Wednesday, May 8, 2013

Coca-Cola to show calories while ceasing ads for under 12s

Coca-Cola first pledged not to advertise to children under age 12 globally in 2007. Photo: Bloomberg News

Coca-Cola Co. will expand calorie labelling to the front of all packages and reiterated its pledge not to advertise to children under 12 anywhere as the world’s largest soft-drink maker fights criticism that it is contributing to obesity.

The plan, which includes expanding physical activity programs, will apply to the more than 200 countries where it operates, Atlanta-based Coca-Cola said on Wednesday in a statement. The company also will emphasize low-and no-calorie drinks in emerging markets. Coca-Cola didn’t set deadlines or targets for the initiatives.

Chief executive officer Muhtar Kent has been working to counter the perception that the soft-drink maker contributes to America’s obesity epidemic. Coca-Cola earlier this year introduced advertisements highlighting the company’s low- and zero-calorie products and suggesting people pay attention to how many calories they consume in order to manage their weight.

“People in these countries are going to be aware of these health issues so Coke wants to be prepared,” Jack Russo, an analyst with Edward Jones & Co. in St. Louis, said on Wednesday in a telephone interview. “The regulators and governments are going to get more involved with this entire issue.”

Kent said on a conference call on Wednesday that no- and low-calorie drinks are currently offered in most markets.

Calorie Counts

“This is not just about making them available but also merchandising them and also ensuring that there is sufficient point of sale material around them,” Kent said.

Coca-Cola first pledged not to advertise to children under age 12 globally in 2007.

In 2009, the company said it would offer calorie counts on the front of packages in every country where it operates, with some exceptions. Today’s pledge expands that to all packages. The timetable is uncertain because returnable bottles that are refilled and reused in many emerging countries will take time to replace, said Kent Landers, a spokesman.

“This is the issuance of an invitation for partners to come and join us,” Kent said. “We know we can’t do this alone.”

Coca-Cola now supports physical activity programs in about 100 countries, Kent said. The company plans to add programs in the rest of its countries.

Obesity Rates

Coca-Cola fell 1.1% to $42.25 at 11:06 am in New York. The shares had gained 18% this year through Tuesday, compared with a 14% gain for the Standard & Poor’s 500 Index.

Almost 36% of adults and about 17% of children are obese in the US, according to the Centers for Disease Control and Prevention in Atlanta. Obesity is measured by using weight and height to calculate a number called body mass index, according to the CDC. An adult who is 5 feet, 9 inches tall and weighs 203 pounds or more is considered obese.

Earlier this year, New York City challenged a ruling throwing out Mayor Michael R. Bloomberg’s proposal to restrict sales of large-size soda drinks, calling the plan “contrary to law.”

The city’s board of health last year approved the plan to cap the size of sugary soft drinks sold in restaurants, movie theatres, stadiums and arenas at 16 ounces (473 milliliters) a cup. In October, groups representing beverage makers, restaurants and theatres asked the court to end the regulation, citing “unprecedented interference.”

Between 2009 and 2011, Coca-Cola, PepsiCo Inc. and the American Beverage Association spent as much as $70 million on lobbying and issue ads, according to the Center for Science in the Public Interest, a proponent of soda taxes. The money helped defeat efforts to enact such levies in 30 states. Bloomberg

AMIT KUMAR SINGH

PGDM - 2ND SEM

BMW says it’s under India inspection after report of tax probe

Mumbai: Bayerische Motoren Werke AG (BMW) said it’s cooperating with Indian authorities after a newspaper reported the German company is being investigated for possibly owing $120 million in taxes.

“An inspection is in process by the authorities at the BMW plant in Chennai,” Abhay Dange, a BMW India spokesman, said in a text message. “We are cooperating with the authorities in the inspection process.”

Indian authorities are examining whether BMW owes additional taxes for auto-parts imports stretching back to 2011, the Wall Street Journal reported, citing a person familiar with the matter it didn’t identify. Inspectors have seized a shipment of engines and transmission equipment as part of the probe, according to the report.

Dange declined to comment on details of the investigation.

Sandeep Bhatnagar, joint secretary for customs at the Central Board of Customs and Excise in New Delhi, didn’t answer after-hours calls to his office. Bloomberg

wahab khan

pgdm 1st.

