no longer know how to make an oil barrel. "There's a lot of junk Japanese-made barrels out there," Bailey says. "They don't hold the sound and the drumheads crack on impact."

Modern pan makers, called blenders or tuners, rigorously follow Mannette's system in constructing any of the nine drums that make up the pan family.

The barrels are first sliced according to register, from soprano to bass. Then, using a selection of rubber and metal mallets, blenders stretch the thickness of the metal top to create a concave drumhead to produce anywhere from three to 30 notes.

Before Mannette's first nine-note barracuda, steel music makers could play only three notes on hubcaps and cookie-tin tops configured with convex drumheads. They went clunk.

The Fine-Tuning

In Trinidad, a blended barrel costs about $600. And should the oil drums tumble from the Shell factory -- which they officially don't -- add perhaps a few hundred dollars to the sticker price.

Majudell Raham is a 37-year-old master oil-barrel maker at the Shell plant. With a sheet of rolled Columbian steel in his gloved hands, Raham heaves the metal into the "drum rounder," the first of the assembler's four-step process.

From there, the tubular sheet goes aboard the "beader flanger" to create the two rims that give an oil drum its industrial musculature and musical resonance.

For panmen, what Raham does next is akin to the difference between a fiddle and a Stradivari, and his choice is clear. Raham can let a computer regulate the flow of the chalky substance that locks in the barrel lids, or he can tweak the stream to his taste.

The Logo Goes

"I don't play any musical instruments," Raham says, fine- tuning the surge of sealant. "The barrel seam must fold together. For the sound, I think the solid seam is everything."

To ensure the finished product meets Shell's environmental standards, Raham checks for leaks and ruptures in the metal.

Back along the banks of the Monongalia River, in the workshop of Mannette Steel Drums Ltd., a set of the maestro's chrome-plated pans can fetch more than $10,000.

The result can be heard accompanying the tunes of Harry Belafonte, Alison Krauss, Jimmy Buffett, and the National Symphony Orchestra at the John F. Kennedy Center for the Performing Arts in Washington.

"It's a lot different from the days when I'd go out every morning on my green bicycle to scout empty oil drums," Mannette says, pushing a finger through his crop of curly gray hair.

"My gang, the Oval Boys, would go back at night to steal them. We took everything, including garbage cans, but those Shell barrels were gold."

Vintage Mannette

During his early years in Trinidad, Mannette estimates he tuned 512 Shell oil pans.

"The sound is completely different," says Narrell, who counts a set of early 1960 Mannette pans among his collection. "You'll occasionally spot a vintage Mannette, but the drums are so old that it's hard to find one with the original Shell logo."

Mannette says part of his deal with Mr. Alexis was a promise that the Shell Invaders would always play with the Shell logo on their drums.

"Can't do that anymore," Mitchell explains. "Corporate policy prohibits us from putting the logo on our barrels. We don't know where it might show up."

The Shell Invaders no longer exist. Once first among the 150 bands and 3,000 drummers who practice in the pan yards along Tragarete Road in Port of Spain, Shell disbanded the group in 1974.

They reappeared a few years ago as the BWIA Invaders, named for their new underwriter, British West Indian Airways Ltd.

Preferring the Clam

Along the musical thoroughfare, the hippest band these days is the Excellent Stores Silver Stars, named after a supermarket chain.

On a recent evening, a few BP Renegades were spotted playing alongside Tony's Ice Cold Coconut Truck in the center of town. They wouldn't say where their barrels came from.

Weekes, the retired Shell Invader, says he knows. "Cairo and I would blend the competition's pans on Shell barrels and then they'd paint BP, Texaco stars and Mobil flying horses over the Shell clam," Weekes says.

"The panmen still prefer the Shell barrel," adds 71-year- old Miky Galera, Shell Trinidad's aviation fuel manager during the 1960s.

Suppressing a grin, Rosales, Shell's barrel superintendent, says, "I know we make the best musical oil drums in the world."

News: BSNL wants to defer IPO by a year

(PTI 26/03/2006) New Delhi - State-run BSNL has sought minimum time of one year before any decision on offloading a small stake of the Government in the PSU could be considered.

The PSU's response comes in the wake of Ministry of Finance asking BSNL for its view on listing the company by selling some Government shares to the public. The PSU after consulting its advisor ICICI Securities said the IPO should be delayed by one year to ensure conformity of its accounts with the listing requirements.

The IPO route was one of the options that were to be considered for disinvestment. However the PSU has stated that if the Government wants, it can go ahead with disinvestment but only the government could take a decision in that matter.

For that, the company would have to come clean on the accounts and also a whole lot of disclosure norms have to be cleared before going in for a sale of shares.

BSNL also said in its response that it does not need to raise any fresh capital.

BSNL officials clarified that these were just BSNL's response to queries posed to them, and any final call on the mode of disinvestment have to be made by the Government.

Three months ago sources had said that the government had written to BSNL along with a few other companies seeking the right time and procedure to seek an IPO if required by BSNL.

Telecom secretary J S Sarma recently had said "there is no decision to disinvest in BSNL partially or otherwise.”
BSNL which so far have been valued by various estimates at about $25 billion and a 5-10 per cent stake sale could fetch the Government up to Rs 10,000-12,000 crore.

News: Reliance retail gets 'A' team in place

(DNA 26/03/2006) Mumbai - The outlines of Mukesh Ambani’s proposed retail empire are now visible. The generals are in place, and the fact that so many of them were recruited from the competition has left the latter bruised and bloodied even before the first shot has been fired.

Rival retailers now face the daunting task of matching Ambani’s bottomless war-chest, as he continues raiding them for managers at various levels, making them offers they just can’t refuse.

The company seems to have arrived at an operating structure where the retail division’s chief executives will head vertical functions, and report to Mukesh’s right-hand man Manoj Modi.

Raghu Pillai, an experienced hand, who kicked off retail ventures like Food World, Music World and Health & Glow for the RPG group over the last decade, will spearhead front-end operations at the Reliance stores.

Pillai was enticed away from Kishore Biyani’s Pantaloon Retail. Lending his expertise to the lifestyle division will be Bijou Kurien, the erstwhile marketing head of Titan watches.

Commodity procurement, setting up a supply chain and ensuring quality control are some of the critical functions in a retail outfit. For these, once again, Ambani has laid his hands on men with experience and dipped into the multinational talent pool.

D Saravanan was the big daddy of supply chain and quality control at burger king McDonald’s. With an agriculture degree, Saravanan is said to have been responsible for working on the right grade of potato for French fries at the double arches. He will head those same functions at Reliance retail. He will also be responsible for the linkages of backward integration.

Sanjeev Asthana, who was the business head for grain at Cargill India, will cater to grains and oilseeds in the venture.

While the consumer electronics vertical will be headed by Rajeev Karwal, ex-Onida, LG and Electrolux, the apparel and clothing vertical will be overseen by Sriram Srinivasan of Indus League.

The food and grocery beachhead will be headed by former Hindustan Lever (HLL) man Gunender Kapur. Kapur was earlier seconded to Modern Foods, HLL’s first public sector acquisition, and was later shifted to Unilever Nigeria.

Since Reliance wants to enter into every big and small retail format, including malls, Suresh Singaravelu, the former chief executive of Prestige Constructions and Forum, the south Indian mall venture of the Prestige group, will push the same here. He is responsible for the setting up and development of malls.

The company will also have a state-level CEO, who will be the owner of the geography and the store formats therein. These include hypermarkets, supermarkets, convenience stores and malls. The heads of the business verticals will drive profits at their respective product groups, whereas the geography owner will be accountable for individual store and geographical performance.

News: Indo-Pak trade talks begin tomorrow

(PTI 26/03/2006) Islamabad - Pakistan's stance on granting India the most favoured nation (MFN) status in the light of SAARC countries ratifying a regional free trade area is among issues expected to be taken up during bilateral talks on economic cooperation from Monday.

Indian Commerce Secretary S.M. Menon and his Pakistani counterpart Arif Ali Shah, who head the Joint Working Group (JWG) set up two years ago, would meet here on March 27 and 28 to hold the third round of talks on economic cooperation listed under the Composite Dialogue process.

Though officials of both sides maintain that the parleys would cover bilateral trade, the talks are taking place in the backdrop of SAARC Secretariat's announcement this week that South Asia Free Trade Area (SAFTA) has finally been ratified by all SAARC countries, which is expected to have a big impact on the Indo-Pak trade.

The issue of Pakistan granting India the MFN status as a reciprocal gesture in the light of ratification of SAFTA was also expected to figure in the talks.

India has already sought clarification from Pakistan over reports that Islamabad would continue to trade with India with the negative list of products despite SAFTA ratification.

The JWG met few times in the past, but made very little progress in the face of Pakistan's reluctance to publicly open up its markets for Indian products and investment linking it to "tangible progress" on political issues like Kashmir.

Pakistan has complained of high Indian tariff regime and demanded a level-playing field for its products in the Indian market.

Pakistan cabinet ratified SAFTA last month amid reports that Commerce Ministry headed by Humayun Akhtar Khan recommended strongly against it on the ground that it would end up opening Pakistan's markets to India in a big way under the regional multilateral arrangement.

News: Salvatore Ferragamo to open 10 stores in India

(PTI 26/03/2006) Mumbai - Italian luxury brand Salvatore Ferragamo plans to open ten stores in five years in India after opening its first store in New Delhi recently.

Speaking on the sidelines of launch of their store in New Delhi, Salvatore Ferragamo, vice president Fulvia Visconti Ferragamo, said, "We plan to open our second store at Delhi in a year and a total of ten stores would be opened in the next five years." Fulvia, however, refused to give details of the exact investments company plans to makes in India.

The new stores would come up at major metros, including Bangalore and more stores in Delhi and Mumbai, she said. Salvatore Ferragamo has opened the store in association with SSIPL Luxury Fashion Private Limited, their franchisee in India.

The collection at the stores includes shoes, silk and leather accessories, eyewear and ready-to-wear lines that are exclusively by Salvatore Ferragamo.

The Salvatore Ferragamo Group closed the financial year 2005 with sales worth 575 million euro.

News: India may soon be Gulf's top trading partner

(IANS 26/03/2006) Muscat - With India and the six Gulf Cooperation Council (GCC) countries expected to sign a Free Trade Agreement (FTA) soon, bilateral trade could surge to record levels enabling India emerge as the largest trading partner of the Gulf states.

Commerce and Industry Minister Kamal Nath said the two sides have agreed to expand the scope of the agreement to include services and investments, thus making it a Comprehensive Economic 000peration Agreement instead of just a FTA.

“We (India and GCC), at a meeting in Riyadh last week, decided to work to finalise the FTA by early 2007,” Kamal Nath said while speaking at the opening session of the two-day Second lndia-GCC Industrial Conference which opened in Muscat Saturday.

At present, the Gulf is the second largest destination for India’s exports after the US. “Indian businessmen and entrepreneurs have already put India on the global map,” he said.

“We can look forward to a proactive engagement between our trade and investment promotion institutions as well as the private sectors on both sides.”

The current value of bilateral trade, excluding oil, between GCC countries and India is around $17 bn and is expected to reach $25 bn by 2010.

In 2004-05, India’s export to the GCC was $10 bn and imports from these countries, minus oil, stood at $7 bn.
According to Kamal Nath, there is a convergence of interests between India and the GCC states in the present global environment.

His Omanese counterpart Maqbool Bin Ah Sultan said the current economic scene in the GCC states and India was conducive to strategic economic cooperation.

“India is a promising market for energy. The opportunities will continue to exist for exporting greater quantities of Gulf oil and gas to India,” he said.

Countries like India, Kamal Nath, said are seen emerging as champions of trade and economic liberalisation. For the Gulf, India is the most attractive natural partner, he said.

“The indication is that the US may lose out to India as the largest trading partner of the Gulf in future, if India explores the scope of expanding its ties with the GCC. India has all the rootstocks to enhance the bilateral trade with the Arab region,” a leading Indian entrepreneur from Hyderabad said.

Kamal Nath also said that India could emerge as the largest trading partner of the Gulf in two years. In the recent past, several Indian financial institutions have established operations in the region, which include State Bank of India, ICICI Bank and UTI Bank.

Over 500 delegates, besides the ministers of commerce and industry from the other five GCC countries and India are attending the conference.

Bahrain’s Commerce Minister Hassan Fakhro said the overall economic cooperation between the GCC and India was endorsed through a GCC-lndia Framework Agreement at the first conference, held in Mumbai in 2004.
“Our GCC region has a long history of trade with India and today, the GCC is the second largest export market for India and in turn India is the largest export market for the GCC,” he said.

“In the case of Bahrain, India represents around five percent of our non-oil exports, and in 2005 we imported over four percent of our total non-oil requirements from India.”

News: Easier norms for metro airports revamp likely

(BL 26/03/2006) New Delhi - For the proposed modernisation of Chennai and Kolkata airports, the Government is planning to drop the restricting clause, as was the case of Delhi and Mumbai, that a company could take up only one airport for development.

Consequently, it may allow interested parties, including those already participating in the development of Delhi, Mumbai, Bangalore and Hyderabad airports, to bid for Chennai and Kolkata airports too.

"We will soon invite bids for modernising the two airports. Whichever party is successful will be awarded the contract. While deciding on the joint venture partners for modernising Delhi and Mumbai airports, we had to put restriction on each airport being taken by a different private sector party as it could have led to a monopoly situation. However, in the remaining airports coming up in the six metro cities, one private sector party will be allowed to develop more than one airport if they are successful in winning the bid," a senior Government official said.

The Government has selected a consortium led by the GMR group for developing Delhi airport, while a consortium led by the GVK group is to modernise the airport in Mumbai. Similarly, a consortium led by Siemens has already started work on the new greenfield airport in Bangalore. The restructuring process for the Kolkata and Chennai airports will start soon after the assembly elections in the two states are completed, said officials. The Tamil Nadu Government recently agreed to provide several thousands of acres of land free of encumbrances for the airport project to start.

