BMW India announced opening of Platino Classic, its dealership in Kochi. Platino Classic brings to Kochi the BMW standards of sales and service and the same international experience as any BMW dealership worldwide.
The showroom and workshop are headed by P P Ashique, Managing Director, Platino Classic. This is our 12th dealership of BMW in India.
Peter Kronschnabl, president, BMW India said, “With Kochi we also get access to Kerala which is an important market for us.”
The showroom and workshop covers approximately 11500 square feet (sq ft) of space.
The showroom is evolved on the signature-BMW concept of street display and the pavement flanking alongside as the customer area.
The workshop will have 4 service bays and 1 diagnostic bay capable of servicing 15-20 cars a day.
Showing posts with label BIN. Show all posts
Showing posts with label BIN. Show all posts
Wednesday, December 17, 2008
Saturday, December 13, 2008
ONGC's technical experts object to Imperial deal
The scientific and technical officers of Oil & Natural Gas Corporation, or ONGC, have objected to the company's decision to go ahead with the $2.1 billion acquisition of Imperial Energy of the UK, saying that the deal is over-valued and the assets not financially viable.
The Association of Scientific and Technical Officers (ASTO), the largest organisation of ONGC officers, has written to Petroleum Secretary R S Pandey and ONGC Chairman R S Sharma, complaining that the cost of acquisition and field development cannot be recovered since production at Imperial’s assets are in inhospitable geographies.
ONGC’s overseas arm, ONGC Videsh (OVL), on Wednesday posted bid documents for its 1,250 pence-a-share cash offer for Imperial Energy, tabled in August after getting the go-ahead from the Cabinet Committee on Economic Affairs (CCEA). That time, Imperial shares were trading at just 1,050 pence in the open market. The offer will be open till December 30, after which OVL will have two weeks to pay Imperial’s shareholders who tender their shares.
Crude oil has dropped 60 per cent since ONGC first offered to buy Imperial in August. This steep fall, along with the depreciation of the rupee against the dollar, has taken the sheen out of the deal.
“The quality of the deal is questionable. Russian companies such as Rosneft have refused to partner in the deal at this cost. It seems that Rosneft is aware of the real conditions of the field and the real worth of Imperial Energy,” Amit Kumar, president- central working committee of ASTO, said in the letter.
OVL’s bid gave the company a 10 per cent internal rate of return (IRR), taking crude oil at $121 a barrel, but with the fall of the rupee and crude oil the IRR has come down to 3-4 per cent.
“The current crude (oil) production of the company (Imperial) is close to 12,000 barrels a day only. This figure is also debatable as the technical team that visited the fields found that the production was around 8,000 barrels a day. The upside of production, as being planned, calls for huge investments in the field in addition to the investment being made to acquire the company. The field terrain is very tough and inhospitable,” said ASTO.
The access to the field for any developmental work and operations remains open for only five to six months in a year — that, too, in winters. “In this scenario, the anticipated increase in production is going to be tough and may not meet the targets set forth in coming years. It may also be noted that the production from this field can only be brought to the country at a very high cost,” said the association.
The Association of Scientific and Technical Officers (ASTO), the largest organisation of ONGC officers, has written to Petroleum Secretary R S Pandey and ONGC Chairman R S Sharma, complaining that the cost of acquisition and field development cannot be recovered since production at Imperial’s assets are in inhospitable geographies.
ONGC’s overseas arm, ONGC Videsh (OVL), on Wednesday posted bid documents for its 1,250 pence-a-share cash offer for Imperial Energy, tabled in August after getting the go-ahead from the Cabinet Committee on Economic Affairs (CCEA). That time, Imperial shares were trading at just 1,050 pence in the open market. The offer will be open till December 30, after which OVL will have two weeks to pay Imperial’s shareholders who tender their shares.
Crude oil has dropped 60 per cent since ONGC first offered to buy Imperial in August. This steep fall, along with the depreciation of the rupee against the dollar, has taken the sheen out of the deal.
“The quality of the deal is questionable. Russian companies such as Rosneft have refused to partner in the deal at this cost. It seems that Rosneft is aware of the real conditions of the field and the real worth of Imperial Energy,” Amit Kumar, president- central working committee of ASTO, said in the letter.
OVL’s bid gave the company a 10 per cent internal rate of return (IRR), taking crude oil at $121 a barrel, but with the fall of the rupee and crude oil the IRR has come down to 3-4 per cent.
“The current crude (oil) production of the company (Imperial) is close to 12,000 barrels a day only. This figure is also debatable as the technical team that visited the fields found that the production was around 8,000 barrels a day. The upside of production, as being planned, calls for huge investments in the field in addition to the investment being made to acquire the company. The field terrain is very tough and inhospitable,” said ASTO.
The access to the field for any developmental work and operations remains open for only five to six months in a year — that, too, in winters. “In this scenario, the anticipated increase in production is going to be tough and may not meet the targets set forth in coming years. It may also be noted that the production from this field can only be brought to the country at a very high cost,” said the association.
Monday, September 1, 2008
Hyundai to launch 800cc car by 2011-12
Hyundai Motor India Limited (HMIL), a wholly owned subsidiary of Hyundai Motor Company, is planning to launch its 800cc small car by 2011-12.
Heung Soo Lheem, Managing Director of HMIL, said "We are planning to introduce 800 cc small sized car within 2011-12 but not to fight the Nano since we do not have the capability to manufacture Rs1 lakh cars. By the time this car will be launched in the Indian market, demand for small cars will be about two million units."
Research and development (R&D) work for the new car has already started at R&D centres in Hyderabad and Namyam (Korea).
Unlike Maruti 800 sold in the domestic market, the HMIL car would cater to domestic and export markets, added Lheem.
HMIL currently had capacity of manufacturing 20,000 units per month and 600,000 units per year at its two manufacturing units.
Of its total sales, 55 per cent was from the domestic market and 42 per cent from exports last year.
HMIL promised a preview of its i20 car, with code name PB, in the hatchback syle, at the Auto Tariff Show on October 2, in Paris.
In the eastern region, HMIL reported market share of 17 per cent last year with its i10 range now outselling the Santro.
HMIL under its Corporate Social Responsibility (CSR) programme, would be backing the Student Traffic Volunteer Scheme (STVS) of the traffic arm of Kolkata Police.
The scheme would develop road safety awareness and help in traffic management.
The Student Traffic Volunteer Scheme was first introduced in Delhi in 2006 followed by Chennai.
Lheem said, "The Student Traffic Volunteer Scheme which started in New Delhi in 2006 has been very successful scheme, so much so, that we have inducted 100 more volunteers in the scheme this year. We feel priviledged to be partnering Kolkata Police in introducing the scheme."
Under the STVS scheme, student representatives will assist the traffic police in controlling traffic at intersections like Jawaharlal Nehru road, Raja bazaar, Shyam Bazaar, Park Circus, besides organising parking of vehicles in commercial areas and educating pedestrians about traffic rules.
HMIL would support this initiative financially by giving out stipends to all 80 student volunteers selected out of 350 candidates.
Hyundai sponsored insurance cover for students against accident or injury.
Heung Soo Lheem, Managing Director of HMIL, said "We are planning to introduce 800 cc small sized car within 2011-12 but not to fight the Nano since we do not have the capability to manufacture Rs1 lakh cars. By the time this car will be launched in the Indian market, demand for small cars will be about two million units."
Research and development (R&D) work for the new car has already started at R&D centres in Hyderabad and Namyam (Korea).
Unlike Maruti 800 sold in the domestic market, the HMIL car would cater to domestic and export markets, added Lheem.
HMIL currently had capacity of manufacturing 20,000 units per month and 600,000 units per year at its two manufacturing units.
Of its total sales, 55 per cent was from the domestic market and 42 per cent from exports last year.
HMIL promised a preview of its i20 car, with code name PB, in the hatchback syle, at the Auto Tariff Show on October 2, in Paris.
