Tuesday, December 10, 2013

LPG price up on hike in dealer commission

NEW DELHI: The price of subsidized cooking gas refills increased by Rs 3.46 each on Tuesday as the government raised dealer commission by more than 9% to offset their rising costs such as salary, power and rentals.

Commission has been increased to Rs 40.71 per cylinder. A refill in Delhi costs Rs 410.50 and would now be delivered to consumers for Rs 413.96.

Commission on five-kg cylinders has also been increased by Rs 1.73 to Rs 20.36 per refill. A five-kg cylinder costs Rs 353 in Delhi.

There has been no revision in the additional distributor commission of 75 paisa, paid over and above the normal commission of Rs 40.71, on sale of non-subsidized cylinders.

Non-subsidized refills, which consumers have to buy after exhausting the yearly quota of nine subsidized cylinders for each household, are sold at market price and cost Rs 1017.50 each in Delhi.

The oil ministry plans to revise commission every year to keep pace with rise in dealers' costs. The commission was last revised in October 2012 when cylinder rates went up from Rs 399 to Rs 410.50 each.

Dealer commission has more than doubled in the past six years, with almost yearly increases. Commission was raised from Rs 16.71 per cylinder to Rs 19.05 on March 1, 2007; to Rs 20.54 on June 4, 2008; to Rs 21.94 on June 30, 2009 and to Rs 25.83 per bottle on July 1, 2011.

md. abdul wahab

pgdm 2nd

GM picks Mary Barra as first female CEO, replacing Dan Akerson

Mary Barra, 51, has been in charge of product development and quality of all GM cars and trucks for 22 months, fostering collaboration and wringing costs out of the supply chain. Photo: Bloomberg

Michigan: General Motors Co. named Mary Barra to succeed Dan Akerson as chief executive officer, making her the first female CEO in the global automotive industry. Akerson is retiring 15 January, and Tim Solso was named chairman.

Akerson, CEO since 2010, turned 65 in October and his wife was recently diagnosed with an advanced stage of cancer, GM said in a statement. Solso is the former CEO and chairman of Cummins Inc. Dan Ammann, the chief financial officer, was named president of the company.

Barra, 51, whose career started on a factory floor as an intern more than 30 years ago, has been in charge of product development and quality of all GM cars and trucks for 22 months, fostering collaboration and wringing costs out of the supply chain. The daughter of a Pontiac die maker takes the helm after the US government sold its stake in GM, giving her full freedom to take on domestic and Japanese manufacturers whose price competition threatens profit.

Succession is one of the most important risks at General Motors for an investor with a medium- to long-term horizon, Adam Jonas, an analyst with Morgan Stanley, said in an interview earlier this year. Leadership in the auto industry — one leader can make tens of billions of difference. We’ve seen that.

Top women

As the first female CEO of a global automaker, Barra joins Ginni Rometty at International Business Machines Corp., Indra Nooyi at PepsiCo Inc., Marissa Mayer at Yahoo! Inc., Hewlett- Packard Co.’s Meg Whitman and Ursula Burns of Xerox Corp. as women who have risen to run major US corporations.

She beat out Mark Reuss, 50, president of GM North America, Ammann, 41, and vice chairman Steve Girsky, 51, all of whom were considered potential CEOs.

Reuss replaces Barra as executive vice president for global product development, purchasing and supply chain. Girsky will become a senior adviser until leaving the automaker in April 2014. He will remain on the board.

Barra began with GM in 1980 as a student at General Motors Institute (since renamed Kettering University) in Flint, Michigan, and landed her first job as a plant engineer at Pontiac Motor Division, where her father worked for 39 years. There were few women and even fewer 18-year-olds.

It was a rougher environment, she said in an interview in March. It makes you harder.

Her big break came when GM put her in a program for high- potential workers and gave her a scholarship to get an MBA from the Stanford Graduate School of Business. She became an executive assistant for then-CEO Jack Smith, a perch that gave her a window into how the company worked. She recalls visiting senior leaders at GM to talk about diversity and women’s issues while she was pregnant.

Engineering background

Barra has played a role in GM management for a generation. Her career has include time as vice president of global manufacturing engineering, head of GM’s Detroit Hamtramck Assembly plant and executive director of competitive operations engineering. Before becoming GM’s first female product chief, she was the company’s top human-resources executive.

Most recently she led the company’s $15 billion vehicle — development operations, a high-profile role that’s given her sway over the look and feel of the full line of GM cars and trucks. She was promoted to that position in early 2011, less than six months after Akerson became CEO.

Some of the new vehicles to come out under her include the Chevrolet Impala, the first US sedan in at least 20 years chosen by Consumer Reports as as the best on the market, and the Cadillac CTS, picked as Motor Trend’s car of the year.

Hidden successes

Some of her other achievements aren’t easy to see.

He asked her to cut costs by aligning purchasing and product development, two powerful units that had long been at odds. In one early example, GM engineers and suppliers found savings by redesigning knee air bags so that they could be used in more vehicles without having to design different dashboards for each model.

If it’s customer facing, why does it have to be? Barra said of the conversations she’s had with engineers. And then if it’s not, why can’t it be common for the globe? Some components and subsystems depend on the size of the vehicle, the performance you’re looking for. But if you start with questioning ‘why can’t I have one solution?’ then you get engineering thinking completely differently.

‘Car Gal’

Akerson presaged Barra’s appointment earlier this year when he predicted that a woman will eventually run one of the three largest US-based automakers.