The Centre's intention to proceed with the modernisation of the airports was spelt out in the Economic Survey 2005-06 that states an in-principle decision has been taken to modernise Chennai airport through the joint venture route.

News: Anil Ambani quits as Rajya Sabha MP

(BL 26/03/2006) Mumbai - Anil Ambani, Chairman of the Reliance ADA Group of companies, has resigned as Member of Parliament from the Rajya Sabha on Saturday.

Ambani was elected to the Upper House from Uttar Pradesh in June 2004.

Prior to that, in October 2003, Ambani had joined the Uttar Pradesh Development Council, an advisory role which he still continues to perform. A press release issued here today by Reliance ADA said, "There has been no suggestion that there is any issue in his continuing to be a member of the UPDC after being elected to the Rajya Sabha."

Ambani has been quoted in the release as saying, "It is my firm view that, in public life, one must uphold the highest standards of transparency, propriety and ethics and avoid any possibility of controversy, however remote or unlikely. Keeping this in mind, I have decided to tender my resignation from the Rajya Sabha with immediate effect."

It may be recalled that when the fight between the Ambani brothers broke out in 2004-end, sources in the Mukesh Ambani camp had cited among other reasons, Anil Ambani becoming an advisor on the Board of UPDC.

News: 'Bangladesh can consider FTA with India'

(BL 26/03/2006) New Delhi - Bangladesh will look into the possibility of a free trade agreement (FTA) with India provided the business communities of the two countries come out with an agreed list of items for inclusion, according to the Finance and Planning Minister of that country, Saifur Rahman.

Speaking at a meeting in the Capital, he said: "We may not be able to go the full length with such an agreement right away, but we can still make a beginning."

Scope for pact

He added that there was scope for an agreement for freer trade between India and Bangladesh. The meeting was jointly organised by Indian and Bangladesh industry chambers FICCI and FBCCI.

Rahman emphasised the need for mutual recognition of standards, testing, and certification. He also welcomed technical assistance from India to upgrade testing facilities in his country.

Rahman also said that there is a need for better sharing of information between the Customs points of the two countries in order to facilitate bilateral trade.

11-point agenda

At the meeting, FICCI Past President Y.K. Modi suggested an 11-point agenda that would help achieve the target of doubling bilateral trade flows by 2010 and also would give an impetus to the Indian investments in Bangladesh.

The agenda focuses on issues such as reduction of tariff on both sides to increase market access, implementation of inland waterways agreement, and facilitation of movement of business teams for long duration.

News: 'Single Asian currency decades away'

(PTI 26/03/2006) Manila - Single Asian currency along the lines of Euro is still a far cry as Asian countries would have to first establish a common market and improve regional infrastructure, said, Asian Development Bank.

Haruhiko Kuroda, president, said," Before we can realistically envisage any single currency, we have to have a single market as the European experience shows," He said, “if we have to do so regional governments and regional institutions must make their best effort.”

"Although I am in favour of a single currency in Asia it is a very remote possibility," Kuroda said.

Even in Europe where economies are much similar with each other and have very strong social and political unity, even there establishment of Euro took three decades after a common currency was started, he pointed out.

Currently in the world there are about 150 central banks and currencies, but this will be reduced substantially in years to come as economies are fast integrating.

"I am quite sure that in 100 years there will be much fewer currencies and central banks in the world," Kuroda who is also a former Japanese vice minister of finance, said.

He said this will happen because economies are becoming more and more interdependent and particularly financial flows are speeding up and the amount of financial transactions is really amazing.

News: ‘India can sustain high growth for two decades’

(PTI 26/03/2006) Manila - Indian economy has the potential to sustain high growth rate for the next 10-20 years and can even further accelerate it provided economic reforms continued and infrastructure further improved, Asian Development Bank President Haruhiko Kuroda has said.

"Indian economy has the potential to sustain growth for the next 10-20 years," Kuroda said, adding that India will be able to attain 7-8 per cent growth this fiscal.

"It is possible for the economy to grow by 9-10 per cent but at least two conditions have to be met, economic reforms must be continued and infrastructure must be further improved," Kuroda said.

As Indian economy has been growing fast, infrastructure like roads, seaports, airports, power, communication network has to be really sufficient.

Lots of economic infrastructure needs to be upgraded, expanded and improved and also economic reform must be continued and accelerated, Kuroda said.

Applauding the government for moves on deregulation and privatisation, ADB said further economic reforms will be good for India if the economy has to grow by 9-10 per cent.

The Manila-based multilateral development financial institution also emphasised that growth must be inclusive and equitable for poverty reduction.

"Growth is necessary but not sufficient for poverty reduction. Inclusive growth, further investment in social sector and improved governance are the three elements absolutely necessary for sustained poverty reduction," Kuroda said.

He said ADB is helping developing countries including India to achieve these objectives.

News: Daimler unfazed by BMW’s India plan

(TT 25/03/2006) Chennai - Welcoming competition in the premium car segment, DaimlerChrysler today said BMW’s plan to set up an assembly plant in India would not pose any threat to the German auto maker.

Unveiling the latest edition of the Mercedes S-Class and the M-Class at the Brand Showcase event here, Daimler’s India CEO Wilfried Aulbur said “competition will only help the automobile market to grow.”

The new offerings from the Daimler stable are a mastery of technology, providing greater safety and comfort to its users, Aulbur said.

The M-Class sports a price tag of Rs 56 lakh, while the price for the S-Class ranges from Rs 75 lakh to Rs 1.25 crore.

Brand Showcase is featuring the complete range of Mercedes-Benz cars in India — the debutante S-Class, the E-Class, the C-Class, as well as the completely-built imported range like the SLK-Class, the CLS-Class and the M-Class.

Also featuring at the show is the stately Maybach.

The south is becoming a fast growing market for Mercedes-Benz cars, with strong sales being reported from cities like Bangalore and Hyderabad, Aulbur said.

The ultimate car from the Daimler stable — the Maybach —- is a “statement of perfection in automobile engineering” and is the only customised car being sold now, he said.

Each Maybach costs a whopping Rs 5.25 crore and only two cars have been sold so far in India to two top industrialists. Daimler is also seeing an increase in demand from non-metro cities such as Kochi, Coimbatore and Madurai, Aulbur added.

While DaimlerChrysler India has an assembly plant in Pune, there is no plan to build another, Aulbur said.

According to Daimler officials, the age profile of the Merc customer is changing with young entrepreneurs, IT professionals and successful businessmen getting attracted to the brand.

News: Get a slice of Chinese tourism cake

(TTG 25/03/2006) Port of Spain - Tourism representatives from almost 40 countries around the world, including a few Caribbean countries, will be in Beijing, the capital of the Peoples Republic of China, from April 3 to 5.

They will be attending the Beijing International Travel and Tourism Market to seek a slice of what is predicted to become the fourth most important outbound travel market.

The accounting firm of PricewaterhouseCoopers (PwC) in a recent report says the Chinese economy will double in size between last year and 2050, outstripping all developed nations.

PwC is basing its analysis on forecasts for economic growth on the basis of purchasing power parity (PPP)—a figure which defines the size of an economy by adjusting for local costs.

On this basis, PwC says that while China’s economy is currently 18 per cent the size of the USA’s in dollar terms, it is 76 per cent as big on a PPP basis.

By 2020, China will have a middle class of 200 million versus 186 million in the US.

Several Caribbean countries have a head start over other countries. Antigua and Barbuda, the Bahamas, Barbados, Dominica, Jamaica, and St Lucia have already been given “approved travel destination” status by the Chinese government.

But they are competing with over 100 other countries that have signed approved destination status (ADS) with China, 76 of which can already receive tourist groups. Among the destinations investing heavily in the Chinese marketplace are: Australia, Thailand, Korea, Japan, Singapore, France, Italy, Germany and Switzerland.

Last year, when the Beijing Market was held for the first time, 120 exhibitors from 31 countries attended. European tour operators and hotel groups flocked to the Chinese capital to try to establish partnerships with Chinese outbound tour operators.

Tourism markets in Europe and North America are usually like a cattle show with little serious business being done in relation to the money spent by exhibitors. Tens of thousands of people pass through simply to pick up costly brochures.

But some 80 per cent of the European tour operators and hoteliers who attended the Beijing Market in 2005 reported that the quality of the visitors “met or surpassed their expectations.”

The Europeans have booked even more space at this year’s Beijing Market and new countries such as Poland have entered the race to attract the Chinese tourist. Britain, France and Germany are already forceful players.

Canada, too, is becoming aggressive in the Chinese market.

Ottawa Tourism has launched an official Chinese Web site that is tailored to the travelling needs of Chinese visitors.

The site contains information on Ottawa’s major seasonal attractions to coincide with the Chinese tourists’ travel pattern of three “golden weeks” in February, May and October.

The CEO of Ottawa Tourism declares: “As China’s economy continues to grow, its outbound tourism will also continue to increase. China is now one of the most important markets in Asia for Canada, just behind Japan and Korea.”

According to the Canadian Tourism Commission, 117,490 tourists from China visited Canada in 2005. The commission estimates that when approved destination status with China is fully implemented the increase will be around 25 per cent a year.

Airports are not to be outdone in the quest for Chinese business.

For example, with Heathrow, London’s biggest airport, providing only limited capacity to Chinese carriers, the managing director of Stansted Airport outside of London, has been talking to the Chinese about providing facilities.

Presently, two Chinese airlines operate services to Heathrow—Air China and China Eastern—and Stansted is keen to fill the void by promoting itself to the Chinese as a hub for access to a large number of European destinations.

In January this year China opened its first air route to South America, from Beijing to Sao Paulo in Brazil.

So much work will have to be done if the Caribbean is to compete effectively with other countries and regions that are actively pursuing the Chinese market.

Cuba has started the ball rolling with the announcement that it will open a representative office in Beijing to provide better services to Chinese travellers.

Caribbean hotels and tourist offices also require a strong and vibrant presence in Beijing. It would be both cost effective and beneficial if the Caribbean Hotels Association and the Caribbean Tourism Organisation were to open a joint office in Beijing to promote the Caribbean.

But beyond promotion the Caribbean will need airlift from China to the region. There is need, therefore, for strategic alliances to be established now between hotels in the region, tour operators in China and airlines that can pick-up Chinese tourists in the United Kingdom and Canada to bring them on to the Caribbean.

It may very well be that if the Caribbean can generate enough demand amongst the Chinese, the flights from Beijing to Sao Paulo in Brazil can move on to Caribbean destinations as well.

The Chinese tourists—like the Japanese and other Asian travellers—are more interested in culture, ecology, history and scenery than they are in simply sitting on beaches. In this connection countries, such as Guyana with its vast interior and wild life, have an equal chance to share in the Chinese cake.

The Beijing Tourism Market presents a real opportunity for Caribbean hotels, airports and ground tour operators to set-up deals with Chinese tour groups and travel agents.

If they can get the commitment for sufficient numbers, they will be able to interest the airlines in bringing the Chinese tourists from Europe, North America and Brazil into the region.

The Caribbean should be at the Beijing Market in full force.

News: CSME presents new opportunities

(TTG 25/03/2006) Port of Spain - Inquiring minds in T&T want to know: how will the new Caricom Caribbean Single Market Economy (CSME) agreement, recently signed in Jamaica, affect small business owners in this country?

Dr Eric Williams must be smiling in his grave because his dream has finally come to past. Remember, he was the one who originally proposed the same idea that inspired the formation of Caricom, his name for it was “Caribbean Federation.”

But now that the ink has dried on Caricom’s latest agreement the real concern for each country is exactly how this new initiative would affect its citizenry and their commercial markets.

Undoubtedly, this is a boon for the corporate giants in the Caribbean as they can easily expand there operations without feeling the pains of expansion. But what happens to the small- and medium-sized businesses? How would CSME impact on them?

There is a growing cadre of small/medium businesses that are operating in saturated markets in T&T.

CSME has suddenly open doors to new opportunities in the form of additional markets. But be forewarned that before jumping into this market the business must conduct some sort of self assessment or audited to determine if such a move is not only feasible but profitable.

There is another cadre of business owners in T&T who will ignore the potential this new initiative represents. Some, even if they are aware of the benefits, do not have the resources to expand their operations in T&T or anywhere else. These are the businesses that will be most adversely affected by CSME.

Their competition will start coming from countries like Jamaica, Guyana, Belize and all the other small Caribbean islands whose economy is not as robust as T&T. CSME gives them the right to compete like locals.

For readers who are unfamiliar with the CSME agreement, basically it legalises the “free movement” of qualified citizens within Caribbean member states.

Currently members states include: T&T, Jamaica, Barbados, Guyana, Belize and Suriname.

Within 30 days of the signing on March 31, the following countries are expected to sign a letter of intent to become a member state in CSME: Antigua, Barbuda, Dominica, Grenada, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines.

Free movement is an important pillar of CSME where qualified nationals travel with ID cards between member states.

To phase in the free movement of Caribbean citizenry, the member states have agreed that “qualified citizens” must fall under the criteria of university graduate, artistes, musicians, sports and media personnel, self-employed people and any support staff associated with a Caricom company.

According a document distributed by the Ministry of Labour, “CSME is intended to assist member states of Caricom to achieve their national objectives, such as full employment of all factors of production, improved standards of living and work, sustained economic development and expansion of trade and effective economic relations with other countries.”

Based on the content of the CSME agreement, and the inevitability that there will be losers and winners in this new trade initiative, the point of this article is to highlight the actions that should be taken by small- and medium-sized businesses in T&T specifically and the other member states as a whole.

The question is: as an owner of a local small/medium company with maximised resources, how does a small business capitalise on this new initiative?

Many of them are too under capitalised, in survival mode and, in all honesty, will become spectators of this new initiative.

There are still others who, because of the particular stage of their business, are just not able to take advantage of the CSME. It does not matter how you categorise your business right now, every business owner operating in T&T must understand the benefits of this new initiative.

