The World's Cheapest Cars

With the Nano starting at around Rs 1.5 lakh, and bunch of options - from the 800 to the Alto and the Indica - we decided to take a quick spin around the globe and fantasise over some of the new car options and see how our 'cheap' cars match up.

Presented in descending order of price (at current exchange rates), our top ten findings might make painful reading for anyone struggling with a Zeppelin-size balloon payment on a scheme for a Merc. And for anyone contemplating the insanity of Rs 25 lakh on BMW's cheapest offering, this is compulsory reading...

Fiat Palio - Rs 4.25 lakh

Hanging in at number 10, the Palio is the archetypal world car - conceived to conquer all corners of the globe by virtue of a flexible design that can adapt to local requirements. Think McDonald's made metal.

That's probably why though, in its bones, it's so horribly bland. Design-wise, there's more archaeology than architecture here - the chassis originates from Fiat's 1993 Punto and much of the gubbins is recycled Uno.

Since then, it's seen more surgery than Simi Garewal, though an all-new Palio is promised this year. However, Fiat got a lot right with this car, if factory output is your measure of success: It's quicker to ask where this car isn't made than where it is.

Its manufacture began in Brazil (where it sells for well under Rs 4.5 lakh) back in 1996 and production spores have germinated thereafter in Argentina, Turkey, Poland, Morocco, South Africa, Russia, India and China. As a station wagon and pick up, the Palio is sold today in parts of Europe. Engines vary widely, using much of Fiat's repertoire. Some run on LPG and ethanol.

Hyundai i10 - Rs 4.2 lakh

The badge might be Korean, but the i10 is actually built in Chennai where keenly contained labour costs ensure its sub-Rs 4.5 lakh price and ninth position in our charts. A strong foothold in India also ensures this Korean marque is well placed for tapping into the growing demand for affordable motoring across Asia - after all, that's where 60% of humans live.

That said, this is defined as a premium hatchback, so it's chasing more aspirational customers than those just looking for something one step up from a motorcycle. Power comes from 1.0, 1.1 or 1.2-litre petrol options or a 1.1-litre CRDI diesel. Options include airbags, Bluetooth connectivity and reverse sensors.

Tata Indica - Rs 3.9 lakh

Not quite cheap as chapattis, the Indica, available at Rs 3.9 lakh, has been running since 1998 with a restyle in 2007 and no signs of retreat, despite the arrival of a bigger version, the Vista.

Although it's been plagued by market recalls (most centring on poor mileage returns and lack of power), the Indica has been a strong seller in parts of Europe and South Africa.

Power comes from a 1.4-litre block, in either petrol or turbo-diesel guise.

Chery A-1 - Rs 3.37 lakh

Currently sharing the top spot as Australia's cheapest wheels (and sold there as the J1), the Wuhu-manufactured A-1 is the world's cheapest credibly contemporary supermini - yours for Rs 3.37 lakh in China. It's styled by Bertone and kitted to succeed in its mission: to get out there and sell across the globe.

Engine choice rests between a 1.1 or 1.3-litre, both being 16-valve designs, with spec levels ranging from Standard, to Comfortable and Luxury. The latter two have central locking, alloys, ABS and reverse radar.

Chery is a Chinese-government-owned brand and dates back to only 1997; this model is a top export for the brand and would have gone on sale in the US under a Chrysler deal, had the agreement not fallen apart in 2007.

Geely HQ SRV - Rs 2.66 lakh

Will we see more domination of the cheapest global car charts from China? The rise appears unstoppable to most analysts though export potential can be undermined by poor safety specs. Auto giant Geely is rumoured to be currently readying the spellcheck-defying Geely Gleagle IG for 2012, based on a fancy gullwing concept shown at the last Beijing show.

If it delivers on its promises, it'll cost just Rs 1.03 lakh, on current exchange rates, blasting India's current and planned models into the weeds. Until then, the chunky Geely HQ holds our number six slot, selling for less than Rs 2.7 lakh in its home market.

