BlackBerry Chief Walks Out Of Interview When Asked On India's Demand

Mike Lazaridis

Toronto, Apr 14 : Research In Motion RIM founder Mike Lazaridis ordered a BBC reporter to stop the interview after he was asked questions about his problems with India and Middle East countries which are seeking access to BlackBerry enterprise emails in view of national security issues."That's just not fair," Mike Lazaridis shot back at BBC technology correspondent Rory Cellan-Jones when he posed this question to the RIM co-CEO at a recent interview.

Looking sideways, a visibly upset RIM boss said, "First of all, we have no security problem. We've got the most secure platform. We've just been singled out because we're so successful around the world."

When the reporter asked whether he could assume that BlackBerry has no issues with India and Middle East countries, Lazaridis said, "No, we don't... we have just been singled because we are successful around the world. It is an iconic product, it used by businesses, it is used by celebrities, it is used by consumers, it is used by teenagers... we are
just singled out just because of our success."

When the reporter pressed him further on the India question, the BlackBerry chief said, "We are dealing with a lot of issues... we are doing our best to deal with the kind of expertise..."

The RIM co-CEO exploded when the reporter finally asked him whether he could 'confidently tell' and give 'assurance' to BBC listeners in India and the Middle East whether they could continue using the BlackBerry smart phone without any problems in future.

"The interview is over. You can't use that, Rory. It's just not fair. This is a national security issue. Turn that off," the BlackBerry boss told the reporter.

The BBC has posted the video of this portion of the interview on its web site.

The BBC interview followed Lazaridis's recent interview to the New York Times in which he slammed those who are writing off the BlackBerry maker as a 'broken brand'.

Though after many deadlines, RIM has given India access to its BlackBerry Messenger (BBM), it has remained non-committal on allowing access to its encrypted corporate service.

India has more than a million BlackBerry users and RIM has set sights on the fast growing market as its share in the North American smart phone market shrinks.

The Canadian wireless giant, whose stock has slipped nearly 20 percent since last month after forecasts of a less-than-spectacular current quarter, is pinning its hopes on its PlayBook tablet due to hit markets in Canada and the US April 19.

Now, Check Your Income Tax Refund Status Online

By Ramya Ramachandran

You have filed your income tax returns for the year and are eagerly awaiting your refund. Very often this wait could get quite painful. Weeks pass by, and tax payers are seldom aware of the status of their ITR, and as to when their refund would be sent to them.

To solve such concerns, the Income Tax department has introduced online availability of information regarding one's tax refund. With the click of a mouse, you could now check the status of your income tax refund online.

It is a quick, easy and safe way to know the status. Here is how you go about it.

The Refund Banker Scheme

Titled the Refund Banker Scheme, the TIN-NSDL web site provides income tax refund status from assessment year 1998-99 to 2010-11.

Currently this scheme is restricted to non-corporate tax assessees in Delhi, Mumbai, Kolkata, Chennai, Bangalore, Bhubaneswar, Ahmadabad, Hyderabad, Pune, Patna, Cochin, Trivandrum, Chandigarh, Allahabad, and Kanpur, but should be extended to other cities soon.

The whole refund process would be handled by State Bank of India.

Checking your refund status online

Here is how you go about it.

• Log in to the NSDL web site https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
• Enter your Permanent Account Number (PAN) in the available box. Choose the assessment year for which you desire to know the status and then click on submit. The NSDL web site is a secure web site, so one need not worry while entering sensitive information.
• If your refund has already been sent to the refund banker, that is, to State Bank of India, the display would be something similar to the below image. State Bank of India transfers refunds to tax payers either through ECS, or by way of a cheque.

Remember: The status of the refund would be available for tax payers, only 10 days after the refund has been sent by the Assessing Officer to the refund banker.

Modes of income tax refund payment

Under the Refund Banker Scheme, there are two options to receive the income tax refund, either by way of ECS or through post.

For all ECS mode of payment, refund would be directly credited into the bank account. Thus, it is vital to provide accurate details of bank account number, bank name, branch, IFSC and MICR code, at the time of filing IT returns.

If such details are not provided with accurately, a cheque would be sent by State Bank of India.

What do I do if I do not receive the tax refund?

If you haven't received your tax refund, within a maximum of one year from the date of filing the tax return, you could visit the tax department's office for the follow up of the refund, or send a grievance letter addressed to the concerned Income Tax Assessing Officer, with the copy of the tax return acknowledgement.

For severe delays, a letter could be addressed to the Jurisdictional Chief Commissioner of the Income Tax, with a copy to the Grievance Cell and the concerned Income Tax Officer. Attach copies of any previous letters which may have been written to the Income Tax Assessing Officer, along with a copy of the tax return filed.

Keep in mind...

• Refund status can be viewed only if you have received an acknowledgement from the IT department of having received the ITR form.
• Before logging in with your PAN details, check if you are using the secure NSDL web site. The NSDL web site is encrypted and authenticated by Entrust.net.
• Check for this secure sign before logging in. You are also recommended to close the browser immediately after you finish checking your tax refund status.

 
Source: Investmentyogi.com is a one-stop personal finance website which helps in managing finances, investments and taxes through services like financial planning, online tax filing, budgeting and 'Ask the Expert'.