The Detroit Three are all run by non-car guys, Akerson said in September in Detroit. Someday, there will be a Detroit Three that’s run by a car gal.

He declined to identify any contenders at the time, saying only that there are an unbelievable number of talented women in automotive, certainly at General Motors.

News of the changes come a day after the US government disclosed the sale of the last of its shares in GM. Bailouts from the George W. Bush and Barack Obama administrations gave US taxpayers a stake in the automaker while helping GM avoid liquidation. The company reorganized in a 2009 bankruptcy that helped it reduce debt, trim labor costs and sharpen its focus on only the strongest brands.

GM reached a record high on Monday, closing at $40.90, with a market valuation of $56.8 billion. The shares slipped 0.7% to $40.60 at 9:11 am.
ALOK KUMAR
PGDM 3rd Sem

Charges include supplying low-quality coal, preferring other state-owned companies over private buyers

The case against Coal India was registered by the Maharashtra State Power Generation Co. Ltd and Gujarat State Electricity Corp. Ltd, the spokesperson said.

New Delhi: India’s competition watchdog has fined Coal India Ltd (CIL) and three of its subsidiaries a combined Rs.1,773 crore for misusing their position as monopoly suppliers of coal to fix prices and supply poor-quality coal, and do so on conditions that favoured them over the buyers.

Coal India penalized for misusing monopoly

The specific charges against Coal India, the first state-run company to be fined by the Competition Commission of India (CCI), were: supplying low-quality coal at high prices; retaining the right to unilaterally terminate contracts with buyers; not providing a fair dispute redressal mechanism; and preferring other state-owned companies over private buyers of coal.

The antitrust regulator also fined Coal India units Mahanadi Coalfields Ltd, Western Coalfields Ltd and South Eastern Coalfields Ltd.

Coal India said it will comment after seeing the order. “Once we go through the order, the management will decide on the further course of action,” a senior company official said on condition of anonymity.

The company has the right to appeal against the order with the Competition Appellate Tribunal.

The case against Coal India, the world’s largest coal miner, was registered by the Maharashtra State Power Generation Co. Ltd and Gujarat State Electricity Corp. Ltd, the spokesperson said.

“It is the first time the CCI has penalized a public sector company. Through its order, the CCI has rejected the contention that just because a company is a government entity it does not have commercial interests,” said M.M. Sharma, a New Delhi-based competition law expert with Vaish Associates. “It shows that the CCI is finally focusing on the aspect of competitive neutrality.”

The 101-page order was put up on the CCI website on Tuesday evening. The penalty has been calculated at 3% of Coal India’s average revenue in 2009-10, 2010-11 and 2011-12, which was Rs.52,252.09 crore, Rs.55,101.42 crore and Rs.69,952.33 crore respectively.

“CCI held that CIL through its subsidiaries operates independently of market forces and enjoys undisputed dominance in the relevant market of production and supply of non-coking coal in India,” the competition watchdog said.

Coal India and its units were also found to have breached provisions of the Competition Act by imposing unfair or discriminatory conditions in fuel supply agreements (FSAs) with power producers for supply of non-coking coal, the order said.

The commission ordered Coal India and its units to “cease and desist” from such practices and modify clauses in the FSAs that relate to sampling and testing procedure and charging buyers transportation and other expenses for supply of ungraded coal, among others.

“Further, for effecting these modifications in the agreements, CIL was ordered to consult all the stakeholders. CIL was also directed to ensure parity between old and new power producers as well as between private and PSU (public sector unit) power producers, as far as practicable,” CCI said.

This is not the only case against Coal India that the regulator is investigating. In 2012, there were at least five complaints against the company in three cases, in which CCI had conducted investigations. No decision has been taken on these by the commission. In July 2012, CCI had ordered a probe against three CIL units—Eastern Coalfields Ltd, Bharat Coking Coal Ltd and Mahanadi Coalfields.

A CCI spokesperson said the outcome of the other cases will not be affected by Tuesday’s order.

Dipesh Dipu, an energy analyst and a partner at Jenissi Management Consultants, said that since Coal India operates in a regulated sector, and is state-controlled, the company can’t be blamed for its pricing mechanism. “Coal India marks its prices on a cost-plus basis. The only other alternative is market-based pricing which would make coal costlier,” he said.

In its order the commission regulator has said that it “is not oblivious of the regulated environment in which CIL operates”.

“The Commission opined that notwithstanding the overarching policy and regulatory environment, CIL has sufficient flexibility and functional independence in carrying out its commercial and contractual affairs. Such factors, however, were not found to detract from CIL and its subsidiaries operating independently of market forces and enjoying undisputed dominance in the relevant market,” the order said.

Dipu said that the order could have a two-pronged impact.

“It could mean that CIL’s subsidiaries would be individually listed on the stock exchanges. This would help make the operations of their boards transparent,” he said.

“The order could also mean that the government may be forced to amend the coal nationalization Act,” Dipu said. The Coal Mines (Nationalisation) Act, 1973, which governs the mining and trade of coal in the country, had nationalized all the private collieries in the country.

A senior CCI official however disputed this and said that the coal nationalization act was “only a policy decision by the government” and that “signing of the FSAs had nothing to do with it.” The official didn’t want to be named.