But before you categorise your business, answer this simple question honestly: is my business operating at full capacity now? That is not an easy question to answer if you do not have the metrics to determine what is full capacity. And if you don’t have the numbers to tell you where you are, you are most likely not operating at full capacity.

Granted most local small businesses do not have any idea of what share of the market they control, however any business can quickly use simple indicators to determine their capacity for expansion, for example:

For retail sales:

How fast do you turn over your inventory?

Can the business afford to double its inventory and overhead cost?

Is your gross monthly sales, over the last six months, going up, down or at a steady pace?

For services

Do you have the manpower to expand your services locally?

Is there a possibility of opening another branch of your business?

In T&T?

Is the service available in the market you intend to enter?

How is your service different to what currently exist in the market?

When you have determined that CSME is a possibility for your company, your next step is to determine which country/market you would like to approach.

T&T residents will have to go to the Ministry of Foreign Affairs for an application. There is no application fee. The documents necessary for a university graduate to qualify includes:

Certification of a university degree

Birth certificate

Marriage certificate, where applicable

Police certificate of character

Passport

Three passport-sized photos.

In cases where the person is an artiste, a musician, a media worker or a sportsperson the completed application form must be accompanied with items two to six above in addition to:

A letter from the respective ministry which states that the applicant was registered in the particular field—art, sports, media or music.

Copies of relevant qualification or certification in the respective field.

Letter from the previous employers.

It takes up to six weeks for the application form to be processed and the skill certificate to be issued.

Caricom’s newest brain child, CSME, is actually the first initiative that will directly affect the rank and file nationals of the member states. But its value must be recognised.

Whether we know it or not, this is the first step towards the building of a regional economy that goes beyond the level of government co-operation.

When we face the fact that there will be a significant percentage of the local businesses who will not benefit from CSME that has to be seen in the perspective that there will always be individuals, businesses or events that will always leave some of the population out.

The good thing about taking that perspective is that it can become a goal for many of the businesses who cannot use it right now.

Many a naysayer will count the reasons why this new initiative will not work. The response to most of their comments should be, that’s why it’s an initiative. It is always easy to postulate reasons to negate any idea without suggesting a suitable alternative. The point is that it’s a lot smarter to have a tool in a box and not need it than not to have it at all.

Business owners and wage earners who can see the advantage of using this initiative should jump on it with both feet.

The people of T&T should be proud that Caricom and this new CSME agreement was actually pioneered by a son of our small republic. That pride should be translated into a determination to make the CSME the glue that unites the entire Caribbean community.

The tools for the success of this initiative is now in the hands of citizens in the respective countries. They must understand what they have and taking advantage of all the rights and privileges afforded in this document.

To determine your business marketing readiness take a free complete marketing self-diagnostic assessment test.

This assessment is in the form of a questionnaire made up of 87 thought-provoking questions that will change the way you look at your business. The test is entitled: How Do You And Your Business Stack Up For CSME.

Go to www.TrinidadAndTobagoBusiness.com

By Tony Puckerin - the managing director of Caribbean Guerilla Marketing Concept, a marketing consulting company.

News: Shell readies $250-mn Hazira expansion plan

(BS 25/03/2006) Mumbai - The LNG consortium is expanding its capacity to 5 MT from the current 2.5 MT.

Shell India has drawn up plans to expand Hazira terminal and port with an investment of over $250 million (over Rs 1,100 crore).

Ahead of the proposed expansion, the company is likely to sell part of its stake to some of the majors in the sector. Shell holds 74 per cent stake while French oil major Total SA holds the remaining stake in the terminal.

Marc den Hartog, director, Shell India, confirmed that talks were on with both Indian and foreign companies for the expansion project. However, he declined to divulge the details of the stake sale plan.

Marc told Business Standard, “Two consortiums are controlling the Hazira Shell project. In that, Hazira port consortium has the potential to grow. Now the port is handling only LNG cargoes. We are planning to expand it to a container cargo handling terminal of world scale with an investment of $250 million. Now the depth of the port is 12 metre and it should be deepened to 60 metre to handle container ships. The entire expansion is likely to be over in three years.”

Port consortium is planning to build a new container terminal also. The LNG terminal consortium is expanding its capacity to 5 million tonne (MT) from the current 2.5 MT. French oil major Total SA is a partner in these consortiums.

Marc clarified that Shell did not have any plans to go for a public float.

“Major companies in the sector are ready to collaborate with us and there is no need to go to the public,” he pointed out.

He also denied that Hazira terminal was facing shortage of natural gas for imports. “We are sourcing gas from Oman, Australia, Malaysia, Brunei, Qatar and Egypt. These are all short term contracts. If any problem suddenly occurs in one of these countries, we will source gas from the other,” he said.

National Thermal Power Corporation and Maharashtra State Electricity Board are likely to enter into an agreement with Shell for LNG supplies. Marc said that talks are going on and a decision is expected soon.

The company is in talks with Torrent Power Generation Ltd and fertiliser majors Kribhco and Rashtreeya Chemicals and Fertilisers for selling gas.

News: UTI MF ties up with SBI

(UNI 25/03/2006) New Delhi - Looking to tap State Bank of India's (SBI) huge network and customer base, UTI Mutual Fund (UTI MF) today announced a strategic tie-up with the bank for distribution of UTI MF schemes.

Under the agreement, SBI will offer the entire bouquet of UTI MF's schemes across the bank's selected branches.

UTI AMC Chairman and Managing Director U K Sinha said, “the tie-up with State Bank of India, who are also our sponsors, will give easy access to customers to invest in the various schemes of UTI MF. State Bank of India has a dominant presence across the country and is also present in various parts of the world. This tie-up will be mutually rewarding”.

The tie up with UTI Mutual Fund will be a first for SBI in vending a third party's mutual fund products. Initially SBI has identified 48 centres across the country wherefrom UTI MF products will be sold.

News: Max Retail launches store in India

(UNI 25/03/2006) Indore - Max Retail of the Landmark Group (Dubai), retail player in the Middle East, launched its first store in the country here today as part of its plan to open 10 stores investing a total of Rs 30 crore this year.

Talking to mediapersons here, Max Retail Stores President Vasantha Kumar said besides one store each in Mumbai, New Delhi, Hyderabad and Lucknow, 5 more stores would be opened in this financial year with an investment of Rs 30 crore. The company has plans of opening 50 stores in the next 5 years.

Vasantha Kumar said that with an objective to offer contemporary fashion at affordable prices, Max will create a new segment of value retail in the country.

Of the Rs 85,000 crore apparel segment in India, nearly Rs 40,000 crore constitutes the mid-segment. Max aims to cater to this segment, which is estimated to grow at 14 per cent over the next three years, a company release said.

Artikel: Wat zijn termijncontracten en futures?

(DWT 25/03/2006) Paramaribo - De financiële wereld biedt talloze mogelijkheden buiten de traditionele spaarrekeningen om een vermogen op te bouwen. In deze rubriek zal meer inzicht gegeven worden over de mogelijkheden, struikelblokken en aandachtspunten bij het opbouwen van uw vermogen en fiscale aspecten waarmee men geconfronteerd kan worden.

Wat zijn termijncontracten en futures?

Termijncontracten bepalen dat de leverancier op een overeengekomen tijdstip de afgesproken hoeveelheid van een welomschreven soort goederen levert aan de afnemer. Die betaalt daarvoor dan een afgesproken prijs, ongeacht de marktprijs die op het tijdstip van de levering (of van de betaling) zou gelden voor de goederen.

Termijncontracten bieden de leveranciers en klanten de mogelijkheid om prijsrisico's te ontlopen door het vastleggen van de ver- of aankoopprijs. Daalt de marktprijs tussen contract en levering, dan heeft de leverancier een voordeel, want hij krijgt toch de afgesproken prijs. Stijgt de marktprijs echter, dan is het voordeel voor de klant.

De markt werkt met verschillende soorten termijncontracten die wel een aantal kenmerken gemeen hebben: het gaat steeds om een overeenkomst tussen twee partijen - de koper en de verkoper - om op een vastgestelde dag in de toekomst iets te leveren tegen een afgesproken prijs. De onderliggende waarde kan variëren van grondstoffen als ruwe olie, goud en graan, tot effecten en andere financiële instrumenten. Uiteindelijk kunnen echter alle goederen via futures worden verhandeld.

Een futuresmarkt is een termijnmarkt, maar dan een met speciale kenmerken. In het Engels maakt men het onderscheid tussen 'forward contracts' en 'futures contracts'. Forward contracts zijn de traditionele termijncontracten; contracten op maat, die meestal niet op de beurs worden verhandeld. Futures contracts zijn gestandaardiseerde termijncontracten. Alleen hun prijs is onderhandelbaar; voor het overige liggen al hun kenmerken vast. Deze worden meestal op de beurs verhandeld.

De meest verhandelde futures zijn de financiële die betrekking hebben op rentetarieven, wisselkoersen, indexen op aandelenkorven, obligaties, enz. Bij aankoop van een futurecontract op de langetermijnrente neemt u eigenlijk een positie in op de obligatiemarkt: u koopt als het ware op termijn een obligatie tegen de huidige rente.

Bij dergelijke contracten is er vaak zelfs geen levering van de onderliggende waarde voorzien: op de eindvervaldag is er slechts een geldelijke verrekening van de openstaande positie.

Eigenlijk kan men op alle denkbare dingen futurecontracten afsluiten. Maar om een succesvolle markt te organiseren, moet wel aan een aantal voorwaarden voldaan zijn. Het verhandelde goed moet van een kwaliteit zijn die voor de marktparticipanten als een referentiekwaliteit kan gelden. Alleen dan kan het contract gebruikt worden als surrogaat voor goederen of producten die eventueel niet helemaal identiek zijn, maar waarvan de marktprijzen in voldoende mate gelijklopend ontwikkelen met de prijs van de onderliggende waarde. Er moet ook voldoende behoefte zijn aan het contract, want anders zullen het handelsvolume en de liquiditeit van de markt onvoldoende zijn. Belangrijk is ook dat het aanhouden van (grote) voorraden van de onderliggende waarde heel normaal moet zijn.

© Drs. Benjamin R.H. Bremmer, InCar Trust (bremmer@incartrust.com)
InCar Trust is het aanspreekpunt voor Sares Invest in Suriname en het Caribische gebied

News: Banking Act changes may take a while

(BS 25/03/2006) New Delhi - Government to table fresh Bill. It could be a while before amendments to the Banking Regulations Act become effective. The government will take a fresh Banking Regulation (Amendment) Bill to Parliament after including changes to the earlier Bill based on recommendations of the standing committee on finance.

This will bring the banking regulation law in line with RBI's guidelines on ownership in banks. While private sector banks will enjoy proportionate voting rights, the government will also have proportionate voting rights in public sector banks once the Bill is passed.

This will be significant when the government decides to offload stake in a public sector bank, because the buyer will also enjoy proportionate voting rights.

The RBI's circular on a cap on stake holding has been in place since 2004.

“There is no time limit for reducing the equity holding and the RBI can allow higher holdings in cases it feels that the stakes are justified. Therefore we could continue to see many banks having stakes of over 5 or 10 per cent,” a private-sector bank executive said. Banks like ING Vysya, Kotak Bank, Yes Bank, HDFC Bank, among others, continue to have promoter ownership well above 10 per cent.

The Banking Regulations (Amendment) Bill approved by the Cabinet proposes to do away with a cap on voting and instead provide a 5 per cent cap on shareholding for a single entity in a bank except when approved by the RBI.

The amendment is an important step to do away with control on voting rights and instead regulate the ownership through level of equity holding.

The committee, which submitted its report in December 2005, while endorsing the move to remove the cap on voting rights, had suggested that sufficient safeguards be put in place to ensure that the ownership levels are regulated.

News: VIP to add 40 retail outlets

(BL 25/03/2006) New Delhi - Luggage manufacturer VIP Industries is planning to increase its retail presence across the country. The company would add another 40 to 50 exclusive outlets.

"We plan to open another 40 outlets next fiscal with an investment of Rs 4 crore," said V.S. Mani, Chief Financial Officer, Blow Plast Ltd (the marketing arm of VIP Industries).

At present, the company has 88 retail stores, which Mani added would cross 100 by the end of this fiscal.

Post-expansion, VIP would increase its total retail area to one lakh sq. ft from 75,000 sq. ft by March 2007. Mani said, "the retail business accounts for 12.5 per cent of total business and is expected to grow to 25 per cent in the next three years."

New plant

The company, whose new plant in Uttaranchal would be operational by April 2006, is looking at a manufacturing capacity of two million units per annum.

"The new plant, set up with a capital expenditure of Rs 20 crore, would be operational by April 2006," Mani said.

Unauthorised logo use

In an attempt to put an end to the unauthorised use of its trademark logo, VIP recently filed a suit against two Delhi-based retailers for using its trademark on their signboards.

"Lots of retailers use our logo without actually realising that they are committing a civil crime,'' said the Company Secretary, VIP Industries Ltd, Rajesh Doshi. "The company reserves the right to institute proceedings to enforce its valuable Intellectual Property Rights," he added.

Revenue loss

When asked about the revenue loss to the company due to such practices, Mani said, "It is not possible to gauge the actual loss in terms of rupees... Nevertheless, it could add about 15 per cent more in the turnover if we could put an end to this. We expect to grow about 15 per cent this year and this campaign should be of significant help," he said.

News: 'India to tap education market'

(TNN 24/03/2006) New Delhi - Harvard University’s outgoing president Lawrence H Summers said that India needed to realise its potential as magnet for global students. While US universities attracted some 565,000 international students last year, India managed to attract less than 8,000 foreign students.

Professor Summers said that of the 191,000 US students, only 1,157 came to India. “There is enough economic potential and opportunities in India. But India has to do a lot to improve its higher education.”The former US treasury secretary said that it was flexibility, capacity to respond to changing conditions and brutal competition for students, faculty and funds that allowed for a better higher-education system.