In the eastern region, HMIL reported market share of 17 per cent last year with its i10 range now outselling the Santro.
HMIL under its Corporate Social Responsibility (CSR) programme, would be backing the Student Traffic Volunteer Scheme (STVS) of the traffic arm of Kolkata Police.
The scheme would develop road safety awareness and help in traffic management.
The Student Traffic Volunteer Scheme was first introduced in Delhi in 2006 followed by Chennai.
Lheem said, "The Student Traffic Volunteer Scheme which started in New Delhi in 2006 has been very successful scheme, so much so, that we have inducted 100 more volunteers in the scheme this year. We feel priviledged to be partnering Kolkata Police in introducing the scheme."
Under the STVS scheme, student representatives will assist the traffic police in controlling traffic at intersections like Jawaharlal Nehru road, Raja bazaar, Shyam Bazaar, Park Circus, besides organising parking of vehicles in commercial areas and educating pedestrians about traffic rules.
HMIL would support this initiative financially by giving out stipends to all 80 student volunteers selected out of 350 candidates.
Hyundai sponsored insurance cover for students against accident or injury.
Crorepati CEO club gets 219 new members
As a result, the crorepati club (those earning more than Rs 1 crore annually) saw 219 new entrants, taking the total membership to 596.
The list of crorepati CEOs could be much longer — some HR consultants say it would more than double to between 1,200 and 1,400 people — if one includes senior executives from unlisted companies, including the big international firms, management consultancies and foreign banks, investment bankers, unlisted retail billionaires and sundry others.
Consultants estimate that top salaries in sectors like retail and management consulting would be between Rs 5 crore and Rs 7 crore.
Tech Mahindra had the highest number (10) of senior executives drawing a Rs 1 crore-plus salary. Larsen & Toubro and Tata Motors had eight each; Nagarjuna Constructions seven and Aditya Birla Nuvo, Bharat Forge and Indian Hotels six each.
Thirty of the new members in the crorepati club were from newly-listed companies and 53 entered the bracket by switching jobs. The compensation package of 88 CEOs more than doubled over the previous year, although the number of those drawing Rs 10 crore-plus salaries was unchanged at 18.
Collectively, these executives from 298 companies took home Rs 1,524 crore from salaries, commissions and perquisites (excluding stock options and deferred pay).
The aggregate net profit of these 298 companies increased by the same level of 34.5 per cent at Rs 1,21,454 crore (Rs 90,327 crore) in FY08, but employee cost jumped 26 per cent to Rs 76,124 crore (Rs 60,257 crore). The share of director remuneration to net profit has been almost constant in the last four years at 1.09 per cent.
For the second year in a row, Reliance ADAG Group Chairman Anil Ambani has toppled his elder brother, Reliance Industries Chairman Mukesh Ambani as the highest-paid Indian CEO.
KAUN BANA CROREPATI
(CEO remuneration in Rs crore)
Name Flagship company 2007 2008
Anil Ambani * Reliance Comm 32.34 48.01
Mukesh Ambani Reliance Ind 30.46 44.02
Kalanithi Maran Sun TV Network 23.26 32.41
Kavery Kalanithi Sun TV Network 23.26 32.41
P R R Rajha Madras Cement 24.78 32.39
Kumar Mangalam Birla Grasim Ind 17.53 20.14
Malvinder Mohan Singh Ranbaxy Lab 6.57 19.58
Sunil Bharti Mittal Bharti Airtel 14.96 19.55
Sajjan Jindal JSW Steel 13.25 16.73
Onkar S Kanwar Apollo Tyres 9.98 15.54
*Includes Rs 34.65-crore proposed commission for FY08 by Reliance Comm
While Mukesh took home a total compensation of Rs 44.02 crore (Rs 30.46 crore in the previous year), Anil is set to get Rs 47.98 crore (Rs 32.34 crore).
The catch is the younger Ambani has so far received Rs 13.2 crore as commissions (his salary was a mere Rs 11 lakh) even though five months have gone by since the end of the last financial year.
That is because the Reliance Communications (RCom) remunerations committee and the board are yet to approve disbursal of the Rs 35-crore commission.
But that’s a mere formality, and going by the proportion last year, Anil Ambani’s share in the total commission to be paid by RCom will be Rs 34.65 crore.
The company disbursed the commission for 2006-7 only in the next financial year, and Anil’s share in the total commission of Rs 30.33 lakh was Rs 30 lakh. On his part, Mukesh received a commission of Rs 42.75 crore and a salary of Rs 1.27 crore.
While Mukesh Ambani’s commission was 0.21 per cent of the combined net profit of his group companies, the amount Anil Ambani received was almost one per cent of his group’s net profit of Rs 4,905 crore in FY08.
The list of crorepati CEOs could be much longer — some HR consultants say it would more than double to between 1,200 and 1,400 people — if one includes senior executives from unlisted companies, including the big international firms, management consultancies and foreign banks, investment bankers, unlisted retail billionaires and sundry others.
Consultants estimate that top salaries in sectors like retail and management consulting would be between Rs 5 crore and Rs 7 crore.
Tech Mahindra had the highest number (10) of senior executives drawing a Rs 1 crore-plus salary. Larsen & Toubro and Tata Motors had eight each; Nagarjuna Constructions seven and Aditya Birla Nuvo, Bharat Forge and Indian Hotels six each.
Thirty of the new members in the crorepati club were from newly-listed companies and 53 entered the bracket by switching jobs. The compensation package of 88 CEOs more than doubled over the previous year, although the number of those drawing Rs 10 crore-plus salaries was unchanged at 18.
Collectively, these executives from 298 companies took home Rs 1,524 crore from salaries, commissions and perquisites (excluding stock options and deferred pay).
The aggregate net profit of these 298 companies increased by the same level of 34.5 per cent at Rs 1,21,454 crore (Rs 90,327 crore) in FY08, but employee cost jumped 26 per cent to Rs 76,124 crore (Rs 60,257 crore). The share of director remuneration to net profit has been almost constant in the last four years at 1.09 per cent.
For the second year in a row, Reliance ADAG Group Chairman Anil Ambani has toppled his elder brother, Reliance Industries Chairman Mukesh Ambani as the highest-paid Indian CEO.
KAUN BANA CROREPATI
(CEO remuneration in Rs crore)
Name Flagship company 2007 2008
Anil Ambani * Reliance Comm 32.34 48.01
Mukesh Ambani Reliance Ind 30.46 44.02
Kalanithi Maran Sun TV Network 23.26 32.41
Kavery Kalanithi Sun TV Network 23.26 32.41
P R R Rajha Madras Cement 24.78 32.39
Kumar Mangalam Birla Grasim Ind 17.53 20.14
Malvinder Mohan Singh Ranbaxy Lab 6.57 19.58
Sunil Bharti Mittal Bharti Airtel 14.96 19.55
Sajjan Jindal JSW Steel 13.25 16.73
Onkar S Kanwar Apollo Tyres 9.98 15.54
*Includes Rs 34.65-crore proposed commission for FY08 by Reliance Comm
While Mukesh took home a total compensation of Rs 44.02 crore (Rs 30.46 crore in the previous year), Anil is set to get Rs 47.98 crore (Rs 32.34 crore).
The catch is the younger Ambani has so far received Rs 13.2 crore as commissions (his salary was a mere Rs 11 lakh) even though five months have gone by since the end of the last financial year.
That is because the Reliance Communications (RCom) remunerations committee and the board are yet to approve disbursal of the Rs 35-crore commission.
But that’s a mere formality, and going by the proportion last year, Anil Ambani’s share in the total commission to be paid by RCom will be Rs 34.65 crore.
The company disbursed the commission for 2006-7 only in the next financial year, and Anil’s share in the total commission of Rs 30.33 lakh was Rs 30 lakh. On his part, Mukesh received a commission of Rs 42.75 crore and a salary of Rs 1.27 crore.