The nose looks like a 1992 C Class signed off during a fire alarm, but the HQ (or Haoqing) is a mightily popular Daihatsu Charade-based hatchback, chiefly powered by a three-cylinder 993cc engine offering 55hp and 12.8 kmpl.

Geely Merrie MR - Rs 2.53 lakh

The Merrie makes many smile in China, where it's up for grabs at just Rs .2.53 lakh. It certainly looks like a lot of car for the money, perhaps because its rear hatchback end protrudes to look like a more upmarket saloon.

There's a booted version, too, called the Oliou. Together, they originate from the underpinnings of Daihatsu's mid-1980s Charade and Geely also makes an offshoot of the range known as the Rural Nanny and the Urban Nanny. Despite their evocative badges, these are not roadgoing crèches but actually pick-up trucks.

Power for the Merrie comes from a 1.3 or 1.5-litre double overhead cam unit, offering 86hp or 94hp (the latter returning 12.5 kmpl overall). Notably, this is the cheapest four-cylinder 16-valve option globally.

Maruti 800 - Rs 2.3 lakh

Tata Nano salesmen might sneer that this domestic rival, India's second-cheapest car, has 21% less internal space than the Nano and is 8% heftier on the outside. And this 45hp 0.8-litre pipsqueak is certainly a little less cutting-edge than the Nano, given a shape obstinately unchanged since 1983.

Still, 2.5 million buyers shell out the necessary Rs 2.3 lakh and it's generally seen as the best all-round economy car in India, even though it averages a so-so 14 kmpl. Buy while you can though - it's being phased out of the Maruti range, largely for emissions reasons. If you desperately want one thereafter, get a flight to Pakistan - it's defiantly on sale there as the seatbelt-free Suzuki Mehran.

Chery QQ - Rs 2.2 lakh

Looks like a loving tribute to the Matiz, doesn't it? Yep, GM's lawyers thought the same, which is why they tried to sue Chinese maker Chery Automobile for copyright, citing such specifics as the doors of a Matiz and a QQ being 100% interchangeable.

Although quite a bit above the price of our no. 1 miser's motor, throughout much of the globe this three-cylinder 800cc hatchback is the cheapest available car - and costs less than Rs 2.25 lakh in China.

It's called the IQ in Chile, incidentally, as QQ reads "cuckoo" - local parlance for insane. Structural integrity may be an issue: in a Euro NCAP offset test, the results suggested a paltry lone star. Far-east driving forums are equally cautious. Writes one Singapore consumer: "I got the gear knob fall-off during the test drive." Never a pleasant experience.

Jiangnan Alto - Rs 1.74 lakh

Produced in China under licence from Suzuki, the Jiangnan Alto is based on the 1985 shape Alto and has a three-cylinder 800cc engine producing 44bhp, plus a manual four-speed gearbox. Pound for pound, it's about Rs 30,000 more pricey than the Tata Nano, though it's the cheapest current option for Chinese drivers and and its fans point out that it has a radio, air con and ABS as standard, making it better value.

Jiangnan is historically a weapons manufacturer, so don't argue with them.

Tata Nano Std - Rs 1.45 lakh

Promising a new dawn of safe mobility for India's masses (and hoping to address a road-death toll that currently stands at 14 fatalities per hour), the Nano began life at a projected Rs 91,875, but the Gujarat-built 624cc 20-ish kmpl runabout has struggled to contain rising material prices. It looks like a hatch, but the engine's in the back and access to the remaining boot area is only via the interior.

How long Nano holds this top spot is debatable: in its rear-view mirror (which reassuringly comes as standard), Bajaj Auto is readying an 30 kmpl rival, due in 2012 and built with Renault-Nissan assistance. The rumoured price? Rs 1.15 lakh.

Snake Trade: How China Mints Money

Image: Yang Hongchang, owner of a snake rearing company holds a snake at a snake farm in Zisiqiao village.
Photographs: Aly Song/Reuters.

The Chinese love snakes and they mint a ton of money in snake trade. Their love for reptiles has grown so much that many species of snakes are facing extinction in China. Snakes have been used for food and medicine for centuries here.

