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1. Emirates and Jet Airways partner with a code share agreement and reciprocal frequent flyer arrangement – December 11

India's premier international airline Jet Airways and Emirates Airline, international carrier with extensive services to India announced their partnership plans spanning a unilateral code share agreement and a reciprocal frequent flyer arrangement.

Effective from December 15, Emirates will unilaterally code share on Jet Airways' daily flights from Mumbai and New Delhi to Dubai, giving travelers better connectivity and an expanded range of services between India and Dubai, an Emirates release said here today

Emirates' customers will have the option to travel on its four daily flights, as well as on Jet Airways' daily service between Mumbai and Dubai. Likewise on the New Delhi-Dubai sector, Emirates will offer its customers the choice of 25 flights per week on its aircraft and an additional seven flights per week on Jet Airways

2. Govt approves air services pact with UAE – November 27

The government approved an agreement with the United Arab Emirates to enable any number of airlines to fly to each other's destinations and enter into commercial agreements and code-share. The Cabinet approved the proposed air services agreement, which would be signed soon. Discussions between the two sides on it were held in February this year, an official spokesperson said.

Under the agreement, which supersedes the previous one signed in 1989, both countries would be entitled to designate any number of airlines for operating mutually agreed services and enter into cooperative marketing arrangements like code- share or other commercial arrangements.

The designated airlines would be free to decide tariffs at reasonable levels, based on commercial considerations, the agreement says, adding that each of the parties would have the right to intervene to prevent tariffs which would constitute "anti-competitive behavior" or would "cripple" competition on a route.

Both countries, under the agreement, would follow the obligations to protect the security of civil aviation against acts of unlawful interference, the spokesperson said.

The agreement would be signed on behalf of the two countries after approval by both sides and its implementation watched by the Civil Aviation Ministry, the spokesperson said.

In another decision, the Cabinet approved the signing of a memorandum of cooperation between India and the League of Arab States to establish an India-Arab Cooperation Forum. This, the spokesperson said, would lead to enhanced friendship and relations between India and the Arab world.

3. British Airways starts services from Hyderabad to London – December 7

UK's flagship, British Airways today commenced operation to Rajiv Gandhi International Airport (RGIA), Hyderabad

The new route provides a direct flight from Hyderabad to London Heathrow Terminal 5 and offers convenient connections to 22 destinations in North Amercia.

British Airways will operate five weekly non-stop flights between Hyderabad and London and are they the only airline to offer direct flights between the two cities.

British Airways offers three long-haul cabins on the Hyderabad route: Club World (business class), World Traveller Plus(premium economy class) and World Traveller (economy class).

The inaugural flight of British Airways to Hyderabad landed at RGIA at 16.40 hours. The inaugural aircraft received a water cannon salute from the fire-fighting 'Pantheres' at the rapid exit way. It docked successfully at Bay No.56 and took off later at 7.30 am.

The passengers and crew of the inaugural flight were accorded a warm welcome by GMR-HIAL officials, GMR Hyderabad International Airport Limited (GHIAL) Chief Operating Officer, Peter Noyce, Director, Prasanna C and Chief Commercial Officer Viswanath Attaluri were present on the occasion

4. Kingfisher to launch Mumbai-London flights – December 4

Kingfisher Airlines said on Thursday it would start daily flights from Mumbai to London from January 5, 2009. 

This would be the second international route to be operated by the airline following the launch of its Bangalore-London sector in September. Kingfisher on Wednesday said it had received approval from the federal government to operate flights on nine international routes, including Mumbai-London

5. Valle de Vin bullish on domestic wine market – December 14

Buoyed by the growing demand for domestic wines, Nashik-based brewer Valle de Vin expects to sell 10 lakh bottles of its home-grown  white, red and rose wines in the next five years

"The demand for domestic wines has really picked up. With 80 per cent of the Indian market being dominated by home grown vineyards, we are looking to sell one million bottles in the next five years," Valle de Vin Director Deepak Roy told media.

Valle de Vin currently has a manufacturing capacity of 5,00,000 bottles annually, which can be raised to 10,00,000 bottles, he said.

"Our vineyard is spread across 70 acres and another 100 acres is under contract farming. We have a capacity of 5,00,000 bottles annually, which can be scaled to one million bottles. We are also looking at increasing the acreage to 150-200 acres of land in the next three years," Roy said.

The company has already invested about Rs 16 crore to set up the winery and has earmarked another Rs 6-7 crore for marketing its brand 'Zampa'.

Zampa has been positioned in the premium range and is priced at about Rs 600. It currently offers Syrah 2007 (red wine) and Chenin Blanc 2007 (white), available in Mumbai, Pune, Delhi and Gurgaon. These will be available nationally by the end of the year.

"We have invested Rs 16 crore for the winery and another Rs 6-7 crore will be put in for marketing before we break even. That should happen over the next 18-24 months," he said.

Roy, who has worked with United Spirits and Diageo in the past, is upbeat about the market prospects. "Imported wines might seem to occupy a big portion of the market, but they have just a 20 per cent market share. People are discovering Indian wines as it develops in quality," Roy said.

6. Goa’s Feni may get a GI tag – December 1

Like Scotch whisky from Scotland, champagne from France and Tequila from Mexico, Feni will soon become India’s own drink from Goa. If  everything goes well, it will not be long before Feni is assigned a Geographical Indication (GI) Certificate. The implication of a GIC for Feni is simple: Only Goa can make Feni.

The GI authority in India has already published notice in this regard in its gazette, inviting comments from the public. The application for the GI certification was filed by the Government of Goa’s department of science & technology in association with Goa Cashew Feni Distillers & Bottlers Association(GCFDBA).

Goa department of science & technology director Michael D’souza told ET: “The certification process is almost complete and we are expecting this to happen very soon.” GI is a stamp of authenticity on the unique properties a region could offer to a product. The uniqueness of the weather, water, air that could not be replicated in any other parts of the world is authenticated by a GI certificate.

For example, whisky produced outside Scotland cannot be named scotch whisky. The British think the crystal clear water sourced from the four rivers of Scotland cannot be replicated anywhere in the world. Tequila has to be from Mexico because the plant Agave is grown in Mexico only.

However, a pre-requisite for getting a product registered internationally on the basis of geographical indication is that the product under question should be registered with the local rules of the Geographical Indication Act. The Geographical Indication Act, has already been enacted by the Indian Parliament.

GCFDBA president Mac Vaz said, “GI for Feni will inspire others to follow suit for regional Indian specialties such as tea, pepper, garments, handless etc.” Now the Feni manufacturers in Goa believe the cashew fruit from which Feni is produced, is unique to Goa and therefore Goa should own Feni.  

However, the ongoing process for GI certification is only for Feni made out of cashew fruits. Goa offers two varieties of Feni — coconut Feni and cashew Feni.

Cashew Feni is distilled out of cashew apple juice whereas coconut Feni is made from coconut toddy. Historians aver that Feni making is known to Goa for about 500 years. Since this is a cottage industry providing employment to thousands of people, the Goa government is keen to ensure that Feni belongs to Goa officially

7. Diageo launches MTV Gurdian Angel – November 17

Liquor company Diageo, makers of Smirnoff vodka and Johnnie Walker whisky on Monday launched a Pan-Asia campaign 'Diageo MTV Guardian Angel' in partnership with MTV to curb the menace of drunken driving, said a top  official.

"No one should drink and drive. I hope our 'Guardian Angels' will grab everyone's attention and will help to deliver the message in an appealing and inspirational way. We are very excited that MTV has agreed to join us in promoting this cause," said Diageo's Managing Director Asif Adil.

"There are cases of drunken driving and we just want to create awareness among people to understand the consequences of it, we want them to celebrate, enjoy their life but want them to take little care," Adil added.
 

Diageo partnered with MTV to deliver anti-drink driving message with a refreshing campaign to promote 'Responsible Drinking'.

"We are pleased to help Diageo in the campaign, as drunk-driving is one issue that our audience is very vulnerable too," said said MTV Networks India Pvt Ltd; General Manager Ashish Patil.