Samsung, BlackBerry devices cleared for use on US defence networks

Washington: The Pentagon on Thursday cleared BlackBerry and Samsung mobile devices for use on Defense Department networks, a step toward opening up the military to a wide variety of technology equipment makers while still ensuring communications security.

Lieutenant Colonel Damien Pickart, a Pentagon spokesman, said the department cleared the use of BlackBerry 10 smart phones and BlackBerry PlayBook tablets using its Enterprise Service 10 system, as well as Samsung’s Android Knox.

“This is a significant step towards establishing a multi-vendor environment that supports a variety of state-of-the-art devices and operating systems,” Pickart said in a statement.

The Pentagon said on Wednesday it also expected to clear Apple mobile devices using the iOS 6 system at some point in early May.

The move to open up defense department networks is expected to set the stage for an intensified struggle for Pentagon customers among BlackBerry devices, Apple’s iPhones or iPads and units using Google’s Android platform such as Samsung Electronics’ phones.

The Pentagon currently has some 600,000 users of smartphones, computer tablets and other mobile devices. The department has 470,000 BlackBerry users, 41,000 Apple users and 8,700 people with Android devices. Most Apple and Android systems are in pilot or test programs.

The move to open up the networks to a broader array of mobile devices is part of a Pentagon effort to ensure the military has access to the latest communications technology without locking itself in to a particular equipment vendor.

surya prakash

pgdm 2nd sem

Renault Duster

23 March, 2013 : The 4WD version of the Renault Duster is sold in several international markets but has not yet been released in India, mainly due to the high price tag that will come attached to it. However, with the launch of Ford's EcoSport nearing, Renault has no choice but to step up and bring out its 4X4 Duster. Team-BHP recently posted spyshots of Duster undergoing testing in Kerala, with the 4WD sticker above its rear tail lights. Since Renault is already producing the 4WD Duster for import purposes, it will not be a very hard task for the automaker to develop one for the Indian sub-continent. The 4x4 version of the compact SUV is likely to retain the same 1.5-litre diesel engine that churns out a maximum power output of 108bhp and 148Nm of torque.

Priya
PGDM 2nd

AI to sell five Boeing 777 planes - The Telegraph

new Delhi, May 8: Air India plans to sell five of its eight Boeing 777-200LR aircraft, bought 3-5 years back.

The state-run carrier had tried to sell these planes earlier, too, but could not find buyers at the terms it had set.

“Air India is planning to sell its B777-200LR (long range) aircraft. Air India had inducted eight such aircraft between 2007 and 2010,” minister of state for civil aviation K.C. Venugopal said. He added that the aircraft were inducted to cater to long-range, non-stop operations between India and the US.

“Because of a steep increase in fuel prices, some of the ultra long operations such as Bangalore to San Francisco never commenced. The market dynamics changed significantly because of the global recession. It was found that the yield from non-stop routes of B777-200LR was poor,” he said.

Officials said globally these aircraft had 290-300 seats, but the planes with Air India were 238-seaters. “This is making them less viable to probable bidders. We had then opted for such a seat configuration as we wanted to offer better or premium services on long-haul flights,” an official said.

In January last year, Air India had offered five B777-200 LR planes on dry lease for six to 10 years. The US Exim Bank had extended a loan guarantee for these aircraft, which were being offered on sub lease, but the national carrier did not find any takers.

Kushank

PGDM 2nd

GMR Infrastructure looks to sell stake in four road assets to raise Rs 1,800 crore

MUMBAI: GMR Infrastructure is in talks with potential investors such as Morgan Stanley Infrastructure Fund, Citigroup Venture Capital, SBI Macquarie and ICICI Venture to divest stake in four toll road assets and raise about Rs 1,800 crore to cut debt. The infrastructure company, which builds airports, power projects and roads, has received expressions of interest (EoIs) from these prospective investors, said three senior industry official close to the transaction.

"The funds are expected to start due diligence of the road assets shortly and complete the stake purchase in six months. The assets are not offered as one block," said one of the officials. Arun Bhagat, a Bangalore-based spokesperson for GMR, said: "As a company policy, we are unable to comment on price-sensitive information and speculative news." Spokespersons of Morgan Stanley Infra Fund, Citigroup Venture Capital, SBI Macquarie and ICICI Venture did not respond to e-mail queries from ET. GMR kicked off the divestment process in its highway business in April this year by approaching select investors with a proposal seeking to sell 67-76% stake in four different assets close on the heels of its divestment of majority stake in Jadcherla Expressways to SBI Macquarie in February 2013.

