NEW DELHI: Endemol India, makers of popular reality television shows such as Bigg Boss, Khatron Ke Khiladi and The Great Indian Laughter Challenge, is getting into Bollywood film production.
The Indian subsidiary of the Netherlands-based independent television producer is close to signing up two movies involving some of the biggest stars in Bollywood, Endemol India CEO Deepak Dhar said soon after the announcement of a stake sale in the Indian firm.
CA Media, the Asian investment arm of former News Corp chief operating officer Peter Chernin’s The Chernin Group, and Endemol on Thursday announced that the former has acquired 49% stake in Endemol India. Dhar, who has been managing director of Endemol India since 2007, will continue to lead the company and has been elevated as CEO.
CA Media is estimated to have paid Rs 250 crore for the stake. Endemol will use a part of that money to acquire production houses and to fund filmmaking. Dhar did not comment on the investment plans, but said the company’s association with big stars like Amitabh Bachchan, Shah Rukh Khan, Salman Khan and Priyanka Chopra, among others, would come handy in its Bollywood foray.
The Chernin Group recently raised $200 million (approx Rs 1,000 crore) through a minority stake to private equity firm Providence Equity Partners. Sources said three-quarter of that money, or $150 million (Rs 750 crore) would be allocated to investments in the entertainment and media businesses in India.
CA Media on Thursday also announced an investment in Only Much Louder, a Mumbai-based music , live events and youth media company. This investment was made along with Zodius, an investor and operator of digital media. CA Media’s India head Rajesh Kamat refused to share investment details , but said the idea is to make Endemol India the leading and most valuable content production company in India across television, film and digital content.
In a joint statement, the companies said key strategic priorities for Endemol India include establishing a strong presence in the Indian film sector as well as expansion in scripted and regional television , areas in which Endemol India is already active . CA Media’s backing provides Endemol India with extensive operational experience from its principals and the required financial resources for executing its ambitious growth strategy.
At the same time, Endemol India will continue to produce and exploit its global portfolio of formats and IP. International distribution of all content developed by the operation will be handled by Endemol. Founded in 2006, Endemol India has grown to be one of India’s largest producers of entertainment television.
The company is known for its successful shows including Bigg Boss (the Indian version of Big Brother), which has had five seasons to date, Fear Factor (four seasons ), Jo Jeeta Wohi Super Star and Deal or No Deal.
Dhar, who has been managing director of the company since 2007, will continue to lead the company & has been elevated as CEO CA Media is estimated to have paid Rs 250 crore for the stake, a part of which will be used to acquire production houses and to fund filmmaking Company’s association with big stars would come handy in its Bollywood foray.
LODHA, RUNWAL, SHETH IN TALKS TO BUY DLF’S MUMBAI LAND
MUMBAI: City-based real estate developers such as Lodha Developers, Runwal Group and Sheth Creators are in talks with DLF, the country’s largest developer, to buy a piece of land here, it is learnt. While DLF was seeking a valuation of Rs 3,000 crore for the 17-acre plot, the potential buyers were negotiating to buy it at Rs 2,000-2,200 crore, said a person with direct knowledge of the deal talks. “Even as all the parties had talks with DLF, the developer is yet to make up his mind, as it is expecting higher valuations,” said the person. Abhisheck Lodha, managing director of Lodha Developers, declined the company was in talks with DLF. A top Runwal group executive also responded in the negative. Vallabh Sheth of Sheth Creations was unavailable for comments. A DLF spokesperson said the company did not want to comment on market speculations. (For details log on to : http://www.business-standard.com/india/news/lodha-runwal-sheth-in-talks-to-buy-dlfs-mumbai-land/472758/)
BHEL MAY MAKE ‘BOFORS-EQUIVALENT’ GUNS FOR THE ARMY