Pointing to economic benefits of encouraging foreign students, he said: “Some may argue that there is not enough for Indian students, so why get international students, while others may say that India should try to retain its students from going abroad.” But I would say there is a simple economic counter to this. Attracting tuition in dollars and euros will provide a reliable stream of revenue for Indian universities, which will enable them expand facilities to reach larger number of domestic students.”

Professor Lawrence H Summers was addressing Ficci summit on private participation in higher education. Echoing Planning Commission deputy chairman M S Ahluwalia, Summers said India should move ahead of the traditional debate on the importance of primary or higher education.

News: GM to invest Rs 100 cr in Gujarat facility

CHENNAI: Automobiles major General Motors will invest Rs 100 crore in its manufacturing facility at Halol in Gujarat, for penetrating into the Indian small car segment, company's Vice President P Balendran said on Friday.

Talking to reporters on the sidelines of the official launch of Chevrolet Aveo, a small car, he said the company would be rolling out two other new cars to cater to small car segments in the next six months.

The new cars, which would be rolling out of the factory have been named Aveo-U-VA and Optra SRV.

In a bid to reach out to more customers, the company would expand its dealership network from the present 77 to 110 besides two new parts distribution centres, one each at Maharashtra and Delhi, to supplement the two existing centres in Gujarat and Tamil Nadu, he said.

The company would expand its car manufacturing capacity from the present 65,000 a year to 86,000, he said.

General Motors has invested Rs 1,380 crore in the country so far, he said.

News: North India's top 10 value creators

(TNN 24/03/2006) New Delhi - Today, business in North India is flourishing thanks to its Top 10 entrepreneurs. Just over a decade ago, when these players started off — in FMCG, telecom, pharma or auto — success was a term often linked to the South and West. That, well, is a thing of the past. Today, best practices and better topline have made them the benchmark against the best of the world. ET chronicles the Great North Ride.

The resurgence of North Indian business is now an established fact. Take any financial parameter—profitability , growth, return on shareholder funds, market capitalization -- the performance of North Indian companies is at par with, if not better than, their counterparts in other parts of the country. ET has for long reported and recognised this revival.

To celebrate the men who have made this possible, we have compiled an exclusive list of 10 entrepreneurs based in North India who have created maximum value for their shareholders. They have been selected and ranked on the basis of market capitalisation of their companies on the Bombay Stock Exchange as of March 2, 2006. As the purpose of this exercise is to applaud domestic private enterprise, government owned companies and MNCs have not been considered while compiling the list.

Our selection does not constitute the club of the 10 richest men in the region. Instead, it forms the league of entrepreneurs whose companies have been valued the most by stock markets. While these men belong to a host of diverse sectors ranging from telecom to IT to pharma to chemicals to two-wheelers to FMCG, there are several similarities between them. First, all of them are leading companies that have come into prominence in the last 10 to 15 years. None of them belong to the traditional families that dominated North Indian business 25 to 30 years back.

Moreover, many—Sunil Mittal, Shiv Nadar, B M Munjal, Jaiprakash Gaur, Deepak Puriare first generation businessmen who have built successful companies from scratch. A striking feature of most leading entrepreneurs and business families of the North is that having created success, having established their core businesses , they are doing what is in the DNA of all entrepreneurs: entering new areas and creating new businesses.

The Singhs of Ranbaxy have become a key player in the healthcare arena through Fortis, a company promoted by them. They have now chalked up aggressive growth plans in the financial services business. Sunil Mittal’s Bharti group, which had remained focused on telecom over the last decade has now entered the agri business, announced plans to enter insurance and financial services, and is also looking at the food retail business.

The Hero group, which had for long concentrated on the automotive business, has entered the IT, ITeS, training and engineering design businesses and is also looking at other new opportunities. Even the supposedly conservative Burmans of Dabur have entered the insurance sector, picked up equity in Lord Krishna Bank, and in a move that surprised most acquired more than 11% holding in Punjab Tractors.

Of course, in today’s competitive global business environment, there is no guarantee that these industrialists will continue to succeed in the long run, or that they will even make it to our list next year. Ranbaxy continues to find the going tough in the competitive US market . Back home, Bharti has an aggressive Reliance Communication Ventures snapping at its heels. Hero Honda faces competition from Bajaj Auto. Time will tell whether their leaders as well as the other leaders in this list go the way of the traditional North Indian business families, or whether they are made of sterner stuff. Watch this space!

News: LogicaCMG India plans to hire 1,000

(TNN 24/03/2006) New Delhi - Software services firm LogicaCMG plans to add 1,000 people in India by this year end to service its global business divisions. This will increase LogicaCMG’s workforce in India to over 3,000.

LogicaCMG is doing many works from India. Our expansion plan is based on the requirements of our global affiliates. Based on their projections, the headcount in India should be close to 3,000 by the end of current year, Rahul Patwardhan , CEO of LogicaCMG India told ET.

To accommodate new recruits, the Indian arm of the Anglo-Dutch IT major plans to expand its GSD centre in Bangalore. The company refused to divulge investment details. Orders are flowing in from the UK, Netherlands and Asia Pacific, he added.

LogicaCMG services almost all geographies, including Germany and Australia. The GSD is LogicaCMG’s fifth largest facility. It is the fastest growing unit of the company.

About 1,500 employees of LogicaCMG in India are into applications management, BPO services and infrastructure management, while 350 are into product engineering for telecom and finance sector. We are implementing the phase II of our infrastructure expansion programme in Bangalore with a capacity for 850 people . It should be ready by September , Mr Patwardhan said.

We are are evaluating other cities too for expansion, he said, refusing to divulge details. LogicaCMG has been focused on the finance and telecom sectors in India. Its clients include RBI, IndusInd Bank and UTI Bank. LogicaCMG’s New Delhi division supports its telecom customers , including BSNL, Bharti, MTNL and Spice. We were focused only on financial services and telecoms earlier.

However , we are now servicing all market sectors of LogicaCMG like transport, energy and utilities, and government, Mr Patwardhan said. In the BPO segment, LogicaCMG offers services in HR outsourcing , payroll, finance and accounting and some middle office functions such as claims processing.

We are not planning to increase call centre type of work, he added.

News: Indian shares at new closing high, Karachi surges

(RTR 24/03/2006) Mumbai - Indian shares rose 1 percent to a record closing high on Friday, with foreign portfolio investors driving diversified ITC Ltd. and metals maker Hindalco Industries to all-time peaks.

ITC, in which British American Tobacco Plc owns 31.7 percent, ended 4.1 percent higher at 185.40 rupees, off the day's peak of 186.50.

"ITC is one company which has the size to deliver and benefit from the enormous potential from the agro-commodities businesses. Funds are fast realising that," Deven Choksey, managing director at KR Choksey Shares & Securities, said.

"If somebody believes in India's long-term growth potential, they will remain invested in such a stock for years to come."

ITC's surge helped the benchmark 30-share BSE index end at 10,950.30 points, a new closing high. Losers edged out winners 1,261 to 1,241 in volume of 278 million shares.

The index gained 0.8 percent on the week.

The 50-issue NSE index gained 1.01 percent to 3,279.80.

Hindalco, India's top copper and aluminium maker, hit a new peak of 171.10 rupees before ending at 169.80 rupees, up 5.7 percent after a source told Reuters in Sydney Birla Copper, a Hindalco subsidiary which ownes mines in Australia, planned to raise A$293 million ($207 million) through an initial public offering.

A top company official also told Reuters in Mumbai that Hindalco expected to post a rise in January-March profit, boosted by higher aluminium prices and a better performance from its copper division.

In Sri Lanka, the Colombo All-Share ended 0.15 percent higher at 2,232.98 points and in Pakistan, the Karachi 100 index climbed 1.61 percent to 11,459.58.

STOCKS THAT MOVED

* Banking software firm i-flex solutions ltd. climbed 6.5 percent to 1,380.85 rupees, after 3.5 percent of the company's equity was sold in a bulk deal at 1,390 rupees.

* Jet Airways Ltd. gained 0.8 percent to 948.20 rupees after it agreed on Thursday to extend its agreement to buy Air Sahara by 90 days.

* Tube Investments of India Ltd. jumped more than 5 percent to 623.80 rupees after its board approved on Thursday to split each of its shares into five and set a special interim dividend of 17.50 rupees per share.

* State-run oil refiner Hindustan Petroleum Corp. Ltd. added 1.32 percent to 331.05 rupees after it said it would build its refinery in Bhatinda despite oil giant BP Plc's decision to pull out from the project.

* Steel Authority of India Ltd. climbed 10.7 percent to 80.85 rupees, Tata Steel Ltd. added 1.7 percent to 493.30 rupees, Essar Steel Ltd. gained 5.7 percent to 41.85 rupees and JSW Steel Ltd. firmed 3.6 percent to 264.80 rupees on expectations of a 7-10 percent rise in steel prices from April 1.

* Nahar Exports Ltd. climbed 14.1 percent to 78.70 rupees on news that its board would meet on March 30 to consider a 2-for-1 stock split and to transfer its textile business to Nahar Spinning Mills Ltd., which jumped nearly 20 percent to 238.10 rupees.

TOP 3 BY VOLUME

* Steel Authority of India saw trade of nearly 27 million shares.

* Reliance Natural Resources Ltd. slipped 4.6 percent on trade of 26.8 million shares.

* Prism Cement Ltd. jumped 16.6 percent with 7.4 million shares changing hands.

News: Mahindra Gesco, Maharashtra to build SEZ in Pune

(RTR 24/03/2006) Mumbai - Mahindra Gesco Developers Ltd. signed a preliminary agreement on Friday with Maharashtra to jointly build a special economic zone.

The two partners will invest 11 billion rupees in the first year to set up the 3,000 acre project in the district of Pune, Arun Nanda, president of infrastructure development at Mahindra group, told a news conference.

"The project is primarily to attract foreign investments as it will be an export oriented unit," Nanda said.

The zone will aim to attract investment of $2 billion, mainly from electronics and electronic hardware companies, Mahindra Gesco, which built similar zones in Chennai and Jaipur, said in a statement.

Nieuws: Telegraaf laat advertentie-opmaak doen in India

(ANP/AFX 24/03/2006) Amsterdam - De advertentiepagina’s van de regionale HDC-kranten van de Telegraaf Media Groep (TMG) worden vanaf september opgemaakt in India.

Dochterbedrijf HDC Media, uitgever van onder meer het Haarlems Dagblad en de Gooi- en Eemlander, richt hiervoor een gezamenlijk bedrijf op met het Indiase Nintec en het Nederlandse reclamebureau Luminus.

Dat zei een woordvoerder van de uitgever vrijdag. De nieuwe gezamenlijke onderneming biedt de opmaakdiensten ook aan andere (Europese) uitgevers aan. TMG is vooralsnog niet van plan redactionele pagina’s elders te laten opmaken of andere activiteiten uit te besteden naar India. Wegener kondigde eerder aan de productie van zijn advertentiepagina’s uit te besteden, maar dit werk blijft wel in Nederland.

News: India's retailers change fast as Wal-Mart waits

(RTR 24/03/2006) New Delhi - In the New Delhi suburb Gurgaon, shiny new shopping malls line the main street, housing Western brands ranging from apparel retailer Benetton Group to restaurant chain Ruby Tuesday.

In Mumbai, an electronics store draws crowds of customers by listing discounted prices on flat-panel televisions and refrigerators -- a major shift for shoppers accustomed to haggling with small, independent shopkeepers.

India's fast-growing, young, urban middle class is driving a retailing revolution, bringing Western-style formats including hypermarkets, department stores, specialty chains and even dollar stores. As many as 250 malls are expected to open in India over the next two years, up from around 60 now.

But the next phase is still to come as global giants such as Wal-Mart Stores Inc. wait anxiously for India's government to ease restrictions on foreign investment.

"India is becoming a consumer economy," Mike Duke, Wal-Mart's vice chairman and head of international operations, told Reuters in a recent interview in New Delhi.

Duke was the second high-level Wal-Mart executive to meet government officials here in the past year, as the world's biggest retailer tries to convince India to open up its retail market to outsiders.

Wal-Mart and other retailers see huge opportunity in the country of one billion people, with a middle class estimated at nearly 60 million people, and another 220 million who have significant buying power.

"The average (Indian) consumer today is richer, younger and more aspirational in his/her needs than ever before," consultants KPMG wrote in a report for the Federation of Indian Chambers of Commerce and Industry, which is actively pushing for India to relax rules on foreign direct investment.

Analysts say it is only a matter of time, perhaps a year or two, before retail sector investment rules are eased.

India recently allowed retailers that sell a single brand -- Nokia, for example -- to own a majority stake in stores. Nokia, Benetton and others are already here through franchise deals.

Opponents say big foreign players will drive local firms out of business and destroy jobs, replacing quaint corner shops with characterless superstores.

But many analysts argue that modernising retailing will add good jobs with opportunity for advancement, particularly for Indians who don't have the education to find high-paying work in hot sectors such as information technology.

CORNER SHOPS TO HYPERMARKETS

Small, corner shops dominate the retail sector, accounting for some 97 percent of trade, but chain stores are popping up as retailers scramble to expand before Wal-Mart and others arrive.

Analysts say most consumers aren't worried about foreign investment, and appear more than ready to embrace Western-style retailing.

A recent clearance sale at India's biggest retailer, Pantaloon Retail (India) Ltd., drew such large crowds that police were called in to control traffic jams and the store was forced to close early.

At Pantaloon's Big Bazaar chain, which sells food and general merchandise, similar to a Wal-Mart, shoppers sometimes wait for over an hour to get through checkout lines.

"Indian consumers are a smart lot and they will choose between good versus bad, not necessarily foreign versus domestic," said Asitava Sen, principal consultant with PricewaterhouseCoopers in New Delhi.

A study by his firm found modern trade in India would create jobs, increase efficiency in agriculture and boost exports.

