In the next five years two-third of Dell's revenue will come from outside of the US market. "BRIC countries-- Brazil, Russia, India, and China--led the company's growth in the emerging countries with revenue up by 58 per cent. And on a year-on-year basis unit shipment grew by 73 per cent," said Steve Felice, vice-president APAC and Japan. In the APAC region revenue in India grew 52 per cent and in China by 31 per cent.
He also said that India and China will be the test ground for Dell when launching its low-cost computing products.
"Our low cost computing products will be first made available in India and China markets. Other than the price point we also plan to meet the functionality expectations that a user wants, which many other vendors have not been able to deliver," Felice.
Earlier this year, Dell launched its first low-cost laptop Dell 500 in India with a starting price of Rs 24,500. The company maintained that several more products will be launched in the second half of 2008.
Dell might launch independent Dell Stores in India to increase its reach and sales. Felice said, "We are testing standalone Dell stores and there is a possibility that we might set up such stores in India." The company recently announced its retail foray with tie-up with Tata Croma along with its direct marketing strategy.
To keep up with the growth in the APAC region, Dell will also see a corresponding increase in the headcounts in Asia. On the other hand, Dell as a part of its cost cutting measures have already reduced 7,000 employees from its US and Europe operations.
Dell has 30,000 employees throughout APAC. Of which 15,000 support the respective geography operations in APAC and Japan. The rest support functions across the globe. "Compared to last year we added just about 1,000 employees. This is a part of better management and helps controlling cost," added Felice.
Friday, May 30, 2008
Wednesday, May 28, 2008
Indian airlines not to go for baggage charges
Unlike some US airlines, Indian carriers are not thinking of charging services like baggage handling to beef up their bottomlines, which is hit by a steep hike in fuel prices, but would prefer to keep the options open.
The issue came to the fore following a decision by American Airline to impose a $25-15 charge for baggage handling, as the US carriers buckled under steep hike in fuel prices.
Officials of most major Indian airlines told PTI that they were not contemplating imposing charges for such services for the time being.
When asked for his response to the move, Jet Airways Chairman Naresh Goyal had yesterday said in Berlin that "all airlines which want to stay in business will have to take such decisions".
However, even his airline has not taken any decision to follow the US carrier in this regard, Jet officials said, adding that the comment was made in a general context.
Air India Executive Director Jitendra Bhargava said: "We have not thought of anything on this issue. It is a view expressed by him (Goyal) following the decision of some US carriers."
The issue came to the fore following a decision by American Airline to impose a $25-15 charge for baggage handling, as the US carriers buckled under steep hike in fuel prices.
Officials of most major Indian airlines told PTI that they were not contemplating imposing charges for such services for the time being.
When asked for his response to the move, Jet Airways Chairman Naresh Goyal had yesterday said in Berlin that "all airlines which want to stay in business will have to take such decisions".
However, even his airline has not taken any decision to follow the US carrier in this regard, Jet officials said, adding that the comment was made in a general context.
Air India Executive Director Jitendra Bhargava said: "We have not thought of anything on this issue. It is a view expressed by him (Goyal) following the decision of some US carriers."
Wednesday, May 21, 2008
ArcelorMittal to have new leader for India
Global steel giant ArcelorMittal today announced a new leadership for India, where Vijay Bhatnagar will spearhead the company's operations and proposed steel projects in the country.
Bhatnagar will take up the new position of Country CEO, India and will have ultimate responsibility for the company's operations and projects in the country, a statement from ArcelorMittal said.
It added that Sanak Mishra will continue to be the CEO for the company's greenfield steel projects in Jharkhand and Orissa, and will report to Bhatnagar.
M P Singh, vice president for the company's mining initiatives globally, will continue to lead ArcelorMittal's mining projects in India as CEO Mining Projects (India).
The senior leadership team for India will operate in close supervision of Pierre Gugliermina, Christophe Cornier and Sudhir Maheshwari, besides rest of the general management board of ArcelorMittal.
Commenting on the new leadership for India, Aditya Mittal, member of the Group Management Board and Chief Financial Officer, ArcelorMittal, said, "India is a very important country for ArcelorMittal. We are committed to investing large sums in the country over the next decade and it is important that we have the right team to lead these positions".
Exuding confidence in the new team, Mittal said, "This team has excellent knowledge and leadership and I am sure will prove a strong combination for enabling us to deliver on our commitments to the country".
Steel behemoth ArcelorMittal has proposed setting up integrated steel plants of 12 million tonnes annual capacity each in Orissa and Jharkhand. The investment in each of the two projects would be approximately Rs 40,000 crore.
Bhatnagar will take up the new position of Country CEO, India and will have ultimate responsibility for the company's operations and projects in the country, a statement from ArcelorMittal said.