Thousands of tonnes of snakes are sold in restaurants across China.

Residents of Zisiqiao Village, also known as the snake town, raise over 3 million snakes a year for food and medicinal puroposes.

Image: Yang Hongchang, boss of the snake rearing company extracts venom from a snake.
Photographs: Aly Song/Reuters.

Vipers and cobras are the most-wanted after as their venom is highly sought after for Chinese medicine. More than 700 different types of snake products are found in Chinese markets.

"The global trade in snakes is an industry of considerable socio-economic importance for rural populations in several Asian countries," says John Scanlon, Secretary-General of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

CITES is the main international tool to regulate effectively international snake trade in many of these species.

Snakes are also sold as pets. Their skin is used in expensive luxury leather goods and accessories.

Many wild snakes are traded internationally for the production of traditional medicine, leather and other products.

The wildlife protection laws are not enforced in most parts of the country, endangering several species of reptiles.

Image: Yang Hongchang, boss of the snake rearing company holds snakes at the snake farm in Zisiqiao.
Photographs: Aly Song/Reuters.

According to a wildlife trade policy review conducted in Vietnam, the income from snake breeding is three to five times higher than the income generated by vegetable and crop cultivation, and several dozen times higher than the income from pig and cattle breeding.

Image: A snake farm in Zisiqiao village.
Photographs: Aly Song/Reuters.

"The harvesting of snakes, and in some cases the initial processing of their skins and other body parts, contributes important revenue to local communities in China and neighbouring countries," Su Chunyu, Executive Director General of the CITES Management Authority of China, explains.

"The Chinese government pays great attention to achieving a harmonious balance between conservation and sustainable use of Asian snakes," he added.

Image: A resident squats next to cobras at a snake farm in Zisiqiao village.
Photographs: Aly Song/Reuters.

Asia's snakes have reared in large numbers for the skin trade since the early part of the 20th century.

Image: A resident holds tails of snakes at a snake farm in Zisiqiao village.
Photographs: Aly Song/Reuters.

Snakes play a vital role within their ecosystems.

If snakes disappear from the rice fields or other crop-producing landscapes of Asia, their prey (rodents) could have devastating effects on agricultural production, food security and national economies, according to a CITES release.

Northeast India May Puncture Maruti’s Drive

Maruti is on a roll in some pockets, but growth roadblocks remain in others. The automaker has made a detailed presentation of its case at the ongoing Citi India Investor Conference.

Maruti looks to ramp up its capacities to 1.9 million units by the end of FY13. Amit Dave/Reuters

The detailed briefing puts you on the inside track.

The Maruti Suzuki management has taken note of public enquiries, which are up 28% year-on-year. But consumers, it said, are holding back on actual purchases due to a string of factors like rising consumer expenditure, inflation and fuel price hikes. The management is all for more incentives to stimulate demand over the next few months.

One look at the growth graph, it’s enough to suggest that regionally South and West India are driving the momentum, but it’s North and East India that are stuttering. Among cities, growth is mostly coming from top 10 cities (10%) and rural India (>15%), but is somewhat losing its way in tier 2 /3 cities.

According to the management, in aggregate it has a cost plus pricing strategy. And within segments, it might not fully pass on costs as it seeks to counter the rising wave of competition. Input costs like steel are up 10% and rubber 20% year-on-year, which the company is still to pass on fully. Over the next 1-2 years, the management is seriously considering stepping up its margin by 100-200 basis points.

The management is looking at 4.5-5 million units as annual sales by 2016. Going forward, the company looks to ramp up its capacities to 1.9 million units by the end of FY13 and will commission a new 1 million unit in Gujarat.

Tata To Launch New Nano

Tata Motors to launch new Nano variants in 2011-12

New Delhi, May 29 : Although the company has not specified anything about the forthcoming variant, it is widely speculated that a diesel version of the car is in the offing.

In a presentation, the company said it will introduce a host of products in 2011-12 fiscal.

