Nuclear Bill Liabilityl
Nuclear bill liability is a civil liability for nuclear damage.A crucial bill that provides for compensation in case of a nuclear accident.It is key to operationalise the landmark Indo-Us nuclear deal.The bill pegs the maximum amount of liability in case of each U.S nuclear accident at Rs 300 crore to be paid by the operator of the nuclear plant.However the draft bill also has provisions that would enable the government to either increase or decrease the amount of liability of any operator.The bill is necessary to activate Indo-U.S. Civilian nuclear agreement .after this bill becomes an act ,India will become a member of the international convention on liabilty in the civil nuclear arena.The bill is certainly debatableas it has certain clauses which indirectly let free the manufactures and the builders of the nuclear reactors from any financial and legal liability.according to the clause 7 defines the operator will haveto pay Rs.500 crores and the remaining amount will be paid by the indian government.This is considered as a ridiculous point as the operator will be the Nuclear Power corporation of india Ltd(NPCIL) which itself is a government owned facility.The operator can claim the liabilites form the manufactures and supplier if it is mentioned in the contract .But the maximum amount payable by the foreign companies will be a very little sum of RS 500 crore.Ultimately ,it is the Indian Tax payer who will have to give the money even when the accident has occured due to others mistakes.Clause 17 deals with legal binding of the culpable groups in case of a nuclear accident.pratically,no one is considered legally liable because the recourse taken by the operator will yield only Rs 500 crore at maximum.The operator or the responsible persons in case of a nuclear accident will undergo the trial under Nuclear Damage claims commissions and no civil court is given the authority.
Business of cricket
Today world is highly competitive and a businessperson would look for the opportunities to make money, sports are not exception there is no place for emotion in business. For example if not cricket but badminton is providing money then a businessman would surely invest in that. Coming back to the point IPL has come up in such a way that it is no more a game it is more of glamor, entertainment, fun and money.
Business decisions are dictated by strategy, tactics and cold logic. IPL is the business of more than $3bn. Moreover it has become a case study for management students. Cricket is now cricket industry. The concept of marketing is emerging in the field of cricket and can be addressed as “cricket marketing”. There are functional areas in IPL:
Marketing management
Financial management
Product management
Human resource management.
Business decisions are dictated by strategy, tactics and cold logic. IPL is the business of more than $3bn. Moreover it has become a case study for management students. Cricket is now cricket industry. The concept of marketing is emerging in the field of cricket and can be addressed as “cricket marketing”. There are functional areas in IPL:
Marketing management
Financial management
Product management
Human resource management.
NUCLEAR SECURITY SUMMIT
In full accord on a global threat world leaders on Tuesday endorsed Barack Obama's call for securing all nuclear materials around the globe within 4 years to keep them out of grasp of terrorists. They offered few specifies for achieving that goal.
Securing the nuclear material for effective use in power generation and biomedicals is the talk of the news. But the main agenda of this summit is to make furthur progress in a disarmament act and restrict the use of nuclear materials by non-state actors and terrorists.
The summit countries said they would cooperate more deeply with the United Nations and its watchdog, the International Atomic Energy Agency. Several countirs including Ukraine, Mexico and Canada, declared their intention to give up Highly Enriched Uranium(HEU) as a step toward making it harder for terrorits groups. Russia and US signed a deal to dispose of tons of weapons-grade Plutonium, although that wont start for 8 years.
Securing the nuclear material for effective use in power generation and biomedicals is the talk of the news. But the main agenda of this summit is to make furthur progress in a disarmament act and restrict the use of nuclear materials by non-state actors and terrorists.
The summit countries said they would cooperate more deeply with the United Nations and its watchdog, the International Atomic Energy Agency. Several countirs including Ukraine, Mexico and Canada, declared their intention to give up Highly Enriched Uranium(HEU) as a step toward making it harder for terrorits groups. Russia and US signed a deal to dispose of tons of weapons-grade Plutonium, although that wont start for 8 years.
MFIs rule out any cut in lending rate
Inspite of the pressure from RBI, MFIs are not reducing the lending rate due to their higher operational cost of funds. MFIs are having the high lending rate of 24% but customers are paying up to 30% because lenders take security \money, processing fee and insurance premium. RBI governor D Subbarao is happy with the ability of the MFIs to provide door step credit policy but high rates are not acceptable to him. Small Industries Development Bank of India (SIDBI) also asked MFIs to reduce loan but MFIs like Bandhan,Basix are not accepting it . 2/3 of the operational cost is going in to paying back interest. 1/3 goes in to account of loan delivery, salary payments and all other operations to turn an operation. Bank and SIDBI charges12-14%. In the case of MFI 20-21% loan is the operating cost and 2-4% is the margin used as a buffer stock for adjusting the interest rate fluctuations. MFIs are refusing to reduce the lending rate because they think that interest rate can be increased in the future. MFIs are small financial institutions so the transportation costs are also high. Private equity players are coming to invest in MFIs because of the handful profit they are getting and RBI is not happy with it.
INDIA launches an IT campaign in CHINA
India on 27th March ,Friday launched an aggressive campiagn to showcase its IT capabilities in CHINA to convince local companies inorder to bridge the trade imbalance between the two nations.
Officials of over 300 top end chinese companies , including that of government owned undertaking attended India-China Business Technology submit in which NASSCOM President ,Som Mittal and other officials of top Indian IT firm made presentations.
Lou Qinjian ,Vice chairman of Chinese ministry of IT also attended the meeting.India ambassador S JaiShankar told in the meeting that " India is not asking for any favours as we are already competitive in this field .And India is just making an aggressive pitch to woo the chinese companies telling them if they have the ambition to become a global chinese comapnies they need a global IT solution provider.He told that cost wise and Quality wise we are superior to them "
India's total trade with China is about $ 42 billion this year with balance of trade tilting massively in favour of China. India imported a whooping of $32 billion and exported only $ 9.2 billion of goods ,mostly raw material like oil seeds and iron ore.
The main aim of this IT submit was a part of the strategy to attract local companies as the Chinese government has agreed to encourage its firms to look at Indian IT market.
FUTURE PROSPECT: India would make a strong bid to make strong dent in the Chinese market in IT ,Pharmaceuticals, Engineering Services and Agro products as India is strong in these fields.
Vindi Banga is going to end his 33 yr long association with Unilever.
Mr. Manvindar singh Banga who is better known as Vindi Banga is going to end his 33 yr long association with the popular FMCG giant unilever. The announcement was made in the head quarters of the company London.
When asked by report’s he said that ‘at the age of 55 he believe it is the right time to take on a new platform and explore another opportunity’.
Mr. Banga is a IIM(A) pass out. He joined HLL in the year 1977. He was fast in proving himself. He was appointed the chairman and MD of unilever’s Indian subsidiary HUL in the year 2000. from 2004 onwards he is the president of food, home & personal care wing of unilever. In 2005 he was elected as a member of the unilever executive.
He presided over the company at its difficult times. He was instrumental in facing the competition from the part of P&G. he introduced the power brand strategy were by he cut short the number of brands under the vast portfolio and focused on high performers. He played a big role in introducing brand wheel to tackle the competition of Nirma.
His colleagues remember him as a person with outstanding leadership and vision. He was awarded padma bhushan in the year 2010. He will be replaced by Mr. Michele B Polk who is currently president of unilever America.
When asked by report’s he said that ‘at the age of 55 he believe it is the right time to take on a new platform and explore another opportunity’.
Mr. Banga is a IIM(A) pass out. He joined HLL in the year 1977. He was fast in proving himself. He was appointed the chairman and MD of unilever’s Indian subsidiary HUL in the year 2000. from 2004 onwards he is the president of food, home & personal care wing of unilever. In 2005 he was elected as a member of the unilever executive.
He presided over the company at its difficult times. He was instrumental in facing the competition from the part of P&G. he introduced the power brand strategy were by he cut short the number of brands under the vast portfolio and focused on high performers. He played a big role in introducing brand wheel to tackle the competition of Nirma.
His colleagues remember him as a person with outstanding leadership and vision. He was awarded padma bhushan in the year 2010. He will be replaced by Mr. Michele B Polk who is currently president of unilever America.
Eco-friendly polymer notes in currency
The Reserve Bank of India will soon issue 100-crore polymer notes of Rs 10 denomination to improve their longevity and thwart counterfeiters. These notes will be initially introduced by RBI in five cities. This was disclosed by RBI governor D Subbarao while speaking at the Foundation Stone laying function for the bank note paper mill at Mysore. The bank note market is monopolistic in India. The existing bank note mill facility is at Hoshangabad. India produces only 5% of its requirements in bank note paper. We need to significantly increase our self sufficiency in this regard for a number of operational, economic and strategic reasons. The Mysore bank note paper mill will have an annual production capacity of 12,000 tonnes as a backward linkage in the process of note printing. The proposed paper mill is a JV between the Bharatiya Reserve Bank Note Mudran and the Security Printing and Minting Corporation of India. The two agencies are responsible for printing of all currency notes.
Polymer notes are printed on a specialized polypropylene plastic that is derived from petroleum, and this material is not available commercially for security control purposes.