Marijuana Called Pot, Grass - Now Investment

Chicago: It has been called a lot of things over the years: grass, pot, Mary Jane, wacky weed. Now, researchers are suggesting a new moniker for marijuana: alternative investment.

A report out this week on the U.S. medical marijuana market estimates the unconventional business already generates $1.7 billion in economic activity a year.

But the market could grow fivefold in short order, researchers say, as more states legalize pot for treating a variety of illnesses and more patients try it.

The study, conducted by See Change Strategy for the American Cannabis Research Institute and Deal Flow Media, a financial research firm specializing in unusual assets, says that of the nearly 25 million Americans who are potentially eligible to use medical marijuana based on their diagnoses, fewer than 800,000 currently do.

That makes the nascent market a potentially attractive one for investors looking for alternatives to the more traditional investment alternatives like art, antiques, wine or coins, with a strong upside potential.

The opportunities, the authors say, aren't confined to cultivation and distribution -- the riskier parts of the business.

Many perfectly legal products and services, from software and security to hydroponic infrastructure to marketing, communications and consulting, will offer money-making opportunities in the coming years.

But the authors, who surveyed 300 medical marijuana industry insiders, point out that the fast-growing market faces a daunting number of hurdles. These include inadequate access to legal capital, unfavorable tax status, a lack of experienced executives, downward pricing pressure and a complex and contradictory web of state and federal rules. All this makes investing in marijuana a risky proposition.

There's also the very real potential for conflict with the criminal gangs that control the much larger $18 billion a year illegal U.S. marijuana market. These conflicts with criminal gangs tend to get settled outside the judicial system.

Still, the study says the U.S. medical pot market could be nearly half the size of the illegal market -- about $8.9 billion -- in just five years.

"That's assuming there are no obstacles," said Ted Rose, the editor of the study. "I'm not weighing in on whether that's likely or not. But that $1.7 billion is the real money that's being made this year."

To put that in perspective, Lipitor, Pfizer Inc's cholesterol-reducing drug and the world's best-selling pharmaceutical, had U.S. sales of $5.33 billion in 2010.

More than a dozen U.S. states and the District of Columbia have legalized marijuana for patients with chronic illnesses including cancer, AIDS and multiple sclerosis.

The survey found 34 percent of the medical marijuana businesses said regulatory compliance -- not customer demand or securing supply -- was the top challenge they faced. Another 24 percent said financing was the industry's most pressing need.

But because the possession and distribution of marijuana remain illegal under federal law, the report's authors point out that the market is rife with risk, including "the ever-present risk of being shut down or experiencing a property seizure without notice."

Swedish Supercar Koenigsegg Coming to India

Power drive
Koenigsegg Automotive AB, the super car maker from Sweden is coming to India.

Koenigsegg is partnering with Gurgaon-based InterGlobe Enterprises for their India launch, say reports.

The launch is expected to be on March 29, 2011.

Koenigsegg's high-end cars carry a price tag of Rs 9.6-10 crore.

The latest Koenisegg model, Agera R, was launched at the 2011 Geneva Motor Show.

The Koenigsegg Agera was awarded the Hypercar of the Year by BBC Top Gear.

The Koenigsegg CCXR was chosen by Forbes as one of the ten most beautiful cars in history

The first car from the Koenigsegg stable was the Koenigsegg CC.

Founded in 1994, Koenisegg is based in Angelholm, Sweden.

Koenigsegg Automotive was founded by 22-year-old Christian von Koenigsegg (he's now 39).

The Koenigsegg CCR had, in 2005, had set a new Guinness record for the fastest production car at 388.87 kmph.

Transparency Watchdog Lauds ONGC's Openness

ONGC, which contributes 77 per cent of India's crude oil production and 81 per cent of natural gas, has been ranked, along with 43 other global oil and gas producers, on its openness by the Transprancy International.

ONGC, a Fortune Global 500 company and one of the highest profit-making corporation in India, has been rated by the watchdog in three specific areas: reporting on anti-corruption programmes, organisational disclosure (disclosure of operations, subsidiaries and partners) and country-level disclosure of financial and technical data.

The findings of the Promoting Revenue Transparency: 2011 Report on Oil and Gas Companies, published by Transparency International in partnership with Revenue Watch, are intended to serve as a benchmark for corporate reporting by the sector.

The report identifies current practices and areas for improvement and provide recommendations for enhancing transparency and accountability in reporting.

Anti-corruption programmes

Transparency International says more and more, oil and gas companies are adopting and making publicly available anti-corruption programmes, the content of which is becoming increasingly similar.

Nevertheless, there are many companies that still do not publish their anti-corruption codes, policies or measures, it said.

More companies should report in detail the features of their anti-corruption programmes, said Transparency International.

Organisational disclosure

Public disclosure of partnerships and subsidiaries, including their countries of incorporation, are key elements of organisational disclosure.

The average results in this section are relatively high. ONGC has beaten other national oil companies in this section and is ranked third behind BG and BHP Billiton.

Many national oil companies have a good level of disclosure.

Disclosure of equity or field partners in upstream operations, however, remains infrequent, despite the fact that equity minority partnerships often present corruption risks.

The oil major BP is ranked fourth behind ONGC, BHP Billiton and BG in this section.