The company presently has seven coal-producing subsidiaries. These include: Bharat Coking Coal, Central Coalfields Ltd, Eastern Coalfields Ltd, Mahanadi Coalfields, Northern Coalfields Ltd, South Eastern Coalfields and Western Coalfields Ltd. It also has an international venture, Coal India Africana Limitada, which is not producing coal as yet. The Central Mine Planning and Design Institute Ltd at Ranchi in Jharkhand also comes under the company.

On 13 November the company had said that it had signed fuel-supply pacts for power generation to the tune of 70,400 mega watts (MW), out of the 78,000MW it is mandated to. The company also said its profit after tax for the fiscal second quarter ended 30 September fell marginally to Rs.3,052 crore from Rs.3,067 crore in the corresponding period last year. Revenue for the quarter increased to Rs.15,411 crore from Rs.14,572 crore.

On Tuesday, the company’s stock price fell 1.7% toRs.285.45, while the BSE’s benchmark Sensex shed 0.33% to 21,255.26 points. The CCI order was passed after the close of trading.

ABDUL WAHEED

PGDM 2nd

Reliance Jio, Bharti Airtel join hands for sharing infrastructure

Mukesh Ambani-led Reliance Jio Infocomm and Sunil Mittal-headed Bharti Airtel on Tuesday announced a comprehensive arrangement for sharing telecom infrastructure, a partnership that will help them reduce costs they incur on their respective networks.

This (arrangement) will include optic fibre network inter and intra city, submarine cable networks, towers and internet broadband services and other such opportunities identified in the future, a joint statement by the two companies said.

On Monday, Ambani had said the Reliance Group was open to join hands with Bharti Airtel for improving telecom network for 4G services in Punjab.

The joint statement said: The arrangement could, in future, be extended to roaming on 2G, 3G and 4G, and any other mutually benefiting areas relating to telecommunication, including but not limited to jointly laying optic fibre or other forms of infrastructure services.

Reliance Jio Infocomm is the only company which has pan-India airwaves that can be used for 4G services very high speed wireless broadband services), while Bharti Airtel is already the largest telecom operator in the country with a subscriber base of over 19 crore.

Airtel offer all kinds telecom services, include 4G mobile broadband. The statement said the pricing would be at 'arm's length', based on the prevailing market rates.

The arrangement will also provide redundancy in order to ensure seamless services to customers of the respective parties.

The co-operation is aimed at avoiding duplication of infrastructure, wherever possible, and to preserve capital and environment. Bharti and Reliance Jio are already in an agreement under which Bharti had provided capacity on its i2i submarine cable to Reliance Jio.

Last week, Minister of State for Communication and IT Milind Deora sharing a dais with Prime Minister Manmohan Singh appealed to the telecom industry to sort out differences among them for development of the sector.

In April this year, Reliance Jio had signed a similar agreement Anil Ambani-led Reliance Communications for sharing their existing and future telecom infrastructure . This deal was the first business deal between the two brothers since they split the Ambani empire in 2005. Soon, they followed it by another agreement in June on mobile tower sharing.

abdul waheed

pgdm 2nd

Nissan to hike vehicle prices by up to 4% from January

Japanese car firm Nissan on Tuesday said it would hike prices of its vehicles, including hatchback Micra and sports utility vehicle Terrano in India, by up to 4 per cent from next month in order to offset the impact of rupee depreciation and escalating input costs.

The company, which is present in the country through a wholly owned subsidiary Nissan Motor India Pvt Ltd , said the price increase ranging from 2 per cent to 4 per cent, will be effective from January 2014.

The price increase will impact the purchase price of premium hatchback Micra, sporty Micra Active, mid-sized sedan Sunny, MPV Evalia and newly launched SUV Terrano, the company said in a statement.

Commenting on the development Hover Automotive India (Nissan's National Sales Company) Acting Chief Operating Officer Richard D Spitzer said that although the rupee situation seems to have stabilised, the higher exchange rate has impacted costs all-round, making price increase inevitable.

Inflation-led rise in input costs and raw materials costs also cannot be ignored at this point.

The price increase is marginal and we assure our valued customers that we will continue to offer them globally renowned products at affordable prices, he added.

In India, Nissan sells a range of vehicles, including hatchback Micra, mid-sized sedan Sunny, Nissan Evalia (MPV), and newly-launched compact SUV Terrano along with SUV X-Trail. These are priced between Rs 4.9 lakh and Rs 26.96 lakh (ex-showroom, Delhi).

Earlier this week, Tata Motors had announced to hike prices of its passenger vehicles by about 1 per cent from next month.

Last week, leading car-makers Maruti Suzuki India and Hyundai had also announced to hike prices from January, joining the likes of Mercedes, BMW, Audi and Honda. Earlier during the month, Honda Cars India Ltd had announced to take a price hike from first week of next month to partially offset impact of adverse exchange rate and inflation.

mukesh kumar

pgdm 2nd

Coal India penalized for misusing monopoly

Charges include supplying low-quality coal, preferring other state-owned companies over private buyers

Coal India penalized for misusing monopoly

The case against Coal India was registered by the Maharashtra State Power Generation Co. Ltd and Gujarat State Electricity Corp. Ltd, the spokesperson said.

The antitrust regulator also fined Coal India units Mahanadi Coalfields Ltd, Western Coalfields Ltd and South Eastern Coalfields Ltd.

The company has the right to appeal against the order with the Competition Appellate Tribunal.

The case against Coal India, the world’s largest coal miner, was registered by the Maharashtra State Power Generation Co. Ltd and Gujarat State Electricity Corp. Ltd, the spokesperson said.