"We have earlier done many such type of causes including HIV/AIDS and the Environment. We are able to connect with the audience because we never get preachy but speak the audience's language and this concept is fresh and innovative and we are happy to help them," Patil added.

With VJs Anusha Dandekar and Nikhil Chinnapa on board audiences will easily be able to identify with them.

8. Wine Rack launches premium SA Shiraz wine for Christmas–December 16

The Wine Rack, a division of Urdit Exports, one of the leading importers of wines in India, has launched South Africa's most popular red wine "Kevin Arnold Shiraz" in the country. The company has planned to import 100 cases before the end of this year exclusively for Christmas eve. Neethu Sheth, managing director, the Wine Rack, says, "Due to the recent terror attacks in Mumbai, we have decided to introduce the wine softly. The Kevin Arnold Shiraz red wine is prepared under the supervision of world's renowned winemaker - Kevin Arnold. The premium red wine will be available only in selected outlets, five stars and indigo hotels & restaurants across the country."

The price of Shiraz red wine in Mumbai will be about Rs 4,500 per bottle and it will vary as per the state tax policies. "At present, Indian consumers are unfamiliar with the South African wine. We are looking for those consumers who love to invent new taste. The Shiraz red wine is rich in antioxidants which help control blood pressure, cardiac problems and contains less alcohol than whisky," Sheth added. In India, the current expected market size for imported wines is approximately 2.5 lakh cases, in which the Wine Rack imports over 1,000 cases of South African wines per year in the country.

"The South African wines particularly Kevin Arnold Shiraz is well-liked in Sweden, London, New York and Norway." The other popular South African wine brands across the world are Laborie Wines Chardonnay, Le Bonheur Estate (Sauvignon Blanc, Prima Merlot and Cabernet Sauvignon), Le Riche Estate (Cabernet Sauvignon, Merlot and Shiraz) and others.

9. GM used-car biz to roll out – December 16

In keeping with the current market slump, where carmakers look for new avenues to increase sales, General Motors India will roll out its  used-car retail initiative on January 15 next year.

Branded as ‘Chevrolet OK’, GM will initially open 10 outlets as part of existing Chevrolet dealers in metros like Mumbai, Delhi and Bangalore.

The company will also be launching LPG version of its small car Spark and CNG version of its sedan Aveo in April and June 2009, respectively.

GM India president and MD Karl Slym told ET: “We will provide customers with certified used-cars guaranteed by Chevrolet. The cars will undergo a 110 point check-up and certification.” Mr Slym said that the various expansion plans of GM India will not be impacted by the failure of the $14-billion bailout package that the Big Three—GM, Chrysler and Ford—were expecting from the government back home in the US.

Chevrolet OK, which will deal only in GM’s cars, will be rolled out next month as part of a pilot test. Adds Mr Slym:

“The results should be out by the first half of 2009, after which we will decide  plans for Chevrolet OK.” GM has come to realise the advantage of having a used-car business, much like other manufacturers. The organised used-car market in India has grown by over 30% this year.

10. Fancy car sales hit a bump – December 14

This time bhp isn’t enough. Super-luxury carmakers need to think of something else to smoke the slowdown. Sales of Mercedes-Benz S-Class  cars have plummeted by 82% last month.

And automotive gems from Roll Royce aren’t exactly flying off the shelves either. Not that they ever did but when a Merc-Benz spokesperson hurriedly hangs up the phone on being asked about the downturn, you get the feeling that something is wrong somewhere.

Here are the figures: Last year in November, Merc-Benz sold 45 S-Class cars. This year during the same month, the Stuttgart-based firm managed to push out only eight S-Class cars of its showrooms, according to figures by SIAM (Society of Indian Automobile Manufacturers).

During the same period last year, BMW India sold 30, 7-Series cars which sells for around Rs 1 crore. But this year, the German firm had to do with only 27. And not surprisingly, the slump seems to have struck carmakers in October this year. And here is why: Mercedes-Benz did seven S-Class cars in October this year compared to 44 cars last year.

And during the same time BMW sold 19 7 Series cars compared to 23 last year. Unfortunately, even the BMW representative wasn’t available for comment.

Similarly, even Rolls Royce Motor Cars seems to be stuck in the doldrums with Sharad Kachalia, director of marketing at Navnit Motors (the sole authorised dealer for Rolls-Royce in India) saying that finance unavailability is becoming a cause for huge concern for the company. “There is definitely a slowdown,” says Kachalia.

“Last year we had sold around 12 cars during November and December and this year we had expected to sell a lot more. But now customers are not exactly willing to splurge. There have been no cancellations yet but delay in sales is not a good sign either.”

And the mood seems to be no lighter in other luxury camps as well, with both Bentley and Lamborghini dealer Satya Bagla and Porsche dealer Ashish Chordia agreeing that the current economic scenario is throwing up hard-hitting challenges for the fat cat segment of the luxury car market.

Chordia mentions drop in Porsche sales haven’t been as drastic as the Mercedes massacre. And the problem becomes more acute when you factor in the fact that they have now opened a new Mumbai branch as well. “These are bad times but it would be unfair to compare this year’s figures with last year’s ,” he says. Bagla on the other hand refused to divulge            anysales figures.

It’s not just the likes of Mercedes Benz, BMW, Lamborghini, Rolls Royce and Porche which have been hit, it’s the same story with the iconic Bentley and the other high end cars as well.

And when contacted, this is what the Mercedes-Benz spokesman had to say before abruptly hanging up: “I am in Rajasthan but I feel it’s a finite problem and things will bounce back soon. But we have surpassed all our targets.” In hindsight, neutered targets are not very hard

to tame, or are they?

11. Car prices fall as cos pass on excise benefit – December 9

Car makers Maruti, Hyundai, Mitsubishi and Toyota have cut prices by 3-3.5% signalling a drop of at least Rs 6,500 for small cars like  M-800 and Santro, around Rs 24,000 for the SX4 sedan and around Rs 40,750 for Toyota Corolla Altis.

Imported vehicles Toyoto Prado and Mitsubishi Modero are cheaper by around Rs 1.20 lakh respectively as manufacturers pass on the benefit of the 4% excise duty cut to customers announced by the government on Sunday.

Maruti’s flagship car Alto is cheaper by around Rs 9,000 and the newly- launched hatchback A-Star is cheaper by Rs 16,664. The company has not made any changes in the price of the imported SUV, Grand Vitara.

“We have passed on the full benefit of the excise duty reduction to customers. The new prices come into effect from midnight of December 7, 2008 and will be clubbed with the existing cash discounts and rebates offered by the company,” the Maruti spokesman said.

A senior official requesting anonymity said, “Price cuts will boost demand marginally, as consumer sentiment is low amid widespread reports of retrenchment. People are cautious.” Also, banks are not readily giving loans, he said.

South Korean car company Hyundai dropped prices up to Rs 44,792 on its top-end Sedan Sonata. The new prices of the i10 hatchback variants, the company’s latest launches in the small car market, are Rs 3.26 lakh and Rs 5.25 lakh, cheaper by up to Rs 18,381.

Japanese car company Toyota Kirloskar Motors also dropped prices by up to Rs 32,780 on the Innova utility vehicle and Rs 40,750 on the newly-launched Corolla Altis. Toyota’s other two vehicles Camry and Prado — imported as fully built vehicles — will be cheaper by Rs 76,130 and Rs 1.21 lakh respectively. Two-wheeler companies Hero Honda, Bajaj Auto and TVS Motors will make announcements on price changes on Tuesday.

12. Mercedes-Benz mulls vehicle finance arm – December 6

Mercedes Benz is considering launching a vehicle finance arm in India to boost sales of its passenger cars and commercial vehicles in a  slowing economy, the head of the Indian unit of the German car-maker said on Friday.

Sales have fallen in the last two months because of tight liquidity, CEO and MD Wilfried Aulbur said, but added that he sees the slowdown as only a temporary phenomenon.

“The financial crisis is finite and the markets will bounce back. We are committed to our investments in the country because we have gone through a similar period in the past. At this point, we are still evaluating the option of launching our vehicle finance services,” Mr Aulbur said.

Mercedes Benz in India has already surpassed its sales target for cars and commercial vehicles this year because of robust demand up to September, he said, but did not reveal what the targets were.