While cleanliness and durability are seen as the major advantages of polymer, the carbon footprint associated with production, use and disposal of polymer notes is an important issue. Polymer bank notes and the waste from production can be granulated and recycled into useful plastic products.
Polymer notes are printed on a specialized polypropylene plastic that is derived from petroleum, and this material is not available commercially for security control purposes.
While cleanliness and durability are seen as the major advantages of polymer, the carbon footprint associated with production, use and disposal of polymer notes is an important issue. Polymer bank notes and the waste from production can be granulated and recycled into useful plastic products.
COMPARATIVE ADVERTISING: IS IT REALLY COMPARING?
Our Group presented on the topic brand wars: Rin v/s Tide. We had presented a talk show on the topic. All of the students were amazed to see the advertisement where Rin have literally attacked the Tide naturals in every aspects such as appearance, name even the tag line also. but may I remind you friends, this is not the first time that two products are 'openly compared'. There is a lot of examples in the past like Complan -Horlicks, Audi - BMW etc... When we search for more details we found that as per ASCII laws comparing advertising is legal when it is clear what aspects of the advertiser's are being compared with that aspects of the competitors product and when the comparisons are factual, accurate and capable of substantiation. In this case when we observe closely we can see that in the bottom of the screen they have written that tested in a third party lab. But when you see the advt: you can also understand that there is only the comparison with figures, no statistical figures. We have to see the circumstances in which this ad comes out. Hindustan Unilever Limited (HUL) is desperate to downsize the competitor that is the international giant P&G because now tide has got more share than the Rin. Actually this advertisement is only a follow up of a series of incidents. At first P&G came up with an advertisement of it's new product tide naturals. They argued in the advertisement that the detergent only includes natural ingredients. HUL gave a complaint in the court against the statement of natural ingredient and extra whiteness. This controversial ad came right after the verdict of the court in favor of the HUL. Now P&G has moved in the same way and filed a case against the HUL. as a result court has banned the controversial advt: but HUL ad has attracted so much of public attention because it was launched on a weekend and they got 2 days of time to show it repeatedly. This shows the clear intention of HUL to only attract the customers towards the product. But according to the view of my group the ad concentrated more on the competitors product than on their product. In the 30 second ad 22 seconds are spend to show about the Tide natural. At the end of our group presentation the question which arises is that whether the advertising was really comparative or dominating? Answer will be different from each person. But we can conclude by saying that the comparative advertising is good only if it give some information to the people otherwise it is only a play for attraction.
JOHN PLAYERS’S REINVENTING ITSELF
The last two years all apparel brands were reeling because of the
impact of the retail slump. ITC’S midsized men’s wear apparel brand
JOHN PLAYER’S also had to shut down 30 of its
exclusive stores which were opened with miscalculated & overzealous
planning during the preceding boom period. But now the company is
once again on an expansion mode with clear strategy.
According to ITC’s chief-executive. Mr.Atul Chand john player’s being a midsize brand The Company’s aim is to increase the responsiveness and to bring it closer to the consumers. Company is now set to open 75 new stores by this month end focussing on small cities with 1-5 lakh population. The new stores which are to be opened would be smaller to increase the profitability with smaller stores. Another reason is the display facility of entire range in stores such as Denims, Jackets etc apart from shirts; this facility is not available in the 1000-1100 multi brand stores.
Company is endorsing RANBIR KAPOOR as its brand ambassador to position itself from semi-formal to casual and to go in sync with generation Y, The company plans to make the new star endorser the epicentre of its brand communication to be able to connect to dynamic youth of today and achieve estimated sales of 200-250 crore rupees. In the coming few months all expectations of the company is leaned on its new Star icon RANBIR KAPOOR.
impact of the retail slump. ITC’S midsized men’s wear apparel brand
JOHN PLAYER’S also had to shut down 30 of its
exclusive stores which were opened with miscalculated & overzealous
planning during the preceding boom period. But now the company is
once again on an expansion mode with clear strategy.
According to ITC’s chief-executive. Mr.Atul Chand john player’s being a midsize brand The Company’s aim is to increase the responsiveness and to bring it closer to the consumers. Company is now set to open 75 new stores by this month end focussing on small cities with 1-5 lakh population. The new stores which are to be opened would be smaller to increase the profitability with smaller stores. Another reason is the display facility of entire range in stores such as Denims, Jackets etc apart from shirts; this facility is not available in the 1000-1100 multi brand stores.
Company is endorsing RANBIR KAPOOR as its brand ambassador to position itself from semi-formal to casual and to go in sync with generation Y, The company plans to make the new star endorser the epicentre of its brand communication to be able to connect to dynamic youth of today and achieve estimated sales of 200-250 crore rupees. In the coming few months all expectations of the company is leaned on its new Star icon RANBIR KAPOOR.
India's fiscal deficit up by 23%
India's fiscal deficit has gone up by 23% to Rs. 3.80 lakh Cr. in the first eleven months of this fiscal mainly because of the overruns due to the stimulus measures taken by the government during the slowdown last year.
Lets look back to the history , when in 1930 there was the great depression in the world economy at that time Keynes came up with a solution in his great piece of work "The General Theory" that if at the times of recession government provide investments then it helps in increase in demand and overcoming from the situation of recession , same thing can be seen here but now we can also see the drawbacks of the same coming up in the form of Inflation, fiscal deficit and many more .
To deal with such situation now government is coming up with various measures such as in the budget 2011, the government has raised excise duty by 2% to 10% and enhanced tax rates on other products making consumer goods like cars etc, apart from this there are disinvestment polices as well.
SEBI MAY GET POWER TO MONITOR USE OF IPO FUNDS
The new companies bill will give SEBI the power to look into the power to look into the end use of Initial Public Offering (IPO).In an official discussion SEBI said that according to the Section 55A of company’s act, it has only the power to look into the issues of IPO and not beyond that. But some changes are about to be made in this regard. According to SEBI guidelines, at present the monitoring agency is required only for IPO’S of over rs. 500 cr. As the cost involved is high, but now in order to enhance the level of transparency it has suggested that all the companies with IPO’s of even less than rs 500cr should also be monitored. The monitoring agency involved here are the banks or the other financial institutions who will be appointed by the company itself who is going for an IPO. It has been left to SEBI to change its guidelines and also see that all the IPO have a monitoring agency .These steps are being taken because there were complaint about the
mis-utilisation of the money in the IPO’s of less than rs500 cr.
As a solution all IPO’S should have a monitoring agency that will give its report to SEBI and all the shareholders on the use of IPO money. This will help in avoiding the use of money in illegal activities such as terrorism, smuggling or some of the personal use. If it is properly inforced then it will create a positive impact on the market and will also boost the investor’s confidences.
Beside these the government should setup Fund Utilization and Monitoring Agency Authority of India that will look into the use of all the fund raising activities.
mis-utilisation of the money in the IPO’s of less than rs500 cr.
As a solution all IPO’S should have a monitoring agency that will give its report to SEBI and all the shareholders on the use of IPO money. This will help in avoiding the use of money in illegal activities such as terrorism, smuggling or some of the personal use. If it is properly inforced then it will create a positive impact on the market and will also boost the investor’s confidences.
Beside these the government should setup Fund Utilization and Monitoring Agency Authority of India that will look into the use of all the fund raising activities.
TN's next bet; e-component making
Chennai is emerging as a major manufacturing hub for electronic hardware. But 75%-85% of the components required for this industry are imported. So Tamil Nadu feels there is an immense scope in the local manufacturing of these components.
Of the top global electronic manufacturing service(EMS) producers , Foxconn , Flextronics and Sanmina have chosen Chennai to locate their facility. Other projects attracted include Samsung,Dell,Nokia-Siemens,Motorola etc. As of now this industry has attracted an investement of 8000 crore.
Nokia set up its first plant in Chennai in 2006. After that they expanded it twice making Chennai facility largest in the world. Studies by Nokia prove that Chennai is most cost effective and competitive than even china.
This industry can generate employment for 45000 persons in future. Currently Chennai is known as the auto capital of Asia wit a total investment of $4.5billion. Similarly electronic manufacturing industry has the potential to make our country a global power house.
Of the top global electronic manufacturing service(EMS) producers , Foxconn , Flextronics and Sanmina have chosen Chennai to locate their facility. Other projects attracted include Samsung,Dell,Nokia-Siemens,Motorola etc. As of now this industry has attracted an investement of 8000 crore.
Nokia set up its first plant in Chennai in 2006. After that they expanded it twice making Chennai facility largest in the world. Studies by Nokia prove that Chennai is most cost effective and competitive than even china.
This industry can generate employment for 45000 persons in future. Currently Chennai is known as the auto capital of Asia wit a total investment of $4.5billion. Similarly electronic manufacturing industry has the potential to make our country a global power house.
Belkin is planning to launch its innovative products in India
Hello friends, This is the news of 29th march-2010 from "THE HINDU".
Belkin is planning to launch its innovative products in India.
Belkin International is a global manufacturer of computer hardware that specializes in connectivity device. This company sells both the consumer and the commercial business-to-business market, with various product lines including routers, ipod, switches, hubs (USB and computer network), cables, iphone accessories, mobile computing accessories, KVM switches, racks and enclosures, and other peripherals.