A CCI spokesperson said the outcome of the other cases will not be affected by Tuesday’s order.

In its order the commission regulator has said that it “is not oblivious of the regulated environment in which CIL operates”.

Dipu said that the order could have a two-pronged impact.

“It could mean that CIL’s subsidiaries would be individually listed on the stock exchanges. This would help make the operations of their boards transparent,” he said.

On Tuesday, the company’s stock price fell 1.7% toRs.285.45, while the BSE’s benchmark Sensex shed 0.33% to 21,255.26 points. The CCI order was passed after the close of trading.

ABDUL WAHEED

PGDM 2nd YEAR

Rupee opens lower at 61.23 per dollar; trade data eyed

The rupee falls despite the dollar trading near a six-week low

Wed, Dec 11 2013

The yield on India’s 10-year benchmark bond was trading at 8.836%, compared with its Tuesday’s close of 8.84%. Photo: Pradeep Gaur/Mint

Mumbai: The Indian rupee on Wednesday opened lower at 61.23 per dollar against its Tuesday’s close of 61.04.

The Indian currency lost ground despite the dollar trading near a six-week low against a basket of currencies on Wednesday, hampered by a growing view that the Federal Reserve needs more positive economic data before it decides to start reducing its monetary stimulus.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.024, up 0.07% compared with its previous close of 79.966.

“The recent rupee upmove appears to be overdone. Let us come back to basics and fundamentals,” the chief of dealing at a private bank said.

The yield on India’s 10-year benchmark bond was trading at 8.836%, compared with its Tuesday’s close of 8.84%.

At 9.05am, the Indian currency was trading at 61.31 per dollar, down 0.44%. India’s equity benchmark BSE Sensex was trading at 21,191.27 points, down 0.3%.

Bloomberg reported on Tuesday that the government will release trade data for November on Wednesday at 11am.

ABHISHEK KUMAR

PGDM 1ST YR

Samsung’s marketing splurge doesn’t always bring value for money

The outlay buys the South Korean technology firm publicity in TV and cinema ads, on billboards, and at sports and arts events from the Sydney Opera House to New York’s Radio City Music Hall. Google Inc. spent less on buying Motorola’s handset business.

And Samsung, which has a market value of $227 billion, has made no secret of keeping up its aggressive marketing and promotion splurge as it seeks to make its brand as aspirational as Apple Inc.’s. But the money it’s spending doesn’t always bring the desired result.

Last month, a Samsung-sponsored short-film contest finale at the Sydney Opera House received poor reviews for blatant product placement in a series of “behind the scenes” videos. In Britain, viewers panned a product placement deal with ITV’s popular X-Factor talent show. “Is this a singing competition or an extended Samsung advert?” asked Twitter user Ryan Browne.

Earlier this year, Samsung’s New York launch of its latest top-of-the-range Galaxy smartphone came under fire for being sexist, portraying giggling women chatting about jewelery and nail polish while the men discussed the new phone, and the company’s new fridge and washing machine launch in South Africa drew similar complaints as it featured swimsuit dancers.

“Samsung’s marketing is too much focused on projecting an image they aspire to: being innovative and ahead of the pack,” said Oh Jung-suk, associate professor at the business school of Seoul National University. “They are failing to efficiently bridge the gap between the aspiration and how consumers actually respond to the campaign. It’s got to be more aligned.”

Samsung spends a bigger chunk of its annual revenue on advertising and promotion than any other of the world’s top-20 companies by sales—5.4%, according to Thomson Reuters data. Apple spends just 0.6%, and General Motors Co. 3.5%.

“When your brand doesn’t have a clear identity, as is the case with Samsung, to keep spending is probably the best strategy,” said Moon Ji-hun, head of brand consultant Interbrand’s Korean operation. “But maintaining marketing spend at that level in the longer term wouldn’t bring much more benefit. No one can beat Samsung in terms of (ad) presence, and I doubt whether keeping investing at this level is effective.”

In a statement to Reuters, Samsung said it will “continue to leverage our brand power to maintain growth momentum, while focusing on optimizing the efficiency of our marketing activities,” reiterating recent comments by its co-chief executive officer (CEO).

“Our product innovation and marketing strategy have made Samsung the world’s most preferred smartphone brand,” J.K. Shin, who also heads the group’s mobile business, told investors recently. “Now we’ll move from the most preferred brand to become one of the world’s leading aspirational brands.”

Innovating, not following

Samsung’s “Next big thing”, and “It’s time to change” marketing campaigns stress that its products are cutting-edge, and even trumpet its technology “world firsts” before they’re ready for prime time, such as curved smartphones, available only in South Korea, and curved TVs that cost nearly $10,000.

For a company long seen as a follower, this is now a big sell on it being an innovator.

But, while Samsung has become the world’s biggest advertiser, spending $4.3 billion on ads alone last year, its global brand value of $39.6 billion is less than half that of Apple, which spent only $1 billion on advertising, according to Interbrand and ad researcher Ad Age.

To be sure, Samsung has a more diverse range of mobile products, which along with its chips and household appliance businesses need more marketing across different target audiences. But the heavy marketing spend suggests a need to convince consumers that it belongs at the top. Apple can afford to spend less as it already has that brand recognition, and cachet.

“The stronger, more differentiated the product, the less it needs to be propped up by advertising,” said Horace Dediu, founder of independent research firm Asymco and a former Nokia business development manager, referring to Apple’s ad spend.