NEW DELHI: Even as the Bofors gun scandal continues to haunt Indiayears after it was unearthed during the 1980s, the good news is that these guns may soon be produced at home. The country’s largest power equipment manufacturer, state-owned Bharat Heavy Electricals Ltd (BHEL), which is already making supplies of 76 mm and 127-mm guns to the Indian Navy, said it was looking at producing “Bofors-equivalent field guns for the Indian Army” with appropriate technology selection by the ministry of defence (MoD). “After our successful stint with the Indian Navy to supply guns for ships, we are now in talks with the defence ministry to manufacture Bofors-equivalent field guns for the Indian Army,” BP Rao, CMD, BHEL, told Hindustan Times. “Depending on the technology they (MoD) select, we area ready to manufacture these guns at our Haridwar factory where we have a separate manufacturing set up for guns,” said Rao. (For details log on to : http://www.hindustantimes.com/business-news/WorldEconomy/BHEL-may-make-Bofors-equivalent-guns-for-the-Army/Article1-846696.aspx)
ONGC MAY LOOK AT SETTING UP MORE UREA, POWER PLANTS
AHMEDABAD: Oil and Natural Gas Corporation Ltd (ONGC) on Thursday said it is open to set up more urea and gas-based thermal power plants in the areas it has a presence in the hydrocarbon sector. Asked if the company would replicate its Tripura model, where it has invested Rs 3,950 crore on a 726 MW power plant and also announced to invest Rs 5,000 crore on setting up a urea plant, Mr Sudhir Vasudeva, Chairman and Managing Director, replied in the affirmative during an interaction with newspersons. “Given an opportunity, we are open to set up more such plants in areas where we have a presence and where there is a shortage of fertilisers and power.” ONGC plans to set up a hydrocarbon-based urea fertiliser plant after completion of the power plant at Palatana in south Tripura district. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-others/tp-international/article3357932.ece)
ALTRAN EXPANDING INDIA OPERATIONS
CHENNAI/BANGALORE: French engineering company Altran Technologies, which operates across 20 countries in Europe, Asia and the Americas, plans to expand its Indian operations, by tapping the Indian market and also serving global customers in the aerospace, automotive, railways and energy verticals from India, a senior company official said here on Thursday. The Euro 1.4-billion global leader in innovation and high-tech engineering consulting supports companies worldwide in the development of products and services in diverse verticals. For scaling up, the firm is looking at both organic and inorganic routes. “We will expand our Indian subsidiary’s operations to a workforce of about 2,000 by 2014 from about 300 now,” Altran group chief technical officer Michel Bailly told reporters here. Altran said on Thursday that it is in talks with a few Indian manufacturing companies for strategic acquisitions and for ramping up its operations in the aerospace and automotive sectors. “We aim to grow 40 per cent organically and 60 per cent inorganically in the sectors in Indiathat have emerged as a key market,” Bailly added. (For details log on to : http://www.business-standard.com/india/news/altran-expanding-india-operations/472694/)
NEW SILK ROUTE INVESTS R175 CRORE IN VRL LOGISTICS
MUMBAI: New Silk Route (NSR), which manages $1.4-billion private equity funds focused in Asia and the Indian subcontinent, has invested R175 crore in the Hubli-based logistics company VRL Logistics. VRL will utilise R125 crore for expanding its business, while its promoters will get the balance amount of R50 crore for selling their stake to NSR, the companies said on Thursday in a joint media statement. NSR’s stake in VRL, however, was not disclosed. “We believe that the infrastructure and logistics segment in Indiawill grow exponentially in the next couple of years and this partnership helps us to further strengthen our infrastructure portfolio,” said Darius Pandole, partner at NSR, who will also join VRL’s board as a director. (For details log on to : http://www.financialexpress.com/news/new-silk-route-invests-r175-cr-in-vrl-logistics/942067/)
YASH BIRLA GROUP TO ENTER SPORTS NUTRITION BUSINESS