It added that Sanak Mishra will continue to be the CEO for the company's greenfield steel projects in Jharkhand and Orissa, and will report to Bhatnagar.
M P Singh, vice president for the company's mining initiatives globally, will continue to lead ArcelorMittal's mining projects in India as CEO Mining Projects (India).
The senior leadership team for India will operate in close supervision of Pierre Gugliermina, Christophe Cornier and Sudhir Maheshwari, besides rest of the general management board of ArcelorMittal.
Commenting on the new leadership for India, Aditya Mittal, member of the Group Management Board and Chief Financial Officer, ArcelorMittal, said, "India is a very important country for ArcelorMittal. We are committed to investing large sums in the country over the next decade and it is important that we have the right team to lead these positions".
Exuding confidence in the new team, Mittal said, "This team has excellent knowledge and leadership and I am sure will prove a strong combination for enabling us to deliver on our commitments to the country".
Steel behemoth ArcelorMittal has proposed setting up integrated steel plants of 12 million tonnes annual capacity each in Orissa and Jharkhand. The investment in each of the two projects would be approximately Rs 40,000 crore.
Tuesday, May 20, 2008
Mittal to resume talks with MTN
Bharti Group chief Sunil Mittal is likely to resume talks with MTN's top management in Johannesburg to carry forward negotiations left inconclusive in London for a possible merger of the two entities.
Mittal is expected in the South African capital shortly to hold parleys, industry sources said.
Meanwhile, Telecom Watchdog, an NGO, cautioned the MTN Chairman that a merger of the two companies would not be in compliance with regulations in India.
Telecom Watchdog Secretary Anil Kumar told PTI: "I have written a letter to MTN chairman Cyril Ramaphosa to take note of the fact that a 51 per cent acquisition by Bharti is okay but a full scale merger through share-swap will surely breach the FDI guidelines in India which is sure to be challenged legally.
"I have told him not to take any dubious route for merging with Bharti and circumvent the laws. It is okay if it is a 51 per cent acquisition."
Foreign Direct Investment in Bharti already touches 65 per cent and it can absorb a further nine per cent.
"In case of a merger we have apprehensions of a possible breach of Indian regulatory norms related to foreign investment... In case of any regulatory breach, we will not hesitate in going to the Indian courts for a legal recourse to stop any illegalities," Kumar said in his letter.
Russian operator Altimo's arm Vimpelcom and Deutsche Telekom are also believed to have expressed interest in MTN, a leading telecom player in Africa. When contacted, Deutsche Telekom said it does not comment on rumours and speculations, while queries to Altimo officials remained unanswered.
Earlier, UAE's incumbent operator Etisalat had also said it was examining the possibilities of joining the fray for MTN.
Mittal is expected in the South African capital shortly to hold parleys, industry sources said.
Meanwhile, Telecom Watchdog, an NGO, cautioned the MTN Chairman that a merger of the two companies would not be in compliance with regulations in India.
Telecom Watchdog Secretary Anil Kumar told PTI: "I have written a letter to MTN chairman Cyril Ramaphosa to take note of the fact that a 51 per cent acquisition by Bharti is okay but a full scale merger through share-swap will surely breach the FDI guidelines in India which is sure to be challenged legally.
"I have told him not to take any dubious route for merging with Bharti and circumvent the laws. It is okay if it is a 51 per cent acquisition."
Foreign Direct Investment in Bharti already touches 65 per cent and it can absorb a further nine per cent.
"In case of a merger we have apprehensions of a possible breach of Indian regulatory norms related to foreign investment... In case of any regulatory breach, we will not hesitate in going to the Indian courts for a legal recourse to stop any illegalities," Kumar said in his letter.
Russian operator Altimo's arm Vimpelcom and Deutsche Telekom are also believed to have expressed interest in MTN, a leading telecom player in Africa. When contacted, Deutsche Telekom said it does not comment on rumours and speculations, while queries to Altimo officials remained unanswered.
Earlier, UAE's incumbent operator Etisalat had also said it was examining the possibilities of joining the fray for MTN.
Monday, May 19, 2008
RPG plans to double its retail biz turnover
The RPG group has lined up an aggressive expansion plan for its retail business and aims to virtually double its turnover to Rs 1,800 crore this fiscal.
"Last year, we achieved a turnover of Rs 1,000 crore. Our aim is to grow our retail business aggressively and achieve a turnover of Rs 1,800 crore this year," RPG group Chairman Harsh Goenka told PTI here.
The group plans to pump in Rs 1,000 crore as investment into its retail business over the next three years to fuel its expansion.
"We will also be investing substantially in IT and business processes," Goenka said.
The group plans to scale up the store network of its flagship retail brand, Spencer's, from the present 400 to 600 this year.
