Full Articles

1. Jet Airways launch digital campaign on Yahoo HK – January 12

Indian airline Jet Airways has launched a digital marketing campaign on Yahoo Hong Kong's travel section in an effort to attract North Asian travellers to India.

The campaign features a series of user-generated blogs recounting travellers’ experiences in India. Posts currently found on the site include stories about yoga, trekking in the Himalayas and collecting Indian antique furniture.

Jet Airways will further award audiences with a trip to India for submitting the best cases of why they should go.

According to a Jet Airways representative, the campaign has not been launched to reinvigorate tourism to India following the recent attacks in Mumbai.

The campaign will run from January until the end of February and will also include promotional events in Hong Kong and Shenzhen.

2. Jet Airways group remains India’s largest airline – January 13

Private carrier Jet Airways, together with its low-cost airline JetLite, was India’s largest domestic air services operator in 2008, ferrying some 12.01 million passengers for a market share of 29.5 percent, latest data showed Tuesday.Vijay Mallya’s Kingfisher Airlines, along with its budget carrier Kingfisher Red, was next, flying 11.26 million passengers to capture a 27.6 percent market share, as per data released by the civil aviation ministry.
The state-run Air India’s domestic operations, which earlier operated under the Indian Airlines brand name, continued to lose market share and flew just 6.63 million passengers for a market share of 16.3 percent. It had a 19-percent market share in 2007.
“We have been the market leader since 2000 and we continue to maintain that lead. The acquisition of Air Sahara, which now flies under the JetLite brand name, our market share has only improved,” said a spokesperson for Jet.
Air India, which was formed after the merger of another state-run carrier Indian Airlines - that now ceases as a brand name - said they hope to regain a lot of their market share in the current year.
“Last year, we were third. Now we rank second after Jet Airways and ahead of Kingfisher, that is, if you consider the airlines individually,” said an Air India spokesperson.
“As new aircraft join our fleet at regular intervals, you will see our market share improve further.”
Interestingly, despite the proliferation of low-cost carriers like SpiceJet, GoAir and IndiGo, the scheduled carriers continued to dominate the market with a 54.7 percent share.
Overall, Indian domestic carriers ferried 40.7 million passengers in 2008, a marginal drop of 5 percent over the previous year. Indian carriers carried 42.8 million passengers in 2007.
 

 
3. Kingfisher unleashes international expansion – January 9

Kingfisher Airlines is quickly brushing off the difficulties of 2008 with an aggressive programme of network expansion in the early months of 2009. The move comes despite the global economic slowdown that has slashed Asian traffic growth rates, particularly Business travel. In Kingfisher’s favour, oil prices have fallen significantly in recent months, making route expansion less costly.

 4. Jet Airways offers Companion Free Offer on Premiere

5. Kingfisher Airlines teams up with Hilton HHonors®

For the First Time, Earn both King Miles and Hilton HHonors Points for the Same Stay! -
Kingfisher Airlines, India's first and only 5-Star airline, today announced its alliance with Hilton HHonors the guest rewards program for the more than 3,000 Hilton Family Hotels worldwide. The new alliance allows members of King Club, frequent flyer programme of Kingfisher Airlines, to earn both King Miles and HHonors points when they stay at Hilton Family of hotels. Hilton HHonors is the only guest rewards programme in the world that lets members earn both hotel points and airline miles for the same stay and redeem points for free nights with No Blackout Dates.

Hilton Family hotels are among the most well-known and well-respected brands in the industry including Hilton®, Conrad® Hotels & Resorts, Doubletree by Hilton®, Embassy Suites Hotels®, Hampton by Hilton®, Hilton Garden Inn™, Hilton Grand Vacations™, Homewood Suites by Hilton™, and The Waldorf = Astoria Collection™ hotels.

Commenting on this alliance, Ms. Anshu Sarin, Deputy General Manager – King Club, Kingfisher Airlines Limited said, “At King Club, our vision is to deliver unmatchable and innovative benefits across the world to our members, in collaboration with leading national and international brands The alliance with Hilton HHonors is yet another initiative that promises to reward our guests.”

“We are constantly looking for ways to provide our members with options,” said Adam Burke, senior vice president, customer loyalty, Hilton Hotels Corporation. “Now, HHonors members who frequently fly with Kingfisher Airlines can enjoy earning both King Miles and HHonors points when they stay at Hilton Family hotels around the world.”

King Club and Hilton HHonors members can earn Points and Miles® in either of the following ways:

-- Points & Variable Miles: Earn 10 HHonors points and 1 King Mile for every eligible dollar charged to room at all Hilton Family hotels

-- Points & Fixed Miles: Members regularly earn 10 HHonors points for every eligible dollar charged to room and 500 King Miles per stay (100 miles at Hampton and Homewood)

Since earning Points & Variable Miles can maximize points and King Miles during longer stays and Points & Fixed Miles may offer more King Miles during shorter stays, HHonors members have the opportunity to change their earnings style with every stay.

King Club, the frequent flyer programme of Kingfisher Airlines, has today come to be regarded as one of the most rewarding programme in its space and offers its members an unparalleled level of ‘earn and redeem’ benefits. In order to start earning King Miles and HHonors points, consumers can enrol in Hilton HHonors at HiltonHHonors.com. Hilton HHonors members need to then sign into their HHonors account and select Kingfisher Airlines as their preferred airline partner and ensure that they present their King Club membership card at the time of check-in.

In addition to earning Points & King Miles, King Club members who are also HHonors members can now convert their HHonors points into King Miles. For every 10,000 Hilton HHonors points King Club members can make an exchange for 1,000 King Miles. Every additional or subsequent conversion has to be in multiples of 10,000 Hilton HHonors points. In order to complete an exchange, members can contact the Hilton HHonors Customer Service Centre at asiahhonors@hilton.com.

About Kingfisher Airlines:

Kingfisher Airlines is India’s first and only 5-Star airline and the only one to offer a premium first class service on domestic routes. Besides being the first and only airline in India to offer in-flight entertainment on every seat, Kingfisher offers LIVE TV with 16 channels of live and exciting content. The airline has received numerous awards for innovation, customer responsiveness and was voted the “Best New Airline of the Year”, within months of its launch. Kingfisher Airlines is a part of the UB Group that is one of India’s largest conglomerates with diverse interests and a global presence. The UB Group is also the largest Indian manufacturer of alcoholic beverages (beer and spirits) and the second largest drinks group in the world.

Kingfisher Airlines covers all segments of air travel from value fares to premium fares and offers the most flights by any single airline network in India. With a fleet of 87 aircraft, Kingfisher Airlines connects 73 cities and operates 442 flights a day.

About Hilton HHonors

Hilton HHonors® is an esteemed guest reward programme that gives frequent travelers a fast way to earn the rewards they want most. It is the only guest reward programme to offer Points & Miles® and No Blackout Dates with no capacity controls at more than 3,000 hotels. Enrolled members can Double Dip® to earn HHonors points and airline miles for the same stay, at nearly any rate, at participating Hilton®, Conrad® Hotels & Resorts, Doubletree by Hilton®, Embassy Suites Hotels®, Hampton by Hilton®, Hilton Garden Inn™, Hilton Grand Vacations™, Homewood Suites by Hilton™ and The Waldorf=Astoria Collection™ hotels around the world. In addition to redeeming HHonors points for complimentary nights, Hilton HHonors members can also redeem points for merchandise, vacation packages, unique experience rewards and more.

Hilton HHonors® membership, earning of Points & Miles® and redemption of points are subject to HHonors Terms and Conditions. ©2008 Hilton Hotels Corporation

 6. Airline launches spouse scheme

National carrier Air India has launched its new Spouse Plus scheme, which will allow the spouses of its passengers to travel on domestic services for free.
The airline has confirmed that when purchasing an Executive Class ticket, its customers will be able to take their spouses on the same journey in the same class for free when travelling between January 7th and February 28th.
Air India will not charge any fare or fuel surcharge, while airports'' passenger service fee and user development fee will still be payable.
The airline states that: "The offer will be available on all flights on the extensive domestic network of Air India except Mumbai-Goa, Delhi-Coimbatore, Delhi-Thiruvananthapuram, Delhi-Kozhikode, Delhi-Kochi, Delhi-Bhubaneshwar, Delhi-Raipur, Delhi-Nagpur and Raipur-Nagpur and corresponding return sectors."
The scheme is modelled on the similar Companion Free Scheme, which the operator runs on its west-bound international services.
Air India flies to a number of European destinations including Heathrow airport.

7. Mallya dreaming big for Whyte and Mackay – December 26

 
Vijay Mallya is playing out the big game to make Scotch whiskey from UB Group's 595-million-pound acquisition of Whyte and
Mackay to be among the top choices by leveraging on UB Group's distribution network.

"All my business strategies are India driven. The acquisition of W&M was done at looking at India as the world largest scotch whiskey market potentially and UB Group's very strong position in distribution," UB Group Chairman Vijay Mallya said.

Indicating his intention to create a stranglehold in the seven million cases per annum Indian Scotch whiskey market, Mallya said the group's primary focus would be on India.

"My whole philosophy is India centric. I did not buy W&M to sell it in countries which have one and two per cent growth," he said.

The company has already initiated the move to revamp the sales of W&M's whiskey in the domestic market by taking steps such as local bottling and introduction of W&M's vintage Dalmore brand, which are priced at around Rs 3 lakh per bottle across major markets in the country.

Local bottling of the Scotch whiskey is aimed at cornering 20 per cent share in domestic market as it would attract lower duties and make the product available at lower price.

So far nine brands, including, The Dalmore, Isle of Jura and the eponymous Whyte & Mackay blended Scotch, have been launched in India and United Spirits is making them available in all major domestic markets.

8. Departmental stores may be allowed to sell wine – December 28

 
The government may allow departmental stores to sell wines after they acquire licences from respective state governments. “We are working towards easing regulation on wine production and consumption in the country. Availability of wine would be the first step in this direction.

The government is willing to spread wine culture among people and promote vineyards in the country,” said an official in the ministry of food processing, who wished not to be named.

Some states such as Delhi, Maharastra, Karnataka and Punjab have already allowed departmental stores to sell beer provided they get a liquor licence. The ministry of food processing along with the department of commerce are of the view that wine should also be treated like beer, which is different from hard liquor such as whiskey and rum. The Delhi government, too, is likely to allow sell of wine in local stores soon.

The two arms of the central government are working on a policy to encourage wine making and its consumption in the country. They are also in favour of having a uniform excise duty regime across the state for wine sector. Excise duty on wines is a state subject and varies from state to state.

To give impetus to wine production and its promotion, the food processing ministry has also set up a National Wine Board to develop standards and promote domestic wine industry, so that they may stand stiff competition thrown by Australian and French wines. Competition from foreign wines is expected to intensify with the recent reduction in customs duties on wines and spirits.

The ministry argues that promotion of wine culture will lead to agricultural diversification and employment generation in rural India. With the growing popularity, wine farmers in Maharashtra are shifting from plantation of table grapes to wine grapes, said the official. India’s wine market, which is 1.2 million cases, has been growing at 40% this year compared with 2007, he added

9. Diageo to launch three global brands, Ketel One vodka, Zacapa rum and Don Julio tequila, in India
 
The company plans to launch three global brands in the country in the next four months, seeing demand in a market witnessing sluggish growth in most other sectors.
The company plans to import into a market where nearly 190 million nine-litre cases of locally-made spirits are sold annually.
Adding variety : Over the past two years, Diageo has launched several of its premium brands in India.
“We want to complete our premium portfolio,” said Asif Adil, managing director of the Mumbai-based Diageo India Pvt. Ltd which markets brands such as Johnnie Walker whisky, Smirnoff Vodka and Baileys liquor. Over the past two years, Diageo has launched in India several of its premium whisky, vodka and gin brands, as well as set up a retail chain, called Johnnie Walker Select outlets, in partnership with retail licence holders.
The liquor company sees itself largely insulated from an economic slowdown because its sales volumes in India are not large. “...slowdown doesn’t impact me,” said Asif Adil. “I’m a small percentage of the total (market).”
A bulk of Diageo’s revenues comes from sales at duty-free outlets at airports and in larger cities such as Delhi and Mumbai, but the company is attempting to increase its presence in smaller towns which, have so far accounted for a minuscule share of revenues.
“These are going to be the vehicles of growth next year and the year after,” said Adil. “My strategy is going into tier II and tier III (cities) because I believe that’s where the opportunity lies, in addition to tier I.” The company also sees opportunity in Tamil Nadu where the government last month lifted restrictions on retail sales of imported liquor.
United Spirits Ltd, India’s largest liquor company by sales, recently acquired and integrated its contract manufacturer in the state, Balaji Distilleries Ltd, in a bid to consolidate the company’s advantage over rivals.
Asif Adil expects to also start bottling some of Diageo’s brands manufactured in India such as Smirnoff vodka and Masterstroke whisky in Tamil Nadu within the next six months at a new distillery being set up by a contract partner, whom he did not name.
“It’s a big opportunity. Tamil Nadu is one of the biggest markets for liquor,” he said. On 23rd October, Mint had reported that Diageo was in talks with the Vijay-Mallya led United Spirits Ltd, for a possible alliance in distribution and bottling.
United Spirits, meanwhile, has rolled out brands such as Jura Island Single Malt, The Dalmore Single Highland Malt and blended Scotch whiskies of Whyte and Mackay, the Scotch whisky company it acquired in May 2007.

10. Honda sends legal notice to Maruti over SX4 ads – January 10

 
Two Japanese carmakers, which are competing in the dog-eats-dog world of India’s mid-size car market, are driving their rivalry straight into the courtroom.
Honda Siel Cars, a subsidiary of Honda Motor Company, has served a legal notice on India’s largest carmaker Maruti Suzuki, a subsidiary of Suzuki Motor Corp, over advertisements claiming that its SX4 sedan is bigger than the Honda’s segment leader City and the former is loaded with more features.

The notice was served on January 13.

The Maruti ad claims that City’s entry-level model does not have an integrated stereo as standard equipment and that the car is shorter and smaller in size compared with the SX4.

The advertisement, Honda alleges, makes inaccurate, incomplete and distorted statements with an intention to mislead customers that amounts to unfair trade practice. Honda alleges that the ad is an attempt to discredit the new City, launched in November last year.

India’s carmakers sell more than two lakh mid-size cars annually.

It is the largest segment after the small car segment that dominates the Indian market in terms of sales.Honda has asked Maruti to withdraw the advertisements immediately and has hinted at seeking damages. The notice was served on Maruti by Honda’s law firm Ajit K Singh. Honda executives maintained that they were awaiting Maruti’s response on the issue before initiating any action, including suing for monetary compensation.

Maruti officials confirmed that a legal notice has been served on the company. "We are examining the issue legally and will take suitable action as and when required," said a Maruti spokesperson.

11. Duty cuts fail to drive up car demand, sales skid 7% in Dec – January 12

Passenger car sales continued to decline for the fourth straight month in December and fell 7% to 82,105 cars from 88,272 cars in the same month last year despite the government’s decision to reduce excise duty on cars.