MALL BOOM OR BUST?

There are signs that trouble is brewing, however.

In Gurgaon's malls, retail analysts say foot traffic has declined, suggesting the novelty is wearing off. A KPMG survey found most retailers think India is heading toward mall overcapacity.

Part of the problem is planning. In Gurgaon, analysts say some malls will likely fail because too many are too close together, selling too much of the same merchandise.

Newer malls are being built near public transportation -- a key issue in India's major cities where trucks, buses, taxis, cars, pedestrians, pushcarts and cows vie for space.

Developers are also paying more attention to demographics, choosing tenants that fit local income levels and tastes.

All this brings a smile to the face of Wal-Mart's Duke, who sees the rapid changes as a sign that Indian consumers are ready for more retailing options -- including Wal-Mart stores.

"It's already happening in India," he said. "That's what is encouraging. It's not waiting for Wal-Mart."

News: ADF Foods to acquire two American brands

(BL 24/03/2006) Mumbai - ADF Foods Limited has decided to acquire two brands, Camel and Aeroplane, from American Dry Fruit Stores.

At the meeting held yesterday, the board gave its nod to the acquisition and also approved a proposal for setting up a unit in the special economic zone at Surat in Gujarat, the company informed the Bombay Stock Exchange.

The unit would cater to the export market and manufacture frozen food, chutneys and pickles.

News: BP pulls out of HPCL refinery JV

(RTR 24/03/2006) London/New Delhi - Oil giant BP Plc. will not proceed with plans agreed five months ago to form a joint venture to build a $3 billion refinery with Hindustan Petroleum Corporation Ltd. (HPCL), a BP official said.

"We do not intend to take the letter of intent we signed with HPCL forward into the joint venture stage," a BP official told Reuters late on Thursday.

BP had signed a letter of intent in October to form a 50-50 joint venture with the state-run company, with plans to build a 180,000 barrel-per-day (bpd) refinery in northern Bhatinda and to create a network of service stations.

HCPL Chairman M.B. Lal said in November that it could agree a second similar deal with Total BP officials had said Total was in talks over joining the same project.

HPCL officials could not be reached for comment. The company is planning to hold a news conference to discuss the issue at 2:30 p.m. local time (0900 GMT).

Oil majors have been eager to gain access to India's guarded downstream and retail oil sector -- the third-biggest in Asia -- as well as its upstream, where a series of oil and natural gas discoveries has revived exploration interest.

State refiners are also keen for foreign investment to help finance big expansion plans, part of India's vision of becoming a key fuel exporter by the end of the decade.

Royal Dutch Shell and flagship state-owned producer Oil and Natural Gas Corp. formed a strategic partnership in January to search for reserves in India and abroad, with the possibility of refining and coal-to-gas investments as well.

Oil majors and top producers have also been scrambling to break into China's retail market, three times the size of India's and growing many times faster.

But unlike China, whose industrial economy is fuelling strong demand growth, India's thirst for fuel barely rose last year due to the dominance of the services sector in Asia's third-largest economy and more consumers seeking alternative fuels such as natural gas.

The BP official did not give further details on why it was withdrawing from the venture, but Indian refiners have long complained about New Delhi's reluctance to raise regulated transport and cooking fuel prices in line with international costs.

Indian fuel prices rose about 15 per cent last year while U.S. benchmark crude oil prices soared about 40 per cent. The government disappointed refiners last month when it failed to raise prices in its 2006/2007 Budget.

For the nine months ending December 2005, the state-owned refiners posted a combined net loss of $2.2 billion -- despite global refining margins that are in the midst of their biggest boom in a decade.

Big oil companies have also proven more reluctant than Indian refiners or big OPEC producers to invest in new refining facilities, fearing that the current upcycle may crash when a slug of new capacity comes online at the end of the decade.

News: Dabur open to retail foray

(TT 24/03/2006) New Delhi - Dabur is planning expansion with a possible foray into retail. It is also considering setting up a manufacturing facility in Pakistan.

A ‘vision statement’ charting the Rs 1,500-crore food and personal care company’s diversification and expansion plans will be unveiled next Wednesday.

At present, the top honchos are giving the final touches to the vision statement in Dubai.

The statement will also reveal plans for a major rejig in its international operations, which include dividing the business into two hubs in Dubai and India, sources said.

While Dubai will look after operations in Pakistan, West Asia and Africa, its Indian counterpart will cater to South Asia, the UK and the US, sources said.

The spokesperson for Dabur confirmed that a major announcement was scheduled for next week.

“An announcement on a vision statement is expected to be made next week,” said the spokesperson. He, however, declined to elaborate on the proposals.

The board has proposed to raise the company’s authorised share capital to Rs 125 crore from Rs 50 crore.

“The current capital base was not commensurate with the revenue which topped Rs 1,500 crore last year,” sources said.

The authorised share capital is being increased primarily to fund the increase in the paid-up capital on account of a bonus issue and to meet future requirements. The company, which is debt free, last went public 11 years ago.

Meanwhile, Sunil Mittal-promoted Bharti Enterprises is in advanced stages of discussions with the UK-based Tesco for a foray in the country's organised retail trade. Mittal plans to enter the food processing industry and retail trade would be the next logical step to generate higher revenues.

A senior company official told The Telegraph, “Bharti has an existing interest in the horticulture sector and is exploring the opportunity in food retail. For now, we are evaluating options. This is at an early stage and it would be premature to comment.”

Sources said talks with Tesco have been going on for about six months now on a possible foray into the retail segment by the company. Bharti is likely to set up a separate subsidiary for the proposed retail business.

The horticulture business — Field Fresh Foods — is a joint venture with the Rotchshilds of the UK. It will set up its own facilities in Punjab equipped with greenhouses and cold storage.

Field Fresh Foods would eventually act as the back-end centre of the retail business of Bharti, sources said. The Punjab government has already allotted land to the company for the horticulture venture and would start contract farming with local farmers in the state.

The Punjab government is keen to diversify its agriculture, which is currently stuck in the wheat-paddy cycle. This has lowered the water table and reduced soil fertility.

News: Two Anil firms chart merger schedule

(TT 24/03/2006) Mumbai - The Reliance Anil Dhirubhai Ambani Group today announced the time schedule to implement the proposed merger of Reliance Energy Ventures Ltd (REVL) with Reliance Energy Ltd and Reliance Capital Ventures Ltd (RCAPVL) with Reliance Capital Ltd (RCL).

According to the schedule, allotment and listing of shares of the respective resulting companies (after the scheme) formed by the merger of both REVL with REL and RCAPVL with RCL will be done from the week beginning July 17.

According to the group, while hearing at the high court on the petition to approve the schemes will start from the week beginning June 5, the filing of the court order with the Registrar of Companies is likely to be implemented by the week beginning June 12. This will be followed by the record date in the week beginning July 10.

Bombay High Court has directed the group to convene a meeting of shareholders of both RCAPVL and REVL on April 26 to approve the respective scheme of amalgamations. It added that the meeting of shareholders of RCL has been convened by the high court of Gujarat on April 25.

The scheme of amalgamation between these companies envisages a share swap ratio of five equity shares of RCL for 100 shares of RCAPVL. Similarly, the exchange ratio of 7.5 equity shares of REL for every 100 shares of REVL was fixed early in February. The Anil Ambani group has explained that the main rationale of the merger move is to eliminate dual listing of companies in the same businesses and also abolish potential holding company discount.

According to the settlement between the Ambani brothers, four entities were demerged from Reliance Industries Limited based on telecommunications, coal-based energy, financial services and gas-based energy businesses. Among them, REVL is the holding company for RIL shareholding in REL and RCAPVL is the holding company for its shareholding in RCL. The other two include Reliance Natural Resources Ltd and Reliance Communication Ventures Ltd.

News: India gives Japan, China a tough fight

(TT 24/03/2006) Calcutta - India is poised to become the largest investor from Asia in the UK overtaking Japan and China and one of the top four investors globally.

A Commonwealth Business Council study will list all British companies in India and the Indian ones operating in the UK, said Mark Dolan, director of UK’s Inward Investment Group in India.

“The study, which is due in April 2006, will provide a detailed analysis of the current investment scenario in both the countries. We will then have a clear idea about investments from India in the UK and vice versa,” Dolan said.

Currently, India is the eighth largest investor globally in the UK and the third from Asia after Japan and China. About 60 per cent of the Indian investment in Europe go to the UK.

Global investments in the UK for the first three quarters of this fiscal comprised 37 per cent in IT (business process outsourcing and software development), 16 per cent in financial services, 13 per cent in pharmaceuticals and healthcare and 5 per cent in auto components.

The UK trade and investment business awards 2006 have also been launched to strengthen trade relations.

The awards will be given to knowledge-based companies from India and the UK in categories like investor of the year, business partnership of the year, innovation and entrepreneurship.

To encourage small and medium enterprises (SMEs), a special award has been instituted for start-up success stories of SMEs in the UK or India, Dolan said.

The awards are for firms of Indian and British origin excelling in knowledge-based industries, including information and communications technology, software, business process outsourcing, pharmaceuticals, biotechnology, healthcare, automotive and engineering services.

News: Biyani buys Crossroads

(TT 23/03/2006) Mumbai - Mumbai’s oldest mall might have a new owner soon.

According to sources, the Kishore Biyani-led Pantaloon Group has picked up a controlling stake in the Crossroads mall at a deal estimated at around Rs 200 crore.

Biyani is the lead buyer in a consortium that could consist of foreign buyers also, sources said.

Biyani, however, said, “We are not confirming it (the deal).”

The 1.5 lakh-sq-feet Crossroads mall at Tardeo in Central Mumbai could be a strategic buy for the Pantaloon group since it has a real estate venture fund called Kshitij Venture Capital.

The mall was facing problems after several retail outlets were opened at Phoenix Mills nearby.

There had been an upward pressure on the rentals while the footfalls had not gone up commensurately.

To maintain the profitability of a mall, rentals should not cross 12 per cent of the gross revenue.

If the common area maintenance is high and footfalls low, the above balance cannot be maintained.

Rajeev Piramal, vice-chairman of Morarjee Realties, which owns the mall, however, said, “We are exploring options and no decision has been taken as yet.”

Biyani could be looking at converting Crossroads into a boutique mall dedicated to electronic or consumer durables.

The Investment Advisory, which is a wholly-owned subsidiary of the Pantaloon Group, recently floated two retail real estate venture funds, Kshitij and Horizon International Fund.

The funds are planning to invest in malls across the country.

Pantaloon plans to set up 51 malls by 2008

The realty division of the Piramal group came to Urvi Piramal, Rajeev’s mother, after an amicable division among family members. Urvi also received Morarjee Gokuldas Mills.

At present, the real estate is managed by Rajeev, who belongs to the second generation of Piramals.

News: Private equity players board India Inc

(ET 23/03/2006) New Delhi - A new breed of members is becoming a fixture on the boards of Indian companies. More than 150 domestic companies have private equity investment bankers on their boards, and their tribe is growing rapidly.

It is estimated that more than 500 deals have take place in the five-year period between ’00 and ’05, in which a sum of between $6bn and $7bn has been invested in Indian companies. Experts believe a majority of these companies have private equity members on board.

Every private equity firm now has fund managers sitting on multiple boards. For example, Temasek has its investment managers on at least 5-7 boards, for instance, ICICI OneSource, Matrix, Welspun and Shringar Cinemas.Private equity folks sitting on boards say they are not just taking care of their investments, but are fully involved in all major board functions.

“The private equity board members are on the boards not necessarily to protect their own interests, but to represent the long-term interests of all shareholders. We get involved in long-term strategy formulation, M&A/growth issues, and offer inputs on their capital market approach.

Ideally, we are insiders who are trusted by the majority owner, external shareholders and the professional managers. It’s a commitment that requires a lot of time and something we take very seriously,” says Manish Kejriwal, MD, Temasek.

Another active private equity firm, ChrysCapital, has 7 members of its team on various boards. In fact, senior MD Ashish Dhawan sits on 5 boards, including that of Suzlon, MphasiS, Yes Bank, Simplex and GlobalVantage. Another ChrysCapital MD, Brahmal Vasudevan, sits on the boards of four companies.

“I believe that private equity folks tend to be more active than others as there is an economic ownership, and we have a stronger incentive to do so,” says Mr Dhawan.US-based private equity major General Atlantic’s MD Abhay Havaldar sits on the boards of Jubilant Organosys and Geometric Software, while his colleague Mark F Dzialga sits on the Genpact board.

It’s the same story in most firms, says Bain, a global management consulting firm. Most of the private equity fund managers have held senior positions in top-notch companies, investment banks or consulting firms, and often have global exposure.

There was a time when lawyers, CAs, ex-CEOs and bureaucrats filled the ranks of board members, but new categories of people like private equity managers and management professors are making their presence felt too.

News: Norwegian funds set eyes on India

(TV18 23/03/2006) Mumbai - After Japanese and Korean funds, it's the turn of Norwegian funds to train sights on India. The world's second largest fund, the USD250 billion Norwegian Petroleum Insurance Fund invests nearly 5% or USD12.5 billion in emerging markets.

Governor of the Central Bank of Norway who heads the fund, told CNBC-TV18 that they are stepping up their India exposure.

He also said that the fund will focus on sectors that are likely to gain from growing household sectors.

News: Global F&B majors waiting to bite into India

(TV18 23/03/2006) Mumbai - The way to an Indian consumer's wallet is through the stomach, that's what international food and beverage companies believe. Several food and beverage retailers are waiting to tickle the Indian palate with a plateful of goodies.

Burger King, the second largest burger chain in the world, with 11,000 restaurants in more than 65 countries, is apparently looking for partners in India. Like its competitor, McDonalds, it wants to enter India through a joint venture or master franchisee.

After Dominos and Pizza Hut, one will soon be able to bite into pizza from Papa John's. The American company will share a slice of its profits with master franchisee, Pidilite Industries. American beverage chain Barney's Tea and Coffee has joined hands with Victoria Impex to set up shop here and Canadian chain Saint Cinnamon Bakery has HK Multiplex with it as its Indian master franchisee.