The expansion will be funded through both internal accruals and debt, he said.
Goenka indicated that the company has virtually shelved its plans to go in for an initial public offering (IPO) this year.
"Last year, we achieved a turnover of Rs 1,000 crore. Our aim is to grow our retail business aggressively and achieve a turnover of Rs 1,800 crore this year," RPG group Chairman Harsh Goenka told PTI here.
The group plans to pump in Rs 1,000 crore as investment into its retail business over the next three years to fuel its expansion.
"We will also be investing substantially in IT and business processes," Goenka said.
The group plans to scale up the store network of its flagship retail brand, Spencer's, from the present 400 to 600 this year.
The expansion will be funded through both internal accruals and debt, he said.
Goenka indicated that the company has virtually shelved its plans to go in for an initial public offering (IPO) this year.
Friday, May 16, 2008
Tata launches Indica with dual fuel engine
Homegrown major Tata Motors today announced it has launched a new variant of its hatchback 'Indica', equipped with a dual fuel engine for petrol and LPG, priced Rs 3.27-Rs 3.42 lakh (ex-showroom, Delhi).
The new 'Indica V2 Xeta LPG' would come with a 1.2 litre MPFI (Multi Point Fuel Injection) engine with two ECUs (Electronic Control Units), the company said in a statement.
"The model is equipped with a dual fuel (petrol and LPG) engine, which reduces CO2 emissions by about 10 per cent, while delivering excellent fuel efficiency both in the city and on highways," Tata Motors said.
The engine of the car would meet Bharat Stage III emission norms and could be upgraded to Euro IV norms as well, it said.
"The Xeta LPG will initially be launched in two variants - GLE and GLS. The Xeta LPG GLE variant is priced at Rs 3.27 lakh (ex-showroom, Delhi), while the Xeta LPG GLS variant is priced at Rs 3.42 lakh (ex-showroom, Delhi)," the statement said.
The new 'Indica V2 Xeta LPG' would come with a 1.2 litre MPFI (Multi Point Fuel Injection) engine with two ECUs (Electronic Control Units), the company said in a statement.
"The model is equipped with a dual fuel (petrol and LPG) engine, which reduces CO2 emissions by about 10 per cent, while delivering excellent fuel efficiency both in the city and on highways," Tata Motors said.
The engine of the car would meet Bharat Stage III emission norms and could be upgraded to Euro IV norms as well, it said.
"The Xeta LPG will initially be launched in two variants - GLE and GLS. The Xeta LPG GLE variant is priced at Rs 3.27 lakh (ex-showroom, Delhi), while the Xeta LPG GLS variant is priced at Rs 3.42 lakh (ex-showroom, Delhi)," the statement said.
Tuesday, May 13, 2008
Nissan to roll out budget car by `10
Nissan, Japan's third largest car maker in which Renault holds 44 per cent stake, will churn out three models based on a single platform from its manufacturing base in Chennai by 2010.
The car will be sold in five countries categorised by the company as the leading competitive countries (LCC). The car, based on the A platform, will be produced in these countries that include India and Tailand.
All models will be capitalised on cost competitiveness, thanks to high levels of localisation through easy sourcing of components. The company is not present in the low-cost car category, and believes that there will be a lot of room for improvement.
While announcing the company's result for financial year 2007, Carlos Ghosn, chief executive officer, Nissan, said the company would also set up a technical centre in Chennai in partnership with Renault, where they are developing a 400,000-unit per year facility for passenger cars. Together, the Renault-Nissan alliance is the fifth largest automakers in the world.
Nissan is expecting sales of more than 200,000 units from India in 2012. The target will be achieved through its alliances with Bajaj, for a small car, Ashok Leyland for commercial vehicles, Renault for passenger cars and Hover for sales, marketing and dealer development support.
The car will be sold in five countries categorised by the company as the leading competitive countries (LCC). The car, based on the A platform, will be produced in these countries that include India and Tailand.
All models will be capitalised on cost competitiveness, thanks to high levels of localisation through easy sourcing of components. The company is not present in the low-cost car category, and believes that there will be a lot of room for improvement.
While announcing the company's result for financial year 2007, Carlos Ghosn, chief executive officer, Nissan, said the company would also set up a technical centre in Chennai in partnership with Renault, where they are developing a 400,000-unit per year facility for passenger cars. Together, the Renault-Nissan alliance is the fifth largest automakers in the world.
Nissan is expecting sales of more than 200,000 units from India in 2012. The target will be achieved through its alliances with Bajaj, for a small car, Ashok Leyland for commercial vehicles, Renault for passenger cars and Hover for sales, marketing and dealer development support.
GDP for FY08 may miss projections
The Indian economy is projected to have grown at a slower pace in 2007-08, as data released today showed industrial production growth during the year moderated considerably over the previous year.