The government had announced a stimulus package in December reducing excise duty on small cars (hatchbacks) to 8% from 12% and banks reduced interest rates to boost consumer demand.

But as per the monthly figures released by the Society of Indian Automobile Manufacturers (SIAM) on Monday, all car companies except Hyundai reported drop in sales in December. Passenger car leader, Maruti Suzuki India, saw 10% fall in sales to 52,029 vehicles in the month, while Tata Motors reported 25% fall to 11,689 vehicles.

Motorcycle sales during the month also declined 22.9% to 3.35 lakh units in December 2008 against 4.35 lakh units in December 2007. Two-wheeler sales fell 15.4% to 4.61 lakh units in the same month against December sales of 5.45 lakh units last year.

Commercial vehicles posted its highest fall in 11 years as sales declined 58.2% to 17,920 units in December 2008 from 42,961 units during the year-ago period. In the past, the largest fall was 51.97% recorded in July 1997.

The dismal performance by all segments declined the total domestic vehicle sales by 18.2% to 5.97 lakh vehicles in December against 7.30 lakh vehicles in the same month in 2007.

Automobile analysts said sales are likely to come out of the negative sales graph in the next few months with the interest rates likely to come down further and the credit crunch which has hampered growth of the automobile industry likely to end.

“The outlook for the automobile industry is not-so positive and it is likely to end with a low single-digit growth in the current fiscal. We could see some positive growth in sales with the expected dip in interest rates likely to impact the market sometime in the next fiscal,” said Angel Broking analyst Vaishali Jajoo.

12. Audi India sales treble in 2008 – January 13

 
German luxury carmaker Audi on Wednesday reported a sale of 1,050 units in the year 2008, a three-fold rise compared with the sale of 349 units in the previous year. The company posted over two-fold rise in sales in December last year at 76 units against 31 units in the year-ago period, Audi India said in a statement.

“The year 2008 has been an exciting time for Audi India as we not only have achieved, but exceeded our projected targets despite the overall slowdown in the automobile market,” Audi India MD Benoit Tiers said. Expanding its presence in the country, the company on Wednesday opened a showroom in Mumbai.

13. Reliance Digital to sell Reva cars – January 15

 
Reva Electric Car Company (RECC), manufacturer of India’s first electric car, and Reliance digital, the consumer durables and IT arm of Reliance Retail, will partner to sell Reva electric cars at the Reliance Digital outlets, top officials of both the companies said.

Bangalore-based RECC said the tie-up with Reliance digital targets technology and gadget buyers. “Sale of electric cars at Reliance digital outlets is part of our initiative that looks at alternate methods to reach potential customers. It will also give us access to a wider customer base,” RECC president (sales & marketing) R Chandramouli said.

14. Car cos put brakes on discounts, up prices 3% - January 9
 
Car majors have withdrawn discounts and raised prices by 2-3% across a range of products this month citing rising input pressures. While Toyota and Ford have raised prices this week, General Motors is hiking prices by 1-2% by the end of the week, sources said. Maruti-Suzuki, Hyundai and Tata Motors will also raise prices during the middle of this month, it is learnt. Top industry officials confirmed the move on conditions of anonymity.

Japanese auto major Honda Siel will increase the price of its sports utility vehicle, the CR-V, by Rs 1 lakh this month. Rising costs of steel, aluminium, plastic rubber and petroleum products are putting pressure on manufactures to increase prices.

“The price increase will neutralise the excise cuts given as part of the recent stimulus package to pep up car sales,” said a car company official. Despite a slowdown in sales in the last two months, carmakers are raising prices, as margins are under tremendous pressure.

In the wake of a general slowdown and huge inventory with the dealers, carmakers have been slashing prices during the last few months. The car market, which saw double-digit growth for nearly five years in a row till 2006, has been slowing down to single digit since January 2008. The last two months—November and December—saw primary sales take a beating as compared to secondary sales.

The price cuts and discounts helped revive secondary car sales though the numbers still did not match up to last year’s figures. Market leader Maruti Suzuki, for instance, clocked 56,293 units, down 10% compared to last December’s tally of 62,515 units.

Manufacturers have cut production to bring down inventory costs in the system. Availability of finance and liquidity have to improve for demand to pick up, say dealers. While banks have lowered interest rates for auto loans to 12-13%, there is huge delay in processing loans. “While there is demand for vehicles, the rejection rate of auto loans is still high,” said a Mumbai-based car dealer.

The liquidity crunch has also led to an increase in the cash component in car loans as well as larger number of all-cash buys. Finance penetration fell to 59% in December 2008 as compared to 78% of all sales in 2007.

15. REVA introduces next generation electric cars news

 
India's first electric car maker Bangalore-based Reva Electric Car Company (RECC) has flagged off the advance technology next generation REVA cars to join the nationwide Indian Climate Solutions Road Tour in Bangalore.
These cars will be powered by the next generation lithium ion batteries. In addition they will have solar power panels to harness sun's energy and further increase the range. The proprietary energy management system manages the flow of energy efficiently increasing the range to 150km – 200km per charge.
''We take this opportunity to showcase our advanced technology as well as how EVs can be a viable transport option to battle environmental issues," said Chetan Maini, founder & chief technology officer, RECC. "REVA is happy to be associated with the Indian Youth Climate Network and hope that it succeeds in spreading awareness of going green as well as showcase the power of EVs.''
Indian Youth Climate Network, a group of dynamic individuals from across India and around the world have launched on a journey across the country to highlight India's local eco-solutions as well as empower the youth on one of the greatest challenges of our time: global climate change.
Equipped with three solar plug-in electric REVA vehicles and a solar powered music band called Solar Punch, these inspired youth powered by their passion for the future will depart from Bangalore to their other destinations today.
Reva Electric Car Companyis a joint venture between Maini Group of India and AEV LLC of California and venture-backed by US investors Global Environment Fund and Draper Fischer Jurveston.
A technology innovator from India, Reva was the first company worldwide to successfully commercialise electric carsand sells or test markets its range of electric cars in 18 countries across Europe and Asia and has the largest deployed fleet of electric cars in the market with over 2,500 EVs on the road that have logged in an estimated 50 million kilometes of user experience.

16. Porsche Assistance now in India

Precision Cars, official Porsche importer for India, has announced the introduction of Porsche Assistance in India.
Porsche Assistance, one of the world’s best-designed roadside assistance programme, can organize onward travel arrangements, provide replacement cars and even arrange hotel accommodation, while the customer’s Porsche is being repaired. Drivers as well as passengers will benefit from this exclusive programme.

Announcing the launch of the programme, Rod Wallace, managing director, Precision Cars India, said, “Porsche Assistance will ensure that in the unlikely event of the customer’s Porsche being immobilized, whether at home or elsewhere, the inconvenience is minimized. This is another initiative by Porsche in India to make sure that a customer in this country feels no different from a Porsche customer anywhere in the world.”

New Porsche owners who take delivery of their new car as of 1 January 2009 will be covered by Porsche Assistance for 24 months from the date of delivery, free of cost.

Currently, Porsche Assistance will cover any break-down within 100 km-radius around official Porsche dealerships. Even if the vehicle is immobilised outside the covered area, Porsche Assistance will make its best efforts to provide a solution to the problem.

17. Fiat India launches luxury sedan in India

 
Auto manufacturer Fiat India on Friday launched its luxury sedan Fiat Linea in India.
The car will be available in both diesel and petrol versions.

The petrol version of the car will be available in Delhi in the price range of Rs 598,967-Rs 698,984, while the diesel version is priced between Rs 688,983-Rs 810,004.

The car is currently sold in more than 50 countries across Europe, Asia, Central and South America and Africa, and will now be manufactured in India and Brazil, the company said.

'Launch of the Linea is first in the line of three launches that Fiat will undertake this year, the other two being Bravo and Grande Punto, Fiat India chief executive Rajeev Kapoor said.

'We have also ensured that the Linea appeals to a wide range of customers with its petrol and diesel variants and the various options available under each of them,' he added.

The sedan will be manufactured at Fita's plant near Pune and is the first major launch after the company introduced the Palio Stile last year. The plant has a manufacturing capacity of over 200,000 engines and 300,000 cars, Kapoor said.

18. M&M to reinvent sedan space with Xylo, plans more launches

 
Mahindra & Mahindra’s just-launched multi-purpose vehicle Xylo is the first in a series of new products that the utility vehicle market leader has lined up till 2010.

Later this year, the carmaker plans to launch a mass-market light-cargo product that will take on Tata Ace. In 2010, it will roll out its global SUV product which will spearhead M&M’s export thrust as well as be a crucial domestic launch.

Speaking to ET , M&M’s chief of operations (automotive) Rajesh Jejurikar said: “Xylo is the first of our new platform products lined up between this year and 2010. While the Xylo is positioned between the Bolero and Scorpio SUVs, the global SUV product will be positioned above the Scorpio, though it will be more mass market than the Ford Endeavour or Honda CRV price category.”

All three products have a twin purpose — they target both the domestic market as well as exports. Xylo, for instance, comes with a 2.5-litre CRDe (common rail diesel engine) like Scorpio, but it will also, in due course of time, get a petrol engine for its export avatar. M&M is cranking out Xylo from its Nashik plant. The maximum capacity for the MPV is 20,000-25,000 units a year while the Scorpio’s top capacity is 40,000 units a year.

The three new platform products are also crucial for M&M to synergise its production strategy. Although Xylo has a new vehicle architecture and component structure (platform), it has similar engine and transmission parts like Scorpio. “Xylo and Scorpio assembly lines are not rigid, so we can increase or decrease the production of one or the other depending on the demand,” said Mr Jejurikar.

M&M is betting big on Xylo, which packs in a number of bells and whistles like the flat bed, tray tables, individual AC vents, power steering, power window and central locking even in the base variant, priced at Rs 6.24 lakh. In terms of space and features, it is targeting Toyota Innova along with a significant share of the sedan market.

“The Xylo is just Rs 40,000 more expensive than Swift Dzire, so we’re looking to re-invent the sedan space,” said Mr Jejurikar. With an advertising budget of over Rs 10 crore for the quarter, M&M is pulling out all stops to hit top gear with Xylo. Currently, Bolero comprises around half its monthly numbers, while Scorpio contributes another 40%. With Xylo, M&M expects its total monthly tally to go up by at least 20

19. Hyundai rolls out all new Sonata Transform

 
Hyundai Motor India on Thursday launched its all new Sonata Transform, the upgraded version of the internationally-acclaimed luxury sedan.

The Sonata Transform, available in the range of Rs 13.9 lakh to Rs 15.9 lakh (ex-showroom price), boasts of dynamic style, power packed performance, elegant interiors along with the Hyundai badge of reliability and value. Available in three variants, including a 2.4 petrol, 2.0 CRDi MT and CRDi AT, the all-new Sonata Transform arrives with a palette of 5 new solid and metallic exterior hues for the customers to choose from.

Commenting on the launch, H S Lheem, MD, HMIL, said, “Sonata is a proven success globally and offers high end luxury, top notch comfort and advanced safety features. The all new Sonata Transform is aimed at further delighting our customers as it successfully integrates all the key attributes of a premium sedan.”

The Sonata Transform is powered by the advanced second generation Theta family of gasoline engine which produces a generous 175PS@6000 rpm of maximum power and a peak torque of 23.8Kgm @4000 rpm, resulting in robust acceleration and a quick throttle response. The 2.4 litre, four cylinder, DOHC engine is assisted by a Variable Intake System (VIS) and VTVT technology which makes it highly fuel efficient as well as a refined unit. The engine is mated to a 5-speed manual transmission.

The diesel variant powered by a 4-cylinder, 2-litre Common Rail engine (CRDi) with a Variable Geometry Turbocharger (VGT) is both frugal as well as an efficient performer. With a peak power of 150PS@3850 rpm and max torque of 32.1kgm@2000 rpm, it generates enough performance to delight the enthusiast. The diesel (CRDi) variant will be available with both - a 6-speed manual and a 4-speed (H-Matic) automatic transmission.

With its technical precision and superior performance, the all new Sonata Transform maintains the high quality standards while adding a host of new features which include the all new alloy wheels, smart key which incorporates remote door opening, keyless ignition and engine immobiliser, new head and tail lights, six airbags for enhanced safety for both driver and occupants. Separate climate control for driver and passenger, steering remote control for the audio, MP3 player with USB and Auxiliary port and complete leather pack which includes seats, steering wheel and gear knob, the company said.

The Sonata Transform offers enhanced styling on the exteriors with body colour – door handles, front and rear bumper insert, outside mirror housing and waistline molding. Other features of the car include rear defoggers, fog lamps, twin exhaust, 2-tone beige interior, auto head lamp off (battery saver), wood-grain finish inserts on steering, dashboard and door panel.

It also offers one of the best packages in terms of safety features as it comes loaded with several Active and Passive safety systems like Anti-lock Braking System (ABS), Electronic Brakeforce Distribution (EBD), six airbags (dual front, side and curtain airbag), seat belt pre-tensioner with load limiter. The passive safety includes features like crumple zones, side impact beams and impact sensing door unlocking system.

20. Acer Slashes Down Prices of Aspire One Netbook in India – January 12

 
In a recent announcement Acer said that it would sell the Aspire One netbook Linux version for just Rs 14,499 and the Windows XP Home version for Rs 16,499 in the Indian market.

The specifications of Aspire One netbook are still the same. It has an 8.9-inch screen, an Intel Atom 1.6GHz processor, a 1GB RAM, a 160GB HDD, and battery life of more than 3 hours. Acer is selling the netbook in different color options of Sapphire Blue, Brown, Black, Pink, and White.

For Internet users, the netbook supports Messenger for instant messaging with Skype, Microsoft Messenger and various other instant messaging services.

“With this new net book I have no doubt that we will make the dream getting onto the mobile computing bandwagon a reality for millions of our country men. People now have access to the best net book in the world at the most amazing price points,” said S Rajendran, Chief Marketing Officer, Acer India.

The company added that this is a limited period special festive offer for the period Jan 9-20.

21. Indian PC market touches 2.268 mn in Q3 - December 30

The client PC shipments grew 1.7 percent during July-September (Q3 2008) compared to the same period last year, to touch 2.268 million PCs, says an IDC report. While the desktop PC shipments fell 8.9 percent, notebook PC shipments grew 37.8 percent during the period (Q3 2008 over Q3 2007), the report said.
The overall client PC (notebooks and desktops combined) market, Hewlett-Packard tops the market share with 19.7 percent in the third quarter, followed by HCL with 9.8 percent and Dell at third spot with 9.6 percent share, said a press release from IDC.
In the desktop PC shipments too Hewlett-Packard takes the lead the market in Q3, followed by HCL and Acer in second and third spots respectively. HP, Dell and Acer were the top three players in notebook PC shipments in Q3 2008.
Said Sumanta Mukherjee, Lead Analyst—PC Research, IDC India, "The contribution of the 'Top 5' PC vendors to India Client PC shipments grew from 47.2 percent in Q3 2007 to 56 percent in Q3 2008."
"The current subdued buying sentiment has led to inventory pile-up with channel partners, adversely impacting finances. Vendors must rediscover niche segments with buying potential and implement innovative marketing programs to overcome this situation," he added.