While Mukesh Ambani’s commission was 0.21 per cent of the combined net profit of his group companies, the amount Anil Ambani received was almost one per cent of his group’s net profit of Rs 4,905 crore in FY08.
Wednesday, August 6, 2008
Apple's iPhone to hit Airtel outlets on August 22
Apple's iPhone, the touch screen handset that acquired a cult status in the US and other western countries, will be available to Indian mobile users through Bharti Airtel at the stroke of midnight on August 21, giving competitors like Nokia, Samsung and others a run for their money.
Millions of Airtel subscribers will be able to purchase the iPhone at Airtel's Relationship Centres from August 22, a company statement said here.
"iPhone has been an iconic technological revelation of this year and Airtel has been at the forefront of innovation and customer delight in the Indian telecom sector," Sanjay Kapoor, President, Bharti Airtel mobile services, said.
iPhone is embedded with all 3G features and is twice as fast as the existing mobile phones.
The phone also has in-built GPS system, that facilitates as a navigation and positioning tool.
US-based Apple has tied up with Airtel and Vodafone to bring iPhone in the country.
Asked at what price it will be available, Bharti Airtel officials declined to give details.
"Introducing iPhone in India further underscores Bharti's commitment to enrich the communication experience of Airtel users," Kapoor said.
Leading cell phone makers like Nokia, Motorola and Samsung have stepped up their R&D efforts to bring feature rich phones in India to compete iPhones.
Vodafone is also slated to bring Apples's iPhone this year.
Millions of Airtel subscribers will be able to purchase the iPhone at Airtel's Relationship Centres from August 22, a company statement said here.
"iPhone has been an iconic technological revelation of this year and Airtel has been at the forefront of innovation and customer delight in the Indian telecom sector," Sanjay Kapoor, President, Bharti Airtel mobile services, said.
iPhone is embedded with all 3G features and is twice as fast as the existing mobile phones.
The phone also has in-built GPS system, that facilitates as a navigation and positioning tool.
US-based Apple has tied up with Airtel and Vodafone to bring iPhone in the country.
Asked at what price it will be available, Bharti Airtel officials declined to give details.
"Introducing iPhone in India further underscores Bharti's commitment to enrich the communication experience of Airtel users," Kapoor said.
Leading cell phone makers like Nokia, Motorola and Samsung have stepped up their R&D efforts to bring feature rich phones in India to compete iPhones.
Vodafone is also slated to bring Apples's iPhone this year.
Thursday, July 31, 2008
India second best country for business investment: Survey
India is the second best country for business investment, a new survey of American corporate executives shows.
Conducted by Development Counsellors International every three years, the "Winning Strategies in Economic Development Marketing" survey has tracked trends in economic development since its inception in 1996.
This is the first year respondents were asked to rank the business favourablity of the world's 25 largest countries (based on GDP).
Of the 281 corporate executives who responded, 53.1 per cent named China as the most favouable country followed by India (45.1 per cent), Mexico (30.1 per cent), Britain (25.4 per cent) and Canada (22 per cent).
The corporate decision-makers who named India as the best for investment cited the country's labour force - including its supply, skill level and cost 65 per cent of the time as the reason for their positive perceptions.
India's "growing economy/business opportunities" and "low overall/operating costs" were named 38 per cent and 18 per cent of the time, respectively. The survey also polled the executives about the best US states for business.
Conducted by Development Counsellors International every three years, the "Winning Strategies in Economic Development Marketing" survey has tracked trends in economic development since its inception in 1996.
This is the first year respondents were asked to rank the business favourablity of the world's 25 largest countries (based on GDP).
Of the 281 corporate executives who responded, 53.1 per cent named China as the most favouable country followed by India (45.1 per cent), Mexico (30.1 per cent), Britain (25.4 per cent) and Canada (22 per cent).
The corporate decision-makers who named India as the best for investment cited the country's labour force - including its supply, skill level and cost 65 per cent of the time as the reason for their positive perceptions.
India's "growing economy/business opportunities" and "low overall/operating costs" were named 38 per cent and 18 per cent of the time, respectively. The survey also polled the executives about the best US states for business.
Wednesday, July 23, 2008
Renault may revise Indian strategy
A year after its joint venture with Mahindra & Mahindra got off the ground, French car maker Renault has decided to revise its sales strategy for India following the Logan's lacklustre performance.
The JV begun selling the mid-sized sedan in April-May last year through M&M's dealerships across the country.
Patrick Blain, executive VP (sales and marketing) Renault, who was quoted in a report, said, "The (mid-size) segment has turned out to be smaller than we thought and we may need to revise our product strategy for the Indian market."
Renault had earlier targeted sales of 50,000 units in the local market by 2008-end. The company sold 12,715 cars in the first six months of this year, falling way below the target of 25,000-30,000 units.
Blain further said that it is unlikely that the targeted sales will be achieved by the joint company, Mahindra Renault Private Limited (MRPL), this year. The company produced less than 1,100 cars in June, a sharp decline from the earlier monthly production tally of more than 2,500 cars. Sales, too, fell by 11 per cent in the last quarter.
The fall in expectation of sales is generally due to the fact that the Indian market has been dominated by compact and fuel efficient cars, which constitute about 70 per cent of the total vehicle sales.
Nalin Mehta, VP (sales and marketing), MRPL, said, "The automobile sector is facing difficult times; the situation begun to tighten four months ago. No vehicle manufacturing company, including us, is thinking of expanding operations currently. The slowdown has impacted our sales as well."
Last year, the company planned to have 100 Logan dealers across the country but managed only 94. The target for the year is to have 150 dealers in place and company officials say that the dealer expansion programe will move ahead as planned despite the slowdown.
Accentuating the slowdown worries, the company doesn't expect the entry level mid-size segment to grow as planned, which, according to some analysts, should have been in the range of 12-14 per cent. The small car segment, meanwhile, grew by nearly 15 per cent in the April-June quarter.
The Logan, an entry level midsizer priced at Rs 4.25 lakh (ex-showroom Mumbai), is pegged against the Maruti Suzuki DZire, the Ford Ikon, the Hyundai Accent and the Tata Indigo. MRPL claims to have garnered a market share of 12 per cent in the segment through the Logan.
The company is also planning to introduce the Sandero, which is based on the Logan platform. However, these plans have been pushed to next year as the focus currently is fully on consolidating the Logan in the local market, added Mehta.
The JV is a 51:49 partnership between Mahindra and Renault, which has already infused about Rs 700 crore in setting up a greenfield facility in Nashik that has a production capacity of 50,000 units per annum. The facility has a stamping and a paint shop with a pre-treatment and an assembly line.
The JV begun selling the mid-sized sedan in April-May last year through M&M's dealerships across the country.
Patrick Blain, executive VP (sales and marketing) Renault, who was quoted in a report, said, "The (mid-size) segment has turned out to be smaller than we thought and we may need to revise our product strategy for the Indian market."
Renault had earlier targeted sales of 50,000 units in the local market by 2008-end. The company sold 12,715 cars in the first six months of this year, falling way below the target of 25,000-30,000 units.
Blain further said that it is unlikely that the targeted sales will be achieved by the joint company, Mahindra Renault Private Limited (MRPL), this year. The company produced less than 1,100 cars in June, a sharp decline from the earlier monthly production tally of more than 2,500 cars. Sales, too, fell by 11 per cent in the last quarter.
The fall in expectation of sales is generally due to the fact that the Indian market has been dominated by compact and fuel efficient cars, which constitute about 70 per cent of the total vehicle sales.
Nalin Mehta, VP (sales and marketing), MRPL, said, "The automobile sector is facing difficult times; the situation begun to tighten four months ago. No vehicle manufacturing company, including us, is thinking of expanding operations currently. The slowdown has impacted our sales as well."