Defending its marketing budget, Samsung can point to its lead in the global smartphone market—it sells one in every three smartphones and has more than double Apple’s market share. The Korean group’s savvy adverts mocking Apple devotees, and heavy investment in distribution channels have strengthened its Galaxy mobile brand.

“The Galaxy brand has established itself, and the Samsung brand is now much stronger than Android or any of the other OEM brands, except Apple,” said Benedict Evans, an independent technology and media consultant in London. “The underlying problem is that Samsung has established itself as a dependable quality brand, not a differentiated or premium quality product, so it does best where it’s not competing directly with Apple.”

Samsung works with a number of advertising agencies, including Publicis Groupe, Interpublic Group, and MDC Partners.

NAME RAHUL SINGH 2

PGDM 1 SEM

NTPC stock closes 11.26% lower on CERC draft norms

National Thermal Power Corp. (NTPC) stock fell the most on Tuesday after Central Electricity Regulatory Commission (CERC) issued draft regulations for the tariff period from 1-4-2014 to 31-3-2019 late on Monday.

The regulations will decide power tariff for power generating and transmission firms for the said period and are likely to affect the earnings of these firms.

The NTPC stock closed 11.26 per cent lower on the BSE. Stock of Tata Power and Torrent Power fell 1.52 per cent and
4.83 per cent, respectively. The NTPC stock was the top loser on the NSE falling 11.70 per cent.

Weakness was seen in other power related stocks, including National Hydroelectric Power Corp (NHPC) ended 1.37 per cent lower, Power Grid stock slipped 3.05 per cent and SJVN was down 2.88 per cent on the BSE.

"We see huge negative impact for NTPC. However, we see lower impact for PGCIL, NHPC and SJVN," brokerage firm Emkay Global said in a report.

"The final regulations could be different from the draft as has happened in the past. However, given the quantum of negative impact is high compared to previous draft regulations even if the norms are relaxed a bit it would still be negative," the report added.

Analysts say the guidelines tightened some operational parameters, reducing the use of financial incentives for achieving transmission and generation targets.

nitesh kumar

pgdm 1st

source--business today

Wal-Mart says David Cheesewright to head international business

Cheesewright currently serves as president and CEO of Walmart’s Europe, Middle East and Africa and Canada regions

David Cheesewright will start the new position on 1 February, the same day his predecessor, Doug McMillon, becomes the retailer’s CEO.

Chicago: Wal-Mart Stores Inc., the world’s largest retailer, promoted David Cheesewright to president and chief executive officer of the international business as it struggles to ignite growth.

Cheesewright, 51, currently serves as president and CEO of the retailer’s Europe, Middle East and Africa and Canada regions, the Bentonville, Arkansas-based company said on Tuesday in a statement. He’ll start the new position on 1 February, the same day his predecessor, Doug McMillon, becomes the retailer’s CEO.

Wal-Mart has been accelerating its expansion in China and other emerging markets while probing allegations of bribery in Mexico and possible violations of the Foreign Corrupt Practices Act. The international business had $135.2 billion in revenue in Walmart’s previous fiscal year, about 29% of the company’s total sales.

Walmart was little changed on Monday at $79.95 in New York trading. The shares have gained 17% this year, compared with a 27% increase for the Standard & Poor’s 500 Index. BLOOMBERG

LALIT SHARMA

PGDM 2nd YEAR

Nokia owes Rs. 21,153 cr as total tax liability: IT dept to HC

DATE-11 DEC 2013

The Income Tax department has informed the Delhi High Court that Nokia India and Nokia Corporation owe it Rs. 21,153 crore as total tax liability (existing and anticipated), including penalty during a seven-year period from 2006-2013.

The amount payable by Nokia has been arrived at by the I-T department on the basis that the mobile manufacturing firm does not discharge its TDS liability on royalty payments and is not entitled to any deduction under tax laws for operating from a special economic zone (SEZ).
The submission has been made by the I-T department in its reply to Nokia's plea for unfreezing of its assets in India prior to its USD 7.2 billion deal with Microsoft.

In case TDS liability is paid and the deduction under tax laws for operating from a SEZ is available to Nokia, then its total tax liability (existing and anticipated), including penalty would be Rs. 14,200 crore.
Meanwhile, a bench of justices Sanjiv Khanna and Sanjeev Sachdeva adjourned the hearing on Nokia's plea to tomorrow when the company may have to answer the court's queries regarding the total investment made by it in India, dividend paid by it, quantum of purchases of raw materials, whether Nokia Corporation has been filing returns here, what will happen to Nokia Corp post-Microsoft deal, etc.
Nokia's offer to pay a minimum of Rs. 2,250 crore, which could increase depending upon the outcome of its deal with Microsoft, was recently turned down by the I-T department during the proceedings before the high court.
During an earlier hearing, the I-T department had informed the high court that Nokia India's tax liability is over Rs. 6,500 crore.
Nokia had made the offer seeking to get its assets here, including its mobile manufacturing unit in Chennai, unfrozen.
It has sought lifting of the stay on transfer of its assets in India saying the high court's injunction will jeopardise the sale of its Indian arm to Microsoft under the global deal.

SUMIT KUMAR SINGH
PGDM 1 SEM

Shares of Bharti Airtel gained momentum in a weak market after it signed a pact with Reliance JiO to share of telecom infrastructure.