22. Demand for laptops to boost PC sales in 2009 – January 5
 
Aided by a surge in demand for laptops, India's personal computer (PC) market is likely to grow by 13.7% to 11.1 million units in 2009, according to research firm Gartner. Consumer and government spending will buoy PC sales, while enterprises will go slow on purchases, projections by the firm’s indicate.

In 2008, the PC market grew by more than 17% to 9.76 million units. The laptop market is expected to grow by 37% in 2009 to 3.69 million units and constitute a third of the total PC market. Sales of the compact computer zoomed by 65% to 2.7 million units last year.

“We expect the first two quarters to see sluggish sales but pick up in the last two,” Diptarup Chakraborti, Gartner’s principal research analyst, said. The forecast is based on expectations of a revival in the global economy by mid-2009 and a surge in consumer spending during the festive season towards the year end.

The research outfit had earlier projected a 51% increase in laptop sales this calendar year but revised it downwards due to the deteriorating economic environment. The downturn has not deterred companies, such as Samsung, from re-entering the laptop market.

“Although consumer sentiment is low, the laptop market continues to witness exponential growth,” Samsung India director (IT) Ranjit Singh Yadav said.

Desktop sales, which touched 7.06 million in 2008, are expected to grow by 5% this year from an earlier estimate of 7%. Despite a lower rate of growth, there is renewed interest for desktops among first-time buyers, which were flocking to laptops earlier. “The larger price differential between desktops and laptops after the price hikes in 2008 has made a set of users veer towards desktops,” George Paul , executive V-P of HCL Infosystems, said.

While government spending is likely to support computer sales during the January-March quarter, consumer spending is expected to lead growth through the year.

Government departments expend their unutilised budgets during the last quarter of the financial year — the first quarter for the calendar year.

Enterprise spending on PCs, however, is expected to slow. "We see demand from infrastructure, banking and government, among other verticals even as ITeS and large companies are putting a brake on purchases," Mr Paul said.

23. HCL TOUCH’ to offer 24x7 services in 4,000 towns – January 12

 
In what seems to be a move towards making a favorable climate and inculcating goodwill among the existing and prospective customers for future investments, with launch of laptops and desktops, HCL Infosystems announced opening of ‘HCL TOUCH’, round the clock service and support centers, though, initially for the laptop customers.
Ajay Chowdhry, chairman and CEO, HCL Infosystems said that increasingly customers are becoming nomads, with increased work pressure and mobility. Everyone who is on the move and has a laptop, wants to work even at times they are traveling or waiting to catch a flight or train at airports or railway stations.
Be it teachers, busy with their school work, students with studies and entertainment, CEOs, CIOs and business mangers with their office work—all of them need a 24x7 support center, which may resolve any issue with laptops or notebooks, to work without interruptions at any place and at any point of time. Through a universal customer care number (1860-1800-425) and 11 regional languages options, besides English and Hindi, HCL will address the needs of customers in metros as well as in the upcountry regions of India.
With its presence in 4,000 towns, HCL will devote this initiative 14 remote support centers, 505 service offices, 390 warehouses and 150 repair centers. This round-the-clock series of services includes network and email support, peripherals and hardware configuration support, fortressing health care support and tracking services.
Recalling HCL’s entry in to the government sector and thereby reaching to the remotest of the place of the country, Chowdhry said, “In early 1980s NIC asked us to deploy engineers in every district of the country, if we were to begin a long term partnership with the government. Accepting the challenge of this huge scale work force deployment, we have constantly tried to raise the bar so that customer’s interest is looked after in a better manner.”
 

24. Samsung forays into the Notebook PC & Netbook market - December 22

Digital technology major Samsung India has announced its entry into the portable PC segment with a comprehensive lineup of Notebook PCs and also made a foray into the fast growing Netbook Segment with its N series. The Notebook lineup includes notebooks in different categories – Premium, Thin and Light X series ; Mobile Optimum-Q series and the All rounder , Mainstream– the R series.
With its entry into the Indian notebook market, the Company which was hitherto only in the IT peripherals space, is providing a complete PC solution to its customers. The X360 and X460 are 13.3 inch and 14.1 inch premium thin and light notebooks. The X360 is weighing 1.29 kgs and achieving an incredible 10 hours of continuous usage. Both X360 and X460 support Samsung's latest 300 nits Super Bright LED backlit LCD display, which help consumers to view content in broad daylight while being on the move.
Samsung's X-Series highlights a huge emphasis on ultra portability and design without compromising on the performance. Both the X360 and X460 feature the latest Intel® Centrino 2 processor technology with Intel Core2 Duo Processors and Intel New Wireless LAN (802.11n). The X360 and X460 have a rugged magnesium alloy chassis and a strength providing aluminum plate behind the LCD, a 'pebble' style keyboard and lightweight components that bring new meaning to the phrase 'thin-and- light". While the X360 is priced at Rs. 115,014/-, the Samsung X460 Notebook is priced at Rs. 80,614/-. All Samsung Notebooks feature 1.3MP webcam, Bluetooth 2.0, HDMI (with the exception of the Netbook NC10) output and Silver Nano keyboard. With these top-end specifications, Samsung's notebooks are designed and built for the customers seeking the latest technologies integrated into highly mobile platforms.

25. Dell launches new series of laptops - Janaury 13

 
Dell unveiled in India its new series of laptops—the Dell Studio XPS 16 and Dell Studio XPS 13.
The laptops in the range are the first Studio laptops to bear the XPS high-performance designation.
Both the laptops feature crafted genuine leather and anodized aluminum accents on top of a Obsidian Black finish. Studio XPS laptops combine high-power performance and state-of-the-art features to enhance the overall experience and keep users ahead of the curve, Dell said.
The new series has a High Definition up conversion so that standard DVDs view more like HD. It also has a 2.0 megapixel webcam with digital array microphones and facial recognition security capability, backlit keyboard and capacitive touch multimedia controls. The USB PowerShare helps to charge the peripherals even when the system is off and it also has a full range of ports and connection options, including HDMI, DisplayPort, IEEE 1394a and eSata.
For true cinemaphiles and amateur photographers, the optional Full HD 1080p display (RGB LED) is optimized for 16:9 content and features 100 percent color gamut for truer colors combined with 300 nit brightness.

26. Coca Cola to go ahead with investment plans for India - January 20
 
Global beverages major Coca Cola is going ahead with its 250 million dollar investment plans for India notwithstanding the ongoing slowdown and hopes to add more products into its portfolio.

"There is definitely a slowdown and it would also affect us to some extent. However, we believe the long-term prospects are good in India and we are continuing with our investment plans," Coca Cola India President and Chief Executive Officer Atul Singh told reporters here.

He said the company has not shelved or postponed any of its plans in India so far and expects the market to rebound this year.

"Till the quarter ended September 2008, we posted consecutive growth for nine straight quarters, including six quarters where the growth in India was of double digit. Although times are now tough, we are hopeful of continuing with our growth momentum," Singh said.

He, however, refused to say anything regarding the percentage change in sales or revenue figure of the company for the last few months.

The company had last year announced a 250-million dollar investment in the country to expand its business over the next three years and now the company has said its "investment plans are intact".

Asked about any possibility of job cuts or retrenchment by the company in view of the economic downturn, Singh said, "Today there is no job cut but we cannot say what will happen tomorrow. But I do not want to speculate on it."

He added the company is looking to introduce more products in the coming months but did not disclose the details. "We are always evaluating on our product portfolio, including in the health category. We will look at the market demand and definitely introduce more products as and when required," Singh said.

Coca Cola is also trying to pay greater attention to its Corporate Social Responsibility (CSR) initiatives and as the first step in the direction, the company's Indian subsidiary is soon going to launch a separate Coca Cola India Foundation for funding the CSR projects, Singh said.

"We have formed Coca Cola India Foundation and are in the final stages of launching it... Our focus is on working on sectors like promoting bio-fuels, renewables, recycling of products and water harvesting," he said.

According to Singh, the company is undertaking water harvesting projects in 39 villages run by an NGO with an estimated investment of Rs 1.8 crore, besides funding schemes for making available potable drinking water to 20 schools in Chennai and 150 schools in various parts of West Bengal.

27. Rustic Wisdom: Unilever to take Project Shakti global – January 19

Anglo-Dutch consumer goods major Unilever has begun replicating HUL’s rural micro-enterprise, led by women-entrepreneurs, Project Shakti in several international markets.

The project has emerged as a successful low-cost business model and enhanced HUL’s direct rural reach in the so-called media-dark regions. Armed with micro-credit, r ural women become direct-to-home distributors of Unilever brands in rural markets. The Fortune 500 transnational which sells foods and home and personal care brands in about 100 countries has stepped up focus on the project given that emerging markets now contribute around 44% to global revenues.

The effort is expected to help Unilever tap fresh growth avenues in emerging markets in the face of recessionary trends in the US and Europe. Also, given the saturation of urban markets, companies try to re-engineer their business models to derive growth from rural consumers.

The project is being customised and adapted in other Unilever markets such as Sri Lanka, Vietnam and Bangladesh. It is being considered for other Latin American and African markets. In Bangladesh and Sri Lanka, it is being promoted as Joyeeta and Saubaghya, respectively. There is a similar initiative in Vietnam as well.

The rural micro-enterprise has helped the Rs 13,717-crore Hindustan Unilever in pushing growth rates in several categories such as personal wash, fabric wash, shampoos, oral care and skin care. Brands like Annapurna, Lux, Lifebuoy, Breeze, Wheel, Fair & Lovely, Lakme, Ponds, Clinic Plus and Pepsodent have sold good numbers in smaller markets, company sources said. Overall, around 50% of Hindustan Lever’s revenues came from the rural markets in India.

HUL sources said the project currently contributes ‘handsomely’ to the company’s sales. The project was started in 2001 to empower underprivileged rural women by providing income-generating opportunities, health and hygiene education. Shakti’s ambit already covers about 15 million rural population. Several rural pockets are populated by less than 2000 individuals but are seen as unreachable and remain untapped by consumer goods makers.

Rural women are appointed as Vanis (communicators) and trained to communicate in social forums like schools and village get-togethers. Shakti operates in fifteen states: Andhra Pradesh, Karnataka, Tamil Nadu, Gujarat, Madhya Pradesh, Chattisgarh, Maharashtra, Uttar Pradesh, Punjab, Haryana, Rajasthan, West Bengal, Bihar, Jharkhand and Orissa. There are over 45,000 Shakti entrepreneurs covering over 1,35,000 villages across 15 states.

Industry officials say the awareness level of rural consumers about products and brands are lesser than the urban markets. Also, urban business models are not really successful in tapping the full potential of several small clusters of consumers across remote markets.

28. Rural India speaks volumes for durables – December 26
 
High-value goods such as televisions, refrigerators, washing machines and microwave ovens have seen double-digit volume growth during the year to October. The performance mirrors the robust growth trends seen in basic consumer goods such as soaps and shampoos and was lifted by buoyant demand in rural and semi-urban markets.

Data released by market researcher ORG-GFK on Thursday showed that television sales rose 29.3% to 10.3 million sets, while growth in refrigerator sales was 12%. Washing machines sales grew 15% while microwave ovens and air conditioners grew 26% and 17%, respectively.

Industry officials say the growth is on the back of entry-level products and largely driven by rural and semi-urban markets. “Acceptance of branded products in the rural market, which is largely driven by first-time purchases and replacement, has resulted in higher sales of entry-level products,” said Samsung India Electronics deputy managing director Ravinder Zutshi.

Higher purchasing power among affluent consumers was driving growth in mid- and high-end items in urban markets, where the focus is more towards upgrading products, Mr Zutshi said. The data are in sharp contrast to a steady stream of gloomy official economic figures, and will provide a welcome cheer to policymakers looking for evidence of continuing demand growth in the economy. India’s economic growth is expected to slow to around 7% this fiscal, down from the 9%-plus growth seen in the previous three years.

“Growth in demand shows that the consumer durables industry has not been hit by the economic meltdown so far,” said Godrej Appliances’ vice-president (marketing) Kamal Nandi. But he added that consumers in urban areas were postponing purchases and not upgrading products, which could hit demand in the replacement market in future.

But some industry officials accept the data with a pinch of salt. The ORG-GFK data showed that among televisions, sales of more expensive LCD and plasma categories, which account for about 5% of total TV sets sold in the country, showed high growth. LCD TV sales surged 153.5% to 4.6 lakh units while there was 90.1% increase in plasma TV sales to 26,700 units. Amitabh Tiwari, head of consumer appliances at LG India, however, said the data on TV sales were on the higher side. “As per our estimates, actual growth in televisions this year is around 25% which is the same as last year... Growth of plasma TV sets is more or less stagnant, but the data showed almost a 100% increase,” said Mr Tiwari.

ORG-GFK last year changed the panel of dealers through which it sources data for retail sales, which could partly explain the over-estimation, industry officials said. The high pace of growth, however, was not witnessed across all segments. Air conditioners, for instance, saw growth cool off from the 20% plus in previous years. This was partly due to early onset of monsoon in north India last year, which led to a relatively cooler summer this year and hit air conditioner sales. Total AC sales moved up 16.4% year-on-year to 1.7 million units between January and October, with split ACs growing 25% to 9.7 lakh units and window ACs rising 7% to 7.5 lakh units.

For many other product categories, the growth rate either remained at the same level as last year or was a bit higher, despite the economic slowdown.

29. Citi to hive off India arms after global split- January 17
 
Citi Financial, one of the largest finance companies operating in India, may sport the ‘For Sale’ sign, after its US-based parent Citi
announced it was jettisoning its financial supermarket model that will split it into two separate businesses — Citicorp and Citi Holdings.

Citicorp will hold all the good assets of the group including the global bank, while Citi Holdings, which will include Citi Financial, will hold assets that the group will look to sell. The announcement came as the bank, which has been brought to heel by the US subprime crisis, posted a higher-than-anticipated fourth-quarter loss of $8.29 billion.

Citi Financial, whose businesses in India span mortgages, personal loans and investment products, has had a bad run in the past one year as the economic slowdown has led to rising delinquencies. The firm, 100% owned by Citi and operating as a non-bank finance company, posted a net loss of Rs 268.6 crore during the first three quarters of 2008.

The firm, once among the most profitable in its sector, has more than 2,000 employees in India. Citi overall has around 9,000 employees in the country and had assets of $7.77 billion in its consumer finance business including credit cards and consumer banking.

Announcing its proposed break-up, Citi said it had suffered losses in its consumer finance business at Citi Financial and the credit card business at its banking arm. “Higher credit costs were mainly driven by continued deterioration in the credit environment in India,” the group said, adding that India together with Spain and Mexico were responsible for the largest international increase in credit losses in the consumer finance business.

Citi’s net credit loss or bad loan ratio in India for its credit card and consumer banking business in India rose to 6.3%, indicating the business had seen a sharp deterioration in its loan portfolio. The bank’s operation in India is the biggest among all foreign banks operating in the country.