The company was founded in 1983 in Howthorne, California, by current CEO Mr. Chet Pipkin. It has twice made the Inc. magazine's list of 500 fastest-growing privately held companies in the United States. At present, Belkin is headquartered in Compton, California.
This US-based company is focussing on home and small entrepreneurs to corporate and business to expand its base in India. The company has already done $5 milion worth of sales with current sales of over 70,000 varied products every month. Currently, company has 150 products across various verticals, and they will take this number of 500 to boost sales. They are expecting $10 million by next fiscal and sales would jump to $100 million by 2013-14. Apart from launching the entire range of innovative products, the company would be investing heavily on building infrastructure. one of the Innovative product is a unique "power on the go" device i.e AC anywhere-with USB charging that charges small batteries for mobile phones, cameras, ipods and DVD-players from car's cigarrete lighter. Company is also focussing structured cabling business strategy so they are introducing the entire range of copper and fibre structured cabling of solution.
Belkin is planning to launch its innovative products in India.
Belkin International is a global manufacturer of computer hardware that specializes in connectivity device. This company sells both the consumer and the commercial business-to-business market, with various product lines including routers, ipod, switches, hubs (USB and computer network), cables, iphone accessories, mobile computing accessories, KVM switches, racks and enclosures, and other peripherals.
The company was founded in 1983 in Howthorne, California, by current CEO Mr. Chet Pipkin. It has twice made the Inc. magazine's list of 500 fastest-growing privately held companies in the United States. At present, Belkin is headquartered in Compton, California.
This US-based company is focussing on home and small entrepreneurs to corporate and business to expand its base in India. The company has already done $5 milion worth of sales with current sales of over 70,000 varied products every month. Currently, company has 150 products across various verticals, and they will take this number of 500 to boost sales. They are expecting $10 million by next fiscal and sales would jump to $100 million by 2013-14. Apart from launching the entire range of innovative products, the company would be investing heavily on building infrastructure. one of the Innovative product is a unique "power on the go" device i.e AC anywhere-with USB charging that charges small batteries for mobile phones, cameras, ipods and DVD-players from car's cigarrete lighter. Company is also focussing structured cabling business strategy so they are introducing the entire range of copper and fibre structured cabling of solution.
NEWS ANALYSIS-RUSSIA TO REVIEW BAN ON EXPORT OF INDIAN BOVINE MEAT.
A russian expert team is likely to visit india shortly to study the situation on the ground and review ban on export of indian bovine meat to russia.ou union agriculture minister mr sharad pawar said he had taken up the problems on expert of indian farm produce to russiawith his russian counterpart yelena skrynikduring thier bilateral meeting of agriculture ministers from BRIC countries. we all know that there is lotof restriction on export to russia . Russian rules and regulation are stricter than internationally accepted requirement .Russsia have imposed several temporary ban on india exports bovine and poultry t INDIAN plant produceand is still to open it's market to indian meat.India exports bovine and poultry to 60 countries including in europe .I think there is tremendous potential for export to russia. It's quite evident from the fact that russia imported 6,00,000 tones of poultry and one million tonnes of meat.Russian in turn wants to export grains to india but mr sharad pawar has explain to yelena skrynik that since we had a bumper crop last year so india is not planning any wheat import but india could import pulsesand oilseeds since there is a shortfall in the production of it and prices of oilseed and pulses are going higher and higher so we can import from russia, this will help india in checking food inflation to certain extent. this will go a long way improving india and russia business relation.
Super auto's disinvestment in Russia
NEWS: Super auto to pull back its stake in russia venture
Tuesday March 30, 2010, Economic Times, Page no. 8
Super auto to pull back iots stakes in russian venture. Super auto is a Chennai based auto component tier-1 supplier, has decided to pull back its entire 40% stake in venture Arya Super auto forge. It manufactures cold forge components for automotives Oil and Gas industries in Russia and Overseas .
Five years ago, Super auto made a distinction of being the first Indian Engineering company to establish a manufacturing unit in Russia. The total investment of Rs 160 Cr was employed in this project.
Now they are willing to disinvest 40 % of stakes that is Rs 64 Cr. the reasons behind this is firstly, they want to focus on domestic market which is evolving. Secondly, global slowdown. Arya Super auto forge got an order of Rs 16 Cr for past 4 concecutive years but in 2008 they only got an order of Rs 4.5 Cr which was a drastic change according to the company and now they are planning in bringing back the money to India
Tuesday March 30, 2010, Economic Times, Page no. 8
Super auto to pull back iots stakes in russian venture. Super auto is a Chennai based auto component tier-1 supplier, has decided to pull back its entire 40% stake in venture Arya Super auto forge. It manufactures cold forge components for automotives Oil and Gas industries in Russia and Overseas .
Five years ago, Super auto made a distinction of being the first Indian Engineering company to establish a manufacturing unit in Russia. The total investment of Rs 160 Cr was employed in this project.
Now they are willing to disinvest 40 % of stakes that is Rs 64 Cr. the reasons behind this is firstly, they want to focus on domestic market which is evolving. Secondly, global slowdown. Arya Super auto forge got an order of Rs 16 Cr for past 4 concecutive years but in 2008 they only got an order of Rs 4.5 Cr which was a drastic change according to the company and now they are planning in bringing back the money to India
NEW LOCATIONS FOR THE FAST FOOD JOINTS
The economics Times- March 29,2010
In the fast moving life style of India,the fast food sector now concentrating on upper middle class people.they target on airports,railway stations etc.
McDonald plans to open 40 outlets this year.They are planning to invest Rs.120cr.They are mainly focusing on airports.The new Delhi based fast food company recently opened 10 Express Kiosks at different locations in Delhi and plans to scale it up to 100 in the next year.
Cafe Coffee Day now operates in all major airports and now plans to expand its reach to smaller airports too.Encore hotel have a tie up with HPCl to start food courts in HP petrol pumps.
Kamats Restaurants opens a chain of restaurants along the highways. Himachal Pradesh Agro Industry Corporations(HPAIC) are planning to sell fruit based food products in the railways.
Quick service resturants business at airports in India is worth Rs.400cr and is groeing bu around 25% annually.
fast food sector is tapping the untapped areas and they are expanding.They are investing cores of rupees into the market.The only problem is that getting license,if they clear that there will be a sudden boom in this sector and lots of job oppurtinties will be there.
In the fast moving life style of India,the fast food sector now concentrating on upper middle class people.they target on airports,railway stations etc.
McDonald plans to open 40 outlets this year.They are planning to invest Rs.120cr.They are mainly focusing on airports.The new Delhi based fast food company recently opened 10 Express Kiosks at different locations in Delhi and plans to scale it up to 100 in the next year.
Cafe Coffee Day now operates in all major airports and now plans to expand its reach to smaller airports too.Encore hotel have a tie up with HPCl to start food courts in HP petrol pumps.
Kamats Restaurants opens a chain of restaurants along the highways. Himachal Pradesh Agro Industry Corporations(HPAIC) are planning to sell fruit based food products in the railways.
Quick service resturants business at airports in India is worth Rs.400cr and is groeing bu around 25% annually.
fast food sector is tapping the untapped areas and they are expanding.They are investing cores of rupees into the market.The only problem is that getting license,if they clear that there will be a sudden boom in this sector and lots of job oppurtinties will be there.
Disinvestment policy of Public Sector Companies
Recenty government came up with the disinvestment plan of three public sectors companies-NTPC, REC and NMDC to raise about 23000 Cr. But the FPO of all the three companies had a poor response from the retail investors and High net worth investors. Finally, local institutions have to come up to bailout the three PSUs. The major reasons for the poor response of the issue were:-
1.Use of French auction method:- Under the French auction method, institutional investors are free to bid above a certain floor price and the allotment would be on price- priority basis.
2.Poor Selection of Investment bankers on the basis of their bids.
3.Difference between the offer price and the market price was so narrow that it made no sense for the retail investors to invest.
Impacts:-
After the poor response of the FPO, disinvestment department reviewed the performance of the investment bankers and decided:-
1.Under the new set of rules being considered, 70% weight age will be given to the quality aspects of the Investment bank and only 30%to the cost of transactions fee quoted.
2.Use of pure auction route instead of French auction method:- In the pure auction, only minimum price is given to institutional investors with no ceiling. QIBs can bid any price above the floor price, but the retail investors and high net worth investors will receive the shares at the minimum price only.
3.15-20% discount could be given to the retail investors in order to attract them and set the right trend for the future disinvestments.
1.Use of French auction method:- Under the French auction method, institutional investors are free to bid above a certain floor price and the allotment would be on price- priority basis.
2.Poor Selection of Investment bankers on the basis of their bids.
3.Difference between the offer price and the market price was so narrow that it made no sense for the retail investors to invest.
Impacts:-
After the poor response of the FPO, disinvestment department reviewed the performance of the investment bankers and decided:-
1.Under the new set of rules being considered, 70% weight age will be given to the quality aspects of the Investment bank and only 30%to the cost of transactions fee quoted.
2.Use of pure auction route instead of French auction method:- In the pure auction, only minimum price is given to institutional investors with no ceiling. QIBs can bid any price above the floor price, but the retail investors and high net worth investors will receive the shares at the minimum price only.