"Future products in pipeline for FY'12 -- Nano variants, Vista refresh, Manza limited edition, New Safari, Aria 2WD," the presentation mentioned referring to product line up for its passenger vehicles for the ongoing fiscal.

Currently, Nano is available in three different petrol variants and are priced between Rs 1.41 lakh and Rs 1.97 lakh.

When contacted, a company spokesperson said the firm does not have any detail at this moment.

Enabling Financial Inclusion in Northeast India

By Rana Kapoor

The north-eastern region - comprising the eight states of Arunachal Pradesh, Assam, Nagaland, Manipur, Meghalaya, Mizoram, Tripura and Sikkim - is geographically, ethnically and culturally different from the rest of the country.

While significant initiatives have been taken by the government towards inclusion of the financially excluded in the country, the challenge gets accentuated for the north-eastern region due to its inherent characteristics that make it difficult to implement or replicate the inclusion models adopted elsewhere in the country.

The solution lies in developing low-cost banking models , by leveraging technology and forging local partnerships, and this is an opportune time to actualise execution of the financial inclusion strategy for the north-eastern region.

Inclusive growth has become a national imperative in the past few years, with increased focus from the government, policymakers and genuine initial progress by private sector and financial institutions.

There are several delivery models being practised and experimented in the country, including self-help groups (SHGs), cooperatives, mobile banking, Internet banking, business correspondents (BC), etc. These are being further supplemented by focused initiatives such as UIDAI project and a progressive regulatory environment. The success of a particular model in a region, however, will depend on the strengths and weaknesses of the region.

The regional economy of the north-east is largely dependent on agriculture, and most other economic activity is small scale and heavily dependent on traditional skills of weaving and handicraft. Inadequate infrastructure is another major challenge that isolates the region from the rest of the country.

This has led to the development of a diversely-organised informal financial market in the region, which reflects the creativity of local communities to meet their specific needs. For instance, Manipur has a well-established network of marups system among the Metei community, which has been an effective form of traditional socio-economic organisation that has benefited the community.

While the informal arrangements are working in some regions, the current formal financial systems running in other parts of the country have received limited success in the north-eastern region.

The microfinance movement started late in the region and was confounded by many regional complexities. The SHG movement, which is linked to banks, also could not catch up in the region, due to low branch network of banks, and non-availability of local staff.

Many diverse traditional systems and even geographical conditions of the region make it difficult to replicate the models adopted elsewhere in the country into this region.

The financial inclusion strategy for the north-eastern region needs to be built around the existing developments and trends in the region, and initiatives being taken by the government.

As per a recent report, North-East Migration and Challenges, over 3.1 lakh people migrated from the north-east to mega cities during 2005-09. With a high migration growth rate of 13%, there is a considerable number of north-eastern population that is now residing in the cities. This offers a huge opportunity for remittance solutions that may be flowing to the region.

Mobile penetration in the north-eastern region has increased from 26% in March 2009 to 47% in September 2010. Although less compared to an all-India penetration of 58%, the growth in subscriber base has been steadily rising.

Implementation of UID project at the national level can provide support to enable identity verification of people.

Government's initiatives to revamp the public distribution system through direct cash transfers will require payments infrastructure to be in place.

These trends and opportunities, along with the changing payments landscape in the country, and adoption of technology by banks including smart cards, magnetic strip cards, mobile accounts, mobile wallets, etc, put forth a number of options to design solutions that can be successfully implemented in the region.

A potentially feasible inclusion model for the north-eastern region could be a combination of mobile and smart card-based and business correspondent-based solutions that are supported by micropayment platform.

This essentially will form a large network of business correspondents that is a replica of the ATM network in the country - but at a much lower cost. The network can be accessed by residents through mobile or a smart card to receive ordeposit money, and by government schemes or migrants to remitmoney. I strongly believe that there is ample opportunity for these innovative solutions that can surpass the current regional and geographical barriers and bring more people under the formal financial system.

At Yes Bank , we have been working relentlessly towards developing sustainable models for financial inclusion. We are working towards building a mobile-based model for delivery of crop insurance to farmers by creating an enabling transaction environment that will be accessible through the most simplistic handset.