Once the world’s biggest banking group in terms of market value, Citi has been overtaken by several of its global peers. It has suffered losses for five straight quarters, and has had to write off tens of billions of dollars and raised billions more in new capital including from the US government

Friday’s announcement by Citi, headed by India-born Vikram Pandit, to break itself into two will effectively undo the 1998 merger between Citicorp and Travelers Group engineered by Sandy Weill, the bank’s CEO until 2003.

Mr Pandit, who took over 13 months ago from ousted predecessor Charles O “Chuck” Prince, was a long time executive at Morgan Stanley, which he left to found a hedge fund. Citi acquired the fund to get Mr Pandit into its ranks.

Citigroup this week said it would put its brokerage Smith Barney into a $21-billion joint venture and relinquish majority control to Morgan Stanley. The deal, which bolsters Citigroup’s capital base with a $5.8 billion pretax gain, came less than two months after Mr Pandit told employees he didn’t want to sell the business.

30. Bank loans to hospitals, hotels no longer commercial – January 9
Loans extended by banks to hotels and hospitals may no longer be treated as commercial real exposure. The Reserve Bank of India (RBI) on Thursday revised norms on real estate exposure where it included loans extended against security of future rent receivables from commercial real estate exposure.

The revised norms will not immediately impact banks’ balance sheet. This is because standard provisioning for real estate companies were brought on a par with all other industries on November 15, 2008.

As a part of the stimulus package, the general provisioning requirement on standard advances for commercial real estate sector has come down from 2% to 0.04%.

However, under reducing the standard provisioning for commercial real estate, RBI had said that they were counter cyclical prudential measures. This means that as and when the economic cycle changes, RBI may increase provisioning norms on commercial real estate sector.

Meanwhile, on Thursday, RBI has continued to maintain that SEZs will be treated as commercial real estate. In case of hotels, the cash flows would be mainly sensitive to the flow of tourism, not directly to the fluctuations in the real estate prices.

In the case of a hospital, the cash flows in normal course would be sensitive to the quality of doctors and other diagnostic services provided by the hospital. In these cases, the source of repayment might also depend upon the real estate prices to the extent that the fluctuation in prices influences the room rents, but it will be a minor factor in determining the overall cash flows.

In these two cases, the recovery in case of default may partly depend upon the sale price of the hotel or hospital. Considering that repayment is not dependent on real estate prices, recovery is only partly dependent on the real estate prices, RBI decided not to treat them as real estate exposures.

Justifying its stand on treating loan against future rent receivable as real estate, RBI pointed out that a few banks have formulated schemes where the owners of existing real estate such as shopping malls, office premises agree to repay loans from the income that is generated from the rentals by these properties.

Such finance may or may not be secured by the mortgage of the underlying properties. In case it is unsecured, the repayment will be sensitive to fall in real estate rentals and there would be no source of recovery in case of default. In case the loan is secured by mortgage of the underlying property, both the repayment and recovery would depend upon property prices.

31. PSB preferred banker for more Indians - January 8
 
The public sector banks in the country seem to be gaining ground slowly. Private sector banks lost market share in deposits as well as credit to public sector banks — nationalised as well as the State Bank group — during the quarter ended September 30, 2008.

According to the data released by the Reserve Bank of India on Wednesday, while nationalised banks as a group and the State Bank group increased their share in deposits from 47.9% and 22.6%, respectively, in September 2007, to 48.6% and 23.2%, respectively, during the quarter ended September 30, 2008, the share of private banks and foreign banks dipped from 20.3% and 6.1%, respectively, to 19.4% and 5.8%, respectively.

As for credit, the share of nationalised banks went up from 47% in September 2007 to 47.9% of the total bank credit in September 2008. SBI group also increased its share in loans from 22.9% to 23.4%. While the share of private banks dipped from 20.6% to 19.3%, that of foreign banks rose marginally from 6.8% to 7.2%.

The top 100 centres arranged according to the size of deposits accounted for 69.6%. When arranged according to the size of loans, they accounted for 79.0%. In September 2007, the corresponding share of top 100 centres in aggregate deposits and gross bank credit was 69.6% and 77.2%, respectively.

The credit-deposit ratio (CDR) of commercial banks amounted to 74.9% as of September 30, 2008. Among the states and Union territories, Tamil Nadu stretched out the most and had the highest CDR at 113%. This means that banks in the state lent Rs 113 as loans for every Rs 100 raised as deposits. This was followed by Chandigarh (107.4%). At the bank group level, CDR was the highest for foreign banks (92.4%) and SBI group (75.5%), and was lower in case of private banks (74.6%), nationalised banks (73.8%) and regional rural banks (56.9%).

32. RBS to start its wealth management business in India – January 21

Following the approval of RBI for renaming ABN Amro Bank NV's non-banking finance arm as RBS Financial Services, the Royal Bank of Scotland Group Plc. (RBS) has launched its wealth management foray in India.
The wealth management business under RBS Financial Services is going to be carried out through an entity named Royal Wealth Management.
In October 2007, the global assets of ABN Amro Holdings NV were acquired by RBS together with UK's Fortis Group and Spain's Banco Santander SA. The Dutch lender's asset management unit in India is going to be undertaken by Fortis while RBS is set to acquire the wholesale, retail and private banking businesses of ABN Amro in the country.
RBS is also planning to expand its presence in India and has decided to open five new centers across the country. An ABN Amro Bank official said, "RBS Financial Services is planning to set up five centres across the country, of which two centres are in Mumbai. The non-banking finance arm will act as a distribution arm of the bank."
He further informed that "Apart from distributing wealth management products, RBS Financial Services will also sell other asset products and...enter the business of collection of non-performing assets."
The official added that Royal Wealth Management would also launch and market the products and services of RBS Coutts, global private banking arm of RBS, in India.
RBI was objecting to RBS for operating ABN Amro's Indian business under two separate entities: RBS and RBS Coutts. An RBI official said, "Coutts is a separate entity and approval for use of the brand name would effectively mean allowing a backdoor entry for a bank."
Earlier in October, Foreign Investment Promotion Board had given an approval to ABN Amro's non-banking finance arm named as ABN Amro Securities (India) Pvt. Ltd for widening its scope of activity from a primary dealership. A primary dealership license enables a firm to trade in government securities. In December this license was transferred to ABN Amro Bank by the RBI.
Senior Vice-President and Head of Marketing and Communications for ABN Amro Bank in India, V. Vasantha Kumar said, "As part of our expansion plans we are looking at distribution of wealth products under the brand name of Royal Wealth Management and currently we have two outlets in Mumbai." He added that "Further details on our expansion plans will be announced shortly, once they are finalized."
In 1920, ABN Amro started its operations in India and presently it has around 9,000 employees in 28 branches.

33. Reckitt to kick off 'greener ways to clean and save' – January 9

Reckitt Benckiser, maker of Dettol and Harpic, is kicking off an exercise to re-label all its products with a ‘green panel’—informing consumers on optimal usage and how to best dispose of products.

The exercise will be implemented globally across all markets in phases where Reckitt has a representation in. It kicks off this year.

But in India, the re-labelling exercise is expected to take shape after a year since the usual practice is to follow production cycles six-eight months in advance. In addition, it will also involve a substantial cost, though details of the same are not available. The implementation in India will happen in the second phase of the exercise. A Reckitt Benckiser India spokesperson said: “The exercise is global but specific time lines for India have not yet been firmed up.”

The exercise will form a substantial part of Reckitt’s overall marketing and below-the-line spends. In India within the FMCG space, Reckitt Benckiser is the second biggest ad spender after Hindustan Unilever.

The move is in line with the company’s ‘Carbon 20 programme’—an internal guideline aimed at reducing total carbon footprint of Reckitt products by 20% by the year 2020. Reckitt CEO Bart Becht said in a statement: “By following guidelines on the packs, consumers can cut energy and water use and save money while making an impact on climate change.”

In addition to re-labelling the product packs, all television advertising of Reckitt products will be adapted to highlight the exercise. The company proposes to use the strapline—’greener ways to clean and save’.

The ‘green panel’ initiative will be backed by extensive in-store promotions. The on-pack information will be labelled across all products on how to use and dispose off products.

“The exercise, called ‘our home, our planet’, is aimed at helping consumers to reduce the carbon footprint of products they use,” the company said in a statement.

34. Dabur in character licensing deal with Disney – January 8
 
FMCG company Dabur has tied up with Disney Consumer Products (DCP) in a character licensing deal to jointly promote its Dabur honey squeeze packs. Disney characters Winnie the Pooh will feature on all honey packs.

Dabur leads the organised honey market with a 75%-plus share and its honey sales are estimated at Rs 120-130 core.

Dabur executive VP-marketing (healthcare) K.K. Rajesh said: "The tie-up will boost consumption of healthy foods such as honey among kids."

The company recently released ads featuring Bollywood star Amitabh Bachchan and cricket captain MS Dhoni. The ads show both celebrities jointly promoting the usage of honey, urging consumers to replace it with sugar. The ads have been created by ad agency Lowe. Though Mr Bachchan has been associated with Dabur for over three years, the company had recently signed up Dhoni.

Organised honey remains a small market with few players like Dabur. The bulk of honey consumption remains with the unorganised sector.

35. Health drinks firms to juice up kids’ mkt - December 26
 
The action is hotting up in the kids’ health drinks market. The growing kids’ health drinks market in India is headed for a big war with the existing biggies like GlaxoSmithKline and Heinz engaging in a no-holds barred war for eyeballs. FMCG majors like Hindustan Unilever (HUL) and Dabur India are also adding fuel to the fire with their new malted food drinks.

While HUL has already test-launched its new brainfood—Kissan Amaze—for kids, Dabur India is preparing to nationally roll out its health drink—Dabur Chyawan Junior—in the coming week. All the players are hardselling the health benefits of their products in a bid to break the clutter.

“Unlike existing energy drinks, Dabur Chyawan Junior contains herbs that provide the immunity required in growing children. Dabur, with its expertise in Ayurveda, has been able to combine the power of herbs in a format that children love to bring about radical changes in the way the MFD category operates,” said Dabur India executive V-P (marketing, healthcare) KK Rajesh.

Not to be left behind, HUL, with its Kissan Amaze, is promoting its range as good food for the development a child’s brain, general health and well-being. These claims, analysts say, may further ruffle feathers in a highly-competitive market. Glaxo, which is the market leader in the category with products like Horlicks and Boost, is engaged in a war of words with Heinz (makers of Complan) over the nutritional values of their products.

36. CCEA allows Pepsi to keep stake in bottling arms, invest Rs 250 cr – January 3

The Cabinet Committee on Economic Affairs (CCEA) on Friday gave approval to PepsiCo’s plea for waiver of the mandatory 49% divestment in its Indian bottling arms. The company had sought exemption from the divestment clause as the government had already allowed 100% foreign direct investment (FDI) in food processing sector.

The Cabinet has also paved the way for PepsiCo to infuse Rs 250 crore as FDI in its Indian operation, science and technology minister Kapil Sibal said after the meeting. Giving rationale behind the exemption, he said: “When Pepsico India Holding first invested in India, guidelines for investment were different. The guidelines have changed now.”

In 1997, when Pepsi made its first FDI in India, the then prevailing rule had capped foreign holdings in the sector at 51 %. The FDI approval given to PepsiCo was subject to divesting the 49% of its local unit in favour of Indian partners within the first five years of operations.

The disinvestment deadline of 2002 was later extended after Pepsi asked for the waiver from the disinvestment clause citing new rules that allowed 100% foreign ownership in the food processing industry.

The Foreign Investment Promotion Board (FIPB), which considered PepsiCo’s proposal for the third time in October ‘08, felt the company’s proposal to inject Rs 250 crore in the Indian venture could be cleared only if it honoured its commitment on mandatory divestment of its bottling operations.

In the case of Coca-Cola, the government did not waive the clause in 2002 and forced it to divest through an initial public offering. But Coke subsequently bought back the stake.

37. ITC to add more flavour to spices business - December 30

 
At a time when liquidity crunch and global meltdown appears to have deterred almost all companies across different segments to put their future growth plans on hold, ITC is looking to spice up its spices business in a big way. The company is planning to set up modernised processing infrastructure in Rajasthan for grading, sorting and cleaning of seed spices like cumin, coriander and pepper.

The detailed investment plans are being worked out. The proposed integrated ‘cleaning-cum-sorting’ facility will enable ITC supply clean and graded seed spices procured from the mandis of Rajasthan, Gujarat and Madhya Pradesh to a growing and discerning domestic and international customers. The mechanised processing is intended to create value for customers in terms of supply of consistent hygienic products, adhering to specific quality specifications, an ITC spokesperson told ET. The new facility will be in addition to ITC’s spices cleaning, grinding, packing and steam sterilisation facility at Guntur.

Usage of seed spices like coriander and cumin, the spokesperson added, is steadily increasing because of the increased usage of ‘blended spices’ and ‘seasonings’ in ready-to-eat or cooked foods. The new facility will also give thrust to ITC’s planned foray into the growing value-added exports market for spices. It will also enable ITC to position itself as an integrated spices player.

Incidentally, the country’s fragmented Rs 20,000-crore spices market is characterised by a large number of unorganised players having semi-manual, small facilities across the country and adhering to varying quality standards. Apart from this, ITC is also planning investments to mechanise its various operations in its supply chain, especially for grading and sorting of chillies, turmeric and pepper. It is also looking to set up a pepper garbling and steam-washing facility in Kerala as well as a ‘blended spices’ facility in the next two years. The total outlay on these facilities is expected to be around Rs 4-5 crore. The location for the blended spices facility is yet to be finalised.

ITC’s spices business traces its genesis to internal synergies with the foods business’ Aashirvaad brand of spices. The business endeavours to bring global food safety standards to the fore in the Indian market, besides catering to global requirements by adhering to stringent standards of food safety across regions and countries.

Building on internal synergies, the spices business has grown over the years, increasing supplies to domestic exporters and manufacturers. It is rapidly making inroads into European, American, Japanese, South African, South East Asian and Middle Eastern markets, catering to a wide range of customers — from wholesale traders to processed food manufacturers.

Rapidly expanding market reach necessitated an expanding product bandwidth, which grew from the basic chilli, turmeric and coriander to pepper, cumin, nutmeg, mustard, fennel, fenugreek and curry powders. The product portfolio now includes powders, flakes, cracked and milled spices besides whole spices.

As part of its expansion strategy, the spices business forayed into pesticide residue-free spices and organic spices, targeting niche customers spread across the globe. The business already has huge captive cultivation of pesticide residue free chillies in India spread across the states of Andhra Pradesh, Karnataka and Tamil Nadu.

38. Nestle changing tack, plans Maggi makeover – December 18

 
Nestle’s Maggi instant noodles won’t be kids’ stuff anymore. It may soon be advertised as a healthy food for the entire family. Nestle

India is learnt to be creating a new image for its iconic noodle brand to fulfil a pledge of advertising only food with clear diet benefits to kids below 12 years from January 1, 2009.