Pochenpalli Expressways, Ulundurpet Expressways, Hyderabad-Vijaywada and Hungund Hospet are the assets which are offered for sale. GMR had invested about 900 crore in the four assets. It has nine road assets, out of which eight are operational. The Bangalore-based Group has recently sold 70% stake in Jadcherla Expressways for Rs 206 crore, translating into a 40% increase in its investment. Considering this as a benchmark, the company would raise Rs 1,260 crore by selling stakes in four toll road assets.

Amjad Khan

PGDM 2nd Sem

Hope Springs Eternal for CMOs and CIOs

CMOs and CIOs are all under one silo at top companies.

The Digital Age has handed companies untold powers of customer intelligence and engagement, and much has been made over which corporate duchies will wield them. But a study from the CMO Council finds that peace has been declared between CMOs and CIOs at an elite group of companies—and they're not the “built for Big Data” startups one might expect.
“It's become vogue for people to shout that the CIO and the CMO need to be aligned, but when we started asking about it at very large global organizations, their answer was, ‘We are. We've formed partnerships and dialogs. The arguments are over,'” says Liz Miller, VP of the CMO Council, referring to an online audit of nearly 500 senior marketing and IT executives that resulted in the report, “Aligning the CMO & CIO.”
While the group of marketers and IT executives who claimed they had achieved a “total partnership” was small—11% of the field—their organizations' revenues tended to be large, topping $500 billion. “They still have problems, but while silos are were identified as the primary roadblock by most in the study, this group said their biggest problems were training the right people and lack of budget,” Miller says.
More than two thirds of these happily engaged CMOs and CIOs said they considered working with the other a priority in their jobs. As a result, 42% of marketers at these companies said they are “highly satisfied” with their ability to reach customers via “critical” touchpoints. A smaller group of CIOs (30%) were as satisfied, but that just portends more good things for marketers—42% of whom claimed that they're not missing any pertinent customer data since forming tight bonds with IT.
More of the “totally partnered” respondents (24% of marketers, 30% of IT) identified the CEO as the “owner” of the customer at their companies than the sample as a whole. Indeed, 19% of marketers said that sales departments should take charge of the customer, followed by the CEO and CMO. Interestingly, CIOs gave higher customer precedence to CMOs than CMOs themselves did, placing them second behind CEOs.
“It seems as if the companies doing the best with this situation were the ones whose CEOs had drawn a line in the sand,” Miller says. “Sales owning the customer? God help us! Their compensation depends on them hoarding the data.”
When surveying the entire universe of marketers, however, silos still block their paths to true communion with CIOs and, in turn, their customers. More than half of the marketers surveyed (52%) named functional silos as their biggest obstacles, followed by lack of a customer-centric corporate culture and the appropriate technology platforms to manage data and customer profiles.
But the silos are quickly breaking down, the study says. When asked at what point in a marketing campaign they now involve IT, 45% of marketers say “from the very start.” That's crucial, according to Olly Downs, SVP of data sciences at Globys, who has been on the IT side of things during many years in the telecom industry. “What often happens is that IT makes a large capital investment in Big Data and fails to deliver on a project. Then the business owner comes in and says that what the CIO purchased didn't really meet their needs,” he says. “There's now a realization that CMOs have to engage CIOs earlier and earlier and make them key influencers in marketing decisions.”
As that scenario continues to play out, both CMOs and CIOs might see solutions materializing to confront the biggest problem they share in common: lack of budget. “As the two work together and become better at delivering ROI,” Miller says, “they begin to make business cases that show the CEO where they need to move the needle. Then they'll start seeing the budget growing slightly.”

abhishek kumar
pgdm2 sem

iPads, low-end rivals propel higher tablet shipments: report

Global tablet shipments more than double in the first quarter; Apple iPad remains the top-selling tablet

Reuters

First Published: Thu, May 02 2013. 02 27 PM IST

Tablet shipments reached 49.2 million units in the January-March period, 142.4% more than in the same quarter in 2012, market research firm IDC said on Wednesday. Apple’s iPads accounted for 19.5 million units, an increase of 65.3%. Photo: AFP

PVR planning to take its luxury format Director’s Cut to Thailand, Singapore and Hong Kong

DC as a luxury lifestyle concept, is now complete and has an international appeal. Now is the time when we can take it to some international markets: Sanjeev Kumar Bijli Joint MD, PVR

NEW DELHI: Multiplex operator PVR, which recently acquired Cinemax to become the largest film exhibition company in the country, is exploring opportunities to take its luxury format Director's Cut to Asian markets such as Thailand, Singapore and Hong Kong.