The company has sold about 220 trucks and about 3,280 cars this year. “We are seeing a significant downturn in sales beginning October. The primary reason, we think, is the

unavailability of sufficient finance to purchase vehicles,” Mr Aulbur observed.

Daimler Financial Services, the in-house financial services arm, provides vehicle-finance, leasing, insurance concepts and fleet-management services valued at 58 billion Euros in 40 countries. Mercedes Benz, he said, is keen to launch new products in India, including city-buses and 3-axle buses. It recently entered the luxury bus segment with an intercity coach priced at about Rs 80 lakh.                                        

13. Hyundai, GM, Mahindra plan to launch gas variants - December 12

Greener fuels are gradually gaining ground in the automobile industry with manufacturers focusing on more gas variants.

General Motors India (GMI), for instance, is planning LPG (liquefied petroleum gas) and CNG (compressed natural gas) options for all its models in India.

“We are launching alternative fuel variants for all models soon, though it is difficult for me to say what would come first, LPG or CNG,” Mr P. Balendran, Vice-President (Corporate Affairs), GMI, told Business Line. The CNG variant of the Chevrolet Optra is already being offered in Mumbai, Delhi and Vadodara, largely due to the fact that the fuel is available in these cities.

Hyundai, likewise, is coming out with CNG and LPG versions of the Getz early next year. “The LPG variant will come first,” official sources said. The company already has LPG/CNG versions of the Santro and a CNG version of Accent.

Mahindra-Renault recently began despatching the CNG version of Logan for the taxi market, especially in Mumbai where they are part of the local Meru fleet. “We sold around 1,200 units in last the few months,” Mr Nalin Mehta, Chief Executive Officer, said

CNG, which costs about one-third of petrol, and LPG, which is priced around Rs 15 less than petrol, are considered to be greener and more economical alternatives for conventional automotive fuels. The initial additional cost for the gas-run variants and the inadequacy in terms of the network of gas dispensing stations are cited as major deterrents to the commercial prospects of CNG and LPG-variants.

The gas variants of different car models will cost Rs 35,000 to Rs 50,000 more than the base variants. However, the substantial gains in operating cost, especially for those who drive more than 20-25 km daily, will compensate for the extra expenditure, according to experts.

According to the industry estimates, there are more than 5 lakh LPG-run vehicles on street, while the number of CNG-run vehicles would be more than 3.5 lakh.

Source: The Hindu Business Line

15. Acer grabs top spot in LCD market – November 29

Computer-maker Acer has grabbed the top spot in the market for LCD monitors in India, overtaking South Korean  rivals Samsung and LG. The Taiwanese company sold 220,554 LCD monitors in India during the July-September third quarter, giving it a market-share of 15.8%, Acer India chief marketing officer S Rajendran said citing data from market research firm IDC. Acer is the world’s third largest PC maker behind Dell and HP. The company’s “go big go wide” strategy with wide-screen LCD monitors has worked well, Mr Rajendran said.

Sales of LCD monitors in India grew by 30% to 1.39 million units during the third quarter of 2008. Mr Rajendran said there has been strong demand for the product from corporates, SMEs and the home segment because LCD monitors score over the conventional CRT variety on power consumption and space occupied.

16. Government banks lower home loan rates – December 15

Government-owned banks lowered interest rates on new home loans up to Rs 20 lakh. The rate cuts, part of a government-driven initiative to provide a fillip to the struggling real estate sector, caps the interest rate on new home loans up to Rs 5 lakh at 8.5 per cent, and on loans between Rs 5 lakh and Rs 20 lakh at 9.25 per cent. The new rates, which apply only to new borrowers, will help reduce equated monthly installments (EMIs) by Rs 185 to Rs 233 per lakh for loans of 20-year tenures.

Banks also said they are reducing the interest rate on loans to micro enterprises 50 basis points and small and medium enterprises 100 basis points. To help these units tide over the liquidity crunch, extra credit in the form of a 20 per cent additional working capital limits will also be provided.

Private sector banks and large housing finance companies like HDFC are, however, yet to take a call on how they will respond.

Keki Mistry, managing director of HDFC, the largest player in the home loan segment, said Indian consumers do not transfer their home loans so frequently. “The interest rate for the new loans has virtually been at the same level for the last couple of months, but we have not seen any such trend,” he addedOn the possibility of a decline in the interest rate, Mistry said, “It is a function of availability of funds in the system and inflation. Since the inflation rate is coming down there is a possibility of an overall softening of interest rates.”

An Axis Bank source said the private sector lender will decide over the next two to four weeks.

"We are clearly seeing some softening of rates. Our cost of deposits, which was going up earlier, has plateaued now. Although it is difficult to predict how much we’ll cut, we may cut both lending and deposit rates across the board in the next two to four weeks," the bank executive said.

ICICI Bank said it is evaluating all options. The bank recently lowered the interest rate on new home loans up to Rs 20 lakh to 11.5 per cent.

For a home buyer who borrows from State Bank of India, which is at present offering a 20-year housing loan of up to Rs 30 lakh at 12 per cent, the saving on a loan of Rs 5 lakh will be around Rs 1,000 a month. For a loan of Rs 20 lakh, the borrower will pay more than Rs 3,500 less every month.

Elaborating on the special home loan package, SBI Chairman OP Bhatt said the scheme will be open till June 30, 2009. The loans will be offered at a fixed rate for five years after which the borrower can switch to the floating rate option without paying any charge.

Banks will also not charge any processing or pre-payment fee on home loans under the package and will bear the insurance cost on such loans.

However, existing borrowers from private sector banks will not be able to transfer their loans to public sector banks.

State-owned banks expect to disburse additional loans up to Rs 20,000 crore under the new package and by adding margin money that home owners have to pay, the amount sanctioned could touch the Rs 30,000 crore mark. SBI, a largest lender, expects to sanction loans worth Rs 6,000 crore under this package.

Over 80 per cent of home loans disbursed by public sector banks are below the Rs 20 lakh slab. According to Indian Banks' Association (IBA) data, the total housing loan portfolio of the 28 state-run banks stood at Rs 1,86,137 crore at end of September 2008.

Rates on home loans under the stimulus package could fall more if interest rates in general fall further, said IBA Chairman and head of Bank of India T S Narayanasami said.

Asked if this package was enough to boost demand, Narayanasami said banks have done their bit, and builders and real estate companies have to reduce housing prices to encourage people to buy new homes.

Besides reducing the lending rate for micro enterprises and SMEs, state-owned will set up cells to redress grievances regarding these loans, Bhatt said banks will give soft loans to these units and an ad-hoc credit of additional 20 per cent of their outstanding fund based limits to meet their working capital needs.

Currently, state-owned banks' loans to such sectors are growing at 25 to 28 per cent, Small Industries Development Bank of India's Chairman and Managing Director R M Malla said. Outstanding loans to micro, small, and medium enterprises are estimated at Rs 2,60,000 crore.

17. Reliance Money in pact with DBS Vickers - December 10

Reliance Money has entered into a pact with DBS Vickers Securities (Singapore) Pte Ltd to facilitate trading in global commodities exchanges for Indian corporate and other appropriate participants.

The announced was made by Sudip Bandyopadhyay, director and CEO, Reliance Money, in Mumbai on Wednesday.

“We have always given top priority to adding value to our customers through our innovative products and services; and our strategic tie-ups. Our agreement with DBS Vickers will now open a safe, secure and cost effective transaction platform for our customers to trade in global commodities exchanges,” said Bandyopadhyay.

He added, “The size of the global commodities derivatives markets is estimated to be around $800 billion. We believe that Indian investors are looking at diversifying their portfolio and overseas trading service enables them to do so.”

Globally, exchange traded commodity futures is one of the largest market segments in the financial markets witnessing participation from the producers, users, traders alike.

The offering under this agreement will broadly comprise derivatives in agricultural products, metals and energy products traded on various major exchanges worldwide as well as OTC products in segments such as energy and freight.

Reliance Money is part of the Reliance Anil Dhirubhai Ambani Group, while DBS Vickers is a wholly-owned subsidiary of DBS Bank, one of the largest financial services groups in Asia. DBS Vickers is a leading securities and derivatives brokerage firm in Singapore with a rich Asian heritage and strong Asian focus.