The advance estimates for national income for 2007-08 had pegged the growth of gross domestic product (GDP) at 8.7 per cent. Economists now expect it to be a notch lower.
In addition, if industrial production growth continues to moderate in the current fiscal (2008-09), overall economic growth in the year is also expected to be lower than the Reserve Bank of India's GDP estimate of 8-8.5 per cent.
The Central Statistical Organisation (CSO) will release fourth quarter as well as full-year revised estimates of GDP growth for 2007-08 on May 30.
"GDP growth in 2007-08 will remain between 8 and 8.5 per cent," said N R Bhanumurthy, associate professor, Institute of Economic Growth, adding that forecasts for 2008-09 would also have to be revised downward. "I think GDP growth in the current fiscal will remain between 7 and 7.5 per cent."
However, Shashank Bhide of economic thinktank NCAER feels industrial growth may revive this fiscal. "I expect domestic demand to improve, which will offset the slowdown in the external sector. Forecasters will wait for the first quarter GDP data for 2008-09 before revising their own estimates," he said.
The dip in industrial production growth is being attributed to lower domestic as well as external demand. "A slowdown in the US economy and high domestic interest rates are the major reasons for the current state of industrial growth," Bhanumurthy added.
The most crucial element of the growth debate will be the impact of the industrial slowdown on the services sector, which accounts for around 55 per cent of GDP. "There is a very strong linkage between industry and services, as industrial growth creates demand for services," Bhanumurthy said.
"A poor performance by the industrial sector will adversely impact the growth rate of the services sector," Bhide added.
Industry was quick to demand that interest rates be lowered in order to revive the consumer goods sector. "The government should give a leg-up to industry by providing the right environment, including an interest rate revision. Performance of the manufacturing sector is expected to be lower even in the first quarter of 2008-09.
Some of the major concerns of industry are increase in the prices of raw material and high interest cost," said Amit Mitra, secretary-general, Federation of Indian Chambers of Commerce and Industry.
The downtrend had been reflected in the CII-ASCON survey released by the Confederation of Indian Industry (CII) last week. Today, the chamber said there was an urgent need to build infrastructure, create institutions and policy for advanced manufacturing and engineering, remove bottlenecks regarding power costs and labour laws. "Announcement of a national manufacturing policy will help manufacturing consolidate in long term," it added.
Assocham President Venugopal N Dhoot said the manufacturing sector had seen a substantial increase in input costs. "The government should encourage growth of the infrastructure sector as the industrial slowdown would have implications for the economic growth in the current financial year ," he said.
The advance estimates for national income for 2007-08 had pegged the growth of gross domestic product (GDP) at 8.7 per cent. Economists now expect it to be a notch lower.
In addition, if industrial production growth continues to moderate in the current fiscal (2008-09), overall economic growth in the year is also expected to be lower than the Reserve Bank of India's GDP estimate of 8-8.5 per cent.
The Central Statistical Organisation (CSO) will release fourth quarter as well as full-year revised estimates of GDP growth for 2007-08 on May 30.
"GDP growth in 2007-08 will remain between 8 and 8.5 per cent," said N R Bhanumurthy, associate professor, Institute of Economic Growth, adding that forecasts for 2008-09 would also have to be revised downward. "I think GDP growth in the current fiscal will remain between 7 and 7.5 per cent."
However, Shashank Bhide of economic thinktank NCAER feels industrial growth may revive this fiscal. "I expect domestic demand to improve, which will offset the slowdown in the external sector. Forecasters will wait for the first quarter GDP data for 2008-09 before revising their own estimates," he said.
The dip in industrial production growth is being attributed to lower domestic as well as external demand. "A slowdown in the US economy and high domestic interest rates are the major reasons for the current state of industrial growth," Bhanumurthy added.
The most crucial element of the growth debate will be the impact of the industrial slowdown on the services sector, which accounts for around 55 per cent of GDP. "There is a very strong linkage between industry and services, as industrial growth creates demand for services," Bhanumurthy said.
"A poor performance by the industrial sector will adversely impact the growth rate of the services sector," Bhide added.
Industry was quick to demand that interest rates be lowered in order to revive the consumer goods sector. "The government should give a leg-up to industry by providing the right environment, including an interest rate revision. Performance of the manufacturing sector is expected to be lower even in the first quarter of 2008-09.
Some of the major concerns of industry are increase in the prices of raw material and high interest cost," said Amit Mitra, secretary-general, Federation of Indian Chambers of Commerce and Industry.
The downtrend had been reflected in the CII-ASCON survey released by the Confederation of Indian Industry (CII) last week. Today, the chamber said there was an urgent need to build infrastructure, create institutions and policy for advanced manufacturing and engineering, remove bottlenecks regarding power costs and labour laws. "Announcement of a national manufacturing policy will help manufacturing consolidate in long term," it added.