The Indian fast-food industry is growing at about 40% a year and is expected to generate sales of more than Rs 4,000 crore this year. That means more goodies on the table. Bon appetite!

News: The India versus China race

(TV18 23/03/2006) Mumbai - Tarun Khanna, a professor at Harvard Business School, made news three years ago when he co-authored a paper arguing that the Indian economy could overtake China, thanks to a more helpful domestic environment. Today, China still holds a 10 to 1 advantage over India in foreign direct investment, but Khanna says that's unlikely to hold India back.

He says, "First a lot of money is going to India in alternative ways such as portfolio and capital remittances. Second, the FDI in China is substituting to some extent for domestic entrepreneurship, and to the extent that we have much more domestic entrepreneurship- indigenous private sector domestic entrepreneurship -in India, it makes it less of an issue. That said, it would be great if we could double or triple the amount of FDI going into India, I don't have any issues with that."

At the recent India Conference at Harvard Business School, speakers like Desh Deshpande, a Boston-based entrepreneur with operations in India as well as China, said both countries offered different advantages to investors.

Chairman at Sycamore & Tejas Networks, Desh Deshpande said, "China does well in manufacturing, they already have the infrastructure there. India has sort of started off with the service sector, but over the course of time they will pick up manufacturing. Tejas develops a lot of their products in India but these are a little bit higher end, they don't need that much of infrastructure. But over the course of time I think China will pick up service sector and India will pick up manufacturing. So it's not India or China, it's India and China."

This is one debate that's sure to keep economic experts engaged for many years. India versus China, that's a race that increasingly interests many in America. Experts believe that India has the legs to stay in the race and catch up with China.

News: Heritage Foods' retail foray

(BL 23/03/2006) Hyderabad - Hyderabad-based Heritage Foods India Ltd may choose Bangalore as a launch pad to foray into the retail sector. Industry sources said Heritage Foods will open its first retail store in August.

The company had announced its intention to enter processed the food products retail business in early February; it is planning a retail chain across the country.

The Rs 270-crore company, which has tied up with farmers (contract farming) for sourcing its dairy products, will use the same network to source agri-products for the retail stores.

On Realty hunt

Heritage Foods is said to be on a realty hunt in Bangalore, with each store occupying an area of around 4,000 sq ft. Agri-based products will occupy 40 per cent of the store shelves while FMCGs will take up the rest, sources said.

The company may also supply "fruits and vegetables to bigger retail players that are planning an entry in the sector," according to sources.

Hi-tech cold chain

Heritage Foods is reportedly in the process of establishing a hi-tech cold chain and "will use highly sophisticated software to merchandise perishable products." Company sources, however, said the retail foray is being planned in Andhra Pradesh, Karnataka and Tamil Nadu, but "nothing has been finalised."

In February, the company had appointed KSA Technopak (India) Pvt Ltd as consultants for the venture and is expecting a detailed report from KSA "sometime during April."

Mr Lokesh N, son of the former Andhra Pradesh Chief Minister, Mr Chandrababu Naidu, will head the retail venture, sources said.

The company has earlier said the estimated investment would be around Rs 200 crore for the project, though this would "mostly be towards working capital."

News: DSK Developers poised for major growth

(TV18 23/03/2006) Mumbai - D.S. Kulkarni Developers Ltd. (DSKDL), one of India’s premier housing construction companies, is poised for major growth. The Company is currently developing and executing projects in prestigious locations in Mumbai and Pune with over 39 lac sq.ft. under construction. Projects worth Rs. 555 crore are under various stages of development and execution and targeted to be handed over by FY09.

DSKDL has a string of prestigious projects under implementation including DSK Vishwa, a mega township spread over 110 acres at Pune, designed by world-renowned architect Padmashree Balkrishna Doshi. This is one of the largest home project in Asia and has redefined quality standards in the industry by setting a fine example of how eco-friendly construction should be conceived and developed. This model eco-friendly township features rain water harvesting, water and sewage treatment plants, vermiculture composting and biogas energy production; and has facilities like school, hospital, amphitheatre multiplex, healthcare, shopping centre, post office, bank, temple, marriage hall, etc.

DSKDL has successfully completed many projects in Mumbai and Pune and have over 15000 satisfied customers nationally and globally. The Company has been ranked as the 2nd fastest growing construction company by NICMAR and Construction World in 2004. For effective marketing of its projects the Company has representatives in USA, UK, Dubai, Bahrain, Kuwait and Kenya.

DSKDL is might be the only construction company having an ISO 9001-2000,14001 & OHSAS-18001 certification and has received many accolades in the past for ‘best housing complex’, ‘best concrete structure’, ‘best concrete technology’, etc and membership of the World Economic Forum as the global growth company. It’s Chairman, Mr. D.S. Kulkarni has been bestowed with many national and international accolades.

DSKDL is well known for its ethical business practices and has set its sight on becoming one of the top five real estate developers in the country within the next five years. Its strong bonding with the customer and its history of always adhering to the ‘date of possession’ has earned it enormous goodwill and reputation resulting in huge customer demand for all its projects, e.g. When DSK Vishwa was launched, 1000 flats got sold in just 10 days. Till date 2200 apartments have already been handed over to the customers. The township has planned for over 10000 units ranging from 1/2/3 bhk apartments, row houses, bungalow plots, villas, shops and IT Park, which will be developed in a phased manner.

The other businesses that the DSK Group is associated with include dealership of Toyota, Software Training & Development, Education, Hospitality and Engineering.

Financial results for the quarter ended 31st December 2005:

Riding the boom in the real estate and construction business, D.S. Kulkarni Developers Ltd. has posted impressive results for the quarter ended 31st December, 2005.

Total Income plus increase in stock-in-trade for the quarter aggregated Rs.2086.80 lacs (Rs.1894.18 lacs) while Net Profit for the quarter rose sharply by 784% to Rs.460.65 lacs (Rs.52.09 lacs). For the nine months period ended 31st December, 2005, Total Income plus stock-in-trade stood at Rs.6646.65 lacs (Rs.3632.91 lacs) and Net Profit rose sharply to Rs.1189.87 lacs (Rs.127.98 lacs).

The Total Land and development rights acquired during the nine months period ended 31st December, 2005 also showed a sharp increase of 183% and stood at Rs.2901.51 lacs (Rs.1021.95 lacs).

Interview: Spencer White, Chief Equity Strategist - Merrill Lynch

(TV18 23/03/2006) Mumbai - 'India at 30% premium to rest of Asia'

Spencer White, Chief Equity Strategist-Asia Pacific at Merrill Lynch is not as bearish on India as Morgan Stanley. White says that India is at a 30% premium to the rest of Asia.

Further, White believes that the Sensex will struggle over 1-2 quarters and earnings momentum will slow down.

Excerpts from CNBC - TV18’s exclusive interview with Spencer White:

Q: What is your view on India now at these levels?

A: We have been watching with great interest to see whether the Sensex was going to pass the level of KSE 100 of Pakistan, but it looks like for the time being it is not going to happen. But as far as the index is concerned, we are not as bearish as Morgan Stanley. But I think there is certainly call for caution at the levels that we are at. We are very comfortable with the growth story in India. India had almost 2 billion dollars of foreign portfolio inflows in the last month. I think a lot of that was BRICs fund.

Now the index is trading at a 30% premium to the rest of Asia. Only Japan is more expensive than India now. So my sense is that Sensex is going to struggle over the next 1- 2 quarters to really make any positive headway from here. Because it is not cheap, a lot of future growth has been forecast and earning momentum will slow.

It is very hard from my perspective for institutional clients around the world to find any incremental buyers at these sort of levels. If the markets were to come back, there are buyers who were underweight. So I don’t think there is significant downside but from these levels, I think we are going to have pull backs.

Q: What would be a tactical view in India? On one hand you are cautious about valuations and on the other hand, you have weight against liquidity, which continues to come in? We have also been talking to people who have been raising fresh money for India like Petro dollars, which could come in the next 2 – 3 months.

A: That is also right and it is impossible to gauge either the magnitude or the timing of that capital. I think it is very right to highlight the petro dollars and there continues to be a recycling of that capital through markets in Asia. India is a pretty obvious choice but ultimately it is not valuation insensitive.

I really struggle to believe that the market will make significant progress from here. If there is any sort of stumble either with rates increasing more than people expect, or we begin to see pricing pressure come through, the margins as we see some earnings misses coming through, then at these sort of levels, the market and companies are going to be vulnerable.

Q: Where is the space you would go and book your profits first and foremost?

A: To be honest just the market as a whole looks pretty pricey. Some of the banks and consumer durables are expensive. It is very stock specific. As I look at it I can still find some banks, which are interesting, some of the software companies, the capital goods, sort of infrastructure space because there is so much growth. So you would basically be balancing valuations versus the price performance over the last six months. The entire Index is up about 16-17% year to date. So the momentum will have to pull back.

Q: Third Fed meeting coming up on the March 28. Is that the most important catalyst for markets like India as well and what do you expect them to do?

A: It is very important. Obviously there is an intense focus on what happens after that. Is that going to be the last hike, and if it is and the Fed goes on hold what happens next? Is it on hold with a prelude to an eventual cut. By the year end, Merrill Lynch's view is that there will always be a pause and potentially rates actually could go higher.

News: Caribbean governments defend integration

(PL 23/03/2006) Nassau - CARICOM foreign ministers informed the US government about the progress made in realigning the local economies through the Caribbean Single Market and Economy.

After meeting with Secretary of State Condoleezza Rice, Bahamas Foreign Minister Fred Mitchell told media about the group's integration initiatives.

The CSME, following its January approval, will be the CARICOM device to boost the movement of products, services and employment while handling development programs for the least developed members.

CSME will enter in effect in 2008 as an effective response to globalization and the loss of preferential treatment for its goods and services.

The group will also urge for cooperation with Haiti, whose readmission to the bloc was confirmed after Rene Preval's win in the February elections.

Rice did not mention any new project on security and disaster management, despite regional concern, and admitted her failure to find support for the US anti-Iran drive.

Also on the agenda were the high rates of violence, crime and emigration.

News: 'High risk of fraud in Indian financial sector'

(RTR 23/03/2006) New Delhi - Banking, insurance, mutual funds, asset management companies and BPOs are most vulnerable to fraud in India, a survey said on Thursday.

"Twenty-three percent of the respondents believe them (these sectors) to be the most vulnerable to malfeasance," the survey, conducted by KPMG, a global network of firms providing audit, tax and advisory services, said.

"The survey also brought forth the increasing occurrence of frauds and its many forms within the IT world, specifically in the BPO (business process outsourcing) sector," it added.

Called "India Fraud Survey 2006", the report said 36 percent of the respondents felt "employees posed the maximum threat to an organisation in the BPO sector".

India has become a flourishing hub of outsourcing with many western firms moving some of their work to India to save costs.

But cases of alleged fraud have also surfaced.

Last year 16 people were arrested in a probe into fraudulent transfer of more than $400,000 from Citibank customer accounts in the United States to bogus accounts in India.

Investigators said employees of a BPO persuaded customers to disclose information that would make their accounts accessible.

"Over the last few years frauds within the BPO sector have not only increased in occurrence but also managed to change its forms," Deepankar Sanwalka, executive director of KPMG India, said at a news conference.

"The developments of new threats has been faster than what the BPO world could ever imagine...," he added.

The survey results are based on responses from 200 companies, a majority of which have a turnover of between 5 and 10 billion rupees ($112-224 million), company officials said.

According to 2003 official Indian government figures, seven economic crimes are committed in India every hour.

News: Wal-Mart may debut with Sam's Club

(DNA 23/03/2006) New Delhi - The world’s biggest retailer, Wal-Mart, is shuffling in. And its first foot in the door, perhaps, would come as a relief to the Pantaloons, Spencer’s and other chains - including the would-be Reliance Retail.

Sources said the giant is bracing for a launch of its cash & carry wholesale format called ‘Sam’s Club’ in India, along with a local partner.

A development that perhaps unnerves another chain - the German Metro AG - more than anybody else. Metro has already set up a successful beachhead in Bangalore two years back.

While foreign direct investment (FDI) guidelines do not permit investment by multi-brand global retailers in India, 100% FDI is permitted in cash & carry wholesale trading under the automatic route.

Sam’s Club, which was launched in China in 2003, is a members-only warehouse.

It operates by selling high volumes of merchandise for very low profit margins to its members.

A Wal-Mart Inc spokesperson told DNA Money, “As part of the market research we are doing we are talking to a lot of people in India, including those who might be considered local partners.

We have not made such plans (about bringing Sam’s Club to India). At this point we are evaluating a wide variety of possibilities and have made no decisions about any particular formats.”

With large Indian corporate houses such as Mukesh Ambani’s Reliance Industries and the Bharti Group readying plans to make their retail foray, Wal-Mart may find it tough to cater to the complex Indian market alone.

In fact, industry sources point out that Wal-Mart is interested in partnering with Bharti for making its debut but the latter turned down the proposal.

When asked for comments, a Bharti spokesperson said “Bharti has an existing interest in the horticulture arena and is exploring the opportunity in food retail. For now, we are evaluating options. This is at an early stage and it would be premature to comment on any speculation.”

Wal-Mart, however, is going ahead with its sourcing plans for the country.

The Wal-Mart spokesperson said “We will purchase around $630 million worth of goods directly from India this year - mostly apparel, home furnishings, textiles, shoes and jewelry. This is about 40% more than 2005. In addition, we purchase another $1.2 billion worth of goods from suppliers who source from India. We anticipate similar growth in the next year or two.”

News: Intel to 'unwire' Pune

(BL 23/03/2006) Pune - Country's first Wi-Fi enabled city in a year.

Pune is going to be the country’s first Wi-Fi enabled information technology city. And helping it in the task will be the Indian arm of Intel, the world’s largest chipmaker.