MUMBAI: Yash Birla Group plans to launch B3 (BCUBE), a range of advanced sports nutrition products to tap into the fast growing health and wellness market Apart from being manufactured in the US, B3 (BCUBE) will also be tested in an independent lab in the states which is accredited by WADA ( World Anti-Doping Agency) for testing products. Yash Birla, Chairman, Yash Birla Group said, ” Today’s youth is increasingly growing health conscious coupled with high disposable income. This is a huge opportunity for us to capitalize the demand with the best solution.” The Rs 3000 crore group will be the first Indian corporate house to venture in the Sports Nutrition segment in a professional way. In the first phase B3 will be launched in Mumbai, Delhi, Bangaloreand their surrounding mini metros by the end of 2012. N. Venkat, Managing Director and CEO, Birla Wellness & Healthcare Pvt. Ltd said, “We would invest (approx.) Rs 30 crore for a period of 3 years for B3 (BCUBE). The category is pegged at around 300 crores in India& is growing at a pace of 30% year on year. We see substantial growth potential and aim to capture 10% market share by the end of FY12-13.” (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/healthcare/yash-birla-group-to-enter-sports-nutrition-business/articleshow/12881191.cms)
IDG VENTURES INDIA AND ACCEL PARTNERS INJECT $5 MILLION IN FORUS HEALTH
BANGALORE: Technology investor IDG Ventures India and Accel Partners India have together injected $5 million in two-year old medical devices maker Forus Health. The Bangalore-based start-up founded by K. Chandrasekhar and Shyam V. Rao who were colleagues at multinational electronics company Philips have developed ‘3nethra’, a low-cost portable pre-screening ophthalmology device. The device which costs one sixth the price of the devices available in the market can identify multiple diseases such as cataract, glaucoma, diabetic retina, refraction and cornea problems. “You can carry it in a suitcase. It is rugged and has been carried on bus tops and even on horses in places like Mizoram,” said K Chandrasekhar, CEO of Forus. The device can be used by a minimally trained technician. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/healthcare/idg-ventures-india-and-accel-partners-inject-5-million-in-forus-health/articleshow/12883083.cms)
MINISTRY SAYS AVIATION FDI WILL HAPPEN ONLY AFTER REACHING POLITICAL CONSENSUS
NEW DELHI: Two weeks after assuring that foreign airlines would soon be allowed to invest in domestic carriers, the aviation ministry has become more realistic and wants to delay the approval pending complete political consensus. Civil aviation minister Ajit Singh on Thursday said the “proposal will be approved only after a consensus is built among all the allies”. Though the minister did not specify how much time the exercise would take, sources said that the statement is seen as admission that the contentious proposal may get delayed further. Already, inter-ministerial differences over the quantum of stake to be offered to foreign airlines has delayed finalisation of the FDI proposal for approval o the cabinet. (For details log on to : http://www.financialexpress.com/news/ministry-says-aviation-fdi-will-happen-only-after-reaching-political-consensus/942022/)
SINGLE BRAND RETAIL FDI POLICY A FLOP, ONLY ONE APPLICANT SO FAR
NEW DELHI: Slowdown in government’s policy initiatives and the corresponding weak market response is evident from the fact that despite allowing upto 100% foreign direct investment (FDI) in single brand retail, so far only one applicant wants to avail the benefit. Also, no decision has been taken by the government on allowing 49% FDI in Indian carriers by foreign airlines while there is no forward movement on increasing FDI in defence from 26% to 49% or allowing FDI in multi-brand retail. Despite big hoopla around allowing FDI in single brand retail, so far only one UK-based footwear brand Pavers has applied to the government to scale up its Indiaoperation in line with the new FDI rule for single brand retail. “There is one proposal from Pavers India who have applied for a licence,” said Saurabh Chandra, secretary department of industrial policy and promotion (DIPP) on the sidelines of a Ficci function. (For details log on to : http://www.financialexpress.com/news/single-brand-retail-fdi-policy-a-flop-only-one-applicant-so-far/942061/)
TAPI PIPELINE: TRANSIT FEE LIKELY TO BE FINALISED BY NEXT MONTH