Assocham President Venugopal N Dhoot said the manufacturing sector had seen a substantial increase in input costs. "The government should encourage growth of the infrastructure sector as the industrial slowdown would have implications for the economic growth in the current financial year ," he said.
Sunday, May 11, 2008
ICICI Bank lowers EMIs for home loan customers
Lengthens tenures in response to customer feedback.
ICICI Bank, India's second biggest bank, has offered to lower the equated monthly installments (EMIs) for a large number of its borrowers by enhancing the tenure of their home loans.
A letter to borrowers explained that the move was being made as a "customer-friendly gesture".
The bank had raised the benchmark reference rate or the prime lending rate for floating rate borrowers in February and March 2007, following which many borrowers were asked to pay higher EMIs.
"Subsequently, we have received a lot of feedback from customers that they would prefer to increase the tenure rather than increasing the EMI," the letter said.
The offer was open from April.
ICICI Bank, India's second biggest bank, has offered to lower the equated monthly installments (EMIs) for a large number of its borrowers by enhancing the tenure of their home loans.
A letter to borrowers explained that the move was being made as a "customer-friendly gesture".
The bank had raised the benchmark reference rate or the prime lending rate for floating rate borrowers in February and March 2007, following which many borrowers were asked to pay higher EMIs.
"Subsequently, we have received a lot of feedback from customers that they would prefer to increase the tenure rather than increasing the EMI," the letter said.
The offer was open from April.
3 govt banks to part-fund Tata Motors` JLR buy
Leading Indian public sector banks State Bank of India (SBI), Bank of Baroda (BoB) and Syndicate Bank are close to committing a part of the $3 billion bridge loan that Tata Motors has to raise to finance the acquisition of Jaguar and Land Rover from Ford.
India's largest automobile maker signed a deal to buy luxury brands Jaguar and Land Rover for $2.3 billion in cash on March 26, the largest acquisition by an Indian company in the automobile business.
According to banking sources, banks like BoB with a large international business are expected to commit between $50 million and $100 million, while banks with a limited presence like Syndicate Bank could take exposure between $10 million and $30 million.
The other banks in the reckoning include State Bank of Mauritius, ING Bank, JP Morgan, and Citibank.
The deal is expected to be closed in a week or two.
A Tata Motors spokesperson declined to comment on the issue.
Banking sources said the average interest rate works out to 135 basis points above the London Interbank Offered Rate (Libor). The tenure of the loan is about 15 months, after which the company is expected to tie up long-term funds. The company had announced that it was looking at a combination of equity funding and term loans.
The Jaguar-Land Rover deal will extend Tata Motors' product portfolio span from a price point of $2,500 to $170,000 and expand its distribution network more than four times to 2,700 outlets in 138 countries.
The Tatas will also have to resuscitate demand after Jaguar sales in the US and Europe dropped 33 per cent in 2007. Ford doesn't disclose financial figures for Jaguar and Land Rover, whose biggest markets are the UK and the US.
India's largest automobile maker signed a deal to buy luxury brands Jaguar and Land Rover for $2.3 billion in cash on March 26, the largest acquisition by an Indian company in the automobile business.
According to banking sources, banks like BoB with a large international business are expected to commit between $50 million and $100 million, while banks with a limited presence like Syndicate Bank could take exposure between $10 million and $30 million.
The other banks in the reckoning include State Bank of Mauritius, ING Bank, JP Morgan, and Citibank.
The deal is expected to be closed in a week or two.
A Tata Motors spokesperson declined to comment on the issue.
Banking sources said the average interest rate works out to 135 basis points above the London Interbank Offered Rate (Libor). The tenure of the loan is about 15 months, after which the company is expected to tie up long-term funds. The company had announced that it was looking at a combination of equity funding and term loans.
The Jaguar-Land Rover deal will extend Tata Motors' product portfolio span from a price point of $2,500 to $170,000 and expand its distribution network more than four times to 2,700 outlets in 138 countries.
The Tatas will also have to resuscitate demand after Jaguar sales in the US and Europe dropped 33 per cent in 2007. Ford doesn't disclose financial figures for Jaguar and Land Rover, whose biggest markets are the UK and the US.
Reliance to use closed fuel outlets for malls and multiplexes
Reliance Industries Ltd (RIL), India's biggest firm by market capitalisation, is drawing up plans to convert its fuel retail outlets, which were recently closed owing to unviable operations, into malls and multiplexes.
Earmarking about Rs 5,000 crore for the project, the company is planning to develop 700 to 800 properties at important locations. The company, which is promoted by Mukesh Ambani, has also approached its fuel dealers with offers to buy out the properties they own, said sources familiar with the developments.