Termed “Unwiring Pune”, the project will offer citizens access to Internet from anywhere in the city through a wireless device.

WiMAX and Wi-Fi technologies will provide wireless connectivity to access the Internet using a laptop computer or a PDA or a similar hand-held device.

Announcing this here today, Pune Municipal Commissioner Nitin Kareer said the project, expected to be commissioned in a year’s time, would offer Wi-Fi connectivity to approximately a 400 sq km area, including Pune city, Pimpri-Chinchwad and information technology pockets such as Hinjewadi. The initial investment in the project was estimated at Rs 7 crore, he said.

Kareer said available data showed that Pune had the largest Internet-user base in the country, and connectivity indoors as well as on the roads was equally important for the city’s tech-savvy population.

Explaining the pricing, Kareer said, “The payment mechanism will be something similar to the recharge cards used by mobile phone service providers.”

The Vice-President of Intel Software and Solutions Group, Rick Echevarria, said the company had successfully commissioned wireless connectivity projects in many cities of the world, including Portland in the US and some cities in Germany.

To a query, he said Intel would prescribe the most stringent standards for data security clubbed with access codes.

He also hinted that Intel might also come into the project as a vendor of services through the company’s appropriate subsidiary at a later stage.

Intel’s mandate includes creating a scalable, high-performance technical architecture and detailed design that will fulfil PMC’s requirements.

Intel will also provide information and training to PMC functionaries in wireless technology. Intel will develop the complete road map to make Pune wire-free by setting out specifications and identifying the vendors.

“The selection of the vendors will be through a transparent bidding process,” Kareer said.

The project was an extension of the efforts undertaken by the city corporation “to create facilities for the economic development of the city”, Kareer said, adding that the project might envisage participation of telecom operators in terms of using their towers for installing the Wi-Fi and WiMax capabilities.

Nieuws: Suriname verdient goed aan bezoek cruiseschip

(DWT 23/03/2006) Paramaribo - Suriname moet een pier of cruiseship terminal bouwen, zodat passagiersschepen die in het Caribisch Gebied rondvaren, ook ons land kunnen aandoen.

Het bezoek van het cruiseschip Minerva II heeft bewezen dat wij een toeristische attractie zijn en economische voordelen hieruit kunnen halen, zegt Henri Ori, voorzitter van de Stichting Toerisme Suriname (STS). Volgens hem heeft Suriname aan het bezoek van het schip bijkans 100.000 US dollar verdiend. “Het leek dinsdag even op een invasie van blanken in de stad toen je opeens die 560 passagiers in Paramaribo Centrum zag wandelen”, vertaalt hij deze opleving in de toerismesector.

Samen met de Mets, die de hoofdorganisator was van de komst van het passagierschip, zal de STS de komende periode een destination promotion in het Caribisch Gebied voeren. “We moeten proberen zulke schepen vier tot vijf keren in de maand hier te krijgen”, zegt Ori.

Volgens hem waren de passagiers en de bemanning zeer tevreden over de behandeling die ze van de Surinaamse instanties en organisaties hebben gekregen. “MAS heeft de zaak goed begeleid. De bussen waren goed ingezet, het eten was lekker en ze hebben kennis kunnen nemen van onze culturele en historische waarden.”

Het spin-off effect van dit bezoek was duidelijk waar te nemen. Staatsolie, de Surinaamse Waterleiding Maatschappij, transportbedrijven en eethuizen hebben goede zaken gedaan. Aan ‘immigration fee’ alleen is 5 US dollar per passagier betaald. Opvallend was dat in de avonduren veel nieuwsgierigen aan de Waterkant en de Anton Dragtenweg postvatten om het cruiseschip te zien vertrekken. “Alle lichten waren aan en dat ding leek wel groter dan het Academisch Ziekenhuis”, zegt Ori lachend.-.

News: Detroit to Delhi, in reverse gear

(TNN 23/03/2006) Mumbai - After the wave of Indian software professionals swept back to the country from the Silicon Valley, it is now the turn of Indian automotive engineers in Detroit to take the return flight.

Engineers are flying home to chase growth opportunities in what is emerging as one of the fastest-growing automotive markets of the world.

The research and development departments of many Indian companies like Mahindra & Mahindra, Tata Motors and Ashok Leyland are headed by engineers with stints at General Motors and Ford overseas.

Mahindra & Mahindra’s automotive sector president, Pawan Goenka, who was instrumental in developing M&M’s best-seller Scorpio, spent 15 years at General Motors in Michigan. His return coincided with the torrid pace of growth in the Indian automotive industry.

“Abroad, Indian engineers like us are one among hundreds of others. But here, we head prestigious projects that give us a sense of pride and the feeling of giving something back to our country,” says Mr Goenka.

His colleague at GM, V Sumantran, was till recently with Tata Motors, where he was steering its ambitious Rs 1-lakh car project.

Arun Jaura, who joined as vice-president-R&D, M&M, was with the Ford Motor company in the US, heading the vehicle engineering department.

Aravind Bharadwaj, head of advanced engineering at Ashok Leyland, has worked with Delphi and GM in the US for over a decade.

He is virtually on a recruitment spree, hiring US-based engineers. Having brought in four to five of his Indian colleagues, he is trying to rope in more.

Mr Bharadwaj has recruited professionals from Ford Motor and Dana Corp. They are now heading the testing group and advanced vehicle engineering systems at Ashok Leyland.

Apart from the motivation of being near home, the huge pay packets at Indian automotive companies are also a big draw for engineers.

According to Mr Bharadwaj, the importance given by Indian companies to R&D is increasing and so is the remuneration being offered to match their skill sets.

News: Indian spending on outsourced IT services to double

(BL 23/03/2006) New Delhi - With increase in IT adoption in telecom and banking sectors, and the projected IT uptake in airlines, insurance and manufacturing industries, the domestic spending on outsourced IT services is expected to more than double to over Rs 23,800 crore in 2009 from Rs 10,300 crore in 2004.

"The liberalisation of Indian economic policy, de-regulation of key sectors and progressive moves towards further integrating India with the global economy have been key drivers of increased IT adoption in the country. This is best reflected in the fact that most indigenous players in telecom and banking, two key sectors with significant multinational corporation (MNC) participation, have upgraded their levels of IT adoption to offer best-in-class services comparable to those offered by the global competition. These two sectors together account for approximately 35-40 per cent of the domestic spend on IT services," said Nasscom-IDC study on the domestic services (IT and ITES) market opportunity.

The survey also predicted that the domestic ITES-BPO market is likely to cross Rs 6,600 crore in 2006-07 from about Rs 3,800 crore in the 2005-06.

Commenting on the findings of the study on the domestic IT services market, Kiran Karnik, President, Nasscom, said "Increasing use of IT within the country will help to enhance the competitiveness of the Indian economy and of the companies and sectors that use IT. We believe high maturity IT user segments like Banking, Insurance, Telecom, Automobile will increase spending on IT services to integrate businesses with IT."

The study found that though IT services form 27 per cent of the total domestic IT spending, its share was significantly higher in segments such as banking financial services and insurance (BFSI), telecom, automotive and manufacturing. In terms of split by industry vertical spending, BFSI, manufacturing and communications accounted for 77 per cent of the overall spend on IT services in 2004.

On the one hand, the mature user segments are increasing spending on IT services by moving towards holistic IT services contracts, while on the other hand, emerging segments such as healthcare, the Government and small & medium businesses are also deploying IT services as a means of productivity enhancement, competitive advantage and value addition.

From the user - side perspective, the survey revealed that price, quality of service and lack of people with suitable skill sets were the top three concerns.

On the domestic market, it said, "The ITES-BPO space has been associated only with export, but there is huge opportunity waiting to be tapped as globalisation demands higher efficiencies and competitiveness from Indian businesses. Unlike the IT services exports market where price arbitrage plays an important role, the domestic market will be driven more by access to specialist skills and helping businesses to free up their scarce resources for focusing on core business areas."

News: Arab investors may turn to Indian stocks

(BL 23/03/2006) Mumbai: After the US, European and Japanese investors, it is now the turn of oil-rich Arab investors to create a stir in the domestic stock markets.

With stock markets in Dubai, Qatar, Bahrain and Saudi Arabia turning bearish early this month, bullish Indian markets meant that the time was `ideal` for these rich investors to take a call on the India-story, say experts.

Leading foreign funds have initiated talks to float India-specific funds in the Gulf region that adheres to Islamic or Sharia'h Law, they said.

Already, the Bahrain-based TAIB Bank manages two funds - Everest Fund (minimum subscription of $10,000) and another Mauritius-registered fund - worth a total of Rs 1,000 crore investments in the Indian bourses. "These are open-ended funds; we can raise more through these two funds," said an official.

Now, 'India Profit Sharing Fund', another open-ended Sharia'h compliant fund with an exclusive focus on India is on. The fund, which will be managed by a domestic fund house, is targeted at the oil-rich HNIs in West Asia. This fund is also expected to be a success, courtesy the great Indian growth story doing the rounds across the globe, said an official with the fund. The minimum subscription amount for this fund is $200,000.

As Islamic law stipulates, the fund will not invest in companies that sell pork, tobacco or alcohol, or in casinos and most media and entertainment businesses.

To tap the huge liquidity in the West Asian region, Mumbai-based Sabre Capital on Tuesday announced the setting up of a $250-million fund in partnership with Dubai-based Abraaj Capital for private equity investments in India. Similarly, during 2005-end, Al-Madina, a Shariah-compliant investment firm backed by Gulf Bank, raised $171 million for investments in the Indian stock markets. "We have just scratched the surface," points out Naresh Kothari, Head, Institutional Equities, Edelweiss Securities.

According to him, the Gulf-based investors, sceptical of Indian equities post the stock market crash of the mid-90s, have started to test the Indian markets again. "Till now, we were seeing NRI money from the Gulf. Now, we will see the real Arab money coming in."

Earlier this month, the West Asian stock markets were down - Dubai (35 per cent from February), Qatar (28 per cent), Bahrain (12 per cent) and Saudi Arabia (15 per cent), forcing the Arab investors to look at performing emerging markets, including India.

News: ABN Amro seeks to expand Indian pvt banking

(BL 23/03/2006) New Delhi - The private banking division of ABN Amro Bank in India is hoping to see a major growth in business in the coming years. The division is hoping to more than double its client assets in the medium term from $800 million now.

"We handle assets of around $800 million in India. It is possible to grow to $2-3 billion in the next couple of years," Joster Avest, Executive Vice-President (Private Clients), ABN Amro Private Banking, told Business Line.

Avest heads the worldwide private banking initiative of the bank.

Prospects bright

According to him, the prospects of private banking in India are bright in view of the growing number of high net worth individuals (HNIs).

"The Indian economy is creating more and more wealthy people, many of whom are our potential clients."

He also said that the bank's private banking section provides a complete range of advisory services to HNIs to help them in financial planning.

"We assess the risk profile of our clients and the investment horizon they are looking for, on the basis of which we create a financial plan for them," he said.

The advisory services include guiding clients on taxation and legal issues.

Avest said that ABN Amro's private banking division handles assets worth $60 billion worldwide.

Most of his clients are drawn from existing corporate or retail banking relationships. However, there are others who come through referrals made by existing clients, he added.

HNI customers

Sutapa Banerjee, Senior Vice-President and Head (Private Banking India), said that the bank was looking to offer its private banking services from more cities in view of spread of HNIs across the country.

"HNIs are quickly spreading out to more and more cities. In the next 4-5 years, we want to offer the private banking services from 8-10 cities."

ABN Amro currently offers private banking services in India from its offices in New Delhi, Mumbai, Bangalore, and Chennai. Its private banking services in India commenced in 2002. According to Banerjee, the private banking services are being offered to around 600 groups, which include families, owner-promoters, and trusts.

The number of individual accounts within the 600 groups add up to 2,500.

News: UK insurance cos eye Indian pension space

(TV18 22/03/2006) Mumbai - British insurance companies like Sun Alliance, Aviva and Prudential, who have joint venture partners in India, are upbeat about the government's intention to raise the FDI limit in insurance to 49%. As tariff's are decontrolled starting January 2007, they can bring in new products along with the additional capital.

But, what they are now eyeing is a share of the pension pie, they hope the PFRDA bill, which the government hopes to introduce in the monsoon session of Parliament, will make the envrionment a lot friendlier.

Stephen Haddrill, DG, Association Of British Insurers says, "What we need is a stable regulatory regime and a single regulatory regime. To have a pensions regulator and an insurance regulator at the same time, there's a problem there.

In the UK, insurance companies pay more pensions than the government does. That's the situation they want to see in India. Life insurance companies being allowed to act as pension fund managers offering bundled insurance and pension products. 89% of the Indian workforce is not covered by any pension scheme and it's a huge market waiting to be tapped.

"People are talking about a limit of six players in the market. There's a real appetite in the industry to serve the market. So, why limit it at that number? You're actually cutting off opportunities," reacts Haddrill.

They also want tax incentives to encourage long term savings and a higher fees for intermediaries offering advice-based products. The total central and state pension liability is over Rs 64,000 crore. Couple this with a huge uncovered market and you realise just why foreign players want faster liberalisation.

News: India not overvalued, says KPMG

(TV18 22/03/2006) Mumbai - 2005 was a good year for mergers and acquisitions and this trend is likely to continue. With private equity houses flush with funds and corporates increasingly focussing on consolidation, India will be a sought after destination.

Oliver Tant of KPMG says, "The Indian economy is increasingly moving to take center stage in world economic matters and M&A activity in India has been 50% higher in 2005. I see that level increasing in the next 12 months".

In 2005, India recorded 343 mergers and acquisitions worth USD 18.2 billlion. Of this, USD 16.2 billion was through acquisitions, and the balance via private equity investment. The first two months of 2006, have seen M&A deals worth USD 3.5 billion and 32 private equity deals worth over USD 400 million. And this will only increase as private equity investors don't think the Indian market is overvalued.