Parent company—the Switzerland-based Nestle SA, which is the world’s biggest food company—believes this is one way to tackle alarming levels of obesity among children across the world. Nestle is the latest to join 15 large food and beverages companies, including Unilever, Kraft, Kellogg’s, PepsiCo, Coca-Cola, McDonald’s and Mars, that are committed to ensuring responsible advertising to children.

Till now the focus of Maggi, Nestle India’s most heavily advertised brand, has been almost entirely on children below 12 years. All that is set to change. An executive closely involved with the development said Nestle India is now working on two options—either repositioning the 25-year-old Maggi noodles as a food for the entire family; or heavily promoting its dietary advantages to comply with the parent company’s guidelines.

The company, however, claims Maggi is already positioned as a snack for the entire family. “Maggi is consumed by all members of the family and advertising reflects that. Our advertisements meet with the internal voluntary guidelines,” said a company spokesperson. He did not specify the likely changes in advertising.

That may be true for Maggi variants that strengthen Maggi’s image as a healthy snack. Maggi’s new dal atta, veg atta and rice noodles use a new tag-line ‘taste bhi health bhi’. Ads for rice Maggi noodles show a teenager. It’s noodles-in-a-cup, introduced this summer, are also aimed at teenagers.

However, advertisements for the original Maggi noodles have always featured only children and a mother. The latest addition to Maggi’s umbrella brand has been a cooking aid for housewives. Other Maggi brand extensions include soups and sauces.

Maggi’s image makeover is being handled by Publicis. The brand consumes the largest chunk of Nestle India’s total ad spend of around Rs 100 crore. Other major Nestle brands include KitKat and Munch chocolates, Polo mint, Nescafe and dairy products. Ads for these products are not directly aimed at children. Since India has banned baby food ads, Nestle’s Cerelac, Lactogen and Nan brands in this segment are not advertised.

Nestle SA has issued new guidelines for responsible advertising in all its markets world-wide. The guidelines include specifics such as making sure ads don’t undermine parental authority, don’t create unrealistic expectations of popularity or success, and don’t create difficulty in distinguishing real from imaginary.

They are expected to encourage moderation, healthy dietary habits and physical activity. In addition, the nutritional guidelines outline clear limits for ingredients like sugar, salt and fat

39. Dabur makes foray into health drink – December 26

FMCG major Dabur India on Monday announced its entry into the malted food drink market with the launch of its new health drink Dabur Chyawan Junior across the country. The company said it hopes to capture about 10 per cent share of the Rs. 1,900-crore malted food drink market within the next two years

40. Luxury hotel brand plan major thrust in India - January 16

The hotel industry has been bucking the recesionary fears of its global counterparts, with luxury hotel brands announcing aggressive expansion plans.
Though there has been a sharp decline in occupancy rates, the expansion trend seems to indicate a growing confidence in the sustainability of India Inc. On an average hotels need a 54-per cent occupancy to break even.
The new investment in the hotel industry has been spurred by the government's decision to bring in hotels under the infrastructure category, with a five-year holiday from holiday from income tax for two- , three- and four- star hotels as well as for convention centres with a seating capacity of 3,000 plus capacity in the National Capital Territory of Delhi or in the adjacent districts of Faridabad, Gurgaon, Ghaziabad or Gautam Budh Nagar constructed between 1 April 2007 and 31 March 2010.
Three international hotel chains have announced expansion plans in India in the last few days.
Marriot International
Marriot International has unveiled a plan to triple its hotel portfolio in India by 2012. The US-based hospitality chain manages more than 2,800 properties (130,000 rooms) across the world under brands like Ritz-Carlton, JW Marriott, Renaissance, Residence Inn and Courtyard.
Of the scheduled seven Marriott hotels, one will be JW Marriott luxury hotel and Marriott Hotel & Convention centre and the rest will be set up as Courtyards, a mid-market hotel brand by the multinational hotelier.
Hilton group
The Rs140-crore real estate company JMD Group has enterd into the hotel business in India by roping in the US-based hospitality group Hilton Hotels' Doubletree brand of luxury hotels.
The Delhi-based company will spend around Rs150 crore over the next two years to establish three hotels.
A 187-room hotel will open in Gurgaon in March next year ahead of the Commonwealth Games. Forty five per cent of the work has been completed.
Besides, Gurgaon and Ludhiana will have one four-star hotel each, consisting of between 125-140 rooms.
Hotel Leelaventures
Hotel Leelaventure, a luxury hotel chain operator will invest Rs2,500 crore to set up three new luxury hotels in different cities over the next 18 months.

With the addition of new capacities, the company aims to double its turnover to Rs1,000 crore by end of FY10 from Rs514 crore posted during the last financial year ended 31 March 2008.
New Leelaventure hotel properties will come up in Chennai, New Delhi and Udaipur, increasing its room inventory to almost 2,000 rooms from 1,125 rooms at present.
The company plans to tap into funds raised through FCCBs for the expansion.
The New Delhi property will be located in the Chanakyapuri area, which will serve the Commonwealth Games also to be hosted by the national capital in 2010.
Investments prove negative forecasts wrong
In December accountancy firm PricewaterhouseCoopers forecast US demand for hotels in 2009 to fall by 2 per cent which, when coupled with an increase in supply, would reduce occupancy levels to 58.6 per cent -- the lowest since 1971.
This represents the first consecutive two-year RevPAR decrease since the 7.0 per cent and 2.7 per cent decrease in 2001 and 2002, respectively.
According to the PwC forecast, 2008 RevPAR would decrease by 0.8 per cent, primarily due to a 3.7-per cent decrease in occupancy, the highest annual decrease in occupancy since 2001. In 2009, it projected a demand forecast decrease of 2.0 per cent, which, when coupled with a 1.6 per cent increase in supply, is expected to further reduce occupancy to 58.6 per cent, the lowest since 1971.
As a result, hotels are expected to continue to lose pricing power, resulting in an ADR decrease of 2.4 per cent, which, coupled with a 2.1 point drop in occupancy, is expected to decrease RevPAR by 5.8 per cent, the greatest annual decline since the 7.0 per cent drop in 2001.
PwC's revised forecast reflects recessionary economic forecasts by Macroeconomic Advisers, LLC, of three consecutive quarters of declining GDP, beginning with the decline in the third quarter of 2008, and resulting in forecasted GDP growth of just 0.2 per cent for 2009 overall.
Despite the slow growth projections, the Hilton group is upbeat on India. It has 20 hotels with a combined capacity of with 3,500 rooms in various stages of development, with the first two scheduled to open in Delhi and Chennai this year.
Martin Rinck, who took over as the president Asia Pacific of Hilton Hotels Corporation a few months back, told the Business Standard in an interview that of the 120,000 rooms in India only 39 per cent were branded properties. "This means that the whole of India has less branded rooms than Manhattan Island," he said.
Rinck said that the unprecedented slowdown did not alter the underlying potential for growth in India, especially in business hotels as tourist arrvals in India were expected to double in the next five or six years from the five million arrivals in India recorded in 2008.
"With the growth in domestic travel, the demand for branded accommodation will only grow," he told the busines daily.
Even though as a core brand Hilton would be the key driver for growth , Rinck told the business daily, the group planned to bring other brands such s Hilton Inn Garden, Doubletree by Hilton, Homewood Suites by Hilton, Hampton by Hilton.
"We have a JV with DLF that's job is to secure the land and develop the projects; the JV in turn has a management agreement with Hilton. We have a franchise deal with Marigold Hospitality for 16 Hampton hotels. We have an agreement with Shiva to develop 2,000 rooms, and on Wednesday, we signed a deal with JMD to develop 160-room Doubletree hotel in Gurgaon.
The long term potential is very strong. We intend to have 50 hotels in India by 2015, when India could account for 15-20 per cent of our Asia-Pacific revenues. The other statistic that shows India's potential is that 17 per cent of Hilton's new projects in Asia-Pacific are coming up in India, next only to China (63 per cent). There's no so much underlying demand for branded hotels…"

41. Hyatt Corp in JV with Emaar MGF to build hotels in India – January 16
US-based hotel chain operator Global Hyatt Corporation announced a 24:76 joint venture with property developer Emaar MGF for building six hotels in India by 2013. The two partners will jointly invest about Rs 1,000 crore(~$200 million) to build these hotels under the mid-market brand Hyatt Place.

Besides picking a minority stake in a JV with Emaar MGF, Global Hyatt has signed management contracts with different individual property developers for another 14 hotels under its premium brands-Park Hyatt, Grand Hyatt and Hyatt Regency. Under the management contract, the real estate developer sets up the hotel and the hotel operator charges a management fee from the real estate developer to manage the hotel.

Global Hyatt Corporation global head-real estate & developments Steve Haggaerty said, "We will spend about $ 200 million on six hotels jointly with Emaar MGF. This investment would be a mix of equity and debt and we are in the process of raising the debt component."

He added that Global Hyatt Corporation on its own will invest $20-25 million as equity into the six hotels to be located in Gurgaon, Hyderabad, Mysore, Lucknow, Indore and Mangalore. These hotels will add upto 950 rooms with the first hotel planned to open by 2011.

"We have also entered into management contracts with several local real estate developers to open 14 hotels with an inventory of over 3,000 rooms by 2013," said Global Hyatt Corporation senior vice president-South Asia Ratnesh Verma. These premium hotels will be build in cities such as Kolkata, Hyderabad, Mumbai, Chennai, Goa and Pune.

Talking about the impact of the global economic slowdown, Mr Haggerty said that occupancies and demand has softened at its existing five hotel properties in India.

"There are concerns about how several real estate players that entered the hospitality sector have scrapped their plans and delayed their projects. However I would like to assert that under our JV with Emaar we have already acquired land for the six hotels and construction for the other 14 hotels is in various stages," he added.

42. Hyatt to expand in smaller cities - January 19
Luxury hospitality group Global Hyatt Corp is banking on smaller Indian cities for expansion over the next four years, with a company official Friday saying this was where the future lay.

At present, Hyatt operates five luxury hotels in India - two in Mumbai, and one each in Delhi, Kolkata and Goa. Now it will make a $200-million foray into the mid-sized hotel segment in tier-II and even tier-III cities.

"There is a huge gap in the demand and supply of hotel rooms and we see enough scope for expansion, especially in tier-II and tier-III cities," Steve Haggerty, the company's global head of real estate and development, told reporters.

"Recession does not affect our expansion plans in India because we know the growth lies here," Haggerty added.

Ratnesh Verma, senior vice president of real estate development for South Asia, said the new hotels will come up in Gurgaon, Hyderabad, Mysore, Lucknow, Indore and Mangalore under the brand name Hyatt Place. "These will cater to the upper mid-segment," he said.

"The Hyatt Place chain will be launched by 2011 in a joint venture with (real estate major) Emaar MGF. The hotels will add 950 hotel rooms across the six cities," Verma added.

The $200-million investment excludes land prices. "Emaar MGF has already acquired land for these six properties. Of the $200 million, about $120 million will be debt. Of this, Emaar MGF debt component will be 74 per cent, and Hyatt's 26 per cent. The remaining $20 million will be the partners' equity," Verma said.

Apart from these six properties, the company has already signed deals for 14 luxury hotels that will add another 4,273 rooms by 2013.

"Luxury hotels have witnessed occupancy level going down by 16-18 percent because of security resons and economic slowdown," Haggerty said.

"There is also a price correction upto 25-40 per cent. I feel this sentiment is going to stay for next two quarters.

43. Doubletree by Hilton signs first hotel development deal in India - January 15
Scheduled to open in 2010, Doubletree by Hilton Gurgaon will offer refreshing, contemporary accommodations in the National Capital Region
Hilton Hotels Corporation today announced that it has signed a long-term management agreement with JMD Ltd., a leading property developer, for a Doubletree by Hilton hotel in Gurgaon, India. This not only marks the first Doubletree by Hilton development deal in India, it also marks the foray of JMD Ltd. into the hospitality business. The 182-room, new-build Doubletree by Hilton Gurgaon is scheduled to open in 2010 in this fast-emerging commercial hub in the National Capital Region.. Gurgaon is a prime investment destination for Information Technology and IT-enabled services and continues to develop what is becoming a leading commercial district during the next several months.
Martin Rinck, President Asia Pacific Hilton Hotels Corporation, commented, “India’s hotel market has enormous potential, due to its low penetration and the combination of a growing trend for travel and increasing socio-economic development. We believe the contemporary and relaxed style of the upscale Doubletree by Hilton brand will prove to be popular with travellers in India and from abroad.”
As one of the upscale hotel brands in the Hilton Family of Hotels, Doubletree by Hilton will introduce business travellers and tourists in India to the brand’s longstanding tradition of distinctively designed hotels that reflect the destination and surrounding area. Other Doubletree by Hilton characteristic qualities include the warm worldwide welcome of the brand’s legendary chocolate chip cookie to every guest at check-in, the rewards of the prestigious Hilton HHonors® loyalty programme and a unique and caring commitment to the communities in which they operate.
“We are delighted at the international momentum we have gained behind development of the Doubletree by Hilton brand. With more than 200 hotels in some of the most desired business and leisure destinations worldwide, our entire brand team looks forward to expanding our brand to India by building a collection of fine hotels that share the same core attributes, impeccable service and a sense of contemporary style and individuality,” said Dave Horton, senior vice president – brand management for Doubletree Hotels.
Doubletree by Hilton Signs First Hotel Development Deal In India 2-2-2-2
The Doubletree by Hilton Gurgaon will be situated along a major highway, running through some of the prime and up-market areas of the district, which are home to several IT businesses. Amenities and services at the Doubletree by Hilton Gurgaon will include over 860 square meters of meeting space including a ballroom and a business centre featuring the latest technology to facilitate seamless business meetings and global communication. Guests will be able to relax and rejuvenate at the hotel’s Doubletree Fitness by Precor fitness centre, and its spa and swimming pool.
An all-day dining restaurant will serve an array of local Indian cuisine and international fare. The hotel will also have a lobby lounge and bar and a speciality restaurant. Retail outlets and a car park within the property will ensure guests a stay of comfort and convenience.
Mr. Sunil Bedi, CMD JMD Ltd, commented, “This is the first time that JMD Ltd has ventured in to the Hospitality industry. JMD is renowned name in the real estate arena and has always strived to deliver only the best both in terms of construction quality and property location. In order to carry on this legacy of defining quality JMD wanted to go with only the best for its hospitality venture. Given Hilton Hotels Corporation’s track record and renowned worldwide brands, it was not only the obvious choice but the only choice for us. We are extremely glad to introduce the successful Doubletree by Hilton brand here.”
In addition to being a major business travel destination, New Delhi has a host of historic and cultural tourist attractions including The Qutub Minar, The Red Fort, Jantar Mantar and Humayun’s Tomb. It is also the gateway to Agra (home of the Taj Mahal), Jaipur, Udaipur and other cities of Rajasthan.

44. Marriott to open seven more hotels - January 15
US hospitality major, Marriott International plans to triple its hotel portfolio in India by 2012 to cash in on the growing business and leisure travel in the country. The company will open seven hotels across the country in 2009 to tap growth in one of the world’s fastest-growing economies, top officials said.