NEW DELHI: With India, Pakistanand Afghanistanreaching a broad understanding on the issue of transit fee for import of natural gas through the proposed $7.6 billion Turkmenistan, Afghanistan, Pakistanand India (TAPI) pipeline project, the nations concerned are likely to meet next month to sort out the issue and give it a final shape. Although all the parties agreed in principle to go ahead with the pipeline and no formal agreement had been signed, the progress had been quite outstanding on the issue. However, a formal agreement had not been signed, Minister of State for Petroleum and Natural Gas, R.P.N. Singh said. The next round of talks is scheduled to be held in Ashgabat in Turkmenistanon May 6. All the three nations had met in Islamabadearly this month to work out the issue of transit fee but no breakthrough could be achieved as Indiashowed its reluctance to accept and pay the transit fee being asked by Afghanistan. During the trilateral talks, Indiahad declined to pay the 50 cents per million metric British thermal unit (mmBtu) as transit fee for the gas. (For details log on to : http://www.thehindu.com/todays-paper/tp-business/article3358567.ece)
MONSOON TO BE NORMAL: IMD
NEW DELHI: India will likely receive normal monsoon showers for a third straight year in 2012, boosting prospects of farm production and providing relief to an inflation-wary government, which is preparing to widen subsidised grain sales to the poor under the Food Security Act. Rainfall in the June-September season is likely to be 99% of the 50-year average of 89 cm with a margin of +/–5%, science and technology minister Vilasrao Deshmukh said on Thursday. The India Meteorological Department (IMD) defines normal monsoon rains as 96%-104% of the long-period average, which refers to the average showers received between 1951 and 2000. The monsoon season brings about 70% of annual rains and is crucial for summer-sown crops, as more than 60% of the country’s farmland is rain-fed, and also boosts ground water reserves for winter planting. (For details log on to : http://www.financialexpress.com/news/monsoon-to-be-normal-imd/942236/)
ENERGY COMPANIES OPERATING IN MOZAMBIQUE PLAN TO SHIP MOZAMBIQUE GAS TO INDIA
MUMBAI: Energy companies operating in Mozambique, which reported one of the world’s biggest natural gas discoveries in recent years, are eyeing the vast Indian market and have started discussions with state energy firms, hoping that the African nation will follow Qatar’s footsteps in shipping vast quantities of gas to India. Videocon International and public sector Bharat Petroleum Corp Ltd (BPCL), which hold 10% each in six blocks in the deep-water RovumaBasin, off the Mozambiquecoast in Africa, are interested in selling gas in India. The basin may hold 30 trillion cubic feet of gas, which can be liquefied and transported to Asia. European energy major Royal Dutch Shell Plc, which runs an LNG terminal at Hazira through a joint venture, has agreed to acquire Cove Energy that has stakes in energy assets in Mozambique, for $1.8 billion. This development would help ship gas to India, BPCL chairman RK Singh told ET. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/energy-companies-operating-in-mozambique-plan-to-ship-mozambique-gas-to-india/articleshow/12889175.cms)
REDUCE PETROL TAX BY RS 6 PER LITRE: OIL MINISTRY
NEW DELHI: The oil ministry has asked for a tax cut of Rs 6 per litre on petrol to help avoid a sharp rise in retail price of the fuel, but the finance ministry, which has already surrendered Rs 49,000 crore by reducing various levies of fuels last year, is reluctant to forgo more revenue. The oil ministry’s request follows demands by state-run oil marketing companies to either cut taxes or allow them raise petrol prices by Rs 8 per litre. “The petroleum ministry wants the special additional excise duty ( Rs 6/litre on petrol) to be removed so that price increase can be kept as low as possible,” a government official told ET. Total central levies on petrol are Rs 14.78 a litre, including education cess. The finance ministry is reluctant to cut duties that would reduce its revenues and jeopardize its fiscal consolidation plans. The finance ministry had already sacrificed Rs 49,000 crore revenue through duties cuts on petroleum products in 2011-12, officials said. Economists say that shielding consumer from market realities only encourages irrational consumption. “Consumption should not be incentivised. A comprehensive policy needs to be put in place to ensure transmission of global prices to consumers,” said D K Joshi, chief economist, Crisil. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/reduce-petrol-tax-by-rs-6-per-litre-oil-ministry/articleshow/12889256.cms)
NUCLEAR ENERGY IS ONE PART OF MOVE TOWARDS LOW-CARBON FUTURE: MONTEK