3.15-20% discount could be given to the retail investors in order to attract them and set the right trend for the future disinvestments.
GROWTH OF MULTIPLEX INDUSTRY IN INDIA
In India multiplex industry is in nascent stage.As the world watches economy closely,India's cities are evolving and the plex industry is among the many sectors looking at tapping investment potential.
In the early 90's Ajay bijili invested Rs 45-50 lakh in his priya theatre to introduce dolby system.In 1997 India's first mutiplex at Saket delhi named pvr came into being.Five years before Anil ambani led entertainment group(then adlabs,now reliance media works) bought a controlling stake in Manmohan Shetty's adlabs in a whooping Rs 350 crore deal,along with their 16 multiplex screens the industry has not seen big buzz deal still, shravan shroff decided to sell his screen dream-fame(96 screens)to Inox and also small deals are going on inside mutiplex industry.this is due to the forecasting of there players in the industry because of huge untapping future potential.
according to the FICCI-KPMG 2010 report on the media and entertainment industry,by 2013,the number of plex screens in India is likely to cross 1600.60% of Indian theatrical revenves for hollywood and bollywood films,come from the plexes while for south Indian films its 25%.present investments is about 2220 crore about 850 screens and five years ago it was 497 crore.major players are BIG CINEMAS CINEMAX INOX FAME and PVR
In the early 90's Ajay bijili invested Rs 45-50 lakh in his priya theatre to introduce dolby system.In 1997 India's first mutiplex at Saket delhi named pvr came into being.Five years before Anil ambani led entertainment group(then adlabs,now reliance media works) bought a controlling stake in Manmohan Shetty's adlabs in a whooping Rs 350 crore deal,along with their 16 multiplex screens the industry has not seen big buzz deal still, shravan shroff decided to sell his screen dream-fame(96 screens)to Inox and also small deals are going on inside mutiplex industry.this is due to the forecasting of there players in the industry because of huge untapping future potential.
according to the FICCI-KPMG 2010 report on the media and entertainment industry,by 2013,the number of plex screens in India is likely to cross 1600.60% of Indian theatrical revenves for hollywood and bollywood films,come from the plexes while for south Indian films its 25%.present investments is about 2220 crore about 850 screens and five years ago it was 497 crore.major players are BIG CINEMAS CINEMAX INOX FAME and PVR
AUCTIONING OF 2 NEW IPL TEAMS
Auctioning of 2 new IPL Franchises was conducted on March 21st 2010 at Chennai where history was created when Sahara Adventure Sports which is part of Sahara Group bought Pune team for a whopping US $ 370 million. This is highest bid in the IPL history. The second highest bidder was the little unknown Rendezvous Sports which bought Kochi team for US$ 333.33 million. The exchange rate was Rs 46 for a dollar and the contract is valid for 10 year period.
These 2 teams together work out to US $ 703.33 million or Rs.3235.53 crores, which is much higher than the auctioning of all the 8 teams in IPL1 in 2008 which was only Rs.2840 crores.The highest bid price for the IPL 1 season team was only US $112 million which is less than 3 times the bid for Pune team ($370 million).This the brand image that IPL has created in just 3 years. The brand value of IPL today is estimated to be around $ 4.13 billion. This year for IPL season 3, live online streaming and theatre screenings of IPL matches was introduced for the first time.
For IPL 4, 500 players will take part in the auctioning. Number of matches will be increased from 60 to 94 matches. Star players like Sachin Tendulkar, Rahul Dravid, Yuvraj Singh etc will be deprived of their icon status and will appear on the auction list if their respective franchise wants.
Hoping to see S.Shreesanth in the Kochi team next IPL season.
Indian BPOs spot onsite avenues in US
India is known as the hub of IT and BPO industry.It contributes 7% of national GDP.But after Barack Obama has been selected as the president of USA he gave a stimulus package of $787 billion to improve the economic condition of the country after recession .Along with the package he introduce some policy which create some difficulty for the company to hier foreigner on temporary work permit .The policy had also make some restrction regarding the outsourcing of jobs.
That was the reason to worry for the indian BPO firm .But now thry see lucrative opportunity emerges because of falling real estate price(upto 30%-40%)and labour cost(unemployment upto 10%) in USA.So they are planning to establish operating units in US which gives them the better exposure to the country.
Advantages
->low cost location
->hire local people
->business model change from off-shore to on-shore
->diverse workforce
->help in getting contract
->halp in getting more challenging job
->more opportunity
->scope to know the socio-economic condition and make decision accordingly
->increase profitability ,productivity
->better customer relationship
That was the reason to worry for the indian BPO firm .But now thry see lucrative opportunity emerges because of falling real estate price(upto 30%-40%)and labour cost(unemployment upto 10%) in USA.So they are planning to establish operating units in US which gives them the better exposure to the country.
Advantages
->low cost location
->hire local people
->business model change from off-shore to on-shore
->diverse workforce
->help in getting contract
->halp in getting more challenging job
->more opportunity
->scope to know the socio-economic condition and make decision accordingly
->increase profitability ,productivity
->better customer relationship
Gates foundation to go all out to reduce child deaths in U.P,Bihar
This news is with reference to 'THE HINDU' dated 29th march 2010.Gates foundation is placing a new emphasis on innovations that inculcates social and cultural change to bring down the unacceptable high death rates in uttar pradesh and Bihar.Melinda gates co-founder and co-chair of the Bill & Melinda Gates Foundation who was in India visited villages in barabanki and rae bareilyand also talked about new investments and memorandum of understanding with chief minister Mayawati.Gates foundation is committing $55million in the states over next 3 to years for the polio eradication,immunisation coverage,maternal and child issues. Established in1994 Gates foundation is one of the largest trust in the world with an asset of $33.5 billion having global health programs and global development programs.
How to reduce child death rate?
-creating awareness among women to change their traditional culture related to babies.
-polio eradication
-immunisation coverage
-improve upon maternal and child issues.
Why India?
There has been an unacceptable rate of child deaths in India and thus Gates foundation is stressing on cultural and social change,to make women believe that they need to come out of the traditional practices.According to Melinda gates,the infrastructure facility in India is also high,and the govt can improve the gaps there have been in National rural health mission and National urban health mission.
THE IMPACT
The increase in immunisation rate and social change in these two sates ,will bring a healthy life to the people and help in uplifting them in the society.
VEDANTA RESOURCES
To have a clear ownership structure and in order to have a clear valuation of its Aluminium business,the Anil Agarwal-owned Vedanta Resources has planned to demerge its Aluminium Extraction Units operational in Orissa.
The newly formed company,"Vedanta Aluminium"is currently owned by Vedanta Resources with a stake of 70%,while Sterlite Industries that manages the Indian businesses of Vedanta,owns the rest.The demerger is planned by the London-based Advisers of Vedanta Resources.
After the demerger,which is subject to approval of the Stakeholders of Vedanta Resources,Sterlite Industries will be solely a zinc and copper producer.
The newly formed firm will also be a listed entity.
Credit Target of FY 2009-10
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Credit target is defined as loan given by banks to corporates, individual, government etc. This is being set every year by RBI. For the financial year 2009-10 it was set 20%, but banks have seen very poor loan demand. Hence RBI decreased it to 18% and then to finally to 16%. Till January 2010, 9% of credit target was achieved, and next target was to lend Rs 1.9 lakh crore in next two months that is February and March.
Banks are lowering their lending rates in order to achieve credit targets. IOC ( Indian Oil Corp.) has raised Rs 1000 crore at 4.75% for 90 day loan. Also banks are providing extended loan for even one year at lower rates, in order to achieve their 16% target.
But condition is not same for all banks. SBI has achieved 17% credit growth in January itself and margin have improved 2.82% in December-09 from 2.3% in June-09 . Till March 26, 12.6% of the target has been achieved, and still Rs 94000 crore money is to be lended in order to achieve credit target.
REINVENTED BIHAR
REINVENTED BIHAR
This is a general belief that India would emerge as a global economic power in 21st century. for this emergence, the state of Bihar with its 82 million population will have to be a strong development partner.
After decades of non performance Bihar has finally reinvented itself as one of the most happening state of India. The two digit growth rate (11.35%) is not a flash in the pan. This could be achieved only through the painstaking efforts to reconstruct an almost non-functioning state.
The 1st phase of growth in Bihar is driven primarily by public investment. The plan expenditure of state at 4899 crore in 05-06 had more than trebled in just 3 years. In 2008-09 it stood at 15476 crore. This trend is expected to continue and that will insure crowding in of private investment both external and internal.
This growth could be possible because of numerous reforms introduced in the state. These reforms have not only improved government functioning but also created a base for private sector investment. The reform range from fiscal management to reducing the cost of business activity and improving investment climate, through passing FRBM act 2006 and Bihar single window clearance act (BSWCA). Even with initial reform attempts, the result in Bihar is dramatic. The time to start a business has reduced from 41 days to 30 days. The turn around in Bihar is tangible and visible in many spheres including physical infrastructure (roads both urban and rural), education, and health.