Last year, we introduced Mobile Money Services that will augment financial inclusion among the unbanked and underbanked consumer segments by bringing financial services to the consumer's mobile device and will create a financial ecosystem that is inclusive, sustainable and scalable.

(The author is founder, managing director and CEO of Yes Bank)

Talent Crunch in India

Talent is getting harder to find in India: Manpower

New Delhi, May 20 : Indian companies are increasingly finding it difficult to find right talent, with 67 per cent of employers struggling to meet their critical-level hiring targets, a survey claimed today.

About a year ago, only about 16 per cent companies were facing difficulties in getting the right talent for critical positions, the survey by staffing services firm Manpower said.

According to Manpower's sixth annual Talent Shortage Survey, India results are well above the global average of 34 per cent and second only to Japan, where 80 per cent of employers are struggling to fill critical positions.

Talent scarcity in India has worsened, as just a year ago, India was ranked 29th among 36 countries surveyed, when 16 per cent of employers faced difficulty to fill jobs.

Explaining the reason behind this talent crunch, Manpower India Head - Sales and Marketing Namr Kishore said "for the last many quarters demand for talent is increasing in India, but the supply is limited as individuals are lacking mission critical skills, resulting in such talent scarcity.

On one had we have a demographic advantage, and on the other hand due to low employability, many of our talent is not employable. It is quite an ironical situation," Kishore added.

In India, the job employers have most difficulty filling vacancies for research and development, sales manager and IT staff, the survey said.

Trailing behind Japan and India in the global list is Brazil, where 57 per cent of employers are having difficulty in finding the right people for the right job.

This is followed by Australia (54 per cent), Taiwan (54 per cent), Romania (53 per cent), USA (52 per cent), Argentina (51 per cent), Turkey (48 per cent)and Switzerland (46 per cent).

Some other factors behind the talent crunch is that during the recession time many organisations chose to let many of the talent go.

As the demand for talent is now increasing, many organisations are now finding it difficult to fill the mission critical positions, Kishore said.

Besides, as organisations are adopting a global way of functioning and becoming more competitive, the skills for the same jobs have changed overtime.

"Time has come when as individuals they are investing in themselves and upgrading their profiles," Kishore added.

Meanwhile, Sanjay Pandit, MD, ManpowerGroup India said businesses need to adopt a long-term approach to ensure they have the right talent that they need.

"While talent cannot be 'manufactured' in the short term, a robust workforce strategy will ensure a company's business strategy is supported by having the talented people they need to execute it," Pandit added.

ManpowerGroup surveyed nearly 40,000 employers across 39 countries and territories in the first quarter of 2011 to determine the extent in which talent shortages are impacting global labour markets.

Source: PTI

Now, It's Cheaper To Fuel Planes Than Cars

New Delhi, May 17 : The increase in petrol prices from Saturday midnight has made the fuel more expensive than aircraft turbine fuel (ATF), used to power planes. The reason is a skewed duty structure.

ATF costs Rs 60.56 a litre in New Delhi. A further price cut of Rs 1.8 was announced on Sunday. Petrol costs Rs 63.37 a litre.

Oil marketing companies (OMCs) price petrol and diesel on a trade-parity basis. The price includes a 7.5 per cent Customs duty. There is no Customs duty on ATF, priced on an import-parity basis. The excise duty on petrol is Rs 8 a litre. There is no excise duty on ATF.

Internationally, ATF prices are usually higher. This year, the average ATF price has been about $134 a barrel in the Gulf and $137 in Singapore. Petrol, known as motor spirit, has averaged $128 a barrel. At the refinery gate, where government oil companies calculate international-parity prices, the situation reverses. For instance, the ATF price was Rs 53,058 per kilolitre at Indian Oil's Mathura refinery last week, while the price of petrol was Rs 50,380 per kilolitre.