Country-level disclosure

Country-level disclosure on international operations has improved since the 2008 PRT report when only a handful of companies published information.

Reporting on production levels has become a broadly accepted standard and there are examples of good disclosure for financial data and reserves.

Nonetheless, in spite of this positive trend, country-level disclosure on international operations remains weak; this type of disclosure received the lowest average score of the three categories covered in the report.

Many companies do not disclose any financial data on a disaggregated country-level. Norwegian oil company Statoil is ranked number one in this section.

The host country environment itself cannot be exclusively blamed for poor disclosure.

In the same host countries, often described as "difficult environments", some companies disclose extensive information, while the others disclose little or none at all.

PetroChina is at the bottom of the list, while ONGC is ranked behind Petrobras and Statoil.

Key policy recommendations

1. Detailed anti-corruption programmes should be publicly available

2. Companies should undertake voluntary independent assurance of anti-corruption programmes

3. Companies should publish details of their subsidiaries and fields of operations

4. Oil and gas companies should increase their reporting on a country-by-country basis

Transparency International adds these recommendations in its report:

5. Companies should join the Extractive Industries Transparency Initiative

6. Companies should create and maintain up-to-date corporate websites

7. All national oil companies should introduce internationally or generally accepted accounting standards, as well as publish independently audited accounts

8. The relationships between home governments and national oil companies should be clear and publicly disclosed

Pepsi's Revolutionary New Bottle

PURCHASE, N.Y. (AP) -- Remember the Cola Wars? Get ready for the Bottle Wars.

PepsiCo Inc. on Tuesday unveiled a bottle made entirely of plant material, which it says bests the technology of competitor Coca-Cola and reduces its potential carbon footprint.

The bottle is made from switch grass, pine bark, corn husks and other materials. Ultimately, Pepsi plans to also use orange peels, oat hulls, potato scraps and other leftovers from its food business.

The new bottle looks, feels and protects the drink inside exactly the same as its current bottles, said Rocco Papalia, senior vice president of advanced research at PepsiCo. "It's indistinguishable."

PepsiCo says it is the world's first bottle of a common type of plastic called PET made entirely of plant-based materials. Coca-Cola Co. currently produces a bottle using 30 percent plant-based materials and recently estimated it would be several years before it has a 100 percent plant bottle that's commercially viable.

"We've cracked the code," said Papalia.

The discovery potentially changes the industry standard for plastic packaging. Traditional plastic, called PET, is used in beverage bottles, food pouches, coatings and other common products.

The plastic is the go-to because it's lightweight and shatter-resistant, its safety is well-researched and it doesn't affect flavors. It is not biodegradable or compostable. But it is fully recyclable, a characteristic both companies maintain in their new creations.

Traditional PET plastic is made using fossil fuels, like petroleum, a limited resource that's rising in price. By using plant material instead, companies reduce their environmental impact. Pepsi says the new plastic will cost about the same as traditional plastic.

The company, based in Purchase, N.Y., said it has had dozens of people working on the process for years. While PepsiCo wouldn't specify the cost to research and design the new bottle, Papalia said it is in the millions of dollars.

It's one of several steps PepsiCo has taken recently to reduce its environmental impact. The company created a fully compostable bag for its SunChips line. It cut the amount of plastic in its Aqua-Fina bottle in 2009. And its Naked Juice line is in the midst of switching to a bottle made entirely of recycled plastic bottles.

PepsiCo says of its 19 biggest brands, those that generate more than $1 billion in revenue, 11 are beverage brands that use PET. The company says the packaging will cost roughly the same as it does today.

PepsiCo plans to test the product in 2012 in a few hundred thousand bottles. Once the company is sure it can successfully produce the bottle at that scale, it will begin converting all its products over.

Ericsson Aims 21 MBPS Data Speed

Ericsson on Thursday announced deployment advanced network infrastructure to support launch of Airtel 3G services in Delhi and the National Capital Region that can deliver data speed up to 21 megabyte per second.

"This is one of the most robust 3G network setups taken up by Ericsson in India thus far where airtel 3G services in Delhi will have a comprehensive presence, delivering speeds up to 21 Mbps even in indoor environments," said Ericsson in a statement.

In September 2010, Airtel has chosen Ericsson India, Nokia Siemens Networks and Huawei Technologies as network partners to launch 3G Services in India.

"Our long standing association with Airtel has reached a new level on Thursday with the introduction of data based services. Thanks to our close collaboration with Airtel, we have successfully rolled out this comprehensive and complex network in a very short time," said Gowton Achaibar, Head of Region, Ericsson India.

Ericsson was selected by Airtel to deploy network across eight circles. The network laid down by Ericsson comprises more than 1800 radio base stations, said statement from Ericsson.

"With the mobile phone fast emerging as the primary device for accessing a variety of data services, we believe that strong network capabilities will play a crucial role in delivering a strong and sustained 3G experience," said Atul Bindal, President-Mobile Services, Airtel.

Customers Still Unhappy With Tata Nano

Nano ranks last in customer satisfaction among small cars: TNS

New Delhi, Feb 25 : Tata Motor''s Nano has been ranked last among entry level small cars in terms of customer satisfaction, according to market research firm TNS.