18. Times of Money, Axis Bank ink deal for remittance solution - November 19

TimesofMoney has entered into an agreement with Axis Bank to provide its remittance solution to Axis Bank which will help the bank offer its non-resident customers AxisRemit, the bank’s own branded online remittance services.

With AxisRemit, the bank will provide high-speed online money transfer services for NRIs belonging to major geographies, including the US, UK, Euro Zone (Euro currency area), Canada, Australia, Singapore, Hong Kong and the UAE using TimesofMoney’s white-labelled state of the art remittance platform and know-how.

TimesofMoney’s white-labelled ‘hosted on demand’ solutions will provide the technology platform for AxisRemit. The back-office functions relating to remittances would also be handled by TimesofMoney.

This alliance integrates Axis Bank’s core strengths in NRI banking and service delivery with TimesofMoney’s domain knowledge and technical expertise in cross-border remittances, creating a smooth and satisfying remittance experience to NRIs situated across the globe.

Speaking on the launch, Hemant Kaul, ED (retail banking), Axis Bank said: “In recent years, there has been a large-scale migration of NRIs to online remittance channels from traditional remittance routes and we intend to be a major player in this arena. The key strengths of AxisRemit will be our transparent pricing policy, superior customer service and faster Turn-Around-Time.”

Speaking on the initiative, Avijit Nanda, president, TimesofMoney, said: “We are delighted to partner with Axis Bank to launch this very significant service for NRIs and be an enabler of the cross-border flows that make India the world’s largest destination of inward remittances. With the extension of our white-labelled solutions, our partners will be able to conduct their business with a high level of security and more convenience.”

19. ICICI Prudential Life Launches Pure Protect - An Exclusive Plan Designed to Provide Life Cover at an Extremely Affordable Rate - December 4

ICICI Prudential Life today, announced the launch of ICICI Pru Pure Protect, a flexible and affordable term product. The product is designed to provide customers with the option of availing an insurance cover and provide total security to their dependents in case of an unfortunate event. Commenting on the launch of Pure Protect, Mr. Bhargav Dasgupta, Executive Director, ICICI Prudential Life Insurance, said, “While designing our products, we have always kept our consumers’ convenience in mind. Following this philosophy of consumer-centricity we have introduced various innovative, yet simple products to enable consumer their life, health and pensions needs, effectively. Further, we believe it is crucial to provide customers, across all income segments, the ability to cover their life and provide security to their dependents. Hence, we have further strengthened our term products portfolio with the launch of Pure Protect, a product designed to provide life cover at one of the lowest rates in the market.”

ICICI Pru Pure Protect is available in two variants, ICICI Pru Pure Protect Classic for sum assured of up to Rs 25,00,000 and ICICI Pru Pure Protect Elite for sum assured of Rs 25,00,000 and above. The term policy aims at providing insurance at the lowest rates in the market with premium starting from as low as Rs 2,400 p.a.

ICICI Prudential Life has always been sensitive to the needs of the customers and has customized its product and service offerings to meet customer needs. Keeping in line with this, ICICI Pru Life’s Pure Protect is designed to help consumers customize their policy with additional benefits such as Accidental Death and Disability Benefit Rider and Waiver of Premium Rider. Accidental Death and Disability Benefit Rider provides enhanced protection in case of accidental death of life assured while the Waiver of Premium Rider covers total and permanent disability in case of accident along with payment of all future premiums till maturity.

In case of death of the life assured during the term, the sum assured will be paid to the beneficiary. ICICI Prudential Life’s Pure Protect provides tax benefits applicable under Sec 80C.

Key benefits of Pure Protect

- Insurance protection at one of the lowest market rates

- Policy enhancement with the optional Waiver of Premium Rider and Accidental Death and Disability Benefit Rider

- Tax benefits under Sec 80C of the Income Tax Act, 1961

20. Citibank Launches Unisque Solution Against Financial Uncertainty - New Fixed Deposit Product “Protect & Grow” Offers Customers Capital Protection with Potential for Enhanced Returns - December 3

Citibank N.A. today announced the launch of Citibank Protect & Grow, a first-of-its-kind product offering customers the safety of a fixed deposit with the option to channel the interest earned into mutual funds. Customers will be able to choose any combination of a maximum of four open-ended mutual funds from among those distributed by Citibank. Citibank Protect & Grow is designed to address the needs of investors seeking the potential to obtain returns that are greater than just the interest on the fixed deposit. The product offering is available for a minimum deposit of Rs.15 lakhs for a minimum tenure of 1 year. The fixed deposit interest rates, computed quarterly (simple interest), applicable for Citibank Protect & Grow are similar to those on Citibank’s vanilla fixed deposits.

Announcing the launch of Citibank Protect & Grow, N Rajashekaran, Country Business Manager, Global Consumer Group, Citi India, said, “In the current environment, wealth preservation is as important as wealth creation. Therefore, we are very happy to provide our customers with an innovative solution that helps them get more out of their safe money.”

“We believe that choice is not just a privilege but also a prerogative for our customers. With Citibank Protect & Grow, customers no longer have to choose between capital preservation and potentially higher returns. I am very pleased to present this innovation to our customers and offer them the best of both worlds,” Rajashekaran added.

Sameer Kaul, Citibanking Head, said, “Citibank Protect & Grow places our customers’ needs at the forefront and makes their money work harder for them. We are confident that Protect & Grow will find resonance amongst our customers and reinforce our commitment of driving success for them.”

One of the key advantages of Citibank Protect & Grow is that it operates like a Systematic Investment Plan. The interest earned on the fixed deposit is invested every quarter into mutual funds, helping investors ride over the market highs and lows and averaging out the cost of purchase. Citibank Protect & Grow will be distributed via the Bank’s 40 branches across 28 cities nationwide.

21. Kotak Securities Launches Smart Order - December 10

Kotak Securities, the stock broking arm of the Kotak Mahindra group today announced the launch of Smart Order, a new service from, Kotak Securities that will help clients buy and sell stocks at the best possible rates from either of the stock exchanges BSE or NSE.

Prasanth Prabhakaran, Senior Vice President & All India Head for Broking, commenting at the launch of this new service, said, “Smart Order is a novel concept introduced by Kotak Securities in the online broking space. Till date the online customer had to manually inspect and select the exchange to get a better price for his transaction. But with this system, Kotak Securities will help them get the best quoted price amongst NSE & BSE. There are price differences available in the market. Smart Order exploits these differences to benefit the customer. The investors can check the key features of this service on our website www.kotaksecurities.com.”

The Smart Order endeavors to offer the customer the best available price between NSE & BSE. Once he selects Smart Order to buy or sell, it executes the order at the best combination of price and quantity by doing a dynamic search. It is in fact better than having a dealer who decides the choice of stock exchange that will give you a better price and then executes the deal and all this instantly.

Smart Order is available without any extra charge and will be provided to all online clients of Kotak Securities

27. German co Oetker to buy Fun Foods, VRB - December 9

The e7.7-billion Oetker Group, one of the largest family-owned firms in Germany, is going to acquire Fun Foods and VRB Foods, makers of pizza toppings and mayonnaise, for Rs 110 crore. The acquisition would be routed through the German group’s Indian arm.

The deal shows foreign firms’ continued interest in the largely untapped processed food market in India. Processed foods such as biscuits and ice-creams, account for a mere 2% of the country’s total food consumption. Foreign companies such as Hershey’s, which bought Godrej Beverages and Foods last year, have shown a preference towards buying an existing player to get the distribution model right in India. Similarly, Kraft Foods is also looking at buyout opportunities in India.

Dr Oetker India, the Mumbai-based subsidiary of the German group, had sought the approval of the Foreign Investment and Promotion Board (FIPB) to act as an operating-cum-holding company to invest in the two processed food firms. FIPB, which is the nodal authority for foreign investments in the country, has given its nod to the investment. Started by Rajiv and Vibha Bahl, Fun Foods manufactures and markets processed foods such as oriental salads, mayonnaise, pizza toppings and spices. It’s also a leading supplier to eateries such as Pizza Hut, KFC, Subway, Barista, Domino’s and Costa Coffee. The Bahl family also runs VRB Foods, which makes milk shake mixes, dessert toppings and syrups and cake mixes. Its products are marketed and distributed by Fun Foods under its own brand.