The US-based hospitality chain manages more than 2,800 properties (1,30,000 rooms) across the world under brands like Ritz-Carlton, JW Marriott, Renaissance, Residence Inn and Courtyard.

Of the scheduled seven Marriott hotels, one will be JW Marriott luxury hotel and Marriott Hotel & Convention centre and the rest will be set up as Courtyards, a mid-market hotel.

“We will open more Courtyards as we expect this moderately-priced brand to grow faster, Our goal is to appeal to a wide range of travellers, those visiting India as well as local travellers, said Ed Fuller, president and MD, Marriott International.

45. LIC Housing Finance to launch homes for aged people – December 28
LIC Housing Finance (LICHF) has come out with a novel scheme pan-India of providing community dwelling units to benefit the aged as part of its social responsibility initiative.
LICHF would build about 90-100 dwelling units on a five to seven acre complex called ‘Care Homes´, complete with a gym, walking track, a library, a community centre and a kitchen apart from medical facilities.
The minimum age for taking a dwelling unit in a Care Home is 50 years.
Care Homes are separate from the reverse mortgage scheme, which LICHF plans to launch shortly for the benefit of senior citizens.
Reverse mortgage is a financial product that enables senior citizens (above 60 years) who own a house to mortgage their property with a lender and convert part of the home equity into tax-free income without having to sell the house.
LICHF, a 100% subsidiary of LIC, had started its first Care Home in the southern metropolis about three years back and following its success, plans to replicate the model pan-India.
“We already have one such Care Home in Bangalore and plan to open two more in Bhubaneswar and Jaipur for which we have already acquired land,” LICHF director and chief executive RR Nair said.
“Once we cover major cities, then possibly we will go for secondary ones...,” he said.
“We will begin construction of homes in both places after certain formalities are completed,” Nair said

46. Organised retail in India will top US$22bn by 2010 - January 16
The total retailing size in India is currently estimated at US$16bn of which organised sector accounts for only 25% market share and remaining 75% is in the unorganised sectorThe size of Organised Retail in India will exceed US$22bn mark from current level of about US$4bn with its space requirement touching over 220mn sq. ft., by 2010, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM). In a Paper brought out by ASSOCHAM on `Retail Scenario in India and Its Related Issues’, it has been stated that approx. 40mn sq. ft. is currently generating a business of about US$4bn in organised retail.
According to the Paper, the total retailing size in India is currently estimated at US$16bn of which organised sector accounts for only 25% market share and remaining 75% is in the unorganised sector. Slowly and gradually, with boom in retailing continuing, the organised retail sector in small towns beyond metros will grow at a staggering level of 50-60% as compared to less than 35% in the large cities purely on account of scarcity of space which is in plenty beyond metros with reasonable land prices and without cumbersome procedure for land acquisitions, says the Paper.
Commenting on the Paper, ASSOCHAM President, Sajjan Jindal said that, “India’s vast middle-class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets and India provides for the ideal locations”. Since, Delhi and its suburbs have so far seen the growth of 100 bigger and smaller malls, roughly 600 new malls are coming up in other metropolis and large townships in which less than 35% of retail business is going to be transacted.
The Paper reveals that over 1000 malls are in the pipelines for smaller townships in which the retail sector is projected to grow at over 60% because of ample availability of land and increased purchasing power of the folks living in those areas because of increased economic activities. Naturally, the large players will prefer to go there and put up their shops by sourcing their supplies from the places convenient to them, further states the Paper.
Some of the key areas in which retail boom will prevail in towns beyond metros and even large cities will include food items, FMCG products, grocery, sportswear, outerwear, tailored clothing, eyewear, watches, footwear and accessories and the like. The retail business that will pre-dominantly stay with malls put up in metros and large cities will include apparel, pharmaceuticals, luxury goods and consumer durables, says the Paper.
The Paper has suggested that changes should be brought about in Agricultural Produce Marketing Committee (APMC) Act (a key contributor to the large number of intermediaries) such as the introduction of contract farming and allowing direct procurement from farmers by retail owners so that a direct chain is established between the user and farmers for their equal benefits. It also highlights, pointing out that even in the case of non-agricultural products such as apparel, FMCG and general merchandise, the situation is far from ideal.
The key cause for inefficiency is the poor integration between the retailer and supplier. None of the retailers, in view of ASSOCHAM has so far an automated system for information exchange with their suppliers. In developed countries, retailers practice Vendor Management Inventory (VMI) systems, where the supplier has access to the point of sales data of the retailer and plans automatic replenishments responding to the stocks available at the retailer.
On the other hand, best practice retailers globally have implemented techniques like milk runs – having continuous orders to suppliers as the inventory depletes and doing multiple small lot shipments from the supplier to stores. Such efficient replenishment practices are today practiced in the Indian auto and auto component industry. So retailers in India can leverage such expertise available to implement a better retail supply chain.

47. Future Group set to buy Le Marche - December 30
Indian retail major Future Group is set to buy out Le Marche, the hypermarket business of Fu-Com Retail India. Fu-Com India was set up by Fu-Com International, UAE-based retailing partners of the $30-billion French retail group Groupe Casino.

Fu-Com International operates hypermarkets, supermarkets and convenience stores across West Asia. A person close to the development said the challenging retail environment in India had forced Fu-Com to rethink its plans. The financial details of the deal are unavailable, but the person quoted earlier said the move indicates that the Future Group is now warming up to acquisitions in the troubled retail environment.

It is still unclear whether Le Marche will be a part of Future Group’s value retailing business Big Bazaar, or moved under Future Ventures, its venture capital arm. Fu-Com’s stores in India were branded Le Marche. Future Group CEO Kishore Biyani said: “We are always looking out for opportunities that make business sense. But I will not be able to comment on this specific deal.” Fu-Com Retail India officials declined to comment.

Fu-Com Retail India was incorporated in August 2005 and the first store, called Le Marche Hypermarket, was launched in March 2007 in the western suburbs of Mumbai. The hypermarket offers an average of 45,000 product lines, including food, grocery, beauty care, apparel and shoes, house ware and equipment, consumer electronics and appliances, etc.

Fu-Com Retail has also leased some prime real estate space, which will now be taken over by Future Group. Future Group’s value retailing business contributes to 62% of the group’s turnover.

48. Retailers plug into loyalty schemes to drive growth – January 18
It pays to be loyal to your brand. Now more than ever before. Echoing this thought, a large number of retailers have started focusing on loyalty programmes to win over the hearts and wallets of their clientele. Brands in apparel food and auto sectors that SundayET spoke to confirmed that these initiatives now act as forceful growth drivers.

Brands such as Future Group's Pantaloon and Big Bazaar, Vishal Retail, Shoppers’ Stop, Pizza Hut, Nirula’s, Maruti and Hero Honda are all banking on their loyal customer database. And that surely is acting as a win-win for both sides.

Pantaloon, a leading retail apparel brand of Future Group, registers almost 55% of its sales from the 'loyal' set of customers. And the company is working on a groupwide loyalty programme to woo those customers. Leading sportswear brand, Puma, is not far behind. The brand is looking to launch its global loyalty programme in India over the next three months.

Shoppers' Stop also has a three-tiered loyalty programme running successfully over the last few years. In fact, it has been doing rather well with over 11 lakh members contributing over 65% to sales annually.

"A focused customer loyalty programme (CLP) has multiple features, goals and advantages. It entices dormant customers to transact on account of the benefits offered through the programme. It deals with the important aspect of retaining profitable customers to the brand and prevents them from switching to competition," says Vinay Bhatia, head, marketing and loyalty at Shoppers' Stop.

Others are following suit. Leading retail company, Vishal Retail is working on customer loyalty programmes and will soon come out with guidelines.

Says Ambeek Khemka, group president, Vishal Retail; "It's important to know the mindset of a consumer. One has to customise himself according to the customer to get the largest share of the customer's wallet. These loyalty programmes create a sense of belonging amongst the customers which makes them feel privileged. They hence help in a big way in driving sales of the company."

And it’s not just apparel brands which are consciously following the loyalty route. Popular food chains such as Nirula’s and Pizza Hut have programmes that aim at building on the loyalty factor.

While Nirula’s has specific loyalty programmes for children, Pizza Hut has options for its home delivery clientele as well as dining-in members.

Says Anup Jain, marketing director, Pizza Hut; "Such programmes give us multiple benefits and help us to protect our market share. These members also help us give a higher average sales value. The average purchase value per transaction will be at least 20-40% more from the loyalty set." The retail chain has a VIP club for its home delivery members which informs them of discount offers and new launches ahead of schedule.

49. M&M enters retailing with Mom & Me stores – January 20
At a time when most retailers are holding back expansion plans, auto company Mahindra & Mahindra (M&M) has made a quiet foray into the retail sector with the soft launch of its specialty format Mom & Me to sell infantcare and maternity products.

The company, which had announced its plans to enter the retail space more than a year ago, has launched two outlets in Ludhiana and Ahmedabad.

The company has invested close to Rs 100 crore in the venture. An email query to the company seeking details on business plans went unanswered.

Interestingly, Mahindra has been looking at hiring young mothers, as advisors in the stores for a better connect with target customers.

In this segment, Mahindra is likely to have little competition with the only other major player being British brand Mothercare, which entered India in partnership with Shoppers Stop three years ago. Most of the other stores in this segment are part of the unorganised sector.

Mahindra Retail is a part of Mahindra Intertrade, a fully-owned subsidiary of Mahindra and Mahindra.

While announcing its retail foray, the company had said it was a logical extension of its current business, as Mahindra Intertrade had tie ups with Walt Disney, Aqua, Mattel and Lego to market and distribute kids' toys, apparels, accessories in India. Some of the other diversified groups that have entered the retail space, include Bharti, Reliance and the Aditya Birla Group.

50. Changes in cable TV rules after consultations – January 15
The Information and Broadcasting (I&B) Ministry's controversial move to gag Indian television news channels has been put on hold. The Ministry had proposed regulation aimed to make it mandatory for news channels to show authorized feed in the event of designated emergencies.

51. Mobile phone vendors dial into the rural segment to drive growth - January 16
At a time when growth in the Indian mobile phone market has flattened out over the last one year, the rural markets are providing the vital lifeline.

Leading cellphone makers claim that these markets are witnessing sales growth upwards of 30%. So much so, the likes of Nokia, Samsung, Motorola and Spice are drawing up separate business plans for these markets.

This includes a separate distribution model, tying up with microfinance companies to offer handsets at easy instalments and launch handsets customised for the rural consumer. Nokia is also betting on rural specific mobile services to drive growth.

"The mobile phone market in the top 35 cities have been hit severely since consumers are deferring their handset upgradation plans. Moreover, the subscriber penetration has surpassed total population in cities like Mumbai and Delhi. In contrast, the rural markets are growing rapidly in line with the huge expansion plans of telecom operators," Samsung Telecom division country head Sunil Dutt told ET.

Samsung, which has a distribution tie-up with Indian Farmers Fertiliser Co-operative Ltd (IFFCO), is also looking at collaborations with microfinance companies and self help groups to increase penetration. "The key is to build a strong distribution model in these markets," Mr Dutt added. The company is growing upwards of 60% in the smaller markets.

Nokia is running a pilot project to sell handsets through SKS Microfinance in the districts of Andhra Pradesh. It is about to launch SMS-based mobile information-based services revolving around agriculture, education and entertainment in rural Maharasthra. Nokia is partnering Reuters Market Light to provide data on weather, prices of seeds, fertilisers and pesticides as well as prevailing market prices to farmers.

"We will add newer services and expand these initiatives across the nation in a phased manner. The services venture will help us to grow significantly in the smaller markets," said Nokia India head (go to market) Vineet Taneja.

Motorola has launched phones under its Yuva brand for rural and entry markets. "These consumers are not just looking for a low-priced handset, but a phone that meets their daily needs. Hence, we have added features like
Hindi SMS, vernacular language and features that enhance audio signal even in a noisy environment," said Faisal Siddiqui, head (India & South West Asia operations), Motorola Mobile Devices.

Spice Mobile too is going to come up with customised handsets. "We are going to tie up with mobile operators and a South African company to license their software to launch the shared handset concept in India. Shared handsets will allow many people to use the same phone with separate connections and hence reduce their cost of ownership," Spice Mobile CEO Kunal Ahooja said.

However, Mr Dutt clarified higher sales in rural markets may not lead to higher revenues. This is especially so since the average selling price (ASP) of handsets in rural markets is at Rs 2,000. "The ASP in rural markets is
moving downwards, thereby impacting revenues. Hence, we have to hold onto the ASP by offering more features in the handsets at the same price," Mr Dutt said.

52. Advertising industry reel under stamp duty burden – January 15

The Bombay High Court has not given any relief to the advertising and marketing industry, which has filed a petition against a law enforced by Maharashtra state government in May 2005, which levies stamp duty on advertising contracts.

53. TRAI: VAS companies can operate without licence –January 15

The Telecommunications Regulatory Authority of India (TRAI) has said that companies offering value added services (VAS) can continue to operate without a licence thereby not paying any fees towards it.

 
54. Virgin Mobile tops TRAI's service benchmark: Survey - January 16

Only five telecom operators out of 11 have met the 90 percent quality of service benchmark set by the sector's watchdog, a survey
released on Friday said.

Interestingly, the country's largest private operator Airtel is among the firms that failed to meet the benchmark of 90 percent that the Telecom Regulatory Authority of India (TRAI) has set for quality of service.

"Virgin Mobile topped user satisfaction in 2008 while players like Airtel, BPL, Idea, state-run Mahanagar Telephone Nigam Ltd (MTNL) and Spice fell short of the benchmark set by telecom watchdog TRAI," said the survey conducted by CyberMedia group's flagship communications industry monthly Voice&Data in association with JuxtConsult, an online research firm.

A sample of 1,318 mobile users in India was quizzed on various factors to determine overall user satisfaction.

State-owned operator Bharat Sanchar Nigam Ltd (BSNL) and Vodafone jostled for the second spot with scores of 91.96 percent and 91.97 percent respectively, the survey said.

The two other players to cross the TRAI benchmark of 90 percent are Reliance Communications and Tata Indicom.

Last year's top scorer Aircel slipped from 92.23 percent to 85.44 percent, according to the results released in Voice&Data's January issue.

"A side-effect of the scorching pace of growth of the mobile phones in India is the rapid drop in quality of service. Five major players - Airtel, BPL, Idea, MTNL and Spice - have yet to touch their previous best score achieved in 2005. This is a cause for major concern," CyberMedia's chief editor Prasanto K. Roy said.

The survey conducted during October-November 2008, recorded user satisfaction on five broad parameters - pre-sales and sales, network availability, value-added service (VAS), customer care, and billing.

Expectedly, all service providers exceeded the 90 percent user satisfaction benchmark on the pre-sales and sales parameter with Virgin Mobile topping the list followed by MTNL.

Users participating in the survey found BPL and MTNL's network performance most satisfactory with high scores of 98.2 percent and 97 percent respectively with Airtel and Idea just making the cut above the 90 percent mark.