In the ''2010 four-wheeler Total Customer Satisfaction (TCS)'' study by TNS Automotive, Maruti Suzuki India''s (MSI) best selling model Alto topped the entry level small car category. Omni and the once bread-and-butter model M800 followed the list.

"The customer expectations even at the bottom end are rising. The owners of Tata Nano expect more in terms of design and Maruti 800 owners expect better servicing as the years go by," the survey said.

While Alto scored 91 points, Nano got only 70 points thus being placed last, it added.

Nano has been having issues following fire incidents with six reported cases since its launch in 2009. Tata Motors had offered to provide additional safety measures free of cost as a precautionary measure, although it claimed that the Nano is absolutely safe.

In the higher priced cars segment, the survey reflected the Indian consumers respect for value even if the price is higher.

The study pointed out that car owners in Northern India are relatively less satisfied compared to those in other parts of the country, primarily because of after sales services as the age of the car grows.

"At the national level, the customers in the relatively larger cities are more satisfied than those in the smaller cities.

"This may be a reflection of the growing expectations in the smaller cities. The manufacturers will do well to understand those," TNS said.

Apart from the entry level compact car segment, MSI''s Zen Estilo and A-Star jointly topped the premium compact car category in customer satisfaction.

While Volkswagen''s (VW) Polo and MSI''s Swift together became the number one in the upper premium strata, MSI''s Swift DZiRE was ranked as the numero uno in the entry-level mid-sized sedan segment.

Other models that topped in different segments are Toyota Corolla Altis in premium mid-sized sedan, VW Passat in entry-level luxury sedan, Toyota Innova and Mahindra Scorpio jointly in sports utility vehicle and multi utility vehicle and Honda CR-V in premium SUV categories.

"In a year of high growth and long queues at the automotive dealerships, auto manufacturers maintained their poise and managed their processes to keep their customers satisfied," TNS Automotive Executive Director Pradeep Saxena said.

The survey covered 9300 car buyers, opting for 56 models.

Canoro Caused Irreparable Damage to Assam Reservoir

By Ajay Modi

New Delhi Feb 17 : In a fresh twist to the first-ever termination case of a production sharing contract (PSC), the government has submitted before the Delhi High Court that Canadian company Canoro Resources has caused “irreparable damage” to the reservoir at Amguri oilfield in Assam.

The petroleum ministry made the allegation in a fresh affidavit. “We found it crucial to bring it to the court’s notice before a decision was announced,” said the government lawyer. The court had reserved its judgement after the hearing of the case concluded in December. The matter will come up before the court tomorrow.

A team sent by Directorate General of Hydrocarbons, India’s upstream oil regulator, has found that the operator has not followed good international practices which has caused irreparable damage to the reservoir. This, according to sources, will affect productivity of the wells and lead to loss of revenue to the Union and Assam governments.

“The continued production from the Barail Main reservoir below dew point pressure has led to condensate drop out of 551,000 barrels in the reservoir during last two years,” said a report submitted before the court.

The team has claimed that there had been a cost overrun in the project and a delay of 18 months in executing gas compression and condensate stabilisation project that was scheduled for commission in June 2009. The team has expressed doubt about Canoro’s technical capability to effectively manage the Amguri field and the PSC as an operator.

The Amguri field in Assam was producing about 1,000 barrels of oil equivalent per day (boe) before its closure on December 3, 2010. According to Sproule, an internationally recognised body engaged in making resource/reserve assessments, the reserve of oil condensate and gas at Amguri stood at 12.287 million boe. The pre-Nelp block, abandoned by Oil and Natural Gas Corporation, was held jointly by Kolkata-based Assam Company India Ltd (ACIL) and Canoro.

In August-end last year, the petroleum ministry had terminated the PSC between Canoro and ACIL for the oil block in Assam. This was the first termination of a PSC in the Indian oil and gas industry’s history.

The move came soon after Cairn Energy initiated a process to sell between 40 and 51 per cent stake in its subsidiary Cairn India – the nation’s largest onland oilfield operator – to London-listed Vedanta for $6.65-8.48 billion. The government filed a petition against the injunction from termination sought by Canoro at the court.

The termination, the petroleum ministry claimed, was justified due to a change in the shareholding pattern of Canoro. Canoro owned 60 per cent and was the block operator, with ACIL holding the balance 40 per cent. In April, Canoro raised Canadian $95 million through a mix of debt and equity from Barbados-based Mass Financial Corp, without the ‘required consent’ of the Indian government. Mass Financial initially got 18 per cent equity in Canoro but after the closure of the rights issue, it now holds 52.9 per cent of the oil block and has three out of five directors on the board.

NEDFi to Back Foreign Investors' Projects in Northeast

Agartala, Feb 9 : The state-owned North Eastern Development Finance Corporation (NEDFi) is keen to provide financial support to single or joint venture projects involving foreign investors, a top official said here Wednesday.

"If any foreign investor on his own or jointly with the Indian entrepreneurs is willing to set up any industrial or infrastructural or service sector projects in northeast region, the NEDFi would offer fiscal support," NEDFi chairman Buru Paul Muktieh told IANS.

"However, the foreign investor or the overseas firm has to be registered in India to get the financial aid," he clarified.