Last year, the company planned to have 100 Logan dealers across the country but managed only 94. The target for the year is to have 150 dealers in place and company officials say that the dealer expansion programe will move ahead as planned despite the slowdown.
Accentuating the slowdown worries, the company doesn't expect the entry level mid-size segment to grow as planned, which, according to some analysts, should have been in the range of 12-14 per cent. The small car segment, meanwhile, grew by nearly 15 per cent in the April-June quarter.
The Logan, an entry level midsizer priced at Rs 4.25 lakh (ex-showroom Mumbai), is pegged against the Maruti Suzuki DZire, the Ford Ikon, the Hyundai Accent and the Tata Indigo. MRPL claims to have garnered a market share of 12 per cent in the segment through the Logan.
The company is also planning to introduce the Sandero, which is based on the Logan platform. However, these plans have been pushed to next year as the focus currently is fully on consolidating the Logan in the local market, added Mehta.
The JV is a 51:49 partnership between Mahindra and Renault, which has already infused about Rs 700 crore in setting up a greenfield facility in Nashik that has a production capacity of 50,000 units per annum. The facility has a stamping and a paint shop with a pre-treatment and an assembly line.
Thursday, July 17, 2008
TCS plans to reduce costs through HR
Tata Consultancy Services (TCS) which is on a cost control drive is planning to optimise cost through hiring mix with inducting more number of trainees compared to professionals.
The expenditure on human resources works out to 50 to 55 per cent of the reveneus of the company and it expects to optimise its cost through a proper mix of hiring trainees and profesionals.
Ajoyendra Mukherjee, Vice-President and Head, Global HR of TCS said here today in the first quarter last year, the company had a hiring mix of 62 per cent professionals and 38 per cent trainees. Whereas in the first quarter of this year, out of every 100 employees hired, 61 were trainees and 39 were professionals.
He said the trend will continue in the rest of the year as well with at least 60 per cent of new recruits being trainees.
He said the company is also plaaning to use employee referral system to reduce cost while hiring new people. He also informed the attrition in the company is leveling out with the company focussing on retaining high performers.
Meanwhile, the number of foreign nationals working with TCS has crossed the 10,000 mark which is a record for any Indian IT company.
The company which had only 3,691 employees in the year 1990-91 today has over 1,16,000 employees on its roll making it the largest employer in the IT industry in the country, according to a handout released by the company.
The expenditure on human resources works out to 50 to 55 per cent of the reveneus of the company and it expects to optimise its cost through a proper mix of hiring trainees and profesionals.
Ajoyendra Mukherjee, Vice-President and Head, Global HR of TCS said here today in the first quarter last year, the company had a hiring mix of 62 per cent professionals and 38 per cent trainees. Whereas in the first quarter of this year, out of every 100 employees hired, 61 were trainees and 39 were professionals.
He said the trend will continue in the rest of the year as well with at least 60 per cent of new recruits being trainees.
He said the company is also plaaning to use employee referral system to reduce cost while hiring new people. He also informed the attrition in the company is leveling out with the company focussing on retaining high performers.
Meanwhile, the number of foreign nationals working with TCS has crossed the 10,000 mark which is a record for any Indian IT company.
The company which had only 3,691 employees in the year 1990-91 today has over 1,16,000 employees on its roll making it the largest employer in the IT industry in the country, according to a handout released by the company.
VW`s Indian car soon
The story about India enticing world auto majors will add another feather in European giant Volkswagen's (VW) cap as it prepares for its first fully-original Indian Volkswagen car, made with the help of expertise provided by Indian engineers and designers.
The company, which is also Europe's largest car maker, will follow in the footsteps of Maruti Suzuki, India's biggest passenger vehicle maker, which is also preparing to launch a similar car in the next three to four years.
Makham Dhalivaal, managing director, Volkswagen (passenger cars), said, "This Volkswagen car will be made in India from scratch. However, the plans are at a developmental stage and it's too early too talk about it."
A number of characteristics ranging from the basic design of the car on paper to the end product will be done in India.
As seven out of every ten cars sold in India are compact vehicles, industry experts suggest that VW will look at the small car category, like Maruti Suzuki, to tap the volume segment of the Indian car market, which swelled to 1.5 million units last year.
Maruti Suzuki (MSIL) has already begun work on the India car and aims to launch the automobile by 2011-12.
Maruti's car, too, will be developed from scratch. The company aims to double the number of engineers to 1,000 from 480 by 2010.
Meanwhile, VW has reiterated that it is on course to launch the Indian version of the Polo hatchback, its international best selling small car. The car, which is currently under development, will be tailored to suit buyer preferences here and will be launched in 2010.
VW's aggressive India plans are based on the country's expertise in low cost of vehicle manufacturing, which has led a number of international automotive giants, including Renault, Nissan, Hyundai, Honda, Toyota, General Motors and Ford, to exploit manufacturing opportunities here and make India their international export base.
The company today launched the Jetta, its second product in the country, pegged in the premium D segment of cars. The Jetta, which will compete with Honda Civic, Hyundai Sonata, Toyota Corolla and Skoda Octavia, will be priced in the range of Rs 12.97-Rs 16.67 lakh (Ex-showroom Delhi). The car will available in three variants with a diesel option.
VW currently sells the Passat luxury car, which is slated against the Mercedes C Class and BMW 3 Series, and also the Touareg sports utility vehicle.
Both brands together sold a total of 340 cars in the first 6 months of this year. The Passat and Jetta are locally assembled at Skoda Auto's facility in Aurangabad. The company is targetting sales of 20,000 units by the end of this year from the VW, Audi and Skoda brands.
VW's plant in Chakan, Pune is one year ahead of schedule, said company officials today. The company will inject more than Rs 3,500 crore into the plant which will have an initial production capacity of 110,000 units initially. The plant is expected to go on stream in the first half of next year.
Furthermore, a team of experts will visit India next week to study market analysis for the company's proposed foray into the commercial vehicle (CV) industry.
The company has said in the past that it is exploring the option of launching CV's in the Indian market.
The company, which is also Europe's largest car maker, will follow in the footsteps of Maruti Suzuki, India's biggest passenger vehicle maker, which is also preparing to launch a similar car in the next three to four years.
Makham Dhalivaal, managing director, Volkswagen (passenger cars), said, "This Volkswagen car will be made in India from scratch. However, the plans are at a developmental stage and it's too early too talk about it."
A number of characteristics ranging from the basic design of the car on paper to the end product will be done in India.
As seven out of every ten cars sold in India are compact vehicles, industry experts suggest that VW will look at the small car category, like Maruti Suzuki, to tap the volume segment of the Indian car market, which swelled to 1.5 million units last year.
Maruti Suzuki (MSIL) has already begun work on the India car and aims to launch the automobile by 2011-12.
Maruti's car, too, will be developed from scratch. The company aims to double the number of engineers to 1,000 from 480 by 2010.
Meanwhile, VW has reiterated that it is on course to launch the Indian version of the Polo hatchback, its international best selling small car. The car, which is currently under development, will be tailored to suit buyer preferences here and will be launched in 2010.
VW's aggressive India plans are based on the country's expertise in low cost of vehicle manufacturing, which has led a number of international automotive giants, including Renault, Nissan, Hyundai, Honda, Toyota, General Motors and Ford, to exploit manufacturing opportunities here and make India their international export base.
The company today launched the Jetta, its second product in the country, pegged in the premium D segment of cars. The Jetta, which will compete with Honda Civic, Hyundai Sonata, Toyota Corolla and Skoda Octavia, will be priced in the range of Rs 12.97-Rs 16.67 lakh (Ex-showroom Delhi). The car will available in three variants with a diesel option.
VW currently sells the Passat luxury car, which is slated against the Mercedes C Class and BMW 3 Series, and also the Touareg sports utility vehicle.