"About 500 properties used for the fuel retail business are owned by the Mukesh Ambani group. The remaining outlets are dealer-owned and dealer-operated. The dealers, who were incurring losses due to suspension of the retail business, have approached the company to sell their properties," company sources said.
Earmarking about Rs 5,000 crore for the project, the company is planning to develop 700 to 800 properties at important locations. The company, which is promoted by Mukesh Ambani, has also approached its fuel dealers with offers to buy out the properties they own, said sources familiar with the developments.
"About 500 properties used for the fuel retail business are owned by the Mukesh Ambani group. The remaining outlets are dealer-owned and dealer-operated. The dealers, who were incurring losses due to suspension of the retail business, have approached the company to sell their properties," company sources said.
Saturday, May 10, 2008
Skoda starts work on small-car platform
Czech automaker Skoda is working to develop an all-new platform for its proposed small car project, distinct from the existing platform of parent Volkswagen, a top company official said.
To be made in India, the car is expected to make its debut within two years and will be sold globally, Skoda India Director Thomas Kuehl said. Skoda’s smallest offering is the premium hatchback Fabia, which was launched in India in January. “Our small car will be launched first in India. The car will cater to virgin markets and will be priced in the Rs 3-5 lakh bracket,” he said. Simultaneously, Skoda will focus on expanding its product portfolio and has eight models lined up for launch in the country within five years.
Friday, May 9, 2008
Dish DTH to offer free set-top boxes
Move aimed at impending entry of Reliance, Bharti services.
The price-war has begun in the direct-to-home (DTH) market with the country's largest DTH company Dish TV — with over 3 million subscribers —getting ready to offer its connection virtually free.
Any consumer who wants to buy a Dish TV connection will not have to pay for the set-top box, the hardware essential to access DTH services and normally costs Rs 2,500.
This move is in anticipation of the launch of services from Reliance Communications' Big TV and Bharti's DTH services and also to take on its competitor Tata Sky, which has now crossed the 2 million subscriber mark.
This step is also expected to add to the monthly losses of Dish TV, currently estimated to be over Rs 450 crore.
According to sources, Dish TV is set to undertake a massive branding exercise centred on a "free Dish TV connection" featuring its brand ambassador Shah Rukh Khan at an estimated budget in excess of Rs 50 crore.
DISHING IT OUT
Company
Cost of
STB
Monthly
subscription
Dish TV
Free*
Rs 300
+taxes
Tata Sky
Rs 1,500
+installation
Rs 300
+taxes
Big TV
(soft launch only)
Rs 1,000
+installation
Rs 200
+taxes
* expected to announce shortly
The price-war has begun in the direct-to-home (DTH) market with the country's largest DTH company Dish TV — with over 3 million subscribers —getting ready to offer its connection virtually free.
Any consumer who wants to buy a Dish TV connection will not have to pay for the set-top box, the hardware essential to access DTH services and normally costs Rs 2,500.
This move is in anticipation of the launch of services from Reliance Communications' Big TV and Bharti's DTH services and also to take on its competitor Tata Sky, which has now crossed the 2 million subscriber mark.
This step is also expected to add to the monthly losses of Dish TV, currently estimated to be over Rs 450 crore.
According to sources, Dish TV is set to undertake a massive branding exercise centred on a "free Dish TV connection" featuring its brand ambassador Shah Rukh Khan at an estimated budget in excess of Rs 50 crore.
DISHING IT OUT
Company
Cost of
STB
Monthly
subscription
Dish TV
Free*
Rs 300
+taxes
Tata Sky
Rs 1,500
+installation
Rs 300
+taxes
Big TV
(soft launch only)
Rs 1,000
+installation
Rs 200
+taxes
* expected to announce shortly
Tuesday, May 6, 2008
Reliance shuts all of its 1,432 petrol pumps
Reliance Industries has shut all of its 1,432 petrol pumps in the country after sales dropped to almost nil as it could not match the subsidised price offered by public sector competition.
The company owned less than three per cent of the 36,936 petrol pumps in the country. Of the total retail outlets, state run Indian Oil, Bharat Petroleum and Hindustan Petroleum own 34,304 pumps, while the remaining belong to private sector Essar Oil and Shell India.
"Reliance has informed that sales at their retail outlets was negligible due to selling price differential between private and public sector ROs, leading to the closure of all their 1,432 pumps in the country with effect from March 15," Petroleum Minister Murli Deora informed the Rajya Sabha today.
Public sector currently sell petrol at a loss of Rs 13.97 a litre and diesel at a discount of Rs 20.97 per litre. This revenue loss is made up by the Government through issue of oil bonds and subsidy share from upstream firms like ONGC and GAIL.