"DC (Director's Cut), as a luxury lifestyle concept, is now complete and has an international appeal. Now is the time when we can take it to some international markets," Sanjeev Kumar Bijli, joint managing director of PVR, told ET.

Director's Cut is a high-end format with theatres, restaurants, books and merchandise. Its tickets are priced up to Rs 1,200 on a weekend and offers facilities such as in-cinema dining, movie on demand. The cinemas screen independent and rare films, besides the mainstream ones. The theatres have restaurants and sell books and merchandise.

"Asian cities will be the right markets, where the consumerism story is still strong, compared to the US or the UK which are either saturated or trapped in economic crisis," Bijli said, adding that the plan is at an initial stage.

The foreign foray is being explored though PVR Leisure, a subsidiary of listed firm PVR Ltd.BSE 0.56 % The company already has a tieup with Thailandbased Major Cineplex Group for bowling alleys and allied entertainment activities under the Blu-O brand.

Meanwhile, PVR is expanding both Director's Cut and Blu-O networks within India. It currently has one DC in Delhi and five Blu-Os in Delhi, Gurgaon, Bangalore and Pune. "We plan to take DC to places like Bangalore, Noida and Gurgaon and open more bowling alleys in Chandigarh, Ludhiana and other tier II cities," Bijli said.

The company is also creating its own restaurant brands to compliment the cinema exhibition business. It has already opened Mistral restaurant, serving Mediterranean food in Delhi. Another brand, Mr Hong, is set to open in Bangalore. "The plan is to add more food and beverage brands," Bijli said. "With L Capital being our partner, there are a lot of inquiries and we are constantly evaluating options."

Luxury major LVMH group's private equity arm L Capital had picked up 44% stake in PVR Leisure for Rs 50 crore last year.

Film exhibition company PVR Ltd — the holding firm of PVR Leisure — currently operates over 350 cinema screens across India and Bijli said it plans to increase this number to 500 in the next 18 months.

PVR recently acquired a controlling stake in Cinemax India Ltd BSE -2.31 % through wholly-owned subsidiary Cine Hospitality.

Avinash kumar
PGDM 2nd sem.

Hyundai to launch four new models in two years

On the upcoming compact car, Hyundai said the model will be positioned between the company’s i10 and premium hatchback i20. Photo: Priyanka Parashar/Mint

Chennai: Hyundai Motor India Ltd is planning to launch up to four new models in the next two years, including a compact sports utility vehicle (SUV), to enhance its position in the market.

“Compact SUV is a very lucrative segment India. I think we are a bit late, but we are developing a compact SUV to be launched soon,” Hyundai Motor India’s managing director and CEO Bo Shin Seo said in Chennai.

The company, which is slated to introduce a new compact car later this year, is also mulling taking on Maruti Suzuki India Ltd’s DZire and Honda Motor India Pvt. Ltd’s Amaze with a new sub-four metre sedan.

When asked if the company planned to launch a sub-four metre sedan from the same platform as its upcoming compact car codenamed BA, Seo said :“That’s a different car.” He declined to share further details, but sources said the entry level sedan could hit the market between 2014 and 2015.

Besides, Hyundai Motor is also studying the multi-purpose vehicles (MPV) segment, where Maruti has tasted success with Ertiga. “The MPV segment is also fast growing, we are definitely looking at it but our priority will be the compact SUV,” Seo said.

On the upcoming compact car, he said the model will be positioned between the company’s i10 and premium hatchback i20. “Apart from the domestic market, we will be exporting it. We expect it to be our largest selling model,” Seo said. At present the i10 is Hyundai’s top selling model, with sales clocked at about 160,000 units last year.