Bharti Airtel gains on signing pact with RIL JiO for infra sharing

Reliance Industries, Bharti Airtel sign telecom infrastructure deal

In a move that has the potential to create India’s biggest shared telecom network, Mukesh Ambani-controlled Reliance JioInfocomm and India’s biggest telecom operator Sunil Mittal-led Bharti Airtel on Tuesday signed a wide-ranging agreement to share infrastructure and Internet broadband links, among others.

The arrangement may be extended in future to roaming services on 2G, 3G and 4G platforms, and any other areas of mutual benefit relating to telecommunication, the two companies said in a statement. The announcement comes just a month ahead of the government’s planned auction of telecom spectrum in January.

Reliance JioInfocomm is widely expected to roll out nationwide 4G services shortly, amid speculation that it might offer schemes bundled with hardware such as tablets and smartphones.
The agreement with Bharti "will include optic fibre network – inter and intra city, submarine cable networks, towers and internet broadband services and other such opportunities in the future," the statement said.
The cooperation is aimed at avoiding duplication of infrastructure, wherever possible, and to preserve capital and the environment.
"This will also provide redundancy in order to ensure seamless services to customers of the respective parties," it said.
On Monday, Mukesh Ambani had said at an industrial summit in Punjab that the Reliance group was open to join hands with Bharti Airtel for improving telecom network for 4G services in Punjab. He was sharing the dais with Sunil Mittal on the occasion.
The companies did not disclose financial details of the agreement, but said "the pricing would be at "arm’s length, based on prevailing market rates".
Reliance Jio already has a pact with Reliance Communications, controlled by Mukesh’s younger brother Anil Ambani, for sharing optic fibre network and mobile towers.
Reliance Jio Infocomm is the only pan-India operator with broadband wireless access (‘BWA’) spectrum across 22 circles capable of offering fourth generation (4G) LTE (long-term evolution) wireless services.
It is setting up a pan India telecom infrastructure to provide high speed internet and communication services.

NAME-
SARVESH KUMAR SINGH
PGDM 1st SEM

Mary T Barra named first woman CEO of General Motors

General Motors on Tuesday named Mary T Barra as its first woman CEO, to succeed Dan Akerson, who retires next January after almost four years at the top. Barra’s appointment is also the first for the US auto industry.

File photo of Mary Barra, the first female CEO of General Motors. (Reuters Photo)

The announcement came a day after US treasury said it had sold off the last of the GM stock it had received in exchange for the $49.5 billion bailout of the company.
Barra, 51, who has been executive vice-president, Global Product Development, Purchasing and Supply Chain since 2011, is a second generation GM employee -- her father was one too.

"With an amazing portfolio of cars and trucks and the strongest financial performance in our recent history, this is an exciting time at today’s GM," said Barra in a statement.
Her appointment was not entirely a surprise to industry watchers as Akerson had said in September he could see a woman running one of of the Detroit auto-makers one day.
"The Detroit 3 (GM, Ford and Chrysler) are all run by non-car guys," Akerson said. "Some day, there'll be a Detroit 3 that's run by a car gal. I don't know when, but I think there are an unbelievable number of talented women in automotive, certainly at General Motors. It's inevitable."
And it did indeed happen at GM, the largest US car maker.
In her 33 years at the company, Barra held a series of manufacturing, engineering, and senior staff positions.
"She is a leader in the company’s ongoing turnaround, revitalizing GM’s product development process resulting in the launch of critically acclaimed new products while delivering record product quality ratings and higher customer satisfaction," the company said.
That turnaround started in 2008, and Akerson was among the new directors installed by the government as part of its rescue package for the company.
"I will leave with great satisfaction in what we have accomplished, great optimism over what is ahead and great pride that we are restoring General Motors as America’s standard bearer in the global auto industry," Akerson said.
Akerson, 65, pulled ahead his succession plan by several months after his wife was recently diagnosed with an advanced stage of cancer.

Barra, 51, currently executive vice president for global product development, purchasing and supply chain, will assume the post on January 15.

The announcement came just one day after the US Treasury sold its last shares in General Motors, closing the books on a 2008 bailout executed amid the financial crisis. GM and fellow US automakers Ford and Chrysler have gained on surging auto sales throughout 2013.

Barra has worked at GM for 33 years, rising through a series of manufacturing, engineering and senior staff positions. GM, in a statement, called her "a leader in the company's ongoing turnaround."

An engineer by training, Barra has also served as vice president of global human resources, where she was credited with shaking up a corporate culture that had depressed profits and innovation.

Her GM-heavy background contrasts with Akerson, who joined GM as chief executive in 2010 after working on buyouts for investment firm The Carlyle Group.

Tuesday's announcement unveiled a series of other significant executive changes, including news that board member Theodore Solso would succeed Akerson as chairman.

Dan Ammann, currently executive vice president and chief financial officer, will become president and assume responsiblity for regional operations around the world. The global Chevrolet and Cadillac brands will report to him. A replacement as CFO will be named later.

Akerson, 65, accelerated the succession plan by several months after his wife was recently diagnosed with "an advanced stage of cancer," the company said.

GM shares were off 0.4% in early trade. Shares have risen steadily over the last 12 months.

Analyst reports released after the US Treasury announced it had sold its remaining equity stake in GM said the shares were primed to rise further thanks to improving products and the anticipation of a corporate dividend and share buyback program.