"I get the sense that the Indian market will be an increased area of focus going forward. I don't think most private equity think the market is overvalued. I think they still have an enormous degree of interest because they see opportunity," says Tant.

Internationally, energy, natural resources and particularly infrastructure in BRICs economies are likely to see global money flowing in. In India, it is the fast growing service sector- particularly financial services, which will see the most activity. There will be a demand for people, who can provide transaction services, commercial market assessment and benchmarking, post integration.

News: EU boss livid at India

(RTR 22/03/2006) Brussels - Europe's trade chief insisted on Tuesday it was time for big developing countries such as Brazil and India to make concessions to unlock global trade talks that are just over a month from a deadline.

A meeting of trade powers in London earlier in March failed to produce a significant advance in the talks and big moves were now needed as the World Trade Organisation's Doha round neared its end, Peter Mandelson said.

"There is a limited number of cards left on the table -- and they are the big ones," Mandelson, European Union trade commissioner, said in a speech at the European Parliament in Brussels.

"They cannot be played in isolation. The lesson of the London meeting is that the time of incremental steps, small moves and small concessions, is over."

WTO members are trying to meet their April 30 deadline for agreement on agriculture and industrial goods, two key components of the so-called Doha round that has been under negotiation for more than four years.

Mandelson has so far resisted calls from agricultural exporting countries such as Brazil and the United States to go further with opening Europe's farm markets.

He is also under pressure from EU members including France to go no further with his offers to cut farm import tariffs.

But Mandelson reiterated he could offer greater access to the EU farm market if Brazil and India agreed to real cuts to their tariffs on imports of industrial goods -- such as cars and chemicals -- of which Europe wants to sell more.

Brazil had given "an important, albeit so far unfulfilled, signal" by showing it recognised the need for everyone to secure real tariff cuts in their key areas of interest, he said.

Brazilian officials said recently the EU and the United States needed to make the next moves required to break the deadlock by going further with their respective agriculture offers.

The WTO's Doha round was launched in 2001 with the aim of boosting the global economy and lifting millions out of poverty. It must be wrapped up in all its details by early next year.

Several deadlines for the round have already been missed. But negotiators say it risks collapse if a deal is not reached soon because U.S. President George W. Bush loses "fast-track" powers to approve trade deals in mid-2007.

News: Metro power for India

(PTI 22/03/2006) New Delhi - The metro rail is set to become a reality for the residents of Mumbai, Hyderabad, Kochi and Bangalore, with construction on the modern transport system in these cities set to start in 2006-07.

"Delhi metro has completed survey in these cities and construction will start in the coming financial year," said Delhi Metro Rail Corporation (DMRC) managing director E Sreedharan.

The DMRC chief, who was making a presentation of Delhi's experience with metro rail at the conference on alternative technologies in public transport, said there was an urgent need for a national policy on metro and its funding, with the transport system set to go to more cities in India.

Meanwhile, on the performance of Delhi metro, he said the rail system in the capital that was earning operational profits and would be able to not only meet its expenditure but also pay back its loans.

News: A dry Delhi by 2015!

(PTI 22/03/2006) New Delhi - With the water table in the national capital depleting rapidly, ground water supplies in Delhi are likely to run dry in next nine years, a report published in a recent bulletin of Harvard Business School said.

"With their huge populations, China and India are especially susceptible to these water stresses. Ground water supplies in Delhi are expected to run dry by 2015," the report on the global water crisis said.

The demand for water to sustain and feed the world's people is projected to double by 2025, it said.

Another report by the Centre for Science and Environment said things would have been better if ground water had not been over exploited. The national capital has been witnessing a huge gap between demand and supply of water, it said adding the city, with over 15 million population, requires about 3,324 million litres per day (mld) water but gets only 2,034 mld.

The report blamed the widening gap in large-scale extraction of the natural resource, which has also led to depletion of water levels. A comparison of water levels from 1962 to 1977, 1977 to 1983 and 1983 to 1995 presents a clear picture of depletion of ground water level in different parts of the city.

In 1977, the water table was by and large within six metres in most parts of Delhi with deepest being 23 metres in Mehrauli block near Qutab Minar.

The water table declined to 10 metres by 1983 and in 1995 it was in the range of 10 to 20 metres, the deepest being 35 metres at Gadaipur in Chattarpur basin of Mehrauli block, said a CSE report on rain water harvesting.

News: US Frantic to Save Face at CARICOM

(PL 22/03/2006) Nassau - US Secretary of States Condoleezza Rice is attending the CARICOM meeting of Foreign Ministers and will meet the Bahamas Prime Minister Perry Christie.

Thomas Shannon, US Undersecretary of State for the Western Hemisphere, called this first meeting between a US official and the CARICOM an effort to restore bilateral economic and diplomatic ties.

Rice´s pell-mell agenda includes exploring ways for the US to boost regional democracy, improving economies, reinforcing security and looking for ways to cope with the frequent natural disasters that hit the area.

The Bush underling will also try to somehow smooth over frictions with Caribbean leaders that consider the US a partner in the Feb 2004 coup against Haiti´s ex President Jean-Bertrand Aristide.

After the Feb 2006 general elections, the CARICOM decided to reinstate Haiti whose delegation to the July Summit will be led by Rene Preval, to take office in April.

News: Dubai Ports eyes India expansion

(RTR 22/03/2006) Dubai/Mumbai - Dubai Ports World is pressing ahead with expansion plans in India and is confident of winning over local critics of a deal that has put 40 percent of the country's container traffic in the Gulf Arab company's hands.

A senior Dubai Ports official said Indian criticism of its takeover of British ports operator P&O had been muted by comparison with the political firestorm that forced the company to relinquish six major ports in the United States last month.

The Indian controversy has stemmed mainly from objections that officials in one state were not informed of the $6.8 billion takeover that took the number of Indian terminals under Dubai Ports management to five.

All those terminals are on India's western coast and Ganesh Raj, senior vice president of Dubai Ports World, told Reuters in this week that the company wanted a presence in eastern India.

"We are looking at the best options available to us," Raj, who heads United Arab Emirates-based company's operations in east Africa and west Asia, said in an interview.

He said there was little opportunity for port acquisitions in eastern India, but Dubai Ports would push into rail operations and special economic zones (SEZs) to ride the boom in one of the world's fastest growing major economies.

Raj sees the company's contract to develop the Kulpi economic zone in West Bengal as the next phase of the expansion plan. "We are looking specifically at fast tracking the SEZ project in Kulpi," he said.

KEY OPPORTUNITY

Dubai Ports has long viewed Asia's third largest economy as a key opportunity, given its rapid economic expansion and growing demand for infrastructure investment.

Estimates of the amount of money needed to bring Indian ports, roads and airports to levels comparable with other Asian nations range from $150 billion to $200 billion.

India's 12 major ports are crucial to the infrastructure development drive, handling about 75 percent of all shipping volumes. Container traffic makes up a relatively small proportion of the total but is growing by 15 percent a year.

Raj estimates that terminals managed by Dubai Ports World and P&O now handle about 2.2 million twenty-foot equivalent units (TEUs), about 40 percent of India's total container traffic.

The takeover has prompted some criticism from the media and unions that Dubai Ports was acquiring too large a share of India's ports industry. Raj said those fears were unfounded.

"We cannot leverage (our presence in) one port against another. The nature of the business in India means that it is impossible to do that. Shipping (and ports) companies cannot influence trade patterns in India," he said.

"We are subject to the same regulatory requirements. We cannot charge excessively high prices. In fact we can only cut prices and that is good for the trade."

More serious are objections from officials in Gujarat that they were not informed about Dubai Ports' plans to take control of the P&O-operated terminal at Mundra port.

"We wrote a letter to P&O that unless you have Gujarat government's concurrence you can't change the operation of this terminal," an official at the Gujarat Maritime Services Board said.

"They did not inform us of anything officially (about the takeover)," the official said on condition of anonymity.

Raj was confident that Dubai Ports had met all the regulatory requirements in India and said he wanted to address any concerns raised by local officials.

"I would like to meet the officials and provide the required explanation," he said.

News: Reliance goes employee shopping

(TV18 22/03/2006) New Delhi - Reliance Retail is on the prowl and suddenly attrition levels have risen in the retail industry and so have salaries, even of mid-level executives.

With Reliance's entry, the game's got more exciting. Reliance Retail's recruitment drive has led to a major people movement in the sector.

Pantaloon is estimated to be seeing the highest attrition rate of between 35 and 40 per cent, and Piramyd's about 20 per cent, followed by Lifestyle and Shopper's Stop.

Reliance Retail has been responsible for a large chunk of those percentages. Reliance Retail has gone on a shopping spree, picking up about a thousand mid-level retail professionals like store operators and merchandisers.

The company has been offering hard-to-resist packages with hikes that stretch between 25 and 60 per cent over existing salaries and perquisites. Pantaloon is already feeling the heat.

Big Bazaar's category heads like Hans Udeshi for general merchandise and Prabal Ghosh for shoes are some who have joined Reliance Retail.

But sources say companies like Pantaloon and Shopper's Stop are trying to plug the outflow with better salaries and benefits. The top-rung at Reliance Retail is a gallery of high-profile prize catches with annual salaries of more than Rs 2 crore.

Some of the big names are Raghu Pillai from Pantaloon, Rajeev Karwal, ex-MD of Electrolux and Bijou Kurien from Titan.

More names will be added to this list of 15 to 20 people, who will head various categories like apparel, consumer durables and FMCG, under Reliance's mega retail venture that plans a rollout of hypermarkets and supermarkets before the end of this year.

Sensing all this buzz from a distance is Bharat Rathod, a kirana owner for 12 years. Studies suggest that traditional retailers like him will continue to grow at between 5-6 per cent, while modern trade formats grow at between 25 and 30 per cent. But an unconvinced Rathod wants to join Reliance Retail.

He says, "If the big companies offer us a job that requires experience and pays, we will want to close our retail outlet and work there."

Reliance and others might look at tapping local retailers as the manpower crunch worsens. But others feel kiranawalas lack the skill sets for modern retail trade. Even so, Reliance Retail, which is out to change the face of retail in India, might find a way around that too.

News: Retail sees a sea change in POP displays

(BS 22/03/2006) Mumbai - Earlier, there were posters and danglers to attract shoppers in a supermarket. Today, with formats as varied as hypermarkets, discount stores and convenience stores dotting the Indian shopping landscape, marketers are going for innovation in their point of purchase (POP) displays.

General Mills, for its newly-launched biscuits and cream snack, Dip Trix, has opted for a multi-prong strategy for the POP display which ranges from specially designed foot dispensers to gravity dispensers to maximize visibility on the shelves.

Sujay Nanavati of Yellow Resources, who has done POP display units for brands like Parle and Doy Soaps other than General Mills said, “Today what is important is consumer interactivity.”

This becomes even more critical in the modern retail formats where there are a number of brands and products vying for the consumers attention.

Gayatri Yadav, marketing manager, General Mills said that they are looking at having about five-six point of interaction in all the modern format outlets to increase the visibility of the product as opposed to a traditional kirana store where a single point of contact is generally sufficient.

Innovation is clearly the key to attracting attention here, with Doy Care using a set of footprints pasted on the shop floor leading up to the rack where the soap is kept.

Proctor & Gamble, which set up a special display unit when it launched its new shampoo, feels that it is important for the POP display material to be focussed towards the shopper to drive brand recall.

“Good displays and shopper relevant messages can lead to significant increase in overall offtake,” said a P&G spokesperson.

This gains greater significance in either low involvement or impulse purchase categories where it then becomes the single biggest decision making factor for the consumer.

Yadav said,” In an impulse category, it is imperative for your brand to stand out in the clutter that you see in the traditional Indian retail market.”

Other common tools used lately include customised shelves and standalone display units which stock all the company’s brands.

News: Reliance Retail goes employee shopping

(TV18 22/03/2006) New Delhi - Reliance Retail is on the prowl and suddenly attrition levels have risen in the retail industry and so have salaries, even of mid-level executives.

With Reliance's entry, the game's got more exciting. Reliance Retail's recruitment drive has led to a major people movement in the sector.

Pantaloon is estimated to be seeing the highest attrition rate of between 35 and 40 per cent, and Piramyd's about 20 per cent, followed by Lifestyle and Shopper's Stop.

Reliance Retail has been responsible for a large chunk of those percentages. Reliance Retail has gone on a shopping spree, picking up about a thousand mid-level retail professionals like store operators and merchandisers.

The company has been offering hard-to-resist packages with hikes that stretch between 25 and 60 per cent over existing salaries and perquisites. Pantaloon is already feeling the heat.

Big Bazaar's category heads like Hans Udeshi for general merchandise and Prabal Ghosh for shoes are some who have joined Reliance Retail.

But sources say companies like Pantaloon and Shopper's Stop are trying to plug the outflow with better salaries and benefits. The top-rung at Reliance Retail is a gallery of high-profile prize catches with annual salaries of more than Rs 2 crore.

Some of the big names are Raghu Pillai from Pantaloon, Rajeev Karwal, ex-MD of Electrolux and Bijou Kurien from Titan.

More names will be added to this list of 15 to 20 people, who will head various categories like apparel, consumer durables and FMCG, under Reliance's mega retail venture that plans a rollout of hypermarkets and supermarkets before the end of this year.

Sensing all this buzz from a distance is Bharat Rathod, a kirana owner for 12 years. Studies suggest that traditional retailers like him will continue to grow at between 5-6 per cent, while modern trade formats grow at between 25 and 30 per cent. But an unconvinced Rathod wants to join Reliance Retail.

He says, "If the big companies offer us a job that requires experience and pays, we will want to close our retail outlet and work there."

Reliance and others might look at tapping local retailers as the manpower crunch worsens. But others feel kiranawalas lack the skill sets for modern retail trade. Even so, Reliance Retail, which is out to change the face of retail in India, might find a way around that too.