When asked about the sales expectations for 2013, he said: “The market continues to be tough in India and this year we are looking at about 2-3% growth in domestic volumes.” In 2012, Hyundai had sold around 380,000 units in the domestic market and around 250,000 units were exported. The company is the second-largest car maker in India after Maruti Suzuki.

rajat singh

pgdm 2nd sem.

iimt

Coca-Cola to show calories while ceasing ads for under 12s

Coca-Cola says the plan, which includes expanding physical activity programs, will apply to more than 200 countries where it operates

Duane D. Stanford

First Published: Wed, May 08 2013. 09 56 PM IST

Coca-Cola first pledged not to advertise to children under age 12 globally in 2007. Photo: Bloomberg News

Monday, May 6, 2013

FDI in retail: Anand Sharma says foreign retailers must invest in new back-end infrastructure

Rohini Singh & Chaitali Chakravarty, ET Bureau | May 6, 2013, 10.58AM IST

NEW DELHI: Commerce and Industry Minister Anand Sharma has said that foreign supermarkets wanting to enter India will have to make fresh investments in new back-end infrastructure and not acquire existing facilities of local companies. This would dash hopes of global retailers such as Walmart, which might have planned to buy out franchisee Bharti Retail's back-end infrastructure along with the front-end Easy Day stores for speedy access to the Indian consumer.

Sharma, widely regarded as the architect of the policy, also clarified that the cost of land and real estate will not be included in the mandatory $50-million investment on infrastructure and logistics over a three-year period - one of the conditions foreign supermarkets have to meet to enter India.

"It is an additionality. Investments have to be in new back-end infrastructure, not in acquisition of existing ones," Sharma said. Back-end infrastructure typically includes cold chain, warehouses, processing plants and logistical support, and is critical for the smooth functioning of a retail firm.

Birendra kumar

pgdm 2nd

Gold prices hold firm after second weekly gain

LONDON (Reuters) - Gold edged higher on Monday, with some buyers tempted back to the market after a second week of gains suggested last month's price slide to a more than two-year low has run its course for now.

The precious metal rebounded quickly after coming under pressure on Friday from data showing U.S. employment rose more than expected in April, which eased concerns over the U.S. recovery and dampened talk that further monetary easing may be necessary.
Gold fell more than $25 an ounce from its highs on Friday, but recovered to end the week higher.
Spot gold was up 0.2 percent at $1,473.66 an ounce at 0915 GMT, while U.S. gold futures for June delivery were up $8.90 an ounce at $1,473.10. Trading is expected to be quiet in Europe, with London closed for a national holiday.
"Technically we are in a nice upward channel since the mid April low," Saxo Bank Vice President Ole Hansen said. "This morning we are sitting near the lower end of that channel so any dollar strength may just push it over the edge to the downside, but so far corrections have been pretty shallow."
Outflows from bullion-backed exchange-traded products, which have hit record levels in recent months, have also slowed, he said. The world's largest gold-backed ETP, New York's SPDR Gold Trust, reported an outflow of 3.6 tonnes on Friday, against an average 6.6 tonnes in April.
"ETP reductions slowed to the lowest in four weeks last week and hedge funds reduced their gross short positions," Hansen said. "All signs are that the market could potentially be gearing up for an attack on 1488 followed by 1525, especially considering the swift way we recovered despite price-negative news on Friday."
Strength in the dollar and weakness in stocks capped gains in gold, however. The dollar firmed 0.1 percent against a basket of currencies after Friday's jobs data reassured investors the U.S. recovery was ongoing. (FRX/)

European shares dipped early on Monday as investors took a breather following the previous week's rally to multi-year highs, although further gains were seen on the back of strong support from central banks. (.EU)

"With the Fed's recent commitment to stand ready to alter the pace of QE, based on employment and inflation expectations, bullion prices are likely to remain highly sensitive to changes in U.S. employment data," HSBC said in a note

JEEUTIKA SINHA

PGDM 2nd sem

Asian Development Bank to provide $6 billion to India over next 3 years

GREATER NOIDA: The Asian Development Bank (ADB) on Sunday said it will provide about $6 billion loan to India over the next three years, even as the multilateral lender stated it is facing the challenge of raising resources.

"Our idea is ADB will maintain its lending level to India, approximately $2 billion over next three years. We are now working on the country partnership strategy and we are planning to maintain the level of lending to India," ADB president Takehiko Nakao said at the concluding day of the 46th annual meeting of the funding agency here.

India is the biggest borrower of ADB. The Manila-based multilateral lender had extended $2.4 billion loan to India in 2012 across sectors like transport, energy, commerce, industry, trade and finance.

Asked about whether ADB has identified projects, Nakao said it is too premature to talk about any specific ones but ADB team is looking at various concrete projects.

He also said that the bank will continue to lend $10 billion a year across the member-nations despite generating lower return from investments.