Though OMCs are free to price petrol since June 2010, they use the government-dictated formula to calculate the import-parity price, which includes Customs duty and the export-parity price in the proportion of 80:20. This is the refinery transfer price (RTP), on which OMCs add marketing margins and excise duty.

In case of ATF, OMCs use 100 per cent import-parity price, but as Customs duty on ATF is nil, its RTP is lower than that of petrol.

"Globally, ATF prices are usually higher than petrol prices. However, in India, higher taxes and import duties have caused petrol prices to reach the level of ATF (prices)," said S V Narasimhan, former director (finance), Indian Oil.

The Customs duty on ATF was removed in October 2008 when domestic airlines were facing a severe financial crisis. Fuel accounts for 40 per cent of their operating cost.

The ATF price for domestic airlines had peaked to Rs 71,028 a kilolitre in August 2008, when petrol was 30 per cent cheaper than ATF.

Source: Business Standard

Most Common CEO Names ...

Peter and Deborah, according to LinkedIn

By John Johnson



LinkedIn pored over the names of members to come up with the most common in various categories, notes Mashable. The results:

• Male CEOs (in order): Peter, Bob, Jack, Bruce, Fred
• Female CEOs: Deborah, Sally, Debra, Cynthia, Carolyn
• Athletes: Ryan, Matt, Jessica, Matthew, Jason
• Sales: Chip, Todd, Trey
• Engineering: Rajesh, Jeremy, Andrew
• Restaurant biz: Thierry, Philippe, Laurent

Click for other categories or here for speculation on the use of nicknames.

Mahindra Verito Launched

A day after renaming the 'Logan' sedan as Verito and dropping the French automaker Renault's badge, Mahindra & Mahindra also revised the price of the car which will now sell at between Rs 4.82-Rs 5.62-lakh in both petrol and diesel variants, pan-India.

"The Verito, with its unique value proposition aligns with the Mahindra DNA of offering tough, rugged and sporty vehicles. For the first time, we are using social media platforms to unveil a new product, reflecting alternative thinking," M&M's Chief Executive, Automotive Division, Rajesh Jejurikar, said in a statement.

"The earlier Logan will continue to get complete service and spares support from us," he said.

Earlier, the Logan was available in both petrol and diesel variants, priced between Rs 4.67-lakh and Rs 6.47-lakh (ex-showroom) as per the company's website.

Powered by the Renault engine, the Verito is a sedan which remains true to itself and the consumer by offering the unique proposition of space, mileage and performance along with style.

The new Verito retains the famed strengths of the Logan, while adding a new style with some key changes, the statement said.

Verito which is derived from the Latin word 'Veritas' means truth and goes with the overall image of an honest, sensible and dependable car, the company said.

Source: PTI

The Dark Side Of Bournville Chocolate

The eggs roll by, but life at Bournville has a darker side

A Slice of Britain: New owner Kraft won't guarantee long-term jobs, so Cadbury workers fear this is their final Easter

By Emily Dugan

Bournville, Apr 18 : Half the 80 million Easter eggs we eat are made by Cadbury. Production is more automated since the buyout

The air is heavy with the smell of molten chocolate. A rhythmic hiss of pistons is the backdrop to a conveyor belt clattering behind a heavy, closed door. This is room U5, at the top of the Bournville factory, near Birmingham, where Cadbury churns out millions of chocolate eggs every year.

Blobs of brown semi-liquid squelch into rows of concave trays. They are tipped upside-down on a conveyer, hit with hammers, forcing out the contents. It is the last full day of production, the last ovoids rolling off the production line for Easter. Soon the line will be silent.

Somehow the shutting down of the egg line seems more significant, ominous even, than in previous years. Since the processed-cheese conglomerate Kraft took over Cadbury last year, Bournville's workers have been holding their breath. The American multinational has been blunt: it cannot guarantee jobs after March 2012. Its British employees fear this could be their last Easter at the chocolate firm for whom many have worked all their lives.

Their boss now is Irene Rosenfeld, who has little in common with the benevolent Quaker George Cadbury, who opened Bournville – the factory and its surrounding houses for workers – in 1879. Rosenfeld's approach to business is more straightforward: the iron-fisted CEO of Kraft got a 40 per cent pay rise last year for pulling off one of the most aggressive takeovers in British history.