The Oetker Group plans to invest Rs 128.75 crore in its Indian subsidiary, which would then acquire the two companies. Dr Oetker India would acquire Fun Foods for about Rs 104.3 crore. As per its FIPB application, it will acquire 100% stake in VRB Foods for Rs 3 crore and another Rs 3 crore would go towards subscribing to warrants.

The Oetker Group has interests in food, beer and non-alcoholic beverages, wine, shipping and banking. Its food division has presence in North America, Europe, Brazil, China and India. Dr Oetker India, which was set up in 2007, has launched some products such as baking mixes and frozen pizzas in Mumbai. It is yet to expand to other cities in the country.

28. Tata Coffee fires Mr Bean - December 3

Coffee, India’s largest green coffee producer, has handed over the marketing and distribution functions of its instant coffee brands to group company Tata Tea. The move will see the coffee brands, Mr Bean and Coorg Pure, ride on the back of Tata Tea’s formidable distribution network, Tata Coffee MD M H Ashraff told ET.

Tata Coffee derives over 90% of its revenue from commodity exports to Russia, CIS and United States, but is now eyeing bigger earnings from the branded coffee play in the domestic market. The details of the marketing and distribution tie-up with Tata Tea are still emerging.

Although they have no concrete plans as yet, Mr Ashraff said they would also look at relaunching both the brands. The company will also become the first in the country to launch a freeze dried coffee brand.

Meanwhile, the company is unveiling a new identity for its cafe-cum-retail stores, which will now be rebranded as Tata Coffee Plantation Fresh instead of the originally conceived Mr Bean Coffee Junction.

These outlets are a modern, more youthful version of the company’s retail format Coorg Coffee World, where the company sells fresh ground coffee. The company has 35 Coorg Coffee World outlets in the southern states, which they say will eventually be shut down or converted to Tata Coffee Plantation Fresh, where the company will sell gourmet coffee to the discerning young customer.

Tata Coffee cannot experiment with a full-fledged cafe model due to its non-compete clause with Lavazza, which took over Barista, another coffee cafe chain in which Tata Coffee had a 34% stake.

29. Tata Tea set to launch energy drinks - November 24

Tata Tea is gearing up to make an entry into the energy drinks segment identifying fortified beverages as a growth area. The country's largest tea company (by volume) is expected to soft launch its own brand in Chennai early next year, according to sources.

In the past few months, Tata Tea, which re-launched mineral water brand Himalayan recently, has expressed its intention of expanding its health and wellness portfolio in a big way. An energy drink contains products such as caffeine and herbs to give a temporary burst of energy.

When contacted, Tata Tea said they could not comment on speculation. According to sources, however, this is likely to be a youth-focused, lifestyle drink.

Although energy drinks made an entry into the country a few years back, the market is still limited to a few players, Red Bull and Power Horse. Pepsi Co has also announced the launch of its energy supplement, SoBe recently.

While the market size is difficult to ascertain, due to its nascent stage, some estimates place the figure at about Rs 500 crore.

At present, the segment is limited to metros but growing much faster than carbonated beverages. "The mushrooming of gyms across the country is representative of changing lifestyles. It is probable that this health-conscious urban youth will opt for the product. Those who are foraying into this segment are not competing with each other, at the moment, but are actually creating a market for energy drinks," executive director of KPMG advisory services, Narayanan Ramaswamy said. The south has traditionally been a preferred launchpad for non-aerated beverages for most drinks companies as it is a bigger market for such drinks. Carbonated beverages on the other hand are known to do better in the northern states.

Instead of storming the market, Tata Tea will begin with on-ground activations and radio spends ramping up its presence progressively. They will later ramp up the marketing campaign through the mainstream mediums.
 

"Only companies with deep pockets will have the capacity to invest in advertising and positioning of such a niche product. During such an economic scenario if companies are able to spend significantly to push the product, it reflects well on the financial position of Indian companies," Mr Ramaswamy added.

30. Coffee Day set to brew 3 premium formats - November 18

India’s biggest cafe chain Coffee Day will unfurl three new premium formats as it brews the next phase of growth. Coffee Day Square,  which will become the chain’s flagship outlets, will roll-out into four metros over the next six months, specialising in ‘single origin’ coffees—classic beans sourced from a single estate in a single country across the world—targeted at a more discerning consumer.

Coffee Day Lounge will be cafes where beverage is paired with food, where people “meet over a meal” and not just coffee. The third format, still to be named, may be resembling a cafe nightclub and would look at offering a more vibrant experience with live DJ music and bar-stool seats.

The decade-old Coffee Day, which heralded a cafe revolution in urban India, is also powering ahead with its existing core format that has carved out a place as ‘young hangouts’. At present, the chain has 694 outlets and is seen adding 20-25 every month in a slowing market. The 3,000 sqft first Coffee Day Square, the most premium of the emerging formats, is expected to open in Bangalore next month, to be followed by 8-10 more outlets across the four top metros in six months, Cafe Coffee Day director Alok Gupta told ET. “Cafe Coffee Day has been a youth hang-out, now Coffee Day Square will be a ‘coffee hangout’ for a more discerning, young-at-heart consumer who wants a truly great cup of coffee,” he added.

Besides the single-origin brews from around the world, it will also propel India’s signature coffees —like Araku Emerald and Rajgiri Pearl—into the cafe culture. “The effort is to take consumers up the value chain and connect them with India’s coffee heritage in a contemporary way,” Mr Gupta said.

The next in the line, Coffee Day Lounge, will be more focused on the dining experience. “This will be a gourmet format where we will look at food as a separate vertical. Here we will offer diet food, traditional foods and separate offerings for children, among others,” he said. The biggest youth puller, however, is likely to be the third format resembling a nightclub, which the company will start rolling out only after six months. Mr Gupta describes this as an outlet where people can “connect standing rather than sitting”.

35. Bharat Hotels to invest Rs 1,200 cr to set up 10 hotels – November 12

Hospitality major Bharat Hotels, which operates seven hotels under the brand name 'The Grand' plans to invest Rs 1,200 crore over the next three-four years for setting up 10 more hotels, including two abroad. The group has also decided not to renew its franchise agreement with global chain 'The Intercontinental'. It would rebrand its hotels under 'The Lalit' brand, in memoriam of the group's late founder Lalit Suri.

"We are investing around Rs 1,200 crore in the next three -four years to open eight more hotels across India and another two in Dubai and Thailand," Bharat Hotels Chairperson and Managing Director Jyotsana Suri told reporters here.

The group has an inventory strength of 1,500 rooms at its seven existing hotels at New Delhi, Mumbai, Goa, Bangalore, Srinagar, Udaipur and Khajuraho.

"Once our 10 hotels become operational we will add another 2,100 rooms and take our inventory to 3,600," Suri said, adding the new hotels would come up at various places, including Kolkata, Jaipur, Chandigarh and Ahmedabad, besides the ones at Dubai and Thailand by 2010. When asked about the source of its funding, she said the group would finance through internal accruals and borrowing.

The group had clocked a turnover of Rs 500 crore last fiscal. "This year the growth in turnover will be either flat or at most 5 per cent," she added. The group also announced that it would no longer be associated with The Intercontinental, with which it had a franchise agreement to use the brand.

"We had the agreement for use of their 'Intercontinental' brand name for four of our hotels. The agreement period for our Delhi and Goa hotels have culminated and that of our Mumbai and Goa properties would also expire within 18 months and we are not renewing them," Suri said.

She added the group would henceforth manage all its hotels under the brand name 'The Lalit'.

35. Bharat Hotels unveils new brand name -November 19

India's leading private hotels company Bharat Hotels on Wednesday announced its new brand identity 'The Lalit', which will be the brand name for all its top line hotels.