LONDON: Nuclear energy should be considered a clean energy source, Mr Montek Singh Ahluwalia, Deputy Chairman Planning Commission, said that at the end of the 23-Government Clean Energy Ministerial meeting that took place in Londonthis week. Mr Ahluwalia, who represented Indiaat the third CEM conference, said that nuclear energy was “one part of a move towards a low carbon energy” future. Indiais set to host the fourth CEM meeting in next April. The Londonmeeting brought together representative of governments from across the world, including China, Brazil, Australiaand the US, and is meant to be an annual forum for some of the world’s biggest emitters of greenhouse gases to work together on policies to increase their use of renewable energy. Among the initiatives launched were a joint project by Italyand the USto provide off grid lighting to two million homes in India, as part of a global energy access partnership. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-economy/article3357902.ece)
COAL INDIA REFUSES SUPPLY TO NEW POWER PLANTS
NEW DELHI: In a twist to the unending drama over coal supply, Coal India Ltd (CIL) has refused to supply to power plants commissioned since December 2011. The move is set to stall investment worth Rs 40,000 crore in new power capacity of 8,156 Mw. This includes a 300-Mw unit of Reliance Power’s Rosapower plant in UP and a 660-Mw plant of China Light & Power (CLP) at Jhajjar, Haryana. The source of the current controversy is an April 19 circular issued by CIL’s subsidiary, Central Coalfields, for May. The circular stated the rake movement plan would be accepted only from plants that had signed fuel supply agreements (FSAs). This could bring power companies under pressure, as these are unwilling to sign FSAs in their current form, with a low-penalty level. Power companies give a rake movement plan to CIL, the coal ministry and the rail ministry a month before tying up necessary evacuation facilities for coal transport to plants. The circular has left power companies jittery, as these were hopeful of receiving coal under the existing memorandum of understanding (MoU) route until FSAs were signed. CIL’s fresh missive is despite Prime Minister Manmohan Singh’s diktat in February, followed by the President’s order in April, asking the company to meet at least 80 per cent of the coal supply to 50,000-Mw capacity plants to be commissioned up to 2015, including 26,000 Mw commissioned by December 2011. (For details log on to : http://www.business-standard.com/india/news/coal-india-refuses-supply-to-new-power-plants/472746/)
POWER MINISTRY FOR MORE LENDING TO PFC, REC
NEW DELHI: The power ministry has written to the Cabinet Committee on Infrastructure to mandate a uniform 50% risk weight to bank loans for state-owned Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), a move which could lead to banks doubling their exposure to these companies if it finds favour with the Reserve Bank of India (RBI). The power ministry has proposed a uniform risk weight of 50% for these two infrastructure financing companies (IFCs). At present, banks assign low risk weight only to top-rated IFCs, while others attract 100% risk weight. The proposal also seeks to raise the overall exposure limit of banks to PFC and REC to 25% of their capital funds. As per existing norms, bank exposure limit to non-banking finance companies in infrastructure is set at 20% of the total capital fund (capital and reserves). Risk weight is the proportion of loans which is counted towards total assets against which banks have to maintain statutory reserves. A high risk weight discourages lending by increasing the capital requirement for lenders. Under current norms, banks are allowed to assign risk weight as per their own internal assessment. (For details log on to : http://www.financialexpress.com/news/power-min-for-more-lending-to-pfc-rec/942238/)
SURVEY: POOR GOVERNANCE IN INDIAN COMPANIES
PUNE: So, what exactly is to blame for the collapse of iconic brands during the economic crisis? Sad state of corporate governance where risk management is at the bottom of priority, says the third edition of the joint study done by Asian executive-search firm Hunt Partners and market intelligence company ValueNotes. The report, a first of its kind, highlights multifarious functionality errors with corporate governance, including lack of risk management processes, skewed remuneration structures and low levels of shareholder involvement. The biennial report assumes significance as it comes at a time when the stock market watchdog, the Securities and Exchange Board of India (Sebi), is being lauded for Clause 49 of its listing agreement, which sets the standards of corporate governance. Though the move by Sebi has seen compliance by the corporate sector, many feel it has improved governance only on paper. (For details log on to : http://www.financialexpress.com/news/survey-poor-governance-in-indian-cos/942023/)