One of the workers she acquired, Victor Fulford, 53, keeps his eye on the flowing machinery. After 36 years at Cadbury he's acutely aware of the change his new boss has brought.

"It's been a busy year. We just hope the sales are alright, but we never know. There's more pressure on us now to get more eggs out. They want everything to get faster and faster. They've got six robots now where we used to have six people, and they have one person running it."

British chocolate lovers eat 80 million Easter eggs every year; around half of these are made by Cadbury. The company's normal share of the chocolate market – less than a third – soars to 50 per cent at Easter.

The annual surge in production meant Cadbury had to ask for extra effort from its workers. The arrival of Kraft has pushed them further still.

Carole Green, 60, looks flustered as she stacks yellow boxes for the eggs. "We've had a few stops and starts with machines playing up today. When I first started here, after I left school, it was a very different place to work. There wasn't so much pressure. There's a lot of pressure at the moment. Then, this room was full of women doing it by hand, so that's changed. It's a mad job now."

Kraft boasts that Carole and Victor work on "the most efficient Easter egg line in the world". But at a price.

Relentless lines of shiny purple-wrapped eggs climb a conveyor then whizz off along a high track to the other side of the room for packing, while robotic arms place chocolate shells on top of one another at dizzying speed.

These are the large shell eggs which will be packaged with bags of mini eggs. For years the bags of small, individually wrapped treats were made at the factory in Somerdale near Bristol. But after the Kraft takeover it was closed amid fury last year. Now the mini eggs are shipped in from Poland.

Wayne Hunt, 41, a heavy-set man who looks out of place crammed between his hairnet and a small stool, is throwing purple eggs into crates. Until recently he worked in the warehouse at Somerdale. He has been transferred. "I started my job on the lorries," he says. "I think if I did this for too long I'd go mad. I'm sick of seeing eggs now. They're everywhere. I don't think I'll eat any now. My kids might, but I'd rather not.

"I've been here for three months: I just moved from Somerdale, where I worked for 15 years, and I'm in the process of selling my house and moving. As an employer, Cadbury's were very good, excellent. As for Kraft, I don't know. We'll soon find out."

Outside, away from the machines, are relentless reminders of George Cadbury's attempt to create the ideal living and working environment. The idyllic surroundings are a world away from the factory's relentless robots and apprehensive staff.

Gary Davies, 54, leans against the factory wall having a cigarette. "I was 16 when I started here. Not a lot has changed yet; it's what happens in March that people are worried about."

"Yeah, it's job security that's the big concern," chips in Roger Griffin, 44. The men both work on the production line producing Roses and they fear the future. "Cadbury used to look after family but they don't do that now. Now it's all about temps."

Like many, the men feel loyal to the old Cadbury: to the idea that, while they worked for a firm, they were part of a family. They miss a sense of unity and history and they don't care much if their new, American masters know it. Stubbing out his cigarette, Griffin manages to both mutter yet speak out for all: "Kraft can't gag us."

Source: independent

How Nokia is Preparing For A Bitter Battle

By Priyanka Joshi


Mumbai, Apr 18 : At the launch of the company's latest communicator device E7, D Shivakumar, managing director and vice-president for Nokia India, was inundated with questions from the media on Nokia's steady decline in market share and gradual increase of Android's - Google's open source mobile operating systems - share in India.

But Shivakumar displayed no signs of irritation while he patiently addressed journalists' queries.

A calm-looking Shivakumar refused to fidget even when a video call demonstrated on the E7 device failed to run during the press event.

He instead got company's brand ambassador Shah Rukh Khan to address the media about the newest device and his experiences with the E7.

In simple words, managing the media and its queries now comes easily to Shivakumar: after all, he has been managing the India business for the Finnish company for about five years.But behind a facade of calm Nokia is preparing for a bitter battle for market shares.