"This is a proud moment for us as we have embarked on a new journey with The Lalit. While we carry forward the legacy of Lalit Suri, our new identity also reflects an evolving, progressive and dynamic group," said Jyotsna Suri, chairperson and managing director of the Lalit Suri Hospitality Group, the new name of Bharat Hotels.

She added that the group was not affected by the current downturn and it would continue with all its investment and hiring plans without any change. "We will go ahead with our Rs.1,200 crore (Rs.12 bn) investment over the next three or four years to increase the number of rooms from 1,500 now to 3,600 and there will not be any firing of our employees," Suri said.

She said Rs.6 bn of the proposed amount will come from internal accruals and the other Rs.6 bn will come from borrowing. The group now has seven operational and 10 under-developed hotels.

Speaking on the group's franchise agreement with Intercontinental, Suri said: "We did not gain from Intercontinental franchise and we don't see any reason to continue with that as we can market our products our own."

The Lali Suri group has started a central reservation system from Oct 1. The group is also opening offices in London and Dubai to market its products       

36. NAFHIL to launch 10,000 low-budget homes in January, 2009 November 21

National Affordable Housing and Infrastructure Ltd - formed by promoters of Omaxe to provide low-budget homes - said on Friday thatit would launch five projects in January next year.

These projects would come up in Indore, Raipur, Bhopal, Bareilly and Allahabad.

"We will be launching five affordable housing projects comprising about 10,000 units on January 26 next year," NAFHIL Chairman and Managing Director Rohtas Goel told reporters.

The prices would be in the range of Rs 2.99-9.99 lakh per housing unit, he added. He, however, declined to give details about the size of investment for developing the projects.

Goel is also the Chairman and Managing Director of Omaxe, which earlier this month divested 51 per cent stake in NAFHIL to a promoter group firm.

Earlier in May, Omaxe had announced to invest Rs 80,000 crore to develop 10 lakh affordable homes for low-income consumers in the next five years at a price range of Rs 3-15 lakh per flat.

For the purpose, the national capital-based developer had set up a its subsidiary - NAFHIL.

37. Rental housing scheme launched in Mumbai - December 10

The Mumbai Metropolitan Region Development Authority has decided to partner Matheran Realty’s Tanaji Malusare City (TMC) project at Karjat, to launch its rental housing programme.

The TMC will provide 6,000 homes of 160 sq ft each (carpet area), valued at Rs 2 lakh, to the authority which in exchange will permit a higher floor space index of four for the project. In addition, MMRDA will also provide offsite infrastructure support such as roads, power and water supply to the promoters.

The Maharashtra Government plans to create a rental housing stock of five lakh houses in the next five years to providing housing to those who are unable to purchase a home. The beneficiaries of the housing scheme will be given the 160-sqft residential unit on a lease-cum-licence basis for a period to be decided by the MMRDA, which would also determine the monthly charges.

The TMC project is spread across 100 acres and the company plans to build 15,000 apartments.

Mr S.C. Deshpande, Joint Project Director-Town Planning, MMRDA, said Karjat is one of MMRDA’s focal point to decongest Mumbai and it would be converted into a satellite township with world-class infrastructure on the lines of a self-sustained business city. The vision was to build a city with a capability to serve over a million citizens with emphasis on civic and social amenities.

Mr Pravin Banavalikar, CEO of Tanaji Malusare City, said the mission was to build good quality homes for urban immigration in large volumes. TMC came out with a low-cost format priced in the range of Rs 3 lakh for a 300 sq ft unit. The company marketed the project and had received an overwhelming response as over 65,000 people evinced interest in it.

38. New housing package: Limited benefit for listed realty players - December 15

The new housing package announced by the Indian Banks’ Association comes as a significant incentive for home buyers willing to buy properties in suburban areas and tier-III cities.

The benefit to real estate companies in the listed space may, however, be limited, as they have on-going projects catering primarily to the middle and upper income groups.

Interest rates for new home loans granted up to June 30, 2009, would be capped at 8.5 per cent for loans up to Rs 5 lakh and 9.25 per cent for loans between Rs 5 lakh and Rs 20 lakh. Other incentives such as waiver of process fee and prepayment penalties would also reduce the overall costs for a borrower.

The move, aimed at boosting demand in the realty sector, may however not benefit all listed realty developers, as a number of their on-going projects are above Rs 30 lakh.

These projects need to be completed and sold to keep the developers’ working capital cycle moving. The current measure may not provide a fillip to the demand in this space.

With the new margin requirement at 15 per cent of the cost of house, a person can buy a home that costs a maximum of about Rs 24 lakh to avail himself of a Rs 20 lakh loan (assuming he invests 15 per cent of the house value).

Demand for houses over Rs 30 lakh would increase only if home buyers invest a substantial sum as own equity.

However, a few realty players such as Puravankara Projects and Omaxe have ventured into low-cost housing through separate companies. Unitech too has sought the approval of the Haryana Government for building houses in the Rs 7-15 lakh range in Gurgaon. DLF’s mid-income housing projects too may receive a boost from the measure.

39. Vishal Retail plans to sell booze and food to beat slowdown - November 28

Supermarket chain Vishal Retail has embarked on a new strategy to beat the downturn. While it will launch 60 new stores over the next few months, all of them would be franchised.

That apart, it’s using space at its existing retail outlets to launch specialty restaurants and fast food joints, and will also vend liquor at a few stores, apart from launching laundry services.

While the franchise route will help bring down establishment costs by around 50%, claim executives, the new services will help utilise space optimally and offset losses.  

The focus is now on small-format stores and the company is re-jigging its store portfolio across the country by relocating under-performing stores, and resizing around 25 stores. In addition, it also plans to increase its network of 176 outlets to 200 by next year which will be on the franchise model.

“So far, our outlets were on the company-owned company-operated model but now it would be a 100% franchise-based one. This is being done to cut costs. We have plans to resize 25 shops,” says Vishal Retail president Ambeek Khemka.

In the franchise model, the franchisee would operate with an 18% margin while the company would retain around 30% of revenues.

Distribution will now be managed out of a centralised distribution centre in Delhi. Currently, 70% of distribution is Delhi-based has been managed from Mumbai and Kolkata as well.

Vishal has also introduced six bakeries in some of its outlets. These live bakeries allow consumers to watch their cakes being baked and iced in front of them.

“We have also started the 3H concept of ‘Health, Hygiene and Hunger’ wherein we would provide healthy food to consumers in our shop-in-shop model outlets,” adds Khemka.

Vishal has plans to open 60 such outlets in next few months. The company, which was also into the liquor business in Punjab would soon introduce sale of liquor in its shop-in-shop outlets in Goa, Shimla, Mumbai and Kangra.

40. Big Bazaar gets closer to customers - November 25

Big Bazaar, the hypermarket chain of Future Group, is setting up Customer Advisory Boards (CABs) as a customer feedback initiative, it is learnt. Damodar Mall, group customer director of Future Group said: “We are doing this to get closer to customers and give them a platform to voice their opinions about the stores.”

Future Group has initiated the move for its Big Bazaar format because it is the largest chain in the group and far more localised, according to a top company official. The initiative has been launched in two stores in Mumbai of the 102 Big Bazaar outlets across the country.

Influential people of the community like local doctors and lawyers would be roped in to part of the CABs and customers could voice their opinions about the store through them. The board in turn could advise store managers and be incentivised through special discounts at Big Bazaar.

Gibson Vedamani, CEO, Retailers Association of India said: “The board can offer inputs on customer expectations and organisations will be able to measure their performance based on it.” CABs consists of 8-10 influential people who will hold meetings, take feedback from people which will be assessed and implemented by executives to develop better customer relationships.

41. Future Group to launch more products under Sachin's name-November 25

Kishore Biyani promoted Future Group is expanding its product portfolio under the brand 'Sach', which has been created with the cricket icon Sachin Tendulkar.

The company will introduce personal care products, including hand wash and shower gels, within the next two weeks expecting to clock a sales of about Rs 30 crore in the current financial year from the brand.

"We are bringing out hand wash and shower gel under the brand 'Sach' in another two weeks time. Our earlier products are doing very well," Future Consumer Products Limited CEO Shashi Kala Sen told the media.

The brand launched under the apparel category was co- created by Sachin Tendulkar was launched four months back, who has a stake in the Future Consumer Products Ltd, he said.