Private firms such as Reliance were not entitled for the subsidy and priced fuel from their pumps at Rs 8-10 a litre higher than public sector competition, leading to fall in market share.
"The price of sensitive petroleum products are fixed by the public sector oil marketing companies in consultation with the Government," Deora said. "Private oil companies are not subject to pricing restrictions by the Government and are free to take their pricing decisions on commercial considerations."
However, Essar Oil and Shell India have not closed their petrol pumps, he said.
The company owned less than three per cent of the 36,936 petrol pumps in the country. Of the total retail outlets, state run Indian Oil, Bharat Petroleum and Hindustan Petroleum own 34,304 pumps, while the remaining belong to private sector Essar Oil and Shell India.
"Reliance has informed that sales at their retail outlets was negligible due to selling price differential between private and public sector ROs, leading to the closure of all their 1,432 pumps in the country with effect from March 15," Petroleum Minister Murli Deora informed the Rajya Sabha today.
Public sector currently sell petrol at a loss of Rs 13.97 a litre and diesel at a discount of Rs 20.97 per litre. This revenue loss is made up by the Government through issue of oil bonds and subsidy share from upstream firms like ONGC and GAIL.
Private firms such as Reliance were not entitled for the subsidy and priced fuel from their pumps at Rs 8-10 a litre higher than public sector competition, leading to fall in market share.
"The price of sensitive petroleum products are fixed by the public sector oil marketing companies in consultation with the Government," Deora said. "Private oil companies are not subject to pricing restrictions by the Government and are free to take their pricing decisions on commercial considerations."
However, Essar Oil and Shell India have not closed their petrol pumps, he said.
India tops foreign bank borrowings in Asia
BIS data show nation borrowed $28 bn in fourth quarter of '07 .
Foreign banks have sharply increased their exposure to banks and financial companies in India by providing loans to the tune of $28 billion during the last quarter of 2007, according to the latest banking statistics of the Bank for International Settlements (BIS) last week.
"The rise in lending by banks in Europe and the United States to their counterparts in India reflects the degree of confidence in the Indian economy at a time when the global credit crisis had sharply deteriorated," banking analysts said.
"In Asia, India borrowed $28 billion, followed by China ($25 billion) and Korea ($17 billion)," said BIS, which is reckoned as the global watchdog for central banks the world over.
Worldwide consolidated foreign claims on India, which imply cross-border as well as local claims made on local residents by foreign offices of domestic banks, have gone up from $168,087 million to $195,939 million during the end of the third and fourth quarters of the last year.
"BIS figures suggest international banks do not harbour fears about the strength and resilience of Indian banks," said a Geneva-based banking analyst, arguing that "India is not facing the same travails as banks in the US and Europe, following the credit crunch, which cropped up because of the sub-prime mortgage meltdown."
A detailed break-up of the claims made by foreign banks on Indian banks and financial companies reveals that 16 countries have stepped up their exposure during the end of Q3 2007 and Q4 2007.
Foreign banks have sharply increased their exposure to banks and financial companies in India by providing loans to the tune of $28 billion during the last quarter of 2007, according to the latest banking statistics of the Bank for International Settlements (BIS) last week.
"The rise in lending by banks in Europe and the United States to their counterparts in India reflects the degree of confidence in the Indian economy at a time when the global credit crisis had sharply deteriorated," banking analysts said.
"In Asia, India borrowed $28 billion, followed by China ($25 billion) and Korea ($17 billion)," said BIS, which is reckoned as the global watchdog for central banks the world over.
Worldwide consolidated foreign claims on India, which imply cross-border as well as local claims made on local residents by foreign offices of domestic banks, have gone up from $168,087 million to $195,939 million during the end of the third and fourth quarters of the last year.
"BIS figures suggest international banks do not harbour fears about the strength and resilience of Indian banks," said a Geneva-based banking analyst, arguing that "India is not facing the same travails as banks in the US and Europe, following the credit crunch, which cropped up because of the sub-prime mortgage meltdown."
A detailed break-up of the claims made by foreign banks on Indian banks and financial companies reveals that 16 countries have stepped up their exposure during the end of Q3 2007 and Q4 2007.
Smaller cities fetching more jobs: Assocham
High manpower cost and capacity constraints in metros is prompting the corporates towards small cities for job creation, according to Trends of Job Openings, a study conducted by business chamber Assocham. The study, which surveyed 60 cities, revealed that tier II and tier III cities have cornered 28 per cent and 38 per cent share of the job respectively during first three months of this calendar year.
The study was based on a sample of 32,000 vacancies posted by around 3,500 companies in the national and regional dailies, journals and job portals during the three months between January-March 2008. It showed that metropolitans continue to remain as the maximum employment-generating cities for the job seekers.