NEW SEBI FRAMEWORK TO CATEGORISE OFFENCES TO BE DEALT BY CONSENT
MUMBAI: As part of its efforts to bring in more transparency to the consent order mechanism, the Securities and Exchange Board of India (Sebi) will soon unveil the new framework that will put capital market offences under broad categories. The regulator will also lay down the range of penalties for various violations. According to a person privy to the development, the new framework would make the proceedings and the disposal of the case much more transparent compared to the current norms that have come under heavy criticism from various segments of market participants. “The new regulations clearly lay down the kind of offences that can be settled through consent and also the penalty that any violation would attract,” said a person with direct knowledge of the matter. “The norms would not leave any room for instances wherein the same kind of offence attracts different penalties. Even the offenders will be able to calculate the penalty,” he explained. (For details log on to : http://www.financialexpress.com/news/new-sebi-framework-to-categorise-offences-to-be-dealt-by-consent/942064/)
SISTEMA SWINGS TO Q4 LOSS ON $700-MILLION INDIA HIT
NEW DELHI: Russia’s Sistema slumped to a loss in the quarter ended December 2011, after writing off nearly $700 million from the suspension of its telecom licences in India. The Supreme Court in February had ordered the cancellation of 122 licences issued in January 2008 over alleged irregularities in their allocation. The cancelled licences included pan-Indian licences of Sistema and Norwegian company Telenor. Sistema posted a fourth-quarter net loss of $530.2 million, compared to a profit of $447.3 million in the year-ago period. The net profit figure, excluding one-off items, came in at $261.4 million. Revenue in the quarter climbed 15.3 per cent to $8.4 billion. “Recent news with regard to (Sistema’s Indian) licences has been a concern both to us and our shareholders… We are taking all necessary actions to protect our investment and minimise our exposure,” chief executive Mikhail Shamolin said. (For details log on to : http://www.business-standard.com/india/news/sistema-swings-to-q4-loss700-mn-india-hit/472755/)
TELECOM LOBBIES ON WAR PATH AGAIN
NEW DELHI: After a brief display of unity among telecom companies, protesting together against the regulator’s spectrum auction recommendations, a war has broken out again among GSM, CDMA and dual technology players on the issue. The Association of Unified Service Providers of India (Auspi), the lobby group representing Code Division Multiple Access (CDMA) telcos such as Reliance Communications and Tata Teleservices, today said it “strongly condemned” a statement issued by the rival forum, the Cellular Operators Association of India (COAI). Yesterday, COAI, on behalf of the Global System for Mobile Communication (GSM) companies such as Bharti, Vodafone and Idea Cellular, had alleged the Trai auction recommendations were favouring dual technology operators. Most CDMA ones offer GSM services as well, and are classified as dual technology companies. (For details log on to : http://www.business-standard.com/india/news/telecom-lobbieswar-path-again/472760/)
A YEAR ON, INDIA-PAKISTAN TRADE RELATIONS LEAPFROG
NEW DELHI: Saturday would mark the completion of a year of history being made in India-Pakistan trade relations. On April 28, 2011, both sides had issued an ambitious joint statement that vowed to improve trade ties between the neighbours, a move that had raised several eyebrows. The statement was issued after the fifth round of commercial and economic cooperation talks between India’s Commerce Secretary Rahul Khullar and his Pakistani counterpart, Zafar Mahmood, in Islamabad. The talks were spearheaded by Commerce & Industry and Textiles Minister Anand Sharma and Pakistan Commerce Minister Makhdoom Amin Fahim, though the foundation was laid by Prime Minister Manmohan Singh and his counterpart, Yousuf Raza Gilani. The discussions had heralded a new future in bilateral economic relations. The statement had proposed some far-reaching and ambitious targets, which at that time seemed impossible to achieve, given the history of the two nuclear-armed neighbours. The proposals were strengthened by the successive visits of Fahim and Mahmood to Indiaand Sharma’s visit to Pakistanearlier this year. (For details log on to : http://www.business-standard.com/india/news/a-year-on-india-pakistan-trade-relations-leapfrog/472745/)