"Sachin is one of the board of directors of our company. He is the co-creator of the brand and has a major say in it," he said.

Under the 'Sach' brand, the company currently offers tetra pack milk products and apparels in kids segment.  Sen also said that the products are available only in Big Bazaar, Pantaloon and its other retail chains.
 

"The products are not for mass distribution. They would only be merchandise through our retail stores," he added.

42. ADAG enters online retail biz; eyes top market slot in a year - November 25

To grab the top market position within a year in the Rs 20,000-crore market, Anil Ambani group on Sunday announced its foray into  the online retail business where it would sell everything that could be sold over the Internet.

Under the banner of the group's financial products distribution unit Reliance Money, the new venture would make available a wide variety of products for e-shopping, ranging from financial products like IPOs, mutual funds, insurance policies and gold coins to items like apparel, accessories, books, magazines, CDs, DVDs, home appliances and even flowers.

Announcing the launch, Reliance Money CEO Sudip Bandyopadhyay told reporters over the phone from Mumbai that the e- commerce web portal-- RelianceMoneyMall.Com-- would be like a big shopping mall in electronic format where consumers would be able to buy whatever that can be sold online.

Asserting that the company was targetting at least 20 per cent market share for the new venture, Bandyopadhyay said that the aim is to grab the top position in less than a year.

"There are over 60 million Internet users in the country and this number would double in about two and a half years, all of whom we are looking to tap as our target market... Besides, there are already an estimated 10.8 million people shopping online," Bandyopadhyay said.

"We are looking at a market share of at least 20 per cent in this market with business worth over Rs 20,000 crore a year," he added.

The portal will also be a host of subscription-based financial products such as technical charts, stock and commodity alert SMS packs, newsletters and research reports

43. 3G spectrum to be introduced in 29 cities of AP: BSNL - December 15

Chief general manager, AP telecom circle BSNL, T N Sudhindra Kumar said 3G Spectrum-- or radio bandwidth-- will pave way for several value added services mostly in entertainment and video conferencing.

He said that it will be a value added service and both BSNL and MTNL are likely to capture the market in the segment.

There are plans to provide 3G or thrid generation mobile phones in 29 cities of Andhra Pradesh, Kumar said. The 3G spectrum, which is likely to be launched by March, will increase bandwidth and help in video screening in mobile in a better manner than televisions with a faster pace and better quality.

He said that presently AP telecom has 27.4 lakh mobile customers with a market share of 18.9 percent. Presently the equipped capacity is 19.6 lakh connections. Additionally connectivity planned is 15 lakh new connections for the financial year, he added.

About their increased market share he said that the BSNL is doing its best to increase the market share.

"Presently we have some excellent plans including power pack plan and were able to sell 1.5 lakh connections last month itself in the prepaid seg ments," said Kumar.

About the proposal to have a portable migration facility in mobile as earlier recommended by TRAI ,which facilitates a user to switch to any service provider of his choice with the same number, he said that providing such facility is still under consideration and yet to be introduced.

44. BSNL selects Dilithium for Mobile Video Services - November 25

Dilithium, the global leader in high-quality multimedia delivery over mobile and broadband networks announced on Tuesday that BSNL, India's largest telecommunications company, has selected Dilithium solutions for the deployment of new mobile video and streaming services over 2G and 3G networks.

BSNL plans to roll out Live TV services in early 2009. Dilithium has partnered with HCL Infosystems Ltd. to provide end-to-end delivery solutions for BSNL's live mobile video services. The solution includes the Dilithium DTG(r) 3021 multimedia gateways and the DCA video streaming solution, enabling 2-way video calling and other advanced video services.

"It has been an honor to help BSNL bring mobile video solutions to the India market," said Uno Mehta, Senior VP of Dilithium's Value Added Services Business Unit. "Our ability to provide comprehensive end to end solutions for both circuit switched and packet switched video made us a good fit for BSNL's requirements."

45. Airtel introduces STD, local tariff power packs - December 12

Bharti Airtel, India’s leading mobile service provider on Friday announced the launch of three value-for-money prepaid vouchers for its prepaid customers in the Delhi & NCR region.

Customers can make STD calls to any network (mobile and landline) across the country at a reduced rate of Re. 1/- per minute for 90 days by recharging with Rs. 99/-, whereas the 30 days recharge for the same offer is at Rs.40/- Customers can make local outgoing calls to an Airtel mobile at 50 paise per minute and local calls to any other mobile network at 60 paise per minute for 90 days by recharging with Rs. 124/-, whereas the 30 days recharge for the same offer is at Rs.49/-

Customers can also enjoy STD calls to any mobile @ Re. 1/- per minute; Local Airtel to Airtel @ 50 paise per minute and local Airtel to other mobiles @ 60 paise per minute for 90 days, by recharging with Rs. 201/-, whereas the 30 days recharge for the same offer is at Rs.77/-

The value vouchers provides a cost efficient and superior option for Airtel  in the Delhi & NCR circle for making regular Local as well as STD outgoing calls to family and friends.

Mr. Shashi Arora, CEO – Bharti Airtel Ltd. (Mobile Services), Delhi & NCR said, Airtel has always led the market in ushering affordability and convenience for its customers. These value vouchers present a greater value-for-money and cost saving opportunity than ever before. We are positive that this initiative will greatly benefit Airtel prepaid customers in the Delhi & NCR region in making STD and local calls at significantly lower rates.”

46. MTNL launches 3G services in Delhi - December 11

Ushering in a new era in the Indian telecom sector, Prime Minister Manmohan Singh Thursday launched the state-run Mahanagar Telephone Nigam Ltd's (MTNL) third generation (3G) mobile service 'Jaadu' here.

Communications and IT Minister A. Raja, who was also present on the occasion, made a video call, demonstrating the capabilities of 3G services. Launching the services, the prime minister said: "I congratulate MTNL and the communications minister for launching the 3G service."

"Competition has to be the major propeller of the Indian economy and it has to  a be a sustainable one," he said while demonstrating the mobile TV facility available with 3G services.

"However, effective objective and impartial regulations have to be an integral part of all these processes for investors to invest further," he added.

Added Raja: "BSNL (Bharat Sanchar Nigam Ltd) and MTNL have already been allotted 3G and broadband wireless access spectrum with a view to ensuring early rollout of 3G and Wi-max services in the country."  While MTNL has rolled out its 3G services only in Delhi Thursday, BSNL will launch its services in Chennai next month.

Talking about the revenues generated through licensing fees and sale of spectrum, Raja said: "After migrating to revenue sharing regime, this sector has contributed Rs.500 billion (Rs.50,000 crore) through licence fee, entry fee and spectrum charges till the end of last financial year."

"During this financial year alone, it is expected that about Rs.160 billion (Rs.16,000 crore) will be collected from the licence fee and the spectrum charges," he added.

The minister also said mobile number portability (MNP) would be implemented in metros and category A circle by the middle of 2009 and the entire country by end of next year.

MNP will enable mobile users to retain their telephone numbers when changing from one network to another.

"This will promote competition among service providers," he added.

47. Tata Tele, Nortel join hands for offering managed services - December 5

Telecom service provider Tata Teleservices today launcheda new servicein collaboration withNorteland LG-Nortel (joint venture between LG  Electronics and Nortel) to addressthe communication needs of the small and medium business segment.

Under the new managed private branch exchange (PBX) service,Tata Teleservices would providea single interface solution to the SMBs for their communications requirements, including digital ISDN connectivity, voicemail services, interactive voice response and Mobile Extension Services.

Available on an affordable monthly rental model, the managed PBX service pricing is based on the number of connections and users. Customers do not need to make any upfront payment towards the purchase of the PBX equipment.

PBXs make connections among the internal telephones of a private organization.

Tata Teleservices Managing Director Anil Sardana said, "Telephony is essential for all businesses, but many SMBs lack the capital or technical expertise to manage their own PBX. LG-Nortel's Aria PBX solution offers IP telephony features and easily scales from as few as 20 users to 1,000 users or even more."