1st phase of growth is nearly complete and now Bihar needs 2nd stage of growth. For 2nd stage of growth six critical components are:-
1. Land record updates.
2. Power generation.
3. Water management.
4. Credit deposit ratio.
5. Public private partnership (PPP).
6. Delivery system.
This is a general belief that India would emerge as a global economic power in 21st century. for this emergence, the state of Bihar with its 82 million population will have to be a strong development partner.
After decades of non performance Bihar has finally reinvented itself as one of the most happening state of India. The two digit growth rate (11.35%) is not a flash in the pan. This could be achieved only through the painstaking efforts to reconstruct an almost non-functioning state.
The 1st phase of growth in Bihar is driven primarily by public investment. The plan expenditure of state at 4899 crore in 05-06 had more than trebled in just 3 years. In 2008-09 it stood at 15476 crore. This trend is expected to continue and that will insure crowding in of private investment both external and internal.
This growth could be possible because of numerous reforms introduced in the state. These reforms have not only improved government functioning but also created a base for private sector investment. The reform range from fiscal management to reducing the cost of business activity and improving investment climate, through passing FRBM act 2006 and Bihar single window clearance act (BSWCA). Even with initial reform attempts, the result in Bihar is dramatic. The time to start a business has reduced from 41 days to 30 days. The turn around in Bihar is tangible and visible in many spheres including physical infrastructure (roads both urban and rural), education, and health.
1st phase of growth is nearly complete and now Bihar needs 2nd stage of growth. For 2nd stage of growth six critical components are:-
1. Land record updates.
2. Power generation.
3. Water management.
4. Credit deposit ratio.
5. Public private partnership (PPP).
6. Delivery system.
Fortis healthcare acquisition and its impact on financial performance
This news is relating to one of the leading health care service provider of our country Fortis health care.
Fortis health care, owned by billionaire brothers malvinder singh and shivender singh has recently bought TPG capital's 24% stake in singapore based healthacare provider parkway holdings limited for 3080 crore catapulting itself as the largest hospital chain in asia.
After selling india's largest drug company Ranbaxy to japan's Daiichi sankyo for 10000crore the singh brothers are aggresively expanding their healthcare and financial service businesses through a series of buy-outs. last month it bought US based wealth management firm North gate capital for $250 million. It had funded the deal by short term loans where several banks and non banking financial institutions have agreed to lend. Post the borrowings the Debt-equity ratio remain below 1:1. With this buyout the company have 62 hospitals(over 10000 beds) placing it significantly ahead of Chennai based Apollo Hospitals that runs 46 Hospitals(over 8000 beds). more over this deal could impact Apollo Hospitals existing joint venture with parkway holdings.
With this deal the company has moved a step closer towards its vision of becoming Global health care delivery network.
Fortis health care, owned by billionaire brothers malvinder singh and shivender singh has recently bought TPG capital's 24% stake in singapore based healthacare provider parkway holdings limited for 3080 crore catapulting itself as the largest hospital chain in asia.
After selling india's largest drug company Ranbaxy to japan's Daiichi sankyo for 10000crore the singh brothers are aggresively expanding their healthcare and financial service businesses through a series of buy-outs. last month it bought US based wealth management firm North gate capital for $250 million. It had funded the deal by short term loans where several banks and non banking financial institutions have agreed to lend. Post the borrowings the Debt-equity ratio remain below 1:1. With this buyout the company have 62 hospitals(over 10000 beds) placing it significantly ahead of Chennai based Apollo Hospitals that runs 46 Hospitals(over 8000 beds). more over this deal could impact Apollo Hospitals existing joint venture with parkway holdings.
With this deal the company has moved a step closer towards its vision of becoming Global health care delivery network.
Private FIs allowed to issue tax-free core sector bonds
Private FIs allowed to issue tax-free core sector bonds
This is the news which was shown on 24th march 2010 regarding the issue of infrastructural bonds.
Indian private banks and non banking finance companies join state owned firms and hence will be allowed to offer tax free infrastructure bonds to investors.
Infrastructure bonds were available through public sector financial institutions like ICICI and IDBI, in the name of safety bonds and IDBI flexi bonds. They are used as tax saving tools by investors. The government aims to raise long term funds through infrastructure bonds. The country requires a trillion dollars over the 12th plan period (2012 - 2017) to improve its infrastructure. Bearing this point in mind, the government has decided to issue tax free infrastructure bonds.
In the early half of the decade, infrastructure bonds were very popular with investors but the changes in 2005-2006 budget made them less attractive and practically killed the retail market for such bonds which was worth Rs.15000 to 20000 crores.
Effective yield on the infrastructure bonds comes out to be quite good. In case an investor invests Rs 20000 in these bonds, you can claim a deduction of Rs. 20000 in addition to the sec.8O.C deduction. Applying the highest rate of tax of 30% this translates into a ceiling of 6000 in taxes. In this way retailer can reduce the tax liability.
The government allowed a deduction of Rs 20000 on investment in long term infrastructure bonds. This deduction is an addition to 1 lakh under Sec.80 c of Income Tax Act.
Indian private banks and non banking finance companies join state owned firms and hence will be allowed to offer tax free infrastructure bonds to investors.
Infrastructure bonds were available through public sector financial institutions like ICICI and IDBI, in the name of safety bonds and IDBI flexi bonds. They are used as tax saving tools by investors. The government aims to raise long term funds through infrastructure bonds. The country requires a trillion dollars over the 12th plan period (2012 - 2017) to improve its infrastructure. Bearing this point in mind, the government has decided to issue tax free infrastructure bonds.
In the early half of the decade, infrastructure bonds were very popular with investors but the changes in 2005-2006 budget made them less attractive and practically killed the retail market for such bonds which was worth Rs.15000 to 20000 crores.
Effective yield on the infrastructure bonds comes out to be quite good. In case an investor invests Rs 20000 in these bonds, you can claim a deduction of Rs. 20000 in addition to the sec.8O.C deduction. Applying the highest rate of tax of 30% this translates into a ceiling of 6000 in taxes. In this way retailer can reduce the tax liability.
The government allowed a deduction of Rs 20000 on investment in long term infrastructure bonds. This deduction is an addition to 1 lakh under Sec.80 c of Income Tax Act.
Biyani eyes East,to double its Hypermarts in next months
The following is a news analysis from 'The Economic Times' dated March 22,2010.Mr.Kishore Biyani,the king of retail has planned to invest more than Rs.125 crores over the next 6 months to expand the Big bazaar chain of hypermarts.Big Bazaar is a subsidiary of Pantaloons and is headed by Mr.Kishore Biyani the CEO of Future groups.Big Bazaar was started on Oct 2001 and the first outlet was opened in kolkata and the subsequent outlets were added in Hyderabad and Mumbai in the same month.It follows a business model of US based Walmart.The company has 105 retail outlets country wide.Now The future Groups have planned to invest to expand in the eastern region of our country.At present there are 22 retail outlets in the east which will increase to 40 by Oct.Bigbazaar has also created 'Bigbazaar family centre' completely focussed on community Retailing.Future groups have also planned to convert 2 existing stores in Ranchi and Guwahati into Bigbazaar family centres.At present the store is spread over 10 lakh sq.ft of which another 6 lakh is to be added as a part of expansion process.Earlier the focus was on volume sales but lead to entire family shopping basket.As a part of theirexpansion plan they have planned to enter into eastern markets like Patna,Agartala,Bilaspur,Silchar,Gangtok and so on.In kolkata ther are already 7 oulets existing and they have planned to add 7 more.Future group is eyeing around Rs.12000 crore from the private labels by 2012.
Biyani eyes East,to double its Hypermarts in next months
The following is a news analysis from 'The Economic Times' dated March 22,2010.Mr.Kishore Biyani,the king of retail has planned to invest more than Rs.125 crores over the next 6 months to expand the Big bazaar chain of hypermarts.Big Bazaar is a subsidiary of Pantaloons and is headed by Mr.Kishore Biyani the CEO of Future groups.Big Bazaar was started on Oct 2001 and the first outlet was opened in kolkata and the subsequent outlets were added in Hyderabad and Mumbai in the same month.It follows a business model of US based Walmart.The company has 105 retail outlets country wide.Now The future Groups have planned to invest to expand in the eastern region of our country.At present there are 22 retail outlets in the east which will increase to 40 by Oct.Bigbazaar has also created 'Bigbazaar family centre' completely focussed on community Retailing.Future groups have also planned to convert 2 existing stores in Ranchi and Guwahati into Bigbazaar family centres.At present the store is spread over 10 lakh sq.ft of which another 6 lakh is to be added as a part of expansion process.Earlier the focus was on volume sales but lead to entire family shopping basket.As a part of theirexpansion plan they have planned to enter into eastern markets like Patna,Agartala,Bilaspur,Silchar,Gangtok and so on.In kolkata ther are already 7 oulets existing and they have planned to add 7 more.Future group is eyeing around Rs.12000 crore from the private labels by 2012.
Despite a slow rise in PC sales last year and in decline in number of cyber cafes,Internet users grew in the country by a whopping 42%.According to the reports of survey done by Internet and Mobile Association of India (IMAI),total Internet users grew to 71 milion users in 2009 compared to 57 million and 46 millon in 2008&2009 respectively.Also there are two catagories of Internet users in India.These are
(a)Active users:Those who have used internet atleast once last one month.