Both brands together sold a total of 340 cars in the first 6 months of this year. The Passat and Jetta are locally assembled at Skoda Auto's facility in Aurangabad. The company is targetting sales of 20,000 units by the end of this year from the VW, Audi and Skoda brands.
VW's plant in Chakan, Pune is one year ahead of schedule, said company officials today. The company will inject more than Rs 3,500 crore into the plant which will have an initial production capacity of 110,000 units initially. The plant is expected to go on stream in the first half of next year.
Furthermore, a team of experts will visit India next week to study market analysis for the company's proposed foray into the commercial vehicle (CV) industry.
The company has said in the past that it is exploring the option of launching CV's in the Indian market.
Bosch makes open offer for 20% in Indian entity
German firm Robert Bosch GmbH today made a open offer to the shareholders of Bosch Chassis Systems India for acquiring 20 per cent stake in the company at a maximum price of Rs 600 per share.
As per the open offer Robert Bosch GmbH would acquire up to 4,158,906 equity shares of Rs 10 each representing 20 per cent of the fully paid-up equity share capital of its Indian entity, auto ancillary firm Bosch Chassis said in a filing to the Bombay Stock Exchange.
The offer is scheduled to open on August 4 and would close on August 8.
The Germany-based firm is the holding company of Robert Bosch LLC and Robert Bosch Investment Nederland B V, the promoters of Bosch Chassis Systems India.
The promoter holding in Bosch Chassis Systems India is 80 per cent of the total issued equity share capital of the company.
Pursuant to the open offer the promoter shareholding in Bosch Chassis Systems India would increase to 100 per cent and would entail the delisting of fully paid up equity shares of the company from the Bombay Stock Exchange and the National Stock Exchange.
The German firm would make the voluntary delisting offer to the public shareholders of Bosch Chassis Systems in accordance with the delisting guidelines.
The delisting offer would enhance operating flexibility of the company and would provide a second exit opportunity to the public shareholders of the company.
The price for the offer would be determined after the reverse book building process, the company said.
As per the open offer Robert Bosch GmbH would acquire up to 4,158,906 equity shares of Rs 10 each representing 20 per cent of the fully paid-up equity share capital of its Indian entity, auto ancillary firm Bosch Chassis said in a filing to the Bombay Stock Exchange.
The offer is scheduled to open on August 4 and would close on August 8.
The Germany-based firm is the holding company of Robert Bosch LLC and Robert Bosch Investment Nederland B V, the promoters of Bosch Chassis Systems India.
The promoter holding in Bosch Chassis Systems India is 80 per cent of the total issued equity share capital of the company.
Pursuant to the open offer the promoter shareholding in Bosch Chassis Systems India would increase to 100 per cent and would entail the delisting of fully paid up equity shares of the company from the Bombay Stock Exchange and the National Stock Exchange.
The German firm would make the voluntary delisting offer to the public shareholders of Bosch Chassis Systems in accordance with the delisting guidelines.
The delisting offer would enhance operating flexibility of the company and would provide a second exit opportunity to the public shareholders of the company.
The price for the offer would be determined after the reverse book building process, the company said.
Thursday, July 10, 2008
Off-shoring to India creates jobs in UK: Experts
Outsourcing work by British companies to India does not cause job losses but boosts employment, according to a research by economists at the University of Nottingham.
Scores of major UK companies have been involved in off-shoring, which has often been opposed by unions.
But the research by the Globalisation and Economic Policy centre (GEP) at the University of Nottingham says the efficiencies it has brought has actually boosted business and led to them employing more people in the UK, not less.
David Greenaway, Director of the centre, said: "People fear their jobs are being exported to countries like India and China where labour is cheaper, but the picture is far more complex than that and much more positive.
"It would seem that firms that off-shore part of their production process or service provision overseas become more efficient. This boosts productivity and turnover and as a result these firms grow and end up employing more people at home, not fewer."
The GEP research says there are losers when off- shoring takes place through higher job turnover and people are unable to adapt to new skills. Richard Kneller, who co-wrote the research, says it also explodes another myth about off-shoring.
He said: "The common perception of off-shoring is that it's largely low-paid call centre jobs being exported to lower wage economies like China and India, but that's not the case.
Scores of major UK companies have been involved in off-shoring, which has often been opposed by unions.
But the research by the Globalisation and Economic Policy centre (GEP) at the University of Nottingham says the efficiencies it has brought has actually boosted business and led to them employing more people in the UK, not less.
David Greenaway, Director of the centre, said: "People fear their jobs are being exported to countries like India and China where labour is cheaper, but the picture is far more complex than that and much more positive.
"It would seem that firms that off-shore part of their production process or service provision overseas become more efficient. This boosts productivity and turnover and as a result these firms grow and end up employing more people at home, not fewer."
The GEP research says there are losers when off- shoring takes place through higher job turnover and people are unable to adapt to new skills. Richard Kneller, who co-wrote the research, says it also explodes another myth about off-shoring.
He said: "The common perception of off-shoring is that it's largely low-paid call centre jobs being exported to lower wage economies like China and India, but that's not the case.
Wednesday, July 9, 2008
Ratan Tata to be conferred with Doctorate degree
Ratan Tata, chairman, Tata group of companies, Mumbai would be among the three eminent persons to be conferred with Degree of Doctor of Science (Honoris Causa), during the 29th Convocation of Tamil Nadu Agricultural University (TNAU) to be held here on July 25.
M Ramasami, managing director, Rasi Seeds (P) Ltd, Attur and Bhavarlal Hiralal Jain, chairman, Jain Irrigationl systems Ltd, Jalgoan, Maharashtra, would be the other two to be conferred with the degrees, a TNAU release said today.
Tamil Nadu Governor, Surjit Singh Barnala, in his capacity as the chancellor would preside over the convocation, while Pro-chancellor and state agriculture minister, Veerapandi S Arumugam would announce the endowment of prizes and release TN AU publications, it said.
Abhijit Sen, member, planning commission, New Delhi, would be the chief guest and deliver the convocation address.
A total of 996 candidates (52 boys and 494 girls) would receive the degrees, which includes undergraduates, masters an doctorate degrees on the occasion.
M Ramasami, managing director, Rasi Seeds (P) Ltd, Attur and Bhavarlal Hiralal Jain, chairman, Jain Irrigationl systems Ltd, Jalgoan, Maharashtra, would be the other two to be conferred with the degrees, a TNAU release said today.
Tamil Nadu Governor, Surjit Singh Barnala, in his capacity as the chancellor would preside over the convocation, while Pro-chancellor and state agriculture minister, Veerapandi S Arumugam would announce the endowment of prizes and release TN AU publications, it said.
Abhijit Sen, member, planning commission, New Delhi, would be the chief guest and deliver the convocation address.
A total of 996 candidates (52 boys and 494 girls) would receive the degrees, which includes undergraduates, masters an doctorate degrees on the occasion.
Thursday, June 26, 2008
Idea snaps up Spice
Spice valued at Rs 6,800 crore; TMI to get 14.99% in Idea.
India's fifth largest mobile phone company, Idea Cellular, today said it has agreed to buy BK Modi's 40.8 per cent stake in Spice Communications in an all-cash deal worth Rs 2,700 crore, including non-compete fees. The deal values Spice at around Rs 6,800 crore.
Idea will buy Spice Group's shares at a price of Rs 77.30 a share — a premium of 42 per cent to Tuesday's closing price — and make the mandatory open offer to Spice shareholders at the same rate. Spice's minority shareholders, who want to remain invested in the telecom industry and do not tender shares during the open offer, will be offered Idea Cellular shares at a later date.
Reacting to the announcement, Spice shares surged 33.1 per cent to a record close of Rs 72.35 in a market that rose 0.8 per cent. Idea was up 2 per cent at Rs 102.05 a share.
Idea will add about 4.5 million customers, closing in on Bharat Sanchar Nigam Ltd, the fourth-largest carrier. Besides, it will enter Punjab and Karnataka, which account for 11 per cent of India's total wireless subscribers.