According to the finance body chief, the NEDFi has so far disbursed loans worth Rs.1,080 crore against the sanction of Rs.1,474 crore to 2,012 units and projects in eight northeastern states.

The NEDFi has also been providing training and skill development to entrepreneurs, making market linkages, operating research and development centre for medicinal and aromatic plants, organising exposure visits of the industrialists besides financial help.

"Unlike bank loans, the NEDFi's recovery rate is almost 100 percent," Muktieh stated.

The corporation, which was initially promoted by various financial and insurance institutions and now under the control of union ministry of Development of North Eastern Region (DoNER), is also looking for financing more public-private partnership (PPP) ventures and projects in the region.

"We are keen to provide loan with simplified provisions, but the investors must come up with viable projects, specially infrastructure ventures," the NEDFi chairman declared.

A permanent exhibition centre, NEDFi Haat, has been set up at Ambari, near Assam's main city Guwahati, for providing market linkages to the artisans and entrepreneurs.

Mercedes to Develop a Small Car

Mumbai: Trying to hitch a ride on the Indian auto gravy train, luxury car maker Mercedes-Benz is developing a premium small car specially for the Indian market.

The car is being developed with help from Merc's research and development centre in Bangalore at an investment of around Rs 6,000 crore, a senior company official told FE .

The development of the premium small car is over and above Merc's plans to introduce its A and B-class cars -- small category cars that it sells globally -- into the country.

"In the long term, we can develop our own car for India. The days of having global models are changing and original equipment manufacturers (OEMs) are looking at market-specific models. We feel there would be a need for an India-specific car by us in the future," said Uwe Jarosch, chief financial officer and member of the board of management, Mercedes-Benz India.

"If we are investing 1 billion euro on the development of the car, then we definitely need huge volumes to justify that," he added.

With the Indian car market on steroids -- 13,69,174 cars were sold in April-December 2010, 30% more than the previous year -- global car-makers such as Hyundai, Honda, Volkswagen and Skoda have already launched premium small cars in the past three to four years.

BMW had also expressed its interest to launch its Mini, a premium small car, in India. While these cars cost between Rs 5 and Rs 8 lakh, Merc's car is expected to be priced higher. The India-specific premium small car is expected to be based on the next-generation Mercedes Frontwheel Architecture (MFA) platform.

The MFA can have a wide range of wheelbases and configurations on it, and is capable of supporting a fuel-cell powertrain and other green technologies. Merc will begin discussions with Indian vendors soon regarding developing the car, the official added.

"Every OEM today wants to expand its portfolio to meet the requirements of various segments of the market," said Abdul Majeed, auto practice leader at PwC, adding, "other than Mercedes-Benz, we would also see other luxury car makers make similar moves in the premium small car segment."

Currently, there are 600 people working at Merc's R&D centre in Bangalore and the company plans to double the number by next year. The R&D centre supports Mercedes-Benz headquarters in Germany and is on par with its other R&D centres in the world (it works partly on new platforms already).

Meanwhile, Mercedes-Benz said it will start semi-knocked down (SKD) assembly of M-class and GL by end of this year. In the recent future, the company will be launching the new Maybach next week and new generation C-Class by April this year.

It is also mulling a small engine on E-Class and C-Class models. Moreover, the company is also setting up brand centres in major metros, including New Delhi, Bangalore, Chennai and Mumbai.

Source: Financial Express

General Motors to Bring Camaro to India

General Motors’ iconic budget friendly sports car Camaro is set for an India entry.

President of General Motors international operations Tim Lee said that FE that the company is going to introduce a right-hand drive for the two-door car which could then make its way into the second fastest growing auto market in the world.

The Chevrolet Camaro was first displayed in India at the Auto Expo last year, but at that time the company had ruled out any immediate plans of introducing the swanky car in India.

Though Lee did not reveal the tentative time period or price of the car, it is expected to fetch a price in the range of Rs 30 lakh plus. This would make the car most expensive offering from GM in India, however this ranks as the cheapest sports car in the world.

"As we go through the development phase of the new generation Camaro we will try and do a right hand drive. But we will not assemble it here," he said. In the US the Camaro base price starts at around $20,000 and goes up to $40,000 (or Rs 18 lakh). Since the company would attract an import duty of 110% since it is a completely built unit (CBU), the price of the car would double. Lee said that with the introduction of the car, GM would use its entry as a brand builder.

"We will not sell a lot of Camaros in India but it will be a brand builder for the company bringing many people to our showrooms," said Lee. Looking back at the 14-year old history of the company in India, Lee said that its performance had been 'spotty' and "incosistent."

He said that going forward the company's focus in India would be to design the best cars and to have a business model which is sustainable and profitable.

"We want to profitable so that we can employ more people in India," he added. Chalking out GM's India plans, Lee said the company is going to look at every segment in the country to increase its sales including a car priced below the Spark.

In fact the company's president and managing director Karl Slym later told FE that the company is mulling introducing an 800 cc powered Spark. This would make it the cheapest offering from GM in its 14-year operations in India so far.

"The 800cc Spark is already available in Europe. And we could introduce the car in India," said Slym. The 800cc Spark was introduced in China, however was later discontinued.