Stating that ADB is facing a resource challenge, he said this issue will require urgent and careful attention. "We will look at all options for ensuring that our lending level remains adequate."

Actively investing in different kinds of assets can be one of the options for larger revenue, he said, adding that "financial safety and return is the key objective while making investment".

Asked whether there was discussion on augmenting the capital of the bank at the board of governors meeting, Nakao said: "That is a very difficult issue. At this point I want to mention what kind of objections we are getting to maintain the level of lending. I don't want to specify what kind of idea we have at this moment."

ADB's capital was tripled in 2009. The fund enhancement came after a gap of 15 years.

NAME- MD. ABDUL WAHAB

CLASS- PGDM 1st

Luxury German brand Montblanc opens second store in Chennai

Luxury German brand Montblanc has recently opened its second store in Chennai at Bergamo mall. Spread over 600 sq.ft., the outlet stocks timepieces, writing instruments, jewellery, leather goods, accessories and limited editions.

Speaking on the occasion, Vishakha Doshi, Director Marketing and Communication Entrack International (Exclusive Distributors in India forMontblanc), said: “Montblanc is delighted to announce the opening of a new Montblanc Boutique in Chennai at the Bergamo mall. The new boutique is located at the KNK Road, Nungambakkam. Chennai is a very important market for us and has seen steady growth.”

Montblanc now has 19 stores all over India in Ahmedabad, Bangalore, Chandigarh, Chennai,Delhi, Hyderabad, Ludhiana, Mumbai, and Pune.

-IndiaRetailing Bureau

surya prakash

pgdm 2nd

Nelson Peltz reports stakes in Mondelez, PepsiCo; shares up

Trian said it had acquired 19.4 million shares of Mondelez, representing a 1.09 per cent stake, and about 3.9 million, or 0.25 per cent, of PepsiCo's shares. (Pic by AFP)

Activist investor Nelson Peltz purchased stakes in US packaged food companies Mondelez International Inc and PepsiCo Inc, worth a little more than $900 million, a regulatory filing on Friday showed.

The filing by Trian Fund Management L.P., Peltz's investment vehicle, confirmed a report in March by Britain's Daily Telegraph that the investor had bought stakes in the companies. The report had speculated that Peltz might push for a merger of the two.

Trian said it had acquired 19.4 million shares of Mondelez, representing a 1.09 per cent stake, and about 3.9 million, or 0.25 per cent, of PepsiCo's shares.

The investor had reported a stake in PepsiCo in late 2011, a time when there was a lot of market speculation over whether the maker of Tropicana juice, Frito-Lay snacks and Quaker oatmeal was worth more broken up or together.

PepsiCo's share price had been stagnant for about five years and its North American drinks business was losing share to that of Coca-Cola.

Peltz later sold off the stake. Friday's regulatory filing disclosed his positions in the two companies as of Dec. 31, 2012.

PepsiCo told Reuters it had held meetings with Trian in recent weeks to discuss their ideas and initiatives "to drive long term growth and shareholder value".

A spokesperson for Mondelez said they were aware of the filing, but declined to comment on individual shareholders or speculate on their intentions.

Mondelez shares were up 2.6 per cent at $30.86 on the Nasdaq, while those of PepsiCo were up 2.4 per cent at $83.11 on the New York Stock Exchange on Friday morning.