49. Suzuki to ride solo in India-2 wheeler - December 17

Suzuki Motor (SMC) has bought out its local partner Satya Sheel Khosla and family in the two-wheeler joint venture firm Suzuki Motocycle India (SMIPL). The Japanese automaker, which is also present in the Indian four-wheelers market through Maruti Suzuki, is estimated to have picked 26% stake in the motorcycle company for around Rs 180-200 crore, making it a wholly-owned company.

The transaction was completed a few days ago, said a senior executive with the two-wheeler firm on conditions of anonymity. When contacted by ET, Mr Khosla, said: “I would not like to make any comment at this stage.” An announcement is expected next month, when Suzuki obtains all the statutory requirements.

Suzuki re-entered the Indian market in 2006, after it severed a decade long ties with Chennal-based TVS Motor Company in 1999-2000, after the five-year non-compete clause expired. It formed a new joint venture company SMIPL with Mr Khosla, who was also appointed the managing director of the firm.

Mr Khosla has been closely involved with Suzuki’s Indian operations for the last two decades and in the past was also a director on the board of Maruti Suzuki. Suzuki has invested around Rs 500 crore in the venture, while the investment by the local partner could not be ascertained.

SMIPL has a manufacturing plant spread in an area of 37 acres at Gurgaon in Haryana with an annual capacity of 1.75 lakh two-wheelers. The company is currently utilising less than one-fifth of the land and has planned a major capacity expansion to hike the annual production capacity by around 40% to over 2.5 lakh units next year.

Suzuki plans to invest Rs 150 crore more in the two-wheeler business. Currently, it sells three motorcycle models in India — Heat, Zeus & GSI150R besides a 125cc scooter Access. It has also launched two high powered super bikes, the legendary 1,340cc Hayabusa and the 1,783cc Intruder. Both these bikes are imported from Japan.

Three of these six products were launched in the past two months, and the firm plans to introduce two new products every year to consolidate its position and increase its current 1.7% market share in the 7-million strong Indian two-wheeler market. Suzuki sold 85,622 two-wheelers between April and November this year.

Suzuki already has a controlling stake of 54.2% in the largest passenger car company in India, Maruti Suzuki India. Now with a wholly-owned subsidiary, it is looking at strengthening its presence in the Indian automobile market

50. E-bikes in the slot between niche and mass markets - November 15

Electric bikes, the environment friendly alternatives to petrol guzzling automobiles, seem to be creating a market of their own, rather than poaching on existing two wheeler users, thereby expanding the overall market for motorised wheels. According to leading two wheeler manufacturer , TVS motors, which introduced an 800 w model of e-scooter costing Rs 31,000 in February this year, there has been a 10% expansion in the overall market for scooters, owing to e- bikes.

“Usually, we sell 4 lakh two wheelers and 1 lakh scooters per month. While this base has remained intact since February, we have sold 10,000 escooters additionally every month,” said TVS motors general manager (marketing) S Srinivas.

“We see users hitherto totally unfamiliar with automobiles becoming ebike users,” said BSA motors senior vice president Arun Alagappan. Escooters attract school and college students as some of them can be driven without a license, as also women who are wary of using more powerful and heavier vehicles.

In fact, Kabirdass motor company which has been selling K Xite e-bikes for over a year now maps its customer profile between 14 and 18 years, or above 40 years “That is for our 250 w model priced at Rs 32,500. We launched a 1500 w model priced at Rs 49,900 in October. But our sales targets for this model are much lower,” said the company managing director Murali Kabirdass. Even the higher powered model will not compete in the motorbike market, according to him. “Our country has enough women who will buy that model, today!” he said.

This also means that these vehicles are, as of now, put to use for niche functions like going to tuition classes, or shopping for groceries. BSA motors responds to this trend by branding its products specially for that segment of users “That is how our lifestyle has evolved today. Kids prefer to take scooters to their classes, and use bicycles for exercising,” Arun Alagappan said. That’s why we have positioned both the products — e-bikes as well as bicycles — as premium brands in our portfolio ,” said BSA motors general manager (e-bikes ) KB Srinivasan. The company has recorded a 40% YoY growth in its performance bicycles (racing, mountaineering, fitness) and 30% growth in its kids’ bicycles models, whereas its commuter bicycle segment has fallen by 1-2 %. However, other e-bike manufacturers prefer to see their products transforming the urban commuting landscape in the longer run.

Electrotherm, which has been selling e-scooters named Yo bikes for about 2 years now, is in the process of developing more powerful batteries to meet the performance demands of even a motorbike user.
“For this we have set up our own research and development centre for batteries in China,” said Electrotherm India joint managing director Avinash Bhandari. “A more powerful bike which can also be ‘charge-efficient ’ will definitely come at a premium price,” he said. “This is only the beginning of a developing market. We would definitely like to see our bikes as a mass market product in the longer run,” said Mr. Srinivas of TVS motors.

Yet another marked difference between BSA motors and its counterparts is their socio-geographic spread.

51. Scooter sales pick up, but bikes, mopeds lose steam - December 9

The automobile industry may be in reverse gear, but scooters are making a strong comeback for the first time in more than a decade. While 

motorcycle and moped sales are falling, there is renewed interest in scooters.

The arrival of more exciting scooters with higher fuel efficiency and features like disc brakes, electric ignition, next generation four-stroke engines and alloy wheels with gearless driving has started to revive the segment.

Scooters are expected to close the current financial year with positive sales growth. In the April-October period, scooter sales rose 7% to 6.71 lakh units and the industry expects it to cross the million unit mark this year. “While motorcycles declined 12% last year, the scooter market grew by the same percentage. Our monthly sales have grown to 12,000 scooters from 10,000 in the past one year,” said Anil Dua, head of marketing at Hero Honda, which recently launched a refreshed version of its 100 cc scooter, Pleasure.

The demand surge has revved up all major players in the business — Honda Motorcycle and Scooters India (HMSI), Suzuki, Bajaj Auto and Hero Honda — and many of them are now focusing on more launches of ‘cooler’ scooters to satisfy younger buyers. It has also led to companies such as Bajaj Auto and TVS Motors cutting motorcycle and moped production to make way for scooters. Scooter output is expected to nearly double in the next two years and the industry expects production to cross the two million unit mark by 2010.

Industry officials said a major contributor to the scooter industry’s upturn is the increasing acceptance among men of automatic scooters. “We brought focus to the market by offering high-tech features in scooters, prompting men to go for them instead of bikes,” said HMSI’s general manager (sales and marketing) NK Rattan, adding: “We already have four models and will be launching more products to allow the segment’s four-million customers to upgrade to high-tech scooters.” With the entry of 150-200 cc scooters into the Indian market, companies just hope that more male customers will have renewed interest in scooters.

52. Suzuki Hayabusa hits metro roads - November 27

Suzuki Motorcycle India (SMIPL) launched its iconic superbikes, the 1300 cc Hayabusa and the 1800 cc cruiser Intruder M1800R, priced at Rs 12.5 lakh (ex-showroom Delhi) each.

The company aims to sell over 350 super bikes at the rate of one bike per day. Already, Yamaha has launched its 1,000 cc YZF-R1 superbike and the 1,670 cc MT-01 priced in the Rs 10-15 lakh range. Italian moto-major Triumph has also launched its Monster, Multistrada and 1098 superbikes in the Indian market priced in the Rs 15-55 lakh range.

Suzuki is banking on the rising demand for superbikes and will import around 50 such bikes this year. SMIPL vice-president Atul Gupta said: “We have already imported 30 bikes that will take care of a 20 day stock inventory at the dealerships.

We will be evaluating the response and going for more imports as the demand picks up.” The company has already booked 30 bikes at seven metros, where it will be selling these bikes. Of these, over 70% are the sportier Hayabusa model.

Depending upon the response to these products, Suzuki —among the largest manufacturer of bikes in the world after fellow Japanese makers Honda, Yamaha and Kawasaki—also plans to bring its GSX -R series of motorcycles to India.

“We are currently evaluating the market. A lot of the product launches depend on the market response to the Hayabusa and Intruder, though we are expecting higher demand for the much smaller GSX-R sport bikes, which are in the 400 cc to 600 cc range of engine power,” Mr Gupta said.