(b)Claimed users:Those who have used internet sometime but not in the last one month.
Survey also found some barriers to Internet users in India in early years.These are:
(a)Lack of awareness of use of medium(accounts for 47% of total).
(b)Cyber cafes charges are high(11.7%).
(c)unavailability of good cyber cafes(8.9%).
Survey conducted in some major cities found that Mumbai was on top with highest number of households using Internet followed by Delhi,Chennai,Kolkata.Cochin was placed at seventh place after Pune.Growth was mainly due to reduced price of cheap access devices like notebooks that are now available at Rs 20000.
Now future prospects is that number of internet users worldwide is expected to touch 2.2 billion by 2013 and India is projected to be third largest by that time after China and US respectively.It implies that this rise is mainly due torise in sticky application such as social networking sites,chats and downloadings which made internet giving serious competition to TV in many households.
(a)Active users:Those who have used internet atleast once last one month.
(b)Claimed users:Those who have used internet sometime but not in the last one month.
Survey also found some barriers to Internet users in India in early years.These are:
(a)Lack of awareness of use of medium(accounts for 47% of total).
(b)Cyber cafes charges are high(11.7%).
(c)unavailability of good cyber cafes(8.9%).
Survey conducted in some major cities found that Mumbai was on top with highest number of households using Internet followed by Delhi,Chennai,Kolkata.Cochin was placed at seventh place after Pune.Growth was mainly due to reduced price of cheap access devices like notebooks that are now available at Rs 20000.
Now future prospects is that number of internet users worldwide is expected to touch 2.2 billion by 2013 and India is projected to be third largest by that time after China and US respectively.It implies that this rise is mainly due torise in sticky application such as social networking sites,chats and downloadings which made internet giving serious competition to TV in many households.
Tigerwoods is back
Tigerwoods is a well known golf player who has won 14 major championships till now. He is considered to be one of the most influential sportsperson and he can attract the sponsors and financiers to the golf. In December 2009 his wife accused him of the extramarital affairs. So, he took indefinite leave from golf. Shocked by this the companies like Accenture, Gillette, AT&T backed out their endorsement deals with Tigerwoods. Some companies like Nike, Electronic arts stood by him. On 16th march he has announced that he would come back to golf in the Masters championship which is to be held during the month of April. This has become a long awaited boon for sponsors that stood by him and marketers that stand to get big exposure from the big Masters audience. IBM Corp, AT&T, Exxon mobil are the three major sponsors for the Masters championship. Because of Tigerwoods’ return these companies will get more exposure. Nike who stood by Tigerwoods will get a good exposure for its products like Tiger’s Nike hat, Nike shirt, Nike ball. Electronic Arts which supported Woods are going to launch their next edition of video game Tigerwoods PGA tour in june also will get visibility. ESPN & CBS are going to broadcast the Masters championship. In 1997, when Tigerwoods reached finals there were 20.3 million audience. So if Tigerwoods reached finals this year and proved him then that will have a strong positive impact over the sponsors, broadcasters and also for companies like Nike and Electronic Arts. Anyway for people who considered Tigerwoods as their role model this re-entry may create negative impact.
Dish TV came up with a new gadget.
Dish TV, India's largest DTH service provider,with a customer base of over 6 million came up with a new gadget that helps us to shift from one DTH service provider to other without changing the set top box and dish antenna.The gadget is called CAM (Conditional Access Module),which is a card that can be inserted into the set top box.
Recently TRAI (Telecom regulatory authority of India)has made it compulsory that set top box offered by every DTH service provider should have an empty space where the card can be inserted.
Advantages
1) With the introduction of CAM Dish TV will be able to tackle competition and they will be able to increase their sales.
2) Customers need not pay extra money on set top box and dish antenna
3) DTH service providers will be able to reduce the cost of subsidy.
Disadvantages
1) Competitors argue that the price of CAM will be almost equal to the cost of buying a new set top box,so their wont be any market for CAM
2) Customers wont be able to access the interactive services and other valye added services of other DTH providers.
Recently TRAI (Telecom regulatory authority of India)has made it compulsory that set top box offered by every DTH service provider should have an empty space where the card can be inserted.
Advantages
1) With the introduction of CAM Dish TV will be able to tackle competition and they will be able to increase their sales.
2) Customers need not pay extra money on set top box and dish antenna
3) DTH service providers will be able to reduce the cost of subsidy.
Disadvantages
1) Competitors argue that the price of CAM will be almost equal to the cost of buying a new set top box,so their wont be any market for CAM
2) Customers wont be able to access the interactive services and other valye added services of other DTH providers.
RBI asked banks to go rural
On 21st February 2010 RBI deputy governor Mr.Subir asked all the nationalised banks to go to rural india.He asked all the national banks to provide banking services to the far-flung villages with minimum population of 2000.
On 26th February 2010 our finance minister Mr.Pranab Mukherjee asked all the banks to provide banking facilities for villages.He also said that account is important for all the citizen in india.He also told about introducing of frilled accounts,in which we can maintain zero balance.
ADVANTAGES
* it will increase money circulation in the country.
* it will create lot of job opportunity.
* it will give the banking sector to collect a lot of revenue for the government.
* it would broaden the indian economy.
* it will increase the india's growth rate.
* it will help government to implement the policies effectively and efficiently.
* it would help the village people to get loans easily from the bank for agriculture.
* it would help the young budding entrepreneurs to obtain loan for their business,thus
the standard of living in villages.
* it helps in equal urbanization across the country.
* it will help in easy transaction of money all over the country.
* it will stop the migration of people from rural to urbanized areas.
DISADVANTAGES
* it will increase inflation in the country.
* due to high money circulation,there would be a depreciation in the value of money in international market.
* due to urbanization across india it might reduce the production of agriculture products.
* it might lead to food inflation.
* the urbanization across india may lead to pollution.
* it lead to high consumption rate.
* it might lead to rise in population.
Center Fixes Fertilizers Subsidies....
Center Fixes Fertilizers Subsidies....
This report came in Business Line in Agribusiness Column on March 18, 2010 that centre fixes fertilizers subsidies. The price of Nitrogen is at 23.22 Rs./Kg, Phosphorus is at 26.27 Rs./Kg, Potash is at 24.48 Rs./Kg and Sulphur is at 1.78 Rs./Kg. Famers may not have to suffer huge increase in price of non-urea fertilizers following their decontrol with effect from April 1, 2010. Under this scheme the centre will announce subsidies on each nutrient before every fiscal, which will valid for the whole year. The fertilizer subsidies which in the earlier system were fixed on the product will now be calculated on the basis of the percentage of nutrients contained in it. For instance the subsidy on DAP will be calculated on the basis of nitrogen and phosphorus content in 18% and 46%.
In India 42% people living below poverty line in rural India. By applying these subsidies it will increase agricultural productivity and will decrease high food price inflation. For NAREGA this year 40,000 Crore been sanctioned by central government, 66,100 Crore for rural development, and 48,000 Crore for Bhrat Nirman. By these things government in this Union Budget is taking more care of the rural India.
Centre Fixes Fertilizers Subsidies....
This report came in Business Line in Agribusiness Column on March 18, 2010 that centre fixes fertilizers subsidies. The price of Nitrogen is at 23.22 Rs./Kg, Phosphorus is at 26.27 Rs./Kg, Potash is at 24.48 Rs./Kg and Sulphur is at 1.78 Rs./Kg. Famers may not have to suffer huge increase in price of non-urea fertilizers following their decontrol with effect from April 1, 2010. Under this scheme the centre will announce subsidies on each nutrient before every fiscal, which will valid for the whole year. The fertilizer subsidies which in the earlier system were fixed on the product will now be calculated on the basis of the percentage of nutrients contained in it. For instance the subsidy on DAP will be calculated on the basis of nitrogen and phosphorus content in 18% and 46%.
In India 42% people living below poverty line in rural India. By applying these subsidies it will increase agricultural productivity and will decrease high food price inflation. For NAREGA this year 40,000 Crore been sanctioned by central government, 66,100 Crore for rural development, and 48,000 Crore for Bhrat Nirman. By these things government in this Union Budget is taking more care of the rural India.
In India 42% people living below poverty line in rural India. By applying these subsidies it will increase agricultural productivity and will decrease high food price inflation. For NAREGA this year 40,000 Crore been sanctioned by central government, 66,100 Crore for rural development, and 48,000 Crore for Bhrat Nirman. By these things government in this Union Budget is taking more care of the rural India.
FORD all set to make INDIA small-car hub
India, is now one of the topmost and important auto hubs in the Asian continent. This has now been realized by most of the auto companies. So as a departure from the past, Ford has already started their manufacturing unit for small car in our country and is also planning to bring all their models what they have to the Indian market, attempting to catch up with the rivals and gain greater traction in the red-hot Indian car market that is setting new sales records every month.
What FORD has done earlier in INDIA was that they had rolled out escort cars in the nineties in a joint venture with the Mahindras even though it was a hit, they didn't realize the importance of producing a right-sized and right-priced car for the Asian markets. This is where they gave space to its Asian rivals like Hyundai and Honda which came up with appropriate models.