ALOK KUMAR

PGDM II SEM

Reliance Comm raises some call prices, more expected

Reuters) - Reliance Communications(RLCM.NS), India's third-biggest mobile phone carrier by customers, has raised some voice call prices and further cut discounts, extending price increases in the world's second-biggest mobile phone market.
Until recently, operators in India's fiercely competitive market have offered steep discounts to win customers, often sacrificing margins, but rising airwave costs and heavy debts have forced carriers to end that strategy.
As several smaller firms have either shut down or scaled back operations in response to a court order, bigger companies such as Bharti Airtel (BRTI.NS), Vodafone Group Plc (VOD.L) and Idea Cellular (IDEA.NS) have cut discounts on voice calls, effectively increasing prices.
Operators are likely to further cut discounts and free minutes in order to boost revenue, analysts say. Last week, top carrier Bharti Airtel, which withdrew discounts in January, said it expected pricing to become more stable.
Still, firms will be less rapid to raise the so-called headline, or base, tariffs - currently at between 1.5 paisa and 2 paisa a second - as an overt rise in prices could hit demand, said Ankita Somani, a telecoms analyst at Angel Broking in Mumbai.
"I really don't see headline tariffs going up for the next one quarter or so," she said.
A paisa is one-hundredth of a rupee, or around two-hundredths of a U.S. cent.
Reliance Communications, which is due to report quarterly earnings on Friday, said on Monday it is increasing calling rates to 1.2 paisa a second from 1 paisa in some plans, still below its base price of 1.5 paisa a second.
"With smaller operators shutting down or scaling down their operations and easing off hyper-competitive pressures, this will help pricing power move back ... and positively impact profitability," Gurdeep Singh, Reliance Communications' head of mobile business, said in the statement.
Shares in Reliance Communications, controlled by billionaire Anil Ambani, have jumped nearly 50 percent this year on hopes of more deals with Reliance Industries Ltd (RELI.NS), run by Anil Ambani's wealthier brother Mukesh, which is readying the launch of a nationwide 4G network.
Reliance Communications shares were down 0.2 percent at 1: 55 p.m., marginally underperforming the Nifty which was up 0.1 percent.

Kushank Singhal
PGDM 2

Top television ads in March

An advertisement for the Sony television station took pole position in the top of the mind ad survey for March

An advertisement for the Sony television station took pole position in the top of the mind ad survey for March, followed by two brands of fruit drinks, Slice and Frooti mango. Commercials promoting the channel captured the fourth and ninth slots as well.

In February, the first two ranks in terms of the reach index, which measures awareness and brand recall among consumers, had been taken by advertisements aired by wireless operators Idea and Airtel, but they failed to make it to the top 10 list in the Mint-Ipsos-TVAdIndx survey for March.

The top Sony ad scored a perfect 100 on brand recall, compared with Idea’s 92 in February. The scores of the top three commercials in March in terms of the ad reach index were higher, at 75, 64 and 61, than the highest score of 60 points in the preceding month.

With the long Indian summer starting earnest, it is perhaps not surprising that commercials plugging cold drinks feature five times in the top 10. An advertisement for Lay’s potato crisps and another for mobile phone model Samsung Galaxy Grand occupied the fifth and eighth positions, respectively.

The Sony channel’s advertisement, however, was overtaken by soft drink brand Maaza in the ad diagnostics index, which measures the softer features of commercials such as likeability, enjoyability and believability. Even on this count, the scores of the top four were higher than February’s highest of 64 points. The No.1 on the diagnostics index scored 75 points.

The survey covered 754 respondents —250 each in Mumbai and Bangalore, and 254 in Delhi.

AMIT KUMAR SINGH
PGDM 2ND SEM

Wednesday, May 1, 2013

Car-makers start new fiscal on a lacklustre note

Our Bureau

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Sluggish economy, high interest rates keep buyers away

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New Delhi, May 1:

Car-makers have started the new fiscal mostly on a flat note, though some managed to create a buzz with new launches.
Sluggishness in the economy, high interest rates and costly fuel dampened demand for passenger vehicles. Nine top manufacturers together sold 191,252 units in April compared with the 205,811 units sold in April 2012.
The country’s top car-maker Maruti Suzuki, which reported its highest ever quarterly profit earlier last week, registered a nominal sales increase of 0.3 per cent, selling 90,523 units in April.
The company's total (domestic plus exports) sales declined by 3 per cent to 97,302 units during the month compared with 1,00,415 units in April in 2012. Maruti’s exports declined 33 per cent to 6,779 units in April (10,160 units).
The second largest passenger car manufacturer Hyundai Motor India’s domestic sales declined 7.6 per cent to 32,403 units in April against 35,070 units in the same month last year. However, its exports were up 26 per cent at 24,551 units.
“Exports have shown good growth on account of strong demand from non-European markets while the domestic market continues to witness pressure,” said Rakesh Srivastava, Senior Vice-President, Sales and Marketing.
Tata Motors reported a decline of 14.85 per cent in its total sales at 51,160 units. The company had sold 60,086 units in April 2012. Mahindra & Mahindra recorded a growth of two per cent at 41,432 units against 40,715 units during April 2012.
Honda Cars sold 8,488 units last month against 7,075 units in April 2012, most of the sales coming from Amaze sedan (4,852 units) that was launched last month.
Led by its flagship sports utility vehicle Duster, Renault India sold 6,314 units compared with just 615 units in April 2012.
Ford India’s total sales declined 24.03 per cent at 7,270 units compared with 9,569 units in the same month last year.
ronendrasingh.s@thehindu.co.in