"It will give us incumbent advantage in both these circles. We are now in the big league of telecom players in the country," Idea Chairman Kumar Mangalam Birla said here today.
According to the complex agreement, TM International (TMI), the Malaysian telecommunication giant holding 39.2 per cent stake in Spice, will swap its stake for Idea shares and will be offered 469 million shares by way of a preferential allotment of shares in Idea at a price of Rs 156.96 a share. This will take TMI's stake in idea to 14.99 per cent.
TMI will invest Rs 7,500 crore for buying this stake in Idea Cellular and a part of these funds will be used to buy Modi's stake. The balance Rs 4,500 crore will be used to retire the debts in Idea's books, Birla said. TMI will get one seat on Idea's board.
India's fifth largest mobile phone company, Idea Cellular, today said it has agreed to buy BK Modi's 40.8 per cent stake in Spice Communications in an all-cash deal worth Rs 2,700 crore, including non-compete fees. The deal values Spice at around Rs 6,800 crore.
Idea will buy Spice Group's shares at a price of Rs 77.30 a share — a premium of 42 per cent to Tuesday's closing price — and make the mandatory open offer to Spice shareholders at the same rate. Spice's minority shareholders, who want to remain invested in the telecom industry and do not tender shares during the open offer, will be offered Idea Cellular shares at a later date.
Reacting to the announcement, Spice shares surged 33.1 per cent to a record close of Rs 72.35 in a market that rose 0.8 per cent. Idea was up 2 per cent at Rs 102.05 a share.
Idea will add about 4.5 million customers, closing in on Bharat Sanchar Nigam Ltd, the fourth-largest carrier. Besides, it will enter Punjab and Karnataka, which account for 11 per cent of India's total wireless subscribers.
"It will give us incumbent advantage in both these circles. We are now in the big league of telecom players in the country," Idea Chairman Kumar Mangalam Birla said here today.
According to the complex agreement, TM International (TMI), the Malaysian telecommunication giant holding 39.2 per cent stake in Spice, will swap its stake for Idea shares and will be offered 469 million shares by way of a preferential allotment of shares in Idea at a price of Rs 156.96 a share. This will take TMI's stake in idea to 14.99 per cent.
TMI will invest Rs 7,500 crore for buying this stake in Idea Cellular and a part of these funds will be used to buy Modi's stake. The balance Rs 4,500 crore will be used to retire the debts in Idea's books, Birla said. TMI will get one seat on Idea's board.
Monday, June 23, 2008
Advani snubs Ranbaxy deal
Profit motives shouldn't override national interests, says BJP leader at the Business Standard annual awards function.
The Ranbaxy-Daiichi deal may have made global headlines, but that has hardly impressed L K Advani, leader of the Opposition, Lok Sabha.
"It's a cause for worry that an Indian company, known for its research & development capabilities and operating in a critical area like pharmaceuticals, has lost its identity to a foreign company," Advani said after giving away the Business Standard awards at a glittering function attended by a galaxy of business leaders in Mumbai on Saturday evening.
Though he did not name Ranbaxy, the signal from the Bharatiya Janata Party's (BJP's) prime ministerial candidate was clear.
Advani said he was aware that mergers and acquisitions were inevitable in a globalised world, but asked Indian industry to spare a thought for what he called the "third dimension".
"I am not trying to find fault with globalisation and profit motives. But these cannot override considerations of national interests," the BJP leader said, adding India Inc should guard against a monopoly situation in vital areas like pharmaceuticals.
"We need to think how such deals affect our poor people; and whether they can block access to drugs at a reasonable price," he said.
Ranbaxy promoters Malvinder Singh and family had sold their 34.81 per cent stake in India's largest pharmaceuticals company to Japan's Daiichi-Sankyo a fortnight ago. Daiichi has announced an open offer to take its stake in Ranbaxy to 51 per cent.
In his extempore speech, Advani also talked about the paradoxes in the Indian economy and stressed the need to make economic growth truly inclusive.
"India is seeing the fastest increase in the number of billionaires. But the plight of the poor is also deepening at an even faster pace. The challenge is to evolve an economic strategy which can bridge this ever-widening gap," Advani said.
The main reason for this paradox, Advani said, was the failure of successive governments and industry to recognise the fact that farmers were still not part of the economic growth process. "The root of the problem is the crisis in agriculture," he said.
Advani said India's software prowess was a matter of pride but the real challenge was to take information technology from urban areas to the countryside because that's what inclusive growth is all about.
The BJP leader said he agrees with management thinker C K Prahalad who has exhorted Indian industry to give serious thought to the value at the bottom of the pyramid.
"A whole new world will open up if we stop seeing the poor as victims or as a burden and start recognising then as resilient and creative entrepreneurs and value-conscious consumers," Advani said.
The veteran leader also didn't miss an opportunity to take a dig at the United Progressive Alliance government (UPA). Terming it as a government "in the ICU", Advani said the government has pushed itself in a corner over the Indo-US nuclear deal and the high inflation rate.
People certainly expected better management of the nation's economy from Manmohan Singh, who is known to be a distinguished economist, he said. "I am not a doctor. But here is the case of a doctor who has brought his own government to this critical pass," Advani said, giving flashes of his trademark humour.
Pointing out that the UPA government has written its own epitaph even before its formal exit, Advani blamed the coming together of the Congress and the Left on the bogus claim of unity of secular forces.
That the UPA has sealed its fate on the nuclear deal is evident from the fact that the Communists will withdraw support if the government goes ahead with operationalisation of the deal. On the other hand, if it once again chooses to retreat, the prime minister's credibility and authority, which were never high, will have all but evaporated, Advani said.
Convinced that Indians are now looking beyond the UPA government, Advani listed the challenges the next government would face: inflation, further acceleration and broadbasing of economic growth so that the fruits are enjoyed by the poorest, internal security threats and energy security.
Giving some indication of his party's economic manifesto for a "resurgent India", Advani said the agenda will be a strong and vibrant economy, revitalisation of agriculture, fixing the ills of small enterprises, a revolutionary expansion of high-quality education and a strong emphasis on urban renewal, specially for cities like Mumbai.
"We would like to evolve an Indian model of development as imitating the development model of any other country cannot solve India's problem," Advani said.
The CEO of the Year award was given to Sun Pharmaceuticals Chairman and Managing Director Dilip Shanghvi. Receiving the award, Shanghvi said the secret of Sun's success lay in its consistent ability to give the best pharma solutions at the lowest possible cost. Dedicating the award to his R&D team, he said Sun spends 12 per cent of its turnover on research.
O P Bhatt, chairman of State Bank of India, who received the Banker of the Year award, thanked Team SBI for its efforts to "wake up the SBI elephant from its slumber and make it dance."The Most Innovative Organisation of the Year award went to the Board of Control for Cricket in India (BCCI) for the Indian Premier League, which redefined the rules of the game.
Receiving the award, BCCI Vice-President Lalit Modi said it was a pleasant surprise for him as BCCI was not a company. He thanked his team, the 99 million TV audience and the over 2.5 million people who went to the cricket stadiums day after day to make IPL a grand success.
The award for the Equity Fund Manager of the Year was won by Sandeep Kothari of Fidelity Fund Management., while the honour of the Debt Fund Manager of the Year went to Suyash Chowdhary, a former fund manager at Standard Chartered Asset Management and now with HSBC Asset Management.
National Thermal Power Corporation won the Star PSU of the Year award, Cognizant Solutions was declared the Star Unlisted Company, Mico-Bosch won the Star MNC award and Praj Industries won the Star SME award.
Hyundai i10 won the BS Motoring Car of the Year award and Bajaj XCD 125 DTS-Si was chosen the BS Motoring Bike of the Year.
The Ranbaxy-Daiichi deal may have made global headlines, but that has hardly impressed L K Advani, leader of the Opposition, Lok Sabha.