That is what FORD has realized and going to do now, and FORD Figo is just one part of their larger vision. Out of the small car market the 50% of the demand is for the hatch back segment and so they came up with the right model FORD Figo which is rightly priced and will be taking on Maruti Suzuki's Wagon R and Swift and Hyundai's i10.
The reason why FORD has chosen INDIA as their location for small car manufacturing is because, Allan Mullaly CEO of FORD motors is a fan of India's Frugal Engineering capabilities, where a complex process would be broken into basic components and further developing this basic components to final process economically. They have chosen Chennai especially because of the favourable governmental policies, tax benefits and the TN government is further going to improve the conditions for the manufacturing industries there.
The main strategy for FORD from the time when Allan Mullaly has taken charge from 2006 which he calls "Laser Focus on the Mother brand", because its a brand that people recognize and appreciate and we want to grow it and be focused on it, CEO said. This is the main reason why they have sold one of their premium brand Jaguar Land Rover to TATA recently, and even they are in talks to sell their another brand VOLVO cars to a firm in China.
The future implications will be from the FORD point of view they could gain a greater traction of the small car Asian market which they are lacking now and from India's point of view our economy would be benefited as FORD is going to export the car from our country to other places and it will also help the local component manufacturers of our country.
FOOD INFLATION RATE SLOW DOWN TO 16.30%
The current food inflation rate has declined from 17.8% to 16.30% for the week ended March 6th.The decline is due to the decrease in the prices of vegetables and pulses. Prices of vegetables like onion and potatoes has come down to 11.08% and 3.5%.The pulse have also become cheaper. Sugar prices have come down due to higher production estimates in major producing states like Maharashtra and Uttar Pradesh. In the beginning of the year 2010, the food inflation rate marginally rose to 17.8% and this rise was due to the due to poor harvest. The highest inflation was in the year in year 1972 which was 25% and this was due to the poor integration of price policies and economic policies, import of beef and poor harvest. But the fuel inflation rate has gone up to 12.68%. It has been anticipated that the food inflation rate is likely to be the same for some period of time and rise when there is hike in the prices of diesel and petrol.
The current food inflation rate has declined from 17.8% to 16.30% for the week ended March 6th.The decline is due to the decrease in the prices of vegetables and pulses. Prices of vegetables like onion and potatoes has come down to 11.08% and 3.5%.The pulse have also become cheaper. Sugar prices have come down due to higher production estimates in major producing states like Maharashtra and Uttar Pradesh. In the beginning of the year 2010, the food inflation rate marginally rose to 17.8% and this rise was due to the due to poor harvest. The highest inflation was in the year in year 1972 which was 25% and this was due to the poor integration of price policies and economic policies, import of beef and poor harvest. But the fuel inflation rate has gone up to 12.68%. It has been anticipated that the food inflation rate is likely to be the same for some period of time and rise when there is hike in the prices of diesel and petrol.
3G Spectrum and Broad band Wireless Access spectrum
It's boom times for mobile phones in India.And people are looking forward to more information ,faster data access and multimedia services through their mobile phones.3G technology turn this dream into reality.Spectrum refers to a range of frequencies.1G networks are analog.2G networks are digital.2G stands for second-generation wireless telephone technology.3G(third-generation) technology is used to enhance mobile phone standards.3G helps to simultaneously transfer both voice data( a telephone call) and non-voice data (such as downloading information,exchanging e-mail,and instant messaging.The highlight of 3G is video telephony.3G services will enable video broad cast and data-intensive services such as stock transactions ,e-learning and telemedicine through wireless communications.Japan was the first country to introduce 3G on a large commercial scale.In 2005 about 40 percent of subscribers used only 3G networks .It is expected that during 2006 the subscribers would move from 2G to 3g and upgrade to the next 3.5G level.
There are about 60 3G networks across 25 countries .on 19th march 9 players applied for 3G and 11 players applied for Broad band wireless access spectrum .Almost all leading private telecom companies including Bharti Air tel,Vodafone,Essar,Reliance communications and Tata Tele services have filed their applications for the 3G spectrum auction will be held next month (april 9th).similarly etisalat DB ,a joint venture between UAE-based Etisalat(Emirates Telecommunications corporation and swan telecom,will also be bidding for spectrum to offer adv--anced mobile services.
All the major players are likely to join the bidding that will begin on April 9.All the major players are likely to bid for pan- India licence.The Department of Telecommunications,which has fixed a reserve price of 3500 crore for pan-India spectrum ,is targeting over RS 20000 crore revenues from the 3G Spectrum auction.Similarly ,for the wireless broadband access(BWA or Wimax) spectrum 11 players- Tatacommunications,Qualcomm,Tikona,vodafone Essar and some other players submitted applications for BWA spectrum.
3G has successfully been introduced in Europe .But several issues like high licensing fees,high infrastructure hamper its growth.
4G technology stands to be the future standard of wireless devices.currently Japanese company NTT docomo and samsung are testing 4G communication
There are about 60 3G networks across 25 countries .on 19th march 9 players applied for 3G and 11 players applied for Broad band wireless access spectrum .Almost all leading private telecom companies including Bharti Air tel,Vodafone,Essar,Reliance communications and Tata Tele services have filed their applications for the 3G spectrum auction will be held next month (april 9th).similarly etisalat DB ,a joint venture between UAE-based Etisalat(Emirates Telecommunications corporation and swan telecom,will also be bidding for spectrum to offer adv--anced mobile services.
All the major players are likely to join the bidding that will begin on April 9.All the major players are likely to bid for pan- India licence.The Department of Telecommunications,which has fixed a reserve price of 3500 crore for pan-India spectrum ,is targeting over RS 20000 crore revenues from the 3G Spectrum auction.Similarly ,for the wireless broadband access(BWA or Wimax) spectrum 11 players- Tatacommunications,Qualcomm,Tikona,vodafone Essar and some other players submitted applications for BWA spectrum.
3G has successfully been introduced in Europe .But several issues like high licensing fees,high infrastructure hamper its growth.
4G technology stands to be the future standard of wireless devices.currently Japanese company NTT docomo and samsung are testing 4G communication
Renovation of Batch 18c Blog - A New Start
I got a good news for all of you. I had a talk with our class teacher, Fatima Mam. Our blog posts have been evaluated and marks has already been submitted for the same.
She has given permission to continue this blog and has given full freedom to express yourself through this blog, but then this blog needs a renovation. What is your opinion?
What I suggest :
Some blog posts should be deleted and only few quality, meaningful blogs should survive before we start a new journey.
Lets not just limit ourselves to copy paste or to the business articles. We are dealing with corporates and business side too much already. So let this blog show the creative side of yours. Let more poems, short stories, experience be posted. Be different, be creative. Let the writer in you live it's dream here. Let this be the dwelling place for your writer. Who knows tomorrow you may write your own novel.
This is not for evaluation, so post not for marks or to impress anyone but post right from your heart. That gives a life to your blog post and more comments/feedback would flow into it.
Add pictures to give life to your blog. If you face any issue we can start a technical support blog too where we can post our queries and rest all can sort out the issue. Let this be the teamwork than individual effort. Lets motivate each other.
Do not just blogs, lets read others post too and comment on it. By the way if your blog is interesting I am sure it would attract many readers.
We can start debates in here too.
Now what we need to do is, post the title of two blogs which you liked the most out of 225 blogs. I know there are many blogs which are too good but lets select two best blogs as per you.
So lets come together and make it a success. Post in more suggestions and your views about the same.
She has given permission to continue this blog and has given full freedom to express yourself through this blog, but then this blog needs a renovation. What is your opinion?What I suggest :
Some blog posts should be deleted and only few quality, meaningful blogs should survive before we start a new journey.
Lets not just limit ourselves to copy paste or to the business articles. We are dealing with corporates and business side too much already. So let this blog show the creative side of yours. Let more poems, short stories, experience be posted. Be different, be creative. Let the writer in you live it's dream here. Let this be the dwelling place for your writer. Who knows tomorrow you may write your own novel.
This is not for evaluation, so post not for marks or to impress anyone but post right from your heart. That gives a life to your blog post and more comments/feedback would flow into it.
Add pictures to give life to your blog. If you face any issue we can start a technical support blog too where we can post our queries and rest all can sort out the issue. Let this be the teamwork than individual effort. Lets motivate each other.
Do not just blogs, lets read others post too and comment on it. By the way if your blog is interesting I am sure it would attract many readers.
We can start debates in here too.
Now what we need to do is, post the title of two blogs which you liked the most out of 225 blogs. I know there are many blogs which are too good but lets select two best blogs as per you.
So lets come together and make it a success. Post in more suggestions and your views about the same.
WALK WALK...............
INDIA as you all know is a paradise of Diabetes and blood pressure, these two together with high cholesterol cause syndrome-X. Indians diet is very high in carbohydrates and saturated fats, this diet with physical inactivity leads to diabetes, blood pressure and cholesterol. Every Indian should realise that living with syndrome-X is harmful to health, which might lead to premature death due to heart attack or stroke. This is big burden on loved ones and family.