(This article was published in the Business Line print edition dated May 2, 2013)

Arvind Kumar Pathak

PGDM 2nd

NTPC may sign key pacts with Sri Lanka by May end

500 MW project is part of India’s effort to exert economic and strategic influence in the neighbourhood

NTPC and CEB signed the joint venture agreement in 2011. NTPC signed an agreement with CEB and the Sri Lankan government in December 2006 and the project was initially expected to be commissioned and start generating power in 2011. Photo: Mint

New Delhi: Indian state-run power utility NTPC Ltd’s stalled plan to build a 500 megawatt (MW) plant in Sri Lanka may get going again with two key agreements likely to be signed by May end.

The project is part of India’s effort to exert economic and strategic influence in the neighbourhood by developing infrastructure. Decks have now been cleared for inking the key accords—the power purchase agreement (PPA) and the implementation agreement.

“The Sri Lanka power deal is about to be signed,” said a senior Indian government official requesting anonymity.

“A team from Sri Lanka was here some time back. We are in agreement on the agreements. They have agreed and will be getting clearance at their end shortly post which the PPA and the implementation agreement will be signed by next month,” said a senior NTPC executive who also didn’t want to be identified. A second NTPC executive confirmed the development.

While the PPA will be inked between Trincomalee Power Co. Ltd (the joint venture setting up the project) and Ceylon Electricity Board (CEB), the implementation agreement will be signed between Trincomalee Power and the government of Sri Lanka.

Mint reported 29 March about the possibility of China wresting power projects away from India in Sri Lanka and Bangladesh.

This follows similar power purchase and implementation agreements signed by NTPC in Bangladesh for the Khulna project.

India’s largest power generation utility had earlier told CEB that it can’t accept fresh terms proposed by the island nation.

Questions emailed to the spokespersons for India’s external affairs ministry, NTPC and the Bangladesh high commission in New Delhi on 24 April remained unanswered till press time. The Sri Lanka High Commission said questions should be to directed to NTPC “as they are the ones signing the agreement”.

This comes in the backdrop of the Dravida Munnetra Kazhagam (DMK) pulling out of the United Progressive Alliance (UPA) to protest against the coalition government’s inaction on its demand that India vote against Sri Lanka in the United Nations Human Rights Council hearings in Geneva on 21 March over alleged war crimes.

The original plan was to start generating power from the $500 million Sri Lanka project in 2011. It was to be set up on a build, operate, own and transfer basis with a debt-to-equity ratio of 70:30 and was to be NTPC’s first overseas project.

NTPC and CEB signed the joint venture agreement in 2011. NTPC signed an agreement with CEB and the Sri Lankan government in December 2006 and the project was initially expected to be commissioned and start generating power in 2011.

Neighbourhood ties, traditionally considered strong by India, have been fraying. India’s support for former Maldives president Mohamed Nasheed has seen the current regime regarding it with suspicion. The Indian Ocean atoll nation spans some of the busiest sea lanes connecting Asia, Africa and West Asia.

NTPC signed a joint venture agreement with Bangladesh Power Development Board (BPDB) in January 2012 for the 1,320MW Khulna project for which the power purchase and implementation agreements were signed recently. Another project at Chittagong with an initial capacity of 1,320MW has also been planned by the Bangladesh government.

“We have signed all the necessary agreements with Bangladesh for the Khulna project. No decision has been taken by the Bangladesh government for the Chittagong project,” added the NTPC executive quoted above.

Lalit Sharma
PGDM 2nd sem

Maruti sales down 3% in April

Maruti Suzuki India on Wednesday reported 3.1 per cent decline in its total sales in April this year at 97,302 units.

PTI | May 1, 2013, 10.55AM IST

NEW DELHI: The country's largest car-maker Maruti Suzuki India on Wednesday reported 3.1 per cent decline in its total sales in April this year at 97,302 units.
The company had posted a total sales of 1,00,415 units in the corresponding month last year. For April 2013, the city-based firm reported its domestic sales at 90,523 units, a marginal rise over 90,255 units in April, 2012, Maruti Suzuki India (MSI) said in a statement.
MSI's exports last month went down by 33.28 per cent to 6,779 units from 10,160 units in the year-ago period, the company said.

Birendra kumar
pgdm 2nd