On the VAS parameter, BSNL topped the charts with only Idea and Aircel performing below the TRAI benchmark, the survey said.

However, in the customer care parameter, none of the 11 players, including the topper Virgin Mobile, could muster enough support from users to get past the 90 percent benchmark.

In terms of billing integrity, the four toppers were Virgin, Vodafone, BSNL and Reliance, the survey said.

The average waiting time to speak to a customer care representative of Airtel and BSNL was 4.8 minutes. Idea and Spice customer have to wait an average of five minutes with a Vodafone customer having to wait for 5.2 minutes.

However, mobile services in metro circles improved in 2008 with all the operators, except Aircel, showing higher customer satisfaction and crossing the benchmark set by TRAI, the survey said

55. BlackBerry to target consumer segment in India; to launch unlocked smartphones – January 15
Ontario-based Research in Motion (RIM), makers of BlackBerry smartphones, has decided to foray into the consumer segment after achieving iconic status in the enterprise sphere in India.

Towards this direction, it has drafted an India-specific business strategy to increase its addressable market, drive growth and insulate itself from the economic slowdown.

For starters, RIM has decided to sell simcard unlocked handsets through retail chains and neighbourhood stores, roll out localised consumer-centric mobile applications and position its portfolio of handsets as a converged device. It is also evaluating the option to roll out an India-specific smartphone at a competitive price.

"We recognise the need for an India-specific business plan as it is one of the fastest growing markets. BlackBerry is perceived as a niche brand in India as it is not widely available. While the enterprise segment may have been our genesis, we now want to focus on the consumer segment which represents a large opportunity," RIM vice president (India) Frenny Bawa told ET.

As part of this, RIM on Thursday announced a distribution alliance with Redington India.

"Till now, the distribution and sales in India was handled through telecom operators. Redington will set up a retail trade channel across the country and sell unlocked BlackBerry handsets," said Ms Bawa.

The RIM-Redington partnership will initially focus on Mumbai, the National Capital Region, Hyderabad, Chennai, Bangalore, Kolkata, Pune and Ahmedabad.

"One of the key barriers to growth in India was the lack of a nationwide distribution channel. We have a retail distribution model in Western Europe and Latin America which is quite successful," Ms Bawa said.

RIM is also keen to roll out an array of India-specific mobile applications targeted at the consumer segment. "We have a wide gamut of consumer applications in the US and Western Europe. But, instead of launching them
here, we want to launch localised applications in India in areas like entertainment and sports," said Ms Bawa.

Ms Bawa did not rule out the possibility of launching a BlackBerry device which is designed specifically for the Indian market. "We will position BlackBerry as a converged device in consumer segment. This will be our main
differentiation as compared to competitors. The device pricing will reflect a value proposition for consumers," she said.

BlackBerry currently has a portfolio of 13 handset models in India. It haslaunched four new models over the last five months— Pearl Flip, Bold, Storm and Curve 8900. "India has been the first market globally where we have
launched the Bold and Curve 8900. We will further strengthen the portfolio.

All such measures will insulate us against the slowdown," said Ms Bawa.

56. Smartphones pick up robust sales – January 13

Smartphones are clocking robust sales in India even as their ‘not-so-smart’ cousins have been somewhat hit by the economic slowdown.
Smartphones, which have computer-like features, are a favourite with not only professionals, as they enhance productivity, but also with the youth that are attracted by their multimedia applications.

While the growth in the handset market is shrinking at an aggregate level, the smartphone or the converged devices category are growing. Smartphones market, sized at 5 million in 2008, is expected to witness a compound annual growth rate (CAGR) of 23% by 2011, as per technology research firm Ascendia.

This is more than the growth rate of around 10% being witnessed by the regular handsets market, which closed with nearly 105 million units in 2008.

In fact, sales of regular handsets dipped around 25% in November and December 2008 compared with October. Smartphones, on the other hand, continued to grow. According to research firm IDC, smartphones comprised 5.7% of total handset sales in 2007 and the figure is expected to increase by 13.2% this year.

“The smartphone category has remained relatively oblivious to the forces of recession, primarily driven by its appeal to different consumer segments. For the consumer market, features such as touchscreen, music player and a single form factor that meets burgeoning communication demand are the key drivers,” Ascendia Consulting principal analyst Alok Shende told ET.

For the enterprise market, business enablement in the form of unified communication and the urge to strike work-life balance have been the key driver, he said. Some of the most successful smartphones in India are from Nokia and Research-In-Motion (RIM) — the maker of BlackBerry.

Upbeat on the Indian market, RIM rolled out BlackBerry Storm on Monday designed exclusively for the networks of British giant Vodafone. It is priced at Rs 27,990, much below the Rs 32,990 tag with which BlackBerry entered India in October 2004.

“Prices have come down, substantially increasing affordability. Also, the realisation that we are moving from being a voice only market to a data market has helped in boosting sales,” said Pankaj Mohindroo, national president of Indian Cellular Assocation, a representative body of handset manufacturers.

RIM’s UK vice-president Christoph Lingenthal said that smartphones have now become a productivity tool. “For the success of smartphones in any geography, it is important to have an educated population, and India has it. Storm is a combination of PC, TV, radio and a phone and will appeal to enterprise users as well as other consumers,” he said.

57. 3 G spectrum in a headlock - January 10
The department of telecom (DoT) and telecom regulator Trai seems to have locked horns over the number of blocks of 3G (third generation) spectrum to be auctioned. In a 38-page note to the Cabinet Committee of Economic Affairs (CCEA), DoT has alleged that Trai went beyond its brief by giving views on 3G spectrum to be auctioned while it was only asked to give recommendations on annual spectrum charges.

In the note sent on January 12, DoT also said it was not binding on the government to accept recommendations of Trai. While Trai wants DoT to auction the entire available spectrum to ensure fair competition and avoid litigation, DoT wants to hoard spectrum for the future. DoT said by restricting auction to five blocks (including one reserved for BSNL/MTNL) per circle, it is only implementing what Trai suggested in September 2006. “Giving recommendation on spectrum to be auctioned, which is contrary to its earlier recommendation (of 2006) that has already been accepted by the government was not required,” DoT said.

However, sources in Trai told ET that the 2006 recommendation was in accordance with the amount of spectrum available at that time. “Since then, defence has vacated spectrum has been done, making more spectrum available for 3G. There is no reason why DoT should not auction more spectrum now,” said sources. In 2006, spectrum available was only 25 MHz in the 2.1 GHz band, just enough to accommodate five operators at 5 MHz each and that too with a 6-9 month horizon. Trai had also insisted on a waiting list to be derived from auction so that those players could be provided spectrum as soon as more became available.

However, while things have changed in the last two years, DoT seems to be fixed on Trai’s old recommendations, keen to restrict the number of slots to five despite the availability of more spectrum. This, analysts said, would do more harm for the sector. “DoT is restricting supply despite availability of spectrum. The balance slots may never be taken up and the government target of maximising revenue from spectrum may remain a dream,” said an analyst on condition of anonymity.

Further, Trai, in its recommendation on December 9, 2008, said, “It is essential that the principle of level playing field is urgently restored by putting all available spectrum as well as anticipated availability in the next one year for auction.” Also Trai as well as industry watchers are fearing litigation if the available spectrum is not put for auction. “Such a selective approach to 3G spectrum auction may even encourage cartelisation by some dominant players during the auction.

58. RCom launches GSM mobile services in Mumbai - January 4
As a part of the nationwide roll out of its GSM services, CDMA major, Reliance Communications (RCom), today launched its GSM services in Mumbai. RCom, which became the first private CDMA in India to provide GSM services, had recently announced the launch of its GSM services across 11,000 towns in the country.
To capture its share in the fast growing GSM subscriber base with special focus on the segment of the population which provides less than Rs 300 as average revenue per user (ARPU), RCom has launched its services as competitive prices. In Mumbai, the company has launched a tariff plan which offers its customers a one-time subscription charge (including GSM SIM) of Rs 25.
The plan offers Rs 900 minutes of talktime on local calls and SMS to any network that can be accrued by Reliance Mobile GSM customers in daily tranches of Rs 10 spread over 90 days. After consuming Rs 10 during the day, the subscribers can use top up cards with denominations ranging between Rs 10 to Rs 500 with the same tariffs.
Over and above the free-talktime, the Reliance GSM customers will get unlimited calling on Reliance network (both GSM and CDMA) free between 11 PM and 6 AM through out Mumbai, Maharashtra and Goa, giving access to seven million Reliance phones in the region.
Commenting on the launch in Mumbai, Dinesh Gulati, Regional Head – West, Reliance Communications, said: “The Reliance Mobile GSM entails offering a unique value proposition fine-tuned as per the needs of every segment of the 250 million GSM customers market in the country.”
“Over 16 million GSM customers in Mumbai can now avail of state-of-the-art, next generation, EDGE ready Reliance Mobile GSM Network - the only network that offers digital voice clarity and up to 100 per cent cost savings for the cost-conscious mobile user segment,” added Gulati.
Other CDMA operator Tata Teleservices is also expected to roll out its GSM services this year. While new entrant, Shyam-Sistema is also eying the GSM space. With 75 per cent of the entire telecom space dominated by GSM operations this proves to be a lucrative option for the CDMA as well as new telecom players
Reliance Communications (RCom) sure doesn’t want to be left behind as far as advancing technology goes. RCom is all set to introduce wireless services all over India based on GSM communications. The announcement in fact makes Reliance the only telecom operator to offer both GSM and CDMA services in India.
The second largest mobile phone company in the country revealed plans to launch their GSM cellular services in nearly 14 circles. According to the company nearly 11,000 towns and 340,000 villages can avail these newly launched GSM operations.
In the past 15 months, RCom has invested nearly 100 billion rupees to get their GSM services rolling. The company further plans to invest around 20 to 40 billion rupees on the 3G network. Presently RCom is offering GSM based mobile services in nearly eight circles of Eastern states while its CDMA services are available throughout the country. The company is also looking forward to extending its GSM services to Sri Lanka and Uganda.
Indian telecom market should reach 700 million subscribers by 2012.The GSM services by RCom have already started.

59. Yahoo to launch an Indiacentric social networking site
It is better late than never for Yahoo! as the California-based Internet giant plans to launch a social networking site this year, made in India — and for India.
“We will be launching our social networking platform SpotM this year,” said a Yahoo official who did not wish to be identified.
Yahoo already has Internet message boards like Yahoo Groups that allows users to post messages. Through this launch, the company wants to compete with hugely popular social networking platforms Orkut and Facebook.
The company’s research and development centre in Bangalore has designed and tested the website. This will only cater to Indian Internet users. Yahoo is expected to roll out an invite-only beta (trial) version soon followed by an open-for-all community later this year.
SpotM will enable a “seamless marriage” between mobile and web interface, the official said. It is expected to offer features like anonymous chat that will allow users to chat via a text message while keeping their mobile numbers intact.
Gopal Krishna, vice-president and head of audience for the emerging markets is heading the team working on SpotM.
Social networking enabled by interactive Web 2.0 technology enables users to not just receive information from the web but also add and share content. It is expected to be one of the biggest drivers of Internet usage in the coming years. In the list of top 10 websites in India measured by Alexa that provides information on we traffic, Google leads followed by Yahoo in terms of both traffic and page views. Interestingly, Google’s other content sharing sites such as Orkut and You Tube also feature on the list while there is none that Yahoo can claim.

60. Ultra Motor launches Assured Cash Back Offer in Delhi – January 20

In an aggressive move towards increasing sales in the New Year, Ultra Motor Company (UMC), a global electric vehicle company based in UK, has launched an Assured Cash Back promotion scheme in Delhi NCR. Under the 'Assured Cash Back' promotion scheme, the consumers who buy an electric scooter from Ultra Motor, will be given a scratch card which will give the consumers a chance to win a Cash Back reward of up to Rs. 5001/-. The Cash Back won by the consumers, will be adjusted on the ex-showroom price of the Ultra Motor Electric Scooter purchased. This promotion will be spread across all dealerships in Delhi NCR.
Starting from a minimum of Rs. 1001/-, Rs. 2001/-, Rs 3001/- and a maximum of Rs. 5001/-, the customers will stand to gain the above amounts on the ex-showroom price of the scooter. The company is confident of increasing its sales through this scheme by over 50 per cent during the month in the region. This promotion will be valid up to 31st January '09.
Speaking on the occasion, Ganesh Mahalingam, managing director, Ultra Motor India, said, post the subsidy, UMC has got a good response from the market. We would like to be the leaders in the category & strengthen our hold in Delhi NCR. We would like to thank the Delhi Government for its support towards the Electric Two Wheeler category by extending a subsidy towards the clean and economical mode of transportation. Through this Assured Cash Back scheme, we want to offer more value and an even more attractive price proposition to our customers. The consumers who are planning to buy an electric two wheeler will stand to benefit from this scheme."
UMC has a strong retail network of over 10 exclusive dealerships across Delhi NCR, spread across in important centers like Rohini, Dwarka, Bhajanpura, Mahavir Enclave, Nazafgarh, Badarpur, Krishnanagar, Noida, Gurgaon & Faridabad. UMC has a strong retail network of over 175 exclusive dealerships across 17 States and in over 130 important cities in India.
Ultra Motor Company is a Global Electric Vehicle Company based in UK. Formed in 2002, around a DC Motor Technology, the company has pioneered and successfully commercialized its propriety electric motor technology. This technology promises a reliable, high-performance yet affordable means of transport. UMC has wholly-owned subsidiaries in India, Russia, China, Taiwan and USA. The Company has secured equity investments from international Strategic Partners and Investors. UMC is supported by Pamplona Capital Partners, who have investments in leading companies across Europe
The company currently has its High Range Electric Scooter, Marathon, an electric scooter that is a first of its kind and promises to deliver a higher range of up to 85 km (under standard city riding conditions) on a single charge, along with its High Speed Electric Scooter Velociti.

 
61. Bajaj Auto set for a rough ride as sales skid further - January 15

Bajaj Auto, the two-wheeler maker that ruled Indian roads in the not-too-distant past, may face a rough ride with the December sales figures indicating that it has been pushed to the fourth position by its rivals.

Bajaj was number two in two-wheeler sales, behind market leader Hero Honda till October last year. In November, it was pushed to the third spot by Honda Motorcycle and Scooter India (HMSI), a wholly-owned subsidiary of Japan’s Honda Motor, and now TVS Motors has nudged past it to occupy the third slot.

After losing the top position to Hero Honda in 2001, Bajaj Auto has slipped further in terms of domestic sales. Bajaj, which was the undisputed leader of the regulated market for decades, has been losing numbers over the past few months. It managed to sell only 62,043 units last month, slipping by a massive 55% from December 2007.

Hero Honda was the run-away leader with 2.09 lakh units sold in December. HMSI, backed by a growing demand for scooters, saw its sales grow by 29% to 87,164 units, while TVS Motors that sold 72,355 units bagged the third position.