LOVE KUMAR GUPTA
PGDM 1ST SEM

Monday, December 9, 2013

Samsung’s marketing splurge doesn’t always bring value for money

Innovating, not following

For a company long seen as a follower, this is now a big sell on it being an innovator.

Samsung works with a number of advertising agencies, including Publicis Groupe, Interpublic Group, and MDC Partners.

low gear

Samsung’s latest marketing splash has been on its Galaxy Gear smartwatch, which has been almost universally panned by reviewers. The device has been aggressively marketed through adverts and collaboration with fashion shows—yet only 800,000 Gears have been shipped since its launch two months ago. Compare that to the more than 5 million Note 3 smartphones that have been shipped since its late-September launch, and it suggests fewer than a fifth of the Note buyers are also buying the accessory device.

Alok Kumar

PGDM-3rd Sem

New American Airlines emerges as world's top carrier

AMR Corporation, the parent of American Airlines, and US Airways Group announced they had completed the deal after AMR emerged from bankruptcy protection.

The new American Airlines Group is a goliath, providing nearly 6,700 daily flights to more than 330 destinations in more than 50 countries.

"Our people, our customers and the communities we serve around the world have been anticipating the arrival of the new American," said Doug Parker, chief executive of American Airlines and the former chairman and CEO of US Airways.

"We are taking the best of both US Airways and American Airlines to create a formidable competitor, better positioned to deliver for all of our stakeholders. We look forward to integrating our companies quickly and efficiently so the significant benefits of the merger can be realized."

The creation of a third giant carrier to compete with US rivals United and Delta cleared a major hurdle in November after the Justice Department announced a settlement to resolve antitrust concerns.

Under the agreement, AMR and US Airways are giving up slots and other rights at seven key airports to low-cost airlines.

The two airlines are abandoning a significant number of slots at two of the busiest airports on the East Coast — 34 at New York's La Guardia and 104 at Washington's Reagan National.

The new American is committed to maintaining hubs in New York's Kennedy International, Los Angeles, Miami, Chicago's O'Hare, Philadelphia, Phoenix and Charlotte for three years.

The companies said Monday there would be no immediate change to their operations. The integration of the two companies to achieve a single operating certificate is expected to take 18 to 24 months.

As part of the combination, US Airways will exit Star Alliance on March 30 and will enter the next day the Oneworld Alliance, joining American with airlines including British Airways, Cathay Pacific, Japan Airlines and Qatar Airways.

"Customers will begin to see enhancements to their experience in early January, including the ability to earn and redeem miles when traveling on either American Airlines or US Airways, reciprocal American Admirals Club and US Airways Club benefits, and reciprocal elite recognition," the companies said.

Headquartered in Fort Worth, Texas, synergies from the merger are expected to generate more than $1 billion a year in additional financial benefits by 2015, they said.

Flight attendants of both carriers cheered the merger. "Christmas has come early," said Laura Glading, president of the Association of Professional Flight Attendants, the union representing the staff at American.

"It's been a long, tough slog, but today our hard work has paid off." Roger Holmin, head of the Association of Flight Attendants unit at US Airways, said: "We proudly stand shoulder-to-shoulder with our new American flying partners and we cheer the end of the American bankruptcy."

Shares in American Airlines Group, trading under the ticker symbol AAL, debuted on the Nasdaq exchange at $23.95. The stock closed at $24.60.

The $11 billion merger was first announced in February, but was held up by an antitrust lawsuit from the US government and backed by several states, worried about the combined airline's potential monopoly power.

The lawsuit argued that the tie-up would mean four airlines — which it said have a history of "tacit coordination" instead of competition — would control more than 80 percent of the US commercial air travel market.

US Airways and American alone compete directly on more than 1,000 routes, it argued.

NAME-

SARVESH KUMAR SINGH

PGDM 1st SEM

George Zimmerman's Girlfriend Wants to Drop Charges, 'Be With Him'

George Zimmerman's girlfriend who called Florida police to say he was breaking her stuff and was brandishing a weapon no longer wants to press charges against him and instead wants to get back together with him.

Zimmerman, 30, who faces a felony aggravated assault charge as well as lesser charges stemming from the incident, is asking to have conditions of his bail modified so he can resume contact with Samantha Scheibe.
According to court documents filed by Zimmerman's attorney Jayne Weintraub, Scheibe, 27, gave a sworn statement in which she wrote, "I do not want George Zimmerman charged."
Zimmerman, who had been acquitted earlier this year of murder in the death of teenager Trayvon Martin, had posted a $9,000 bond and was barred from any contact with Scheibe. He was also ordered to give up his guns and wear an electronic monitor.
Scheibe's new affidavit taken Dec. 6 stated, "When I was being questioned by police I felt very intimidated...I believe that the police misinterpreted me and that I may have misspoken about certain facts in my statement to police."
Scheibe wrote that Zimmerman "never pointed a gun at or toward my face in a threatening manner" and that "I want to be with George."
Weintraub claims that Scheibe reached out to her and asked that the order barring contact between herself and Zimmerman be lifted.
Scheibe originally told a 911 dispatcher that the incident began when the former neighborhood watch captain grew upset during an argument and brandished a weapon at her.

"He's in my house, breaking all my s--- because I asked him to leave," Scheibe told the dispatcher. "He's got a freaking gun, breaking all my stuff right now."