"We need to see whether everything is right before we introduce the car," he said. Last week GM India held a board meeting which was chaired by Lee where a ten-year growth plan was unveiled.

Source: Financial Express

What Are The Future Shocks?

Davos: Shocks come from places where we least expect them. Or so proves economic history. A star-studded global CEO panel came up with an amazing set of worries, from low trust levels to the unknown kind of society arising from the underground world of blogs and tweets, after an hour-long discussion on “The next shock — are we better prepared?”

Is it 'the unknown unknown', asked Fareed Zakaria, CNN, who was moderating the session. Maurice Levy, Chairman and CEO, Publicis, said "What I cannot see, what I cannot expect is my big worry." He is not sure if he understands the kind of society evolving from the world of internet today, or if he will understand even tomorrow.

If there was a common string to what James Dimon of JP Morgan & Chase, Kleinfeld Klaus of Alcoa and Dominic Barton of McKinsey said, then it was about understanding the qualitative aspects of human behaviour - of greed, trust, expectations, right human choices and awareness about unemployment.

Of course, that is not to undermine the dangers that a volatile currency made more volatile by technology and asset price bubbles due to rapid urbanisation in emerging markets or the high indebtedness of Europe, present to the global economy. These can be tackled if right human choices are made by countries and corporations, trust is maintained with consumers and capitalism is practiced with a long-term view, the CEOs said.

For example, Eckhard Codes of Metro Group says, the indebtedness of Greece and Portugal can be or should be taken care of by Germany and, possible France. "Germany gained significantly from the Euro zone. An Euro that did not appreciate much helped Germany's economy that is driven by exports today. So, it is only moral, that it pays back," he said.

Dominic Barton of McKinsey continues to be a votary of capitalism post crisis, but stresses the need for long-term capitalism. "One, shift away from the practice of quarterly results. Unilever, Coke are doing it. This will force investors to think long-term. Two, companies need to think about the broader community. They need to understand underemployment," he says.

Millions lost their jobs, were thrown out of their houses because of the crisis, said Maurice Levy of Publicis. "People don't understand why large companies doing well, but they aren't. Without support of people, there is no way we would be able to grow," he said. According to him, if there had been a crisis, it is because the CEOs have not dealt ethically.

"They felt we have been led by greed and bottomline and sacrificed the workers to please the shareholders," he added. Klaus Kleinfeld of Alcoa said it was true that demand from emerging economies, given their rapid urbanisation, would lead to a rise in commodity prices and may result in a shock. "But, having said this, we are underestimating the human genius. There are lots of stuff we don't know about, and some of this will be good."

Source: Indian Express

Understanding `Systematic Investment Plan’ (SIP)!

Benjamin Graham, the father of value investing, has termed dollar cost averaging as one of the top 3 tenets of investments for a defensive investor. Dollar cost averaging is nothing but the systematic investment plan.
Systematic investment plan is a scheme which allows investors to invest in a mutual fund a certain amount of money over a period. For example, investors can invest Rs 5000 in a mutual fund every month.

Advantage of SIP
Systematic investment plan has many advantages over one time investment. Some of the advantages are mentioned below.

Price averaging: SIP allows you to average the price over long period so that the impact of changing prices of mutual fund is minimized. You can buy more units when the prices drop and buy less when the prices move up. The advantage is that you do not have to worry about price movement.

Discipline: SIP instills in you a sense of discipline towards investment and savings.

Low base requirement: You can start SIP with a much lower investment. Many banks and financial institutions allow investment via SIP as low as Rs 500 a month.

Example:
Let’s see how SIP works.  The table shows the monthly data of a mutual fund by Birla Sun Life. The fund is Birla Sun Life Small & Midcap Fund – GROWTH. The NAV is highest NAV for the month.

Look at the column total investment and investment at current price. You can clearly see that total investment in the case of SIP is almost always lesser than the investment needed to buy the same accumulated quantity at current price.

This may not be true when the prices keep going down continuously. We know, however, that prices of mutual fund or stock do not go up or down straight. The short term ups and downs usually happen one after the other.

SIP moderates the impact of these short term ups and downs of the mutual fund prices.

How to proceed with SIP:
You can ask your bank to allow a mutual fund of your choice debit a certain amount towards investment every month. You have to specify the amount, date of the month when money will be invested, and duration of SIP. For example, if you choose to invest Rs 3000, 10th of every month, for 3 years, the mutual fund will keep debiting Rs. 3000 from your account towards investment in the fund for 36 months.

You can also follow this on your own by investing Rs. 3000 every month. However you need to be very disciplined with your budget to achieve this.

Variants of SIP:  Daily, Monthly
Daily SIP scheme requires investors to invest daily while monthly SIP allows investors to invest monthly. At first glance, daily SIP seems to take care of volatility better than monthly SIP, but there is no empirical evidence that has shown significant difference in returns.

Key aspects:

1. Daily SIP is not allowed by many mutual funds and hence your options are limited. Monthly SIP options are available in almost all mutual funds.
2. The most important aspect is to do with our habits. We are used to planning for a month. It is more convenient for us to see income, investment, and expenses in a monthly timeframe and hence we can plan better towards a monthly SIP.
3. The final aspect is calculation of taxes. Daily SIP makes tax calculation more complex as you have to evaluate the capital gain by comparing the selling price with everyday price for the last 1 year.