"It's a cause for worry that an Indian company, known for its research & development capabilities and operating in a critical area like pharmaceuticals, has lost its identity to a foreign company," Advani said after giving away the Business Standard awards at a glittering function attended by a galaxy of business leaders in Mumbai on Saturday evening.
Though he did not name Ranbaxy, the signal from the Bharatiya Janata Party's (BJP's) prime ministerial candidate was clear.
Advani said he was aware that mergers and acquisitions were inevitable in a globalised world, but asked Indian industry to spare a thought for what he called the "third dimension".
"I am not trying to find fault with globalisation and profit motives. But these cannot override considerations of national interests," the BJP leader said, adding India Inc should guard against a monopoly situation in vital areas like pharmaceuticals.
"We need to think how such deals affect our poor people; and whether they can block access to drugs at a reasonable price," he said.
Ranbaxy promoters Malvinder Singh and family had sold their 34.81 per cent stake in India's largest pharmaceuticals company to Japan's Daiichi-Sankyo a fortnight ago. Daiichi has announced an open offer to take its stake in Ranbaxy to 51 per cent.
In his extempore speech, Advani also talked about the paradoxes in the Indian economy and stressed the need to make economic growth truly inclusive.
"India is seeing the fastest increase in the number of billionaires. But the plight of the poor is also deepening at an even faster pace. The challenge is to evolve an economic strategy which can bridge this ever-widening gap," Advani said.
The main reason for this paradox, Advani said, was the failure of successive governments and industry to recognise the fact that farmers were still not part of the economic growth process. "The root of the problem is the crisis in agriculture," he said.
Advani said India's software prowess was a matter of pride but the real challenge was to take information technology from urban areas to the countryside because that's what inclusive growth is all about.
The BJP leader said he agrees with management thinker C K Prahalad who has exhorted Indian industry to give serious thought to the value at the bottom of the pyramid.
"A whole new world will open up if we stop seeing the poor as victims or as a burden and start recognising then as resilient and creative entrepreneurs and value-conscious consumers," Advani said.
The veteran leader also didn't miss an opportunity to take a dig at the United Progressive Alliance government (UPA). Terming it as a government "in the ICU", Advani said the government has pushed itself in a corner over the Indo-US nuclear deal and the high inflation rate.
People certainly expected better management of the nation's economy from Manmohan Singh, who is known to be a distinguished economist, he said. "I am not a doctor. But here is the case of a doctor who has brought his own government to this critical pass," Advani said, giving flashes of his trademark humour.
Pointing out that the UPA government has written its own epitaph even before its formal exit, Advani blamed the coming together of the Congress and the Left on the bogus claim of unity of secular forces.
That the UPA has sealed its fate on the nuclear deal is evident from the fact that the Communists will withdraw support if the government goes ahead with operationalisation of the deal. On the other hand, if it once again chooses to retreat, the prime minister's credibility and authority, which were never high, will have all but evaporated, Advani said.
Convinced that Indians are now looking beyond the UPA government, Advani listed the challenges the next government would face: inflation, further acceleration and broadbasing of economic growth so that the fruits are enjoyed by the poorest, internal security threats and energy security.
Giving some indication of his party's economic manifesto for a "resurgent India", Advani said the agenda will be a strong and vibrant economy, revitalisation of agriculture, fixing the ills of small enterprises, a revolutionary expansion of high-quality education and a strong emphasis on urban renewal, specially for cities like Mumbai.
"We would like to evolve an Indian model of development as imitating the development model of any other country cannot solve India's problem," Advani said.
The CEO of the Year award was given to Sun Pharmaceuticals Chairman and Managing Director Dilip Shanghvi. Receiving the award, Shanghvi said the secret of Sun's success lay in its consistent ability to give the best pharma solutions at the lowest possible cost. Dedicating the award to his R&D team, he said Sun spends 12 per cent of its turnover on research.
O P Bhatt, chairman of State Bank of India, who received the Banker of the Year award, thanked Team SBI for its efforts to "wake up the SBI elephant from its slumber and make it dance."The Most Innovative Organisation of the Year award went to the Board of Control for Cricket in India (BCCI) for the Indian Premier League, which redefined the rules of the game.
Receiving the award, BCCI Vice-President Lalit Modi said it was a pleasant surprise for him as BCCI was not a company. He thanked his team, the 99 million TV audience and the over 2.5 million people who went to the cricket stadiums day after day to make IPL a grand success.
The award for the Equity Fund Manager of the Year was won by Sandeep Kothari of Fidelity Fund Management., while the honour of the Debt Fund Manager of the Year went to Suyash Chowdhary, a former fund manager at Standard Chartered Asset Management and now with HSBC Asset Management.
National Thermal Power Corporation won the Star PSU of the Year award, Cognizant Solutions was declared the Star Unlisted Company, Mico-Bosch won the Star MNC award and Praj Industries won the Star SME award.
Hyundai i10 won the BS Motoring Car of the Year award and Bajaj XCD 125 DTS-Si was chosen the BS Motoring Bike of the Year.
Friday, June 20, 2008
Double digit inflation hits India
The rate of inflation in India has galloped to a 13-year high to 11.05 per cent for the week ended June 7, confounding the worst fears of the United Progressive Alliance Government as general elections loom. This has been caused mainly by the June 5 increases in fuel prices and its cascading effect on all food commodities and other manufactured items, such as consumer durable goods and steel.
The unexpected spurt in the wholesale price index-based inflation from 8.75 per cent in the previous week evoked sharp criticism from all political parties, including the UPA’s coalition partners and Left allies, of the government’s failure to hold the price line and sustain the benefits of high growth.
Reserve Bank of India data show that the last time inflation was in double digits was in April-May 1995 when it ruled above 11 per cent.
The unexpected spurt in the wholesale price index-based inflation from 8.75 per cent in the previous week evoked sharp criticism from all political parties, including the UPA’s coalition partners and Left allies, of the government’s failure to hold the price line and sustain the benefits of high growth.
Reserve Bank of India data show that the last time inflation was in double digits was in April-May 1995 when it ruled above 11 per cent.
Tuesday, June 17, 2008
Leyland stakeholders may get equity in Nissan JV
Chennai-based Ashok Leyland (ALL), India's second-largest commercial vehicle maker, said today that it is evaluating the option of letting its shareholders invest in the joint venture companies with Nissan through a proper funding route.
Leyland is looking to raise Rs 600 crore for the joint venture facility located near Chennai, which is the equity participation of the company for the combined investment of about Rs 2,400 crore. Nissan will pump Rs 600 crore as equity, while the balance of about Rs 1,200 crore will be raised through debt.
K Sridharan, CFO, Ashok Leyland, said: "We are looking at prospects of (our) shareholders participating in the JV with Nissan. We aim to raise part or full amount of our equity participation in the joint venture for which we may look to incentivise our shareholders by providing them with some kind of entitlement." The official was speaking at an analyst meet here.
The company so far has not yet decided on the means to raise the required funding but stated that it was considering a preferential share issue, rights issue or convertible bonds, which will lead to scaling down of Ashok Leyland's holding in the three joint ventures.
Leyland is looking to raise Rs 600 crore for the joint venture facility located near Chennai, which is the equity participation of the company for the combined investment of about Rs 2,400 crore. Nissan will pump Rs 600 crore as equity, while the balance of about Rs 1,200 crore will be raised through debt.
K Sridharan, CFO, Ashok Leyland, said: "We are looking at prospects of (our) shareholders participating in the JV with Nissan. We aim to raise part or full amount of our equity participation in the joint venture for which we may look to incentivise our shareholders by providing them with some kind of entitlement." The official was speaking at an analyst meet here.
The company so far has not yet decided on the means to raise the required funding but stated that it was considering a preferential share issue, rights issue or convertible bonds, which will lead to scaling down of Ashok Leyland's holding in the three joint ventures.