Every young Indian should realize that all the above disease can be prevented (for sure) through regular physically active life, healthy diet rich vegetables and fruits, and limit foods that are rich in carbohydrate and saturated fats. Those who are already living with these lifestyle disease, start regular physical activities right today and ward off disease related complications like heart attack, stroke, diabetic problems, kidney diseases and so on.
In addition, walking and other physical activities have vast health benefits. Keep you live longer with good health, mind and heart.
The food style of the individuals needs to be based on the lifestyle of that person. In turn, it should be something which is to be tailor made and it is to be strictly followed. Our ancestors had a very good composite food items. It had a good nutritive value and they even had a good physique too. By saying the so called development and modernisation, we are slowly forgetting or neglecting our native food resources. we should keep it in our mind to have the menu which matches with our daily calorie requirements and follow it. walking is a good source to keep our body and mind in a healthy condition. It saves our time in spending time unneccessarily in watching TVserials and in other means. It is a healthier practise which we should make as our daily routine for all in our families.
Remember,Health of Indian Human Resource is the real asset of the nation and Modernization is not blind westernization. So lets Indianise our Indians life.....
Every young Indian should realize that all the above disease can be prevented (for sure) through regular physically active life, healthy diet rich vegetables and fruits, and limit foods that are rich in carbohydrate and saturated fats. Those who are already living with these lifestyle disease, start regular physical activities right today and ward off disease related complications like heart attack, stroke, diabetic problems, kidney diseases and so on.
In addition, walking and other physical activities have vast health benefits. Keep you live longer with good health, mind and heart.
The food style of the individuals needs to be based on the lifestyle of that person. In turn, it should be something which is to be tailor made and it is to be strictly followed. Our ancestors had a very good composite food items. It had a good nutritive value and they even had a good physique too. By saying the so called development and modernisation, we are slowly forgetting or neglecting our native food resources. we should keep it in our mind to have the menu which matches with our daily calorie requirements and follow it. walking is a good source to keep our body and mind in a healthy condition. It saves our time in spending time unneccessarily in watching TVserials and in other means. It is a healthier practise which we should make as our daily routine for all in our families.
Remember,Health of Indian Human Resource is the real asset of the nation and Modernization is not blind westernization. So lets Indianise our Indians life.....
INTEREST IS NOT AT REST
THE ELEMENT WHICH DRIVES ECONOMY :-
MOST OF US THINK THAT MONEY IS THE IMPORTANT FACTOR IN THE ECONOMY.BUT WHEN YOU CLOSELY WATCH THE ECONOMY,WE WILL UNDERSTAND THAT INTEREST IS THE ONLY ELEMENT WHICH DRIVES IN THE ECONOMY.FOR EXAMPLE YOU ARE BORROWING Rs.1 FROM A BANK AT A INTEREST OF 10% WHILE PAYING IT BACK YOU HAVE TO PAY IT AS Rs 1.10 ,FROM WHERE DOES THE Rs .10 PAISE WILL COME.IT WILL COME OUT FROM THE BANK ONLY THROUGH GOVERNMENT.SO THIS LEAD TO THE RAISE IN MONEY CIRCULATION AND THE WANT TO CREATE MORE MONEY IN THE MARKET.BANKS PLAY A MAJOR ROLE IN INCREASING THE MONEY CIRCULATION IN THE COUNTRY.EVEN THE BANK PAY INTEREST TO ITS DEPOSITORS.SO ITS INCREASING THE MONEY CIRCULATION IN A VERY HIGH FACE.THIS LEAD TO RAISE IN INFLATION,MONEY CIRCULATION,DEPRECIATION IN MONEY VALUE ETC...IN ISLAMIC BANKING THERE IS NO PAYMENT OF INTEREST.SO IF IT IS ESTABLISHED IN INDIA THERE WONT BE REVENUE FROM IT.MORE OVER IT WONT HELP IN THE GROWTH OF GDP.SO WHAT THE GOVERNMENT IS NOT ENCOURAGING IT.
Family Comes First
Family is the emotional and moral support system of mine.My family consist of three members me and my parents.They have taken a great effort to recch me here.I believe that every parent does this for the sake of their child.So we should not forget our parent because they are like the "TREE" in our life,who save their children from every problem in life.....
Always be with your family and be happy................
Always be with your family and be happy................
EDUCATION EXCEL GROWTH
EDUCATION EXCEL GROWTH
We all know that India is a developing country and it will become developed by 2020. My question is how can we reach this level with much faster rate? Youth of any country is considered as future of that particular country. And to empower young generation with qualities and capabilities education plays an important role. But our country actual education scenario is something different.
The really critical aspect of Indian public education system is its low quality. The actual quantity of schooling that children experience and the quality of teaching they receive are extremely insufficient in government school. A common feature in all government school is the poor quality of education, with weak infrastructure and inadequate attention. Its consequences are really very dangerous which creates inequality and retard growth of our economy.
Another reason for poor quality of education is the poor quality of teachers in government schools .Government schools are unable to attract good quality teachers due to inadequate teaching facilities and low salaries. The government currently spends only 3% of its GDP on education which is inadequate and insufficient. To improve the quality of education, the government needs to spend more money on education.
Recently Nitish kumar (chief minister, Bihar) has appointed approximately 2 lakh primary teachers for government schools in Bihar. Other states must also follow this, and help our economy to be a developed economy as soon as possible.
We all know that India is a developing country and it will become developed by 2020. My question is how can we reach this level with much faster rate? Youth of any country is considered as future of that particular country. And to empower young generation with qualities and capabilities education plays an important role. But our country actual education scenario is something different.
The really critical aspect of Indian public education system is its low quality. The actual quantity of schooling that children experience and the quality of teaching they receive are extremely insufficient in government school. A common feature in all government school is the poor quality of education, with weak infrastructure and inadequate attention. Its consequences are really very dangerous which creates inequality and retard growth of our economy.
Another reason for poor quality of education is the poor quality of teachers in government schools .Government schools are unable to attract good quality teachers due to inadequate teaching facilities and low salaries. The government currently spends only 3% of its GDP on education which is inadequate and insufficient. To improve the quality of education, the government needs to spend more money on education.
Recently Nitish kumar (chief minister, Bihar) has appointed approximately 2 lakh primary teachers for government schools in Bihar. Other states must also follow this, and help our economy to be a developed economy as soon as possible.
Budget 2010
Union budget 2010 focus on agriculture, growth and infrastructure. The income tax slabs are changed, making it wider and simple. But this change is not beneficial for lower and middle class people. Income tax for income from 160000 to 500000 is 10% and from 500001 to 800000 is 20% and above 800000 is 30 %. The GDP growth to be targeted at 9%. There is a partial excise rollback on cement and large cars, this means the price of these items will go up. The construction sector to be adversely affected by the rise in cement price. Tobacco product excise duty to be increased. The petroleum price will go up and this could lead to price rise of essential goods. Jewellery will also see a hike in price with higher customs duty proposed on imported gold, silver and platinum. Electricity bill could also go up dew to the introduction of service tax to service provide by the electricity exchange.
I still feel that we as a country still lacking the will power to take the health cover and rural housing to every citizen of the country. NREGA is a good step towards the upliftment of rural India but the implementation needs to be checked. Making policies is easier than implementing them.
I still feel that we as a country still lacking the will power to take the health cover and rural housing to every citizen of the country. NREGA is a good step towards the upliftment of rural India but the implementation needs to be checked. Making policies is easier than implementing them.
Electronic Mailing & Ethics...
Hi Friends,
Yesterday in our Communication Class we were discussing the case, Electronic Mailing and Ethics...
There was a lot of participation in the class, kudos to that... but unfortunately, I could not be a part of it, thanks to the Marketing Exam we were having today... I was lost in the world with Philip Kotler (not that it really helped me much today), but as I did not share my views in class, I thought I'll share my views through our blog...
I would like to share with you what I learned about this topic through my work experience. Just before I joined for my PGDM... In the office where I worked, we were all provided with official e-mails and official mobile numbers. Now, most of us think that our official e-mail is our personal belonging and it is not fair for anyone, not even our employer to 'snoop' around its contents.
But this is where we are wrong... We need to understand that an official e-mail or an official mobile number belongs to our employer. When we leave the organization we do not carry this e-mail or mobile number out of the organization with us, but surrender it on the last day of our work with that company.
Hence as long as we are in the organization, our employer has every right to know, how we are using these facilities which are provided to us, to make our work easier.
During my tenure with the organization, I remember an incident where-in one of my colleagues was caught by the management for sharing a 'harmless' joke over the official e-mail system. I would like to remind you that in any organization, the use of the official e-mails and official mobile numbers are closely monitored, as it is the company who is paying the charges for their use.
Hence we need to be careful while using these facilities at work... Even when we need to share our grievances about our boss or our work, let's not use this source, but it would be much better if done face-to-face during one of the many routine meetings that we are likely to have. That would definitely fetch good results and elicit appropriate action from the side of the management as well.
I would like to sign off by reminding you of what Fatima Ma'am said at the end of the discussion, "when we are at work, let us enjoy our work and not think about our home, family or friends at that time, because that is not what we are paid for... After working hours, let us enjoy our life away from our work, with our friends and loved ones... This would definitely help us to enjoy both the personal and professional worlds we live in..."
So, let's try to get the best out of both these worlds in our life!