Life Without 'Bajaj'

Rebranding is a difficult thing to do correctly, especially if you happen to be Bajaj Auto. Why, then, is the company taking such a drastic step? Bajaj Auto wants to force a change in direction to once again steal a lead on the competition. How?

To start with, by dropping the family name from its communication. One can only imagine the behind-the-scenes deliberations at Bajaj Auto headquarters preceding the decision, but it is one that has provoked more than a few raised eyebrows.

Why? Because it is Bajaj Auto. A brand built on the Bajaj family name.

Indeed, the name 'Bajaj' has been an inextricable part of all Bajaj Auto communication over the decades. In 2001 Bajaj Auto introduced a refreshed version of the famed 'Hamara Bajaj' advertising whose earlier version had forged an emotional connect with the 'average' Indian and had firmly established its agency Lowe Lintas as a 'creative' powerhouse.

The ad campaign, where one could see the entire range of new generation Bajaj models against the backdrop of new age consumers blending perfectly with Indian tradition and values, was again hailed as one of the agency's finest.

With the tag line, 'Badal rahein hain hum yahan', it not only showcased the changes Bajaj Auto was making within the company but also showed the transformation that the two-wheeler industry was set to go through.

This was also the time when consumers were beginning to favour motorcycles of rival Hero Honda known for their versatility and fuel-efficiency, ignoring the Bajaj Chetak, an iconic geared scooter, a champion in the 1980s.
Riding piggyback on the Bajaj brand, the Pune-based company, which is India's second largest bike making firm, launched a slew of two-wheelers including motorcycles and gearless scooters over the next few years.

A decade on, Rajiv Bajaj, the enthusiastic mechanical engineer and managing director of Bajaj Auto, has envisaged a brighter future for the company, which he believes can be achieved only if the family name is dropped from all forms of communication.

Going forward the company will do away with the 'Bajaj' brand completely, paving way for branding by models in its stable. At present, two models dominate its portfolio -- Pulsar, launched in 2001, and Discover, launched in 2004 -- that have several variants at different price points.

According to Bajaj, it is essential for a company like Bajaj Auto to separate its name from its models to ensure greater acceptability not just locally but in overseas markets such as Europe and the US.

Rajiv Bajaj says, "Today if you talk to people or go on Google they say that they wish to buy a 'Hero Honda' but when it comes to Bajaj the buyer will say that he wishes to buy a 'Pulsar' or 'Discover'; he won't say I want to buy a 'Bajaj'. This tells me we have succeeded in separating and specialising (in branding)".

Tried and tested
By putting the product brand before the company brand, Bajaj is treading the path chosen by consumer goods giants like Apple Inc, Hindustan Unilever, Kraft Foods Inc, among several others.

The marketing success of international automotive companies like Germany's Volkswagen or Japan's Toyota Motor Corporation that have several brands operating as independent entities, has also attracted Bajaj. He feels that both Pulsar and Discover are well established in the domestic market with a loyal customer base and no longer need the support of an umbrella brand like Bajaj Auto.

Analysts say this strategy may prove favourable for a company that has greater recall for its products built on their brand value rather than the equity of the company which manufactures them.

Hero Honda, for instance, thrived on the success of the Splendor brand created more than a decade ago. More products were launched by the Delhi-based company and the current market leader riding on the success of Splendor and its derivatives over time.

"The success of Splendor and later Passion proved the tipping point for Hero Honda. Both the models were promoted as fuel-efficient bikes which, in turn, strengthened the Hero Honda brand. The company was thus able to venture into newer segments later ," says an analyst from a Mumbai-based brokerage firm.

As far as Bajaj Auto is concerned, the two models, Pulsar and Discover, constitute 70 per cent of its total two-wheeler sales. Pulsar is positioned as a performance-oriented motorcycle serving mostly the younger buyers (referred internally as Krishna at Bajaj), who preferred a bit of style and zing in their vehicle of choice.

Discover, meanwhile, is promoted as a fuel-efficient bike and is targeted at the Splendor segment. This category of buyers (known internally as Rama) are often those who look for high mileage, lower maintenance costs and other add-on utilities in a bike, which is often their first.

Significant others
Bajaj Auto has two other brands in its portfolio -- Platina and Avenger -- but the intention is to focus more on the two volume generating models, according to Bajaj Auto officials.

"We produce the Platina and Avenger since there is a sustainable demand for them. Our focus, however, will remain on the Pulsar and Discover. We do not intend to add any more brands to the portfolio," adds Bajaj.

While India remains the largest two-wheeler market in the world, manufacturers here don't go for premium pricing with most motorcycles and scooters are in the affordable range with small engines.

The international markets will be the mainstay of the Bajaj strategy with the managing director going on record to state that he wants his company to become the largest two-wheeler manufacturer in the world with a significant share of the global market.

"The reason why Bajaj decided to focus on motorcycles is that we want to be a global player. We have no choice but to compete with global competition not only in our market but overseas market as well -- from Chinese at the bottom to the Japanese in the middle to the European at the top," adds Bajaj.

Bajaj intends to break into the league of European and Japanese companies like BMW, Piaggio (Aprilia), Ducati, Triumph, Honda, Yamaha and Suzuki with KTM Power Sports, Kawasaki and Bajaj itself.