Tuesday, June 10, 2008
BSNL slashes STD tariffs by 50 %
The Bharat Sanchar Nigam Limited (BSNL) on Monday announced a 50 per cent reduction in STD charges on its mobile and landline networks.
Effective from midnight on Tuesday, landline users would pay Rs.1.20 per minute as against Rs.2.40 for STD calls to all networks. Rural customers would pay 80 paise per minute for STD calls.
The charges for intra-circle calls to BSNL network were also reduced from Rs.1.20 per minute to 60 paise with an increased pulse rate of two minutes.For mobile phone customers, STD charges were cut to Rs.1.20 per minute for the same network and Rs.1.40 for other networks.
Roaming charges under the pre-paid and the post-paid services were also revised. The roaming charges for all incoming calls were reduced — to Re.1 per minute from Rs.1.75 for all incoming calls; to Re.1 from Rs.1.40 for local outgoing; and to Rs.1.50 from Rs.2.40 for outgoing STD. The monthly rental of ‘Super One India Plan’ was reduced substantially to Rs.299 from Rs.799.
“We have chalked out a number of attractive schemes for both post-paid and pre-paid subscribers offering highly competitive rates. We are also offering other schemes to give more value to our subscribers,” said BSNL Chairman and Managing Director Kuldeep Goyal.
The expansion of mobile network was on track and more than 3 crore new connections would be added within a year, he said. The BSNL has over 7.2-crore subscribers, including 3.6-crore mobile customers.
Mr. Goyal announced that attractive schemes were also being announced to increase broadband subscribers from 20 lakh to one crore by 2010.
Effective from midnight on Tuesday, landline users would pay Rs.1.20 per minute as against Rs.2.40 for STD calls to all networks. Rural customers would pay 80 paise per minute for STD calls.
The charges for intra-circle calls to BSNL network were also reduced from Rs.1.20 per minute to 60 paise with an increased pulse rate of two minutes.For mobile phone customers, STD charges were cut to Rs.1.20 per minute for the same network and Rs.1.40 for other networks.
Roaming charges under the pre-paid and the post-paid services were also revised. The roaming charges for all incoming calls were reduced — to Re.1 per minute from Rs.1.75 for all incoming calls; to Re.1 from Rs.1.40 for local outgoing; and to Rs.1.50 from Rs.2.40 for outgoing STD. The monthly rental of ‘Super One India Plan’ was reduced substantially to Rs.299 from Rs.799.
“We have chalked out a number of attractive schemes for both post-paid and pre-paid subscribers offering highly competitive rates. We are also offering other schemes to give more value to our subscribers,” said BSNL Chairman and Managing Director Kuldeep Goyal.
The expansion of mobile network was on track and more than 3 crore new connections would be added within a year, he said. The BSNL has over 7.2-crore subscribers, including 3.6-crore mobile customers.
Mr. Goyal announced that attractive schemes were also being announced to increase broadband subscribers from 20 lakh to one crore by 2010.
Sunday, June 8, 2008
Tata Motors` truck business may foot the bill for Nano loss
Tata Motors may charge the losses on its small car Nano, the world's cheapest car at Rs 1 lakh, against the profit it earns from selling trucks, according to industry analysts.
Chairman Ratan Tata has pledged to sell Nano, touted as the common man's car, at Rs 1,00,000 even though the cost of making and selling the car is expected to be higher because of rising steel, battery and other input prices. Tata Motors has formed a team to evolve a plan to keep the costs closer to the sale price.
"The challenge for Tata Motors is not to sell the car at Rs 1 lakh but to produce the car substantially below the Rs 1 lakh barrier so as to be profitable. With the recent skyrocketing increase in prices of raw materials it is next to impossible to maintain that limit. The company will look to counterbalance the heavy initial loss on Nano by margin gain on the commercial vehicle segment. The production numbers (of the Nano) will be considerably lower in the initial quarters", said a Mumbai-based auto analyst from one of the leading brokerage firm.
The car, which may be sold starting October, is expected to turn to profit in four years, automobile analysts who declined to be identified said. The car will be built at Tata Motor's plant in Singur, West Bengal.
The company intends to produce about 250,000 units of Nano's per annum in Phase I of expansion with a gradual increase to 350,000 units per annum in Phase II.
Chairman Ratan Tata has pledged to sell Nano, touted as the common man's car, at Rs 1,00,000 even though the cost of making and selling the car is expected to be higher because of rising steel, battery and other input prices. Tata Motors has formed a team to evolve a plan to keep the costs closer to the sale price.
"The challenge for Tata Motors is not to sell the car at Rs 1 lakh but to produce the car substantially below the Rs 1 lakh barrier so as to be profitable. With the recent skyrocketing increase in prices of raw materials it is next to impossible to maintain that limit. The company will look to counterbalance the heavy initial loss on Nano by margin gain on the commercial vehicle segment. The production numbers (of the Nano) will be considerably lower in the initial quarters", said a Mumbai-based auto analyst from one of the leading brokerage firm.
The car, which may be sold starting October, is expected to turn to profit in four years, automobile analysts who declined to be identified said. The car will be built at Tata Motor's plant in Singur, West Bengal.
The company intends to produce about 250,000 units of Nano's per annum in Phase I of expansion with a gradual increase to 350,000 units per annum in Phase II.
Friday, June 6, 2008
Mahindra chases Tata dream with small engine
Mahindra & Mahindra (M&M), the country's biggest maker of utility vehicles (UV), is developing a small engine for a smaller version of its UVs and replicate the Tatas dream of a small car, a company official said.
The company is developing an engine with a capacity ranging between 650cc and 750cc, said Hemant Luthra, president, Mahindra Systech. He declined to give more details. The Rs 28,500-crore group, which is partnering France's Renault to sell Logan, aims to expand presence in all the segments of the market. The Tata group's plan to sell the world's lowest-priced car has spurred many companies, including M&M, to follow in its footsteps.
Mahindra Bolero, powered by 2.5 litre engine, is priced at Rs 5.28 lakh. The utility vehicle is among the largest selling vehicles in rural India. Mahindra Logan, a mid-sized sedan, is powered by 1.4 litre petrol engine which is imported from France.
The company is developing an engine with a capacity ranging between 650cc and 750cc, said Hemant Luthra, president, Mahindra Systech. He declined to give more details. The Rs 28,500-crore group, which is partnering France's Renault to sell Logan, aims to expand presence in all the segments of the market. The Tata group's plan to sell the world's lowest-priced car has spurred many companies, including M&M, to follow in its footsteps.
Mahindra Bolero, powered by 2.5 litre engine, is priced at Rs 5.28 lakh. The utility vehicle is among the largest selling vehicles in rural India. Mahindra Logan, a mid-sized sedan, is powered by 1.4 litre petrol engine which is imported from France.
Thursday, June 5, 2008
Tata plans water brand to take on Coke, Pepsi
Tata Tea, which sold its stake in US-based Glaceau in last year, plans to begin selling a low-priced bottled water in the country through its unit Mount Everest Mineral Water (MEMW) to take on global rivals such as Coca-Cola and PepsiCo in the Rs 1,500-crore packaged drinking water market.
"We want to do it quickly,'' Pradeep Poddar, managing director and CEO, Mount Everest, told Business Standard. "The market is still very young and we can evolve it further through marketing new offerings."
The company may sell its bottled water brand for masses at rates lower than those offered by competitors Bisleri, PepsiCo and Coca-Cola, he said. "The challenge for us is developing a right technology."
"We want to do it quickly,'' Pradeep Poddar, managing director and CEO, Mount Everest, told Business Standard. "The market is still very young and we can evolve it further through marketing new offerings."
The company may sell its bottled water brand for masses at rates lower than those offered by competitors Bisleri, PepsiCo and Coca-Cola, he said. "The challenge for us is developing a right technology."
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