Bajaj had been losing market share for the past few months, as sales of motorcycles remained flat at 43 lakh units in the first nine months of the fiscal. While other players maintained their market share, Bajaj Auto sales plummeted 22% to 10.35 lakh units during the period. In September, its sales were down 3% in the domestic market.

Its sales dropped by 50% in October and 53% in November. Bajaj Auto CEO S Shridhar was not available for comments. The company officials said that it has rationalised the inventories with dealers, reducing dispatches from the factory.

The company plans to launch six new models this year to regain lost ground. Japanese firm Honda with both its two-wheeler companies — wholly-owned HMSI and Hero Honda in which it has 26% stake — now rule the Indian market with more than two-thirds of the total two-wheeler sales.

62. Mahindra-Kinetic co-branded scooters to be launched end Jan 2009

M&M, which bought a controlling stake in the Pune-based two-wheeler manufacturer, Kinetic, in July/August 2008, is now ready to re-launch the Kinetic range of scooters. These vehicles have been revamped and will now be co-branded as Mahindra-Kinetic. These re-branded vehicles will be available in Kinetic showrooms (which will also be revamped and which will now carry new logos) by the end of this month.
Kinetic scooters will still be manufactured at its Pithampur plant (near Indore, in MP) and prices will not change. The range will include the Flyte 125 and Nova 135, though it isn't clear whether the Blaze will also continue. Fitted with a 170cc engine (originally sourced from Hyosung), the Blaze is India's biggest, most powerful scooter, but hasn't been doing too well in the market and may be discontinued.
With its Mahindra-Kinetic products, M&M is said to be looking at focusing on entry-level mass-market two-wheelers to begin with, though it may also develop other products for the lifestyle segment later on. In fact, M&M is said to be looking at tying up with a European bike manufacturer for high-end bikes, which it will launch at a later date.

63. Electrotherm launches new e-bike - January 6

Engineering firm Electrotherm, which manufactures the electric bike YO Byke, Tuesday launched another battery-operated two-wheeler, the Yoelectron.Addressing the media at the launch, Electrotherm chairman and managing director Mukesh Bhandari said the success of its YOSmart in the 250W category goaded the company to come out with another premium model.
Yoelectron is a battery-operated zero-pollution vehicle that can run up to 75 km per charge, and can cover 700 km Rs.50, Bhandari said. The 250W motor vehicle with a 25 km per hour top speed has been cleared by the Automotive Research Association of India (ARAI), Pune.
The two variants of the new model cost Rs.28,500 and Rs.29,000, depending on the colour scheme.
Electrotherm was the first company to launch electric two-wheeler in India under the brand name YO Bykes six years ago.

64. Hero Honda has launched new variants of its three models – Glamour, Glamour FI and CD deluxe

Hero Honda has recently launched new variants of its three models – Glamour, Glamour FI and CD deluxe. The CD Deluxe version is also available with self-start or the electric start. The new variants will be priced between Rs. 45,800 and Rs. 55,450 (ex-showroom, Delhi). The Glamour variants will be available between Rs. 45,800 and Rs. 47,700 and the variants of Glamour F1 will be available between Rs. 51,450 and Rs. 55,450.

"This has been a difficult year for the two-wheeler industry but we have been able to beat the industry trend and keep sales momentum going. The three new bikes are an extension of what we have been doing to keep the market interest alive," said Anil Dua, Hero Honda Motors, Senior Vice-President. "The 100 cc bike CD Deluxe will also be seeing a new version as we have introduced self start option," he added.
He also stated that the company intended to introduce four more models till September 2009 but refused to disclose the details of the same. The company intends to launch 12 models in a span on 18 months in India. Out of these, eight models have already been launched in 2008. "Year-to-date we have good growth but the pressure will continue for the whole of this fiscal. However, we have the momentum and we are hopeful that we will be doing better than the industry," said Dua.

65. HUL to license Lakme and Lever Ayush brands to Lakme Lever - January 6
In a significant restructuring exercise, Hindustan Unilever Limited (HUL) has decided to license its Lakme and Lever Ayush brands to its subsidiary, Lakme Lever Pvt Ltd, for its beauty and wellness services business. The Board of Directors of the company has approved this decision.

The Board approved the licensing of the Lakme and Lever Ayush brands to the separate subsidiary company, Lakme Lever, which will evaluate options towards developing a different business model for the two brands. This implies that HUL will not be directly involved in the services business of Lakme salons and Ayush therapy centres.

HUL's existing services model in the beauty and wellness services segment includes franchised Lakme Salons and Ayush therapy centers. But as per current business model, these contribute to an insignificant proportion of the company's turnover and profits.

According to a statement issued by Hindustan Unilever, growing disposable incomes and changing lifestyles have led to greater awareness about personal grooming, health and wellness - a trend that augurs well for the beauty and wellness services sector. "The key learnings are to execute dedicated teams for the services division, a statement issued by HUL said

66. Mary Kay is investing approx $20 million in India – January 7

America's No.1 cosmetics company announces the Winners of the "Model of Beauty Search"
Mary Kay is investing approx $20 million in India; Launches TimeWise® Cellu-Shape™ & MK Men™ Skin Care Range; Pioneers in sophisticated makeover tool with Mary Kay® Virtual Makeover; Donates to Navjyoti India Foundation, NGO of Dr. Kiran Bedi from the proceeds of the "Beauty That Counts" AppleBerry CSR campaign
Mary Kay Cosmetics India Pvt Ltd., one of the world’s largest Direct sellers of skin care and color cosmetics , adding to its existing product portfolio, launched TimeWise® Cellu-Shape™ Contouring System & MK Men™ Skin Care Range (product shots and write ups available in the CD).
Mary Kay In India has launched the most in-depth and sophisticated makeover tool currently available - the Mary Kay® Virtual Makeover. This unique tool allows users to upload their photo for a state-of-the-art, personalized makeover. This FREE, fun tool lets them play with color and create custom looks to suit their style at the moment – from everyday color to something a little bolder. Users also can select hairstyles and hair colors (even highlights!) to change their look even more.
Speaking on the occasion, Hina Nagarajan, Country Manager for Mary Kay India says, “Today, every woman has a makeup drawer full of product ‘mistakes’ – shades that looked good in the package but weren’t flattering on. With the Mary Kay® Virtual Makeover, women can try colors on before they buy them. This incredible new online tool offers women a fun, risk-free way to experiment with and create new color looks – from the everyday to the outrageous! And best of all, it’s free and easy to use.”
With the company’s mission to Enrich Women’s Lives Mary Kay India launched the internationally acclaimed “Model Of Beauty” search campaign- Beautiful from the inside out - in July 2008. ”. Through this search Mary Kay has recognized ordinary women who are actually extraordinary because they excel and inspire others in their role as daughter, wife, mother, professional, home-maker etc. Campaign period was from August 1st to October 31st, 2008. Hundreds of women participated across the country and finally 4 winners were chosen by the Judge’s panel which included - Founder Chairperson NGO Navjyoti - Dr. Kiran Bedi, Celebrity Makeup artist Gopika Pillai, International Photographer Sameer Parekh and Country Manager Mary Kay India- Hina Nagarajan. The winners have been given a free make-over by Gopika Pillai, a professional photo shoot by Sameer Parekh and an opportunity to be featured in the 2009 January Look Book and Mary Kay India web site apart from other great prizes.
On the occasion Mary Kay proudly handed over a cheque of the proceeds from “Beauty That Counts” Apple Berry Lipstick Global CSR campaign to Dr.Kiran Bedi’s NGO – Navjyoti India Foundation to support the cause of computer literacy for the underprivileged girls. As a part of this campaign from July 1st – Dec 31st 2008, Mary Kay India has donated 100% of its net profits from the sale of Mary Kay Crème Lipstick Apple Berry to Navjyoti India Foundation. This is yet another initiative by Mary Kay towards Enriching Women’s Lives.
Magsaysay Laureate Kiran Bedi, Founder Chairperson Navjyoti India Foundation expressed, “We at Navjyoti value Mary Kay’s support. The campaign started by Mary Kay will go a long way in making a difference in the lives of underprivileged women and children of our NGO Navjyoti.”
Lastly, Hina Nagarajan, Country Manager, Mary Kay India, said, "Today, as we take another big step in the Indian market, we would like to thank our consultants and customers who have faith in us. We at Mary Kay are committed to enrich the lives of Women in every way including our association with Dr.Kiran Bedi’s NGO Navjyoti Foundation. We are very excited to expand our portfolio, as the demand for our products is ever growing. The “Model of Beauty" search is a unique platform for women from all walks of life to demonstrate their inner beauty – a dimension we celebrate at Mary Kay.”

67. ITC to expand its personal care range – January 8

Cigarette maker ITC Ltd, which made a big-splash entry in 2007 into the highly competitive market for consumer products such as soaps and shampoos, plans to expand its range of personal care brands as it strives for a bigger market share.
“We are working on three new categories. These are in advanced stages of development,” said Sandeep Kaul, chief operating officer for ITC’s personal care business.
Market share: A Spencer hypermarket at Pacific Mall in Ghaziabad. ITC has made sizeable investments in launching new products. Harikrishna Katragadda / Mint ITC’s current personal-care portfolio includes soaps, shampoos and fragrances. These products are marketed under the Fiama Di Wills, Superia and Vivel brands. Superia caters to the mass consumer segment, Vivel targets the premium and Fiama the so-called super-premium market. Products are priced at between a low of Rs5 for a mass-market soap to Rs2,100 for a high-end perfume.
Kaul refused to disclose details on the new product categories the company plans to introduce. Anand Shah, a Mumbai-based analyst at Angle Broking Ltd, said the segments could include skin care (moisturisers and face and body creams), handwash lotions and deodorants.
The consumer and personal care products market is highly competitive, dominated by well-entrenched brands from companies such as Hindustan Unilever Ltd (HUL), Procter and Gamble Ltd, L’Oreal India Pvt. Ltd, Dabur India Ltd and Cavinkare Pvt. Ltd. The personal care segment is dominated by HUL, whose brands, including Lux, Dove, Sunsilk and Clinic Plus, have 52.7% market share in soaps and 46.5% in shampoos, according to HUL. While ITC refused to reveal numbers related to its market share, two analysts based in Mumbai who didn’t want to be named said the company had around a 2% share of the total personal-care products market.
“Our existing portfolio has received good response and as we move forward, the company will launch more and more new products in line with the growth strategy,” Kaul said.
The Kolkata-based company recently launched a new anti-dandruff shampoo called Ultrapro in Hyderabad. The anti-dandruff shampoo market is led by brands such as Clinic All Clear and Head and Shoulders, from HUL and Procter and Gamble, respectively. ITC will use actor Hrithik Roshan to endorse the shampoo and plans to take the product national. “Usually, a national roll-out takes around five-six months,” Kaul said.
The total shampoo market, according to Kaul, is estimated at around Rs2,200 crore. Anti-dandruff brands make up Rs600 crore of this.
ITC has made sizeable investments in launching personal care products, spending heavily on advertising and promotions and distribution. The company’s sales grew 16% to Rs7,662.99 crore and net profit declined by 0.15% to Rs1,551 crore in the first six months of 2008-09. “We have very clear internal targets and milestones for our progress and we are meeting those milestones,” Kaul said about the profitability of the personal care products category.

68. Dabur India`s arm opens retail outlet in Delhi

Dabur India`s wholly owned retail subsidiary H&B Stores has launched its new beauty, health and wellness retail store in Delhi under the `new u` brand, reports Business Standard.

The new u outlet will offer over 6,000 SKUs of leading international and national beauty and health brands in categories like personal care, baby care, fashion accessories and male grooming.

The company has plans to add another 12-15 new stores to its new u network by the end of the 2009-10 fiscal.

69. Puma, Knowledge Fire in retail JV – January 7

Germany-based high-end sports lifestyle brand Puma is setting up joint venture with RGN Swamy owned Knowledge Fire to sell Puma products ranging from apparel to shoes and accessories.

Puma, which is operating through cash & carry wholesale trading, will hold 51% stake in the JV, a source close to the development said. The proposed JV plans to open 40 retail stores in India in 2009 and take the count to 140 by 2015. Puma is unable to reach a majority of retail consumers and its business depends on resources and capabilities of Indian distributors.

The German company proposes to provide the latest technology, marketing expertise and logistics for high-quality products through its new retail ventures. The model would also give the company means to finance retail trade promotion in India. The Puma brand product range would comprise footwear, apparel and accessories under a single brand name.

Puma’s proposed Indian partner Mr Swamy, said to be an experienced retailer and entrepreneur, has served at senior managerial positions in Hyatt Regency Hotels, Wimco and Bombay Dyeing Group.

Puma India, based in Bangalore, was set up in 2005 to carry on cash & carry wholesale trade of Puma branded products in India. Globally, Puma is best known for its football shoes and has sponsored international football stars as Pele, Eusebio, Johan Cruijff, Enzo Francescoli, Diego Maradona, Lothar Matthaus, Kenny Dalglish, Didier Deschamps and Gianluigi Buffon. Puma Group posted a turnover of e2373.5 million in 2007.

70. Vintage Sport
Proline Apparel launches Vintage sports wear comprising pullover, jacket, denim or t-shirt in variety of colours and designs. Priced from Rs 499 onwards, it is available at all leading MBOs.

71. Rose Group launches new collection of Puma Time - January 10

With the three new distinctive lines of watches, Puma Time flies into a new dimension of time-measuring accessories with progressive facelifts and fresh designs

The Rose Group through Egana India Pvt Ltd launches the new collection of Puma Time. With the three new distinctive lines of watches, Puma Time flies into a new dimension of time-measuring accessories with progressive facelifts and fresh designs.
These models are inspired from Sport-Lifestyle, Motor-sport & Active collection which ranges from Rs 3950/- to Rs 9950/- These watches are available in all the Watches and More stores (WAM..) & PUMA STORES in Mumbai, Delhi and Bangalore. Each model defined below represents the theme, to denote and express the design of Puma:
• ‘Active’ – This family includes various interesting lines like Vitality, Dynamic Posh, Fluctuation, Jump, Agitation, Cardiac and Top Flow. Each line is outstanding and unique. These watches are unisex, uni-cool and simply unique. They are created for people who are caught by the fascination of fashion and colors and who create new trends.
• ‘Sports-Lifestyle’ - The Pilancy, Stardust, Swap, Enticement, Imagination, Pure Imagination, Pure Pilancy and Temptation styles make up the Sport-Lifestyle line in this collection. The new Imagination takes charge of the collection’s fun section. The modern looks of these must-have trend-huggers represent a completely new approach to merging a sporty attitude and a fashion lifestyle.
• ‘Motor sport’ - The Motor-Sport line is based on the design families Top Podium, Top Gear, Engine, Podium, Forcer, Slim Pedal and Star Podium offering even more materials and more features. Top Gear is as racy as you can get! With dual time, chronograph, and LCD Top Podium will leave nothing to be desired. Streamlined and rugged in their design, these watches focus on essentials for a good performance.

72. Stay warm
Nike launched a variety of winter jackets for men and women. Lightweight and made from Clima-fit technology, the jackets start from Rs 2,700 onwards.