For this too, the company believes, it will have to separate its brand from its products. KTM, the Austria-based auto company, where Bajaj Auto holds 38 per cent (through a subsidiary) and intends to have management control later, will play a crucial part in Bajaj's global expansion strategy.

KTM will continue to have independent branding. Bajaj does not plan to lend its own brand to the Austrian bike maker, which in Europe enjoys a very distinct positioning.

Small beginning
Bajaj Auto has taken a few steps in the direction of doing away with the company's branding on its product as the volume models no longer carry the Bajaj name. It will soon undertake a similar rebranding exercise throughout its massive sales and service outlets. The company will put its distribution set up through a complete overhaul and rebrand all consumer touch points, such as showrooms and service centres, on the lines of brands Pulsar and Discover.

Fitch, an international retail design agency which has also worked with entities such as the Nokia, HSBC, Coca-Cola, Tata Docomo to name a few, will help in upgrading the quality of Bajaj showrooms across the country.

The final blueprint of the new marketing plan for its 600-odd showrooms and 1,100 service outlets is in the works and should be ready by March or April this year. Dealers will be required to spend around Rs 1.75 lakh to upgrade their showrooms and service centres. A model dealership based on the new plan will be opened in some markets where existing dealers can experience the changes before they invest to employ a similar transformation.

This will collectively cost around Rs 21 crore for its dealers the strength of which will be 600 this year in addition to 1,100 service centres. The upgradation programme will also encompass the next generation of motorcycles comprising KTM, Kawasaki and Bajaj models that would be launched later this year.

Source: Business Standard

North East Shuttles to Acquire 3 More Aircraft for $ 7.5-mn

Mumbai, Jan 24 : As a part of its efforts to enhance air connectivity in the country's north-east region, non-scheduled operator--North East Shuttles--plans to acquire three more aircraft this year at a cost of $ 7.5-million, a top company official said.

The private operator currently provides air services across Assam, Manipur and Mizoram with three small aircraft.

"We are in talks with some aircraft manufacturers to acquire three new aircraft," North East Shuttles' Managing Director, Capt Shoba K Mani, told PTI on the sidelines of the 6th North East Business Summit organised by the Indian Chambers of Commerce here.

The company is also in discussions with aircraft-makers for funding the acquisition of the three aircraft at a cost of $ 2.5-million each.

These aircraft would be used to commence new routes which are being worked out, Mani said.
Once the aircraft are inducted into the fleet, North East Shuttles will operate 150 more flights per month, the company official said, adding Dimapur, Dibrugarh and Leelabai (an airstrip in Assam and skirting Itanagar) are the new air bases which it was looking to operate flights from.

"We are also in advanced stages of negotiations with the Arunachal Government to opearte air services from there," Mani said.

North East Shuttles currently operates 380 flights a month with two 18-seater Dornier 228 and one nine-seater Cessna Caravan aircraft, connecting Guwahati with Imphal and Aizawl, Silchar with Guwahati, Aizawl and Imphal and Imphal and Silchar.

Besides, the company also provides charter and medical emergency evacuation services as well.

Maruti Suzuki to Launch Kizashi in Feb 11’

The country’s largest car manufacturer, Maruti Suzuki India Ltd (MSIL), has firmed up plans to launch its luxury sports sedan Kizashi early next month. The vehicle, to be imported fully from parent Suzuki's facility in Japan, will be positioned between likes of Honda Accord and Toyota Camry at the upper end and Honda Civic, Volkswagen Jetta and Toyota Corolla at lower end. These cars are priced around Rs 12 lakh to Rs 20 lakh.

The car, to be imported as completely built units from Japan, is expected to be priced at Rs 16-18 lakh.

Executives at MSIL declined to comment on the pricing points, but said Kizashi would be the most expensive car in the Maruti portfolio. Kizashi would be officially launched on the second of next month.

Mayank Pareek, managing executive officer (marketing and sales), MSIL, said, "With Kizashi, we will complete the range of products we have on offer. The luxury car segment is not big at the moment. But going ahead, the A4 and A5 segment will grow considerably. This car is our attempt to be future ready."

Kizashi is a crossover luxury sports sedan. It will be positioned between the likes of Toyota Corolla and Honda Civic at the lower end and Toyota Camry and Honda Accord at the higher end of the luxury sedan segment.

Kizashi is powered by a 2.4-litre petrol engine and will be available in both manual and automatic transmission options.

The automatic transmission variant is expected to cost around Rs 1 lakh more than the manual one.

With the Kizashi launch date set for February 2, the company will first focus on the top 11 cities, followed by the top 20, which represent 63 per cent and 80 per cent of the market for such cars.

Positioned as a "luxury sports sedan", it shares the Grand Vitara's 2.4 litre petrol engine with power output upwards of 170 bhp.

This product segment represents just one per cent of the car market and has grown 53 per cent in the first three quarters of this fiscal to 13,838 units.

Maruti Suzuki expects the Kizashi sedan to do what the Grand Vitara sports utility vehicle could not, which is to give it a strong foothold in the premium car market.

The vehicle will be imported fully from parent Suzuki's facility in Japan.