S&P’S OUTLOOK DOWNGRADE NOT FAIR: GOVT
NEW DELHI: The government on Thursday said the lowering of its long-term sovereign credit outlook to negative from stable by Standard and Poor’s was not fair and that the rating agency overlooked the country’s strong long-term growth potential endorsed by multilateral institutions like the IMF and the World Bank. A senior government official, who wished not to be named, said,” The rating agency seems to have taken the pessimistic mood of the market as a parameter for assessing the credentials of the country. We do not agree with their methodology to calculate the country’s public debt and its risk assessment.” Although the ministry has not formed any response to the rating agency, it is assessing the impact of the downward revision of outlook on Indian companies. Earlier in the day, Prime Minister Manmohan Singh discussed with chief economic advisor Kaushik Basu the implications of the rating outlook downgrade on the economy. (For details log on to : http://www.financialexpress.com/news/s&ps-outlook-downgrade-not-fair-govt/942028/)
AIRFARES SET TO INCREASE ON SELECT FOREIGN ROUTES
NEW DELHI: The short summer breaks in Dubai, Bangkok, Singaporeand other similar places have got more expensive. The airfares for these traditional holiday destinations have already gone up by 15-20% since last month and are likely to soar by next month. “The fares are going up because it is the peak season. They (fares) are already up by 20%. However, the number of people travelling to these places is also growing in similar proportion. In May, the prices may rise further as that is the time when everybody from South to North India plans a vacation,” said Manmeet Ahluwalia, marketing head of Expedia India. At present, a Delhi-Bangkok, Dubai, Singaporeor even Hong Kongticket for the next month will not cost less than R10,000. The prices can go over R40,000 a ticket, depending on the sector, airline and availability. The travel companies maintain that the 15-20% fare hike is inevitable. (For details log on to : http://www.financialexpress.com/news/airfares-set-to-increase-on-select-foreign-routes/942122/)
BHARAT TAKES OVER INDIA IN E-COMMERCE
MUMBAI: Towns and villages with less than 10 lakh people have overtaken metros in buying and selling goods online, known as e-commerce in industry parlance, as shoppers exhibit similar interests, preferences and buying patterns. “Rural aspirations are in the same line with that of metros and Tier-I cities,” says Kashyap Vadapalli, chief marketing officer of eBay India, an online e-commerce portal, on the sidelines of a national digital commerce conference held here. “There’s tremendous potential in these markets and e-commerce firms should serve customers there.” According to him, 70% of the country’s R46,000 crore e-commerce business happens in small towns and rural markets. “For e-commerce, close to 60-70% of transactions happen outside the top 10 cities,” he added. (For details log on to : http://www.financialexpress.com/news/bharat-takes-over-india-in-ecommerce/942111/)
INDIA INC MAY GIVE A MERE 10 PER CENT SALARY INCREMENT IN THE NEW FINANCIAL YEAR
Employees across industries are preparing to receive an average salary increment of 10% in the new financial year, as companies battle falling demand and a weak global economy. But variable pay will see more hikes than fixed pay, much like it is in the West. Increments for the new financial year will be lower than last year as companies continue to battle a poor economic environment. Double-digit increments are history, with a raise of 10% becoming the norm across sectors. “It is not a drastic reduction but a moderate one. There is a level playing field established between employers and employees and HR heads do not panic about losing employees, unlike before,” says P Thiruvengadam, senior director, Deloitte India. (For details log on to : http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/india-inc-may-give-a-mere-10-per-cent-salary-increment-in-the-new-financial-year/articleshow/12889068.cms)