Scheibe said at the time Zimmerman pushed her out the home and locked her out. Authorities said when they arrived Scheibe gave them keys to the home, and that they had to push through obstacles by the door to get in.
At the time, Zimmerman told police that Scheibe instigated the incident.
The November incident was Zimmerman's latest run-in with the law since his acquittal in Martin's death.
In September, he was arrested and then released without charges after his wife called 911 to say Zimmerman punched his father-in-law in the nose and threatened to shoot him and his wife.
Zimmerman claimed that he was acting in a "defensive manner" during the incident, according to police, who later added that they never found a gun on Zimmerman.
He has also been pulled over for speeding, once in July and again in September. During the July incident, he alerted the officer that he had a gun in his glove compartment.

On July 18, the Seminole County Sheriff's Office said Zimmerman was one of two men who came to the aid of a family who became trapped inside their Ford Explorer after it rolled over on the side of the highway.

By the time police arrived, two people -- including Zimmerman -- helped the family get out of the overturned car, according to the sheriff's office.

pradeep shukla
pgdm-1sem

Fears of increased borrowings for doles spook the bond market

ET Bureau | Dec 10, 2013, 11.02AM IST

MUMBAI: The Narendra Modi effect in state elections may have helped equity investors hit a home run on Monday, but bond markets reacted in the opposite direction as investors fretted about a populist splurge by a desperate government with its backs to the wall.

Bond prices fell and yields rose above the 8.90%-mark as investors felt that government borrowings could rise ahead of national polls which need to be held by May 2014. The ten-year benchmark government bond (carrying 8.83% interest rate) price on Monday dipped 34 paise to . 99.51 from its previous close at Rs 99.85.

Yield was at 8.91%, up 5 bps from 8.86% on Friday. Prices and yields move in opposite direction. "The market expects the government will dole out more freebies," Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance

SHANE HAIDER

PGDM 3rd SEM

RESEARCH NEWS: Five personas of

the millennia generation revealed

Millennials (17-31 year olds) fall into five different personas, according to The Millennial Index.
The study revealed 28 per cent of Millennials are ‘digital window shoppers’. These people are less engaged online than many of their peers, this group is also less likely to influence peer opinion.
Twenty-four per cent are 'digital socialites'. Highly sociable, they actively participate in online communities and social networks.
While, 21 per cent of are ‘dynamic media junkies’. This group is fully immersed in a culture of dynamic media – video clips, animation and streamed film/TV.
However, sixteen per sent of 17-31 year olds are only ' casually engaged’. Meaning that they are less engaged with the digital world than any of their peers, this group is more likely to be unemployed or in low paid jobs with less access to technology.
Finally, the remaining 11 per cent are 'the emerging technocracy’. This section is strongly engaged with the digital world, influencing large numbers of their peers. They tend to be the highest earning members of their generation and are twice as likely to own a business or hold a senior management position already.
The survey also revealed that only a minority of Millennials (41 per cent) spend more than three hours a week on Facebook while 43 per cent don’t use Twitter at all.
Meanwhile, 65 per cent of Millennials spend more time accessing the internet via a laptop or desktop PC than via their smartphone or tablet.
Unlike the myth that this generation spends the majority of time socialising online and via mobile, the average Millennial spends 108 hours a year browsing the internet for work/study (almost as much time as they spend texting) and 77 hours a year reading news online (more time than on Twitter (71 hours a year) and the 36 hours they spend looking at celebrity gossip).
Overall, the research demonstrates that Millennials have a hugely diverse range of behaviours in their digital lives. While technology has enabled big behavioural shifts, it has at the same time made user behaviour even more complex. The explosion in different behavioural patterns means marketers must beware of the trap of treating their Millennial customers as a homogenous group.
Claire Davidson, insight and strategy director at Bite, commented on the findings: “This new study has exposed the myths associated with Millennials. There have been so many studies of this generation and many have painted a far too simplistic picture of how 17-31 year olds actually behave.
“A failure to understand their real behaviour means brands will fail to provide them with content and services that fit with and enhance their lives. It is time we are realistic about this generation and what they do online.”

RAJ KISHORE SHARMA

Nissan goes one up on Maruti Suzuki, to sell cars online in India

10 December 2013

Customers will be able to book their cars by making payments by credit card.
Japanese car major Nissan today announced it will sell cars online in India and make its entire product line up available for purchase via the internet.
"Customers will be able to book their cars by making payments through an online gateway by credit card. The car will then be delivered to the customer by their nearest Nissan dealership when ready," the company said in a statement.
Commenting on the initiative, Hover Automotive India (Nissan's national sales company) Director - Marketing Nitish Tipnis said: "Today most car buyers go online before making a decision so using the internet is a logical extension of the purchase cycle."
The objective is to simplify the purchase cycle and delight the customer by making the entire sales journey quicker and more efficient with no compromise on service, he added.
Tipnis said in order to woo e-commerce consumers, the company will "offer the convenience of online booking coupled with attractive deals".
Most of the major car makers in India, including Maruti Suzuki and Hyundai, do not sell cars through internet but use the online medium to convert queries into offline sales through dealerships.
The line of vehicles offered by Nissan in India includes mid-sized sedan ‘Sunny’, Nissan Evalia (MPV), compact hatchback Nissan ‘Micra’, newly launched compact premium SUV Nissan ‘Terrano’, luxury sedan Nissan ‘Teana’, SUV Nissan ‘X-
Trail’ and sports car Nissan '370Z'.
These are priced between Rs 4.9 lakh and Rs 26.96 lakh (ex-showroom, Delhi).

AJAY SINGH THAKUR
PGDM 1SEM