Among the tier II cities, Pune emerged as the preferred employment provider with 16.50 per cent share, followed by Lucknow and Pondicherry. The top three employment providing tier III cities were Ranchi (13.80 per cent), Mangalore (11.60 per cent) and Mysore (11.08 per cent).
Mumbai topped the chart with 18.52 per cent share as the most prominent employment destination. It was followed by NCR (15.41 per cent), Delhi (11.55 per cent) and Bangalore (10.00 per cent) respectively.
Pune ranked fifth among the top ten employment providing cities in India, above the metro cities of Chennai (sixth rank) and Hyderabad (seventh rank). Kolkata was at the ninth rank, behind Lucknow a tier II city.
The study was based on a sample of 32,000 vacancies posted by around 3,500 companies in the national and regional dailies, journals and job portals during the three months between January-March 2008. It showed that metropolitans continue to remain as the maximum employment-generating cities for the job seekers.
Among the tier II cities, Pune emerged as the preferred employment provider with 16.50 per cent share, followed by Lucknow and Pondicherry. The top three employment providing tier III cities were Ranchi (13.80 per cent), Mangalore (11.60 per cent) and Mysore (11.08 per cent).
Mumbai topped the chart with 18.52 per cent share as the most prominent employment destination. It was followed by NCR (15.41 per cent), Delhi (11.55 per cent) and Bangalore (10.00 per cent) respectively.
Pune ranked fifth among the top ten employment providing cities in India, above the metro cities of Chennai (sixth rank) and Hyderabad (seventh rank). Kolkata was at the ninth rank, behind Lucknow a tier II city.
Monday, May 5, 2008
GE India to manufacture windmills in India
New York Stock Exchange-listed General Electric Company is planning to manufacture windmills and gas turbines in India.
"The company is planning big in three areas infrastructure, energy and aviation, but our main focus is to manufacture windmills and turbines," GE India President and CEO Tejpreet S Chopra told PTI
GE which installed first hydro power plant in 1902 presently has a headcount of 14,500 in India."GE is planning to manufacture windmills and gas turbines in India," he said but declined to give details.
General Electric exports over USD 1 billion in products and services, GE India revenues stand at USD 2.8 billion.
General Electric Aviation, a unit of General Electric Co, received a USD 321.7 million contract to supply engines and device kits and related equipment for the American Navy's fighter jets recently.
"The company is planning big in three areas infrastructure, energy and aviation, but our main focus is to manufacture windmills and turbines," GE India President and CEO Tejpreet S Chopra told PTI
GE which installed first hydro power plant in 1902 presently has a headcount of 14,500 in India."GE is planning to manufacture windmills and gas turbines in India," he said but declined to give details.
General Electric exports over USD 1 billion in products and services, GE India revenues stand at USD 2.8 billion.
General Electric Aviation, a unit of General Electric Co, received a USD 321.7 million contract to supply engines and device kits and related equipment for the American Navy's fighter jets recently.
Sunday, May 4, 2008
Bollywood to remake Hollywood film
Good news for movie buffs tired of watching "unofficial" Hollywood remakes or `inspired' movies.
Mukesh Talreja and Nikhil Advani of Orion Pictures are in talks with Warner Brothers to remake Hollywood blockbuster "Wedding Crashers".
The company is in talks with two big actors to play the lead in this remake.
"I have seen `Wedding Crashers' and think it is a great property that would certainly lend itself to a Bollywood remake and I am very happy that we will be doing this in the right way in association with Warner Brothers," Talreja said.
Blaise Fernandes, Warner Brothers India, said "we are talking to Orion Pictures on the possibilities of remaking `Wedding Crashers'. Orion has shown keen interest in this project and they have lined up some of the best talent for this project".
Warner Brothers will also take legal action against any party who plans to remake this film in concept or as a remake, according to sources.
Warner Brothers is also presenting Orion Pictures' Akshay Kumar-starrer "Chandni Chowk to China" in association with Ramesh Sippy Entertainment.
Mukesh Talreja and Nikhil Advani of Orion Pictures are in talks with Warner Brothers to remake Hollywood blockbuster "Wedding Crashers".
The company is in talks with two big actors to play the lead in this remake.
"I have seen `Wedding Crashers' and think it is a great property that would certainly lend itself to a Bollywood remake and I am very happy that we will be doing this in the right way in association with Warner Brothers," Talreja said.
Blaise Fernandes, Warner Brothers India, said "we are talking to Orion Pictures on the possibilities of remaking `Wedding Crashers'. Orion has shown keen interest in this project and they have lined up some of the best talent for this project".
Warner Brothers will also take legal action against any party who plans to remake this film in concept or as a remake, according to sources.
Warner Brothers is also presenting Orion Pictures' Akshay Kumar-starrer "Chandni Chowk to China" in association with Ramesh Sippy Entertainment.
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