While at the lower end of the market, smaller local manufacturers are giving the world's top cell phone maker a run for its money, at the upper end - in the critical smartphone segment - Nokia is struggling against stiff competition from innovative software makers Apple and Google.

It is the availability and success of Google's free open source Android platform that has made entry and expansion in the smartphone market easier for a number of hardware manufacturers in India which have chosen to join Android's ecosystem, especially at the mid-to-low range of the smartphone market. This is where Nokia has been hit the hardest.

A comeback is being planned at Nokia. In India, Shivakumar and his team are busy pushing out services and utility tools on mobile devices that will improve the user interaction with the internet.

"We have added 5 million songs on our music service, introduced accurate real time crop data for farmers at Rs 30 per month, bundled data plans with handsets to encourage free surfing on mobile, and even introduced social networking phones at the mid level," lists Shivakumar.

The company is now eyeing the replacement market that is expected to get people to switch to bigger "trustworthy" brands like Nokia.

"It's time we leverage our market position and brand in emerging markets to increase sales here," says Shivakumar.

Nokia India, which is second biggest market for the company after China, contributed 2,809 million Euros (Rs 18,000 crore) to the company's worldwide sales in 2009.

To put things in perspective, the Indian mobile handset market has grown by 30.17 per cent from 116 million handsets as on December 31, 2008, to 151 million handsets as on December 31, 2009, as per Analysys Mason data.

The growth has been driven by the growth in mid-priced devices - in the range of Rs 2,000 to Rs 5,000.

Market research firm CyberMedia Research recently released a report that predicted the Indian mobile handset market to grow 25 per cent by volume in 2011 to 210 million units with smartphones contributing sales of nearly 12 million units in 2011.

"Smartphones are mobile devices with evolved operating systems, that include Symbian Series 60, Android OS, iPhone OS, Blackberry OS, Linux among others," says Siddharth Neri, analyst, mobile devices research, India telecoms practice at CyberMedia Research.

Nokia's India act

Having seen a market share erosion of more than 40 per cent in the last three years in India, Nokia is keen to uphold itself as a brand that can be trusted - a direct answer to naysayers who suppose the local handset brands have eaten into Nokia's share at the entry level.

This also explains why the Finnish giant is wooing popular Bollywood stars like Shah Rukh Khan and Priyanka Chopra as the brand ambassadors for its devices who can communicate the "trust" factor to the consumers.

Shah Rukh Khan, who reportedly tested the E7 before it was launched, is seen promoting the device on ad breaks during the Indian Premier League telecast on television.

But smart marketing will not alone save Nokia and the company knows that. That's why Shivakumar says, "Nokia excels at providing low-cost handsets in high volumes - affordable, simple user interfaces and handsets with software that one can consume and not just fancy."

Nokia claims that it has fine-tuned its approach for the entry level. "We will launch several low-cost dual SIM handsets with features like camera and radio that are much in demand," says Shivakumar.Nokia can take comfort in the fact the brand still rules over the mobile handsets market in India with a 56 per cent top-of-mind recall followed by Samsung and then LG.

As per the Mobile Handsets Usage And Satisfaction Study 2011 of over 4,425 respondents conducted by CyberMedia Research, Nokia remains the most well recognised brand in terms of 'total awareness', but emerging Indian brands like Micromax and Spice too have managed to attract a large following.

But competition is breathing down Nokia's neck.

At last count, well over 200 mobile handset brands were available at retail outlets across the country, according to CyberMedia Research (CMR).

According to Anirban Banerjee, associate vice-president, research and consulting, CMR India, "Indian handset buyers are increasingly more feature conscious, applications aware and value conscious, rather than being plain 'brand loyal' in the traditional sense of the term."

He adds, "Emerging mobile handset players with their highly innovative features have been able to influence the first time buyers, especially the youth and blue collar executives."

It is not only competing with established brands like Research in Motion, the maker of BlackBerry, Apple and Samsung, but Nokia has to also beat the threat from smaller local players, who have unleashed a virtual tsunami of copycat models with almost similar features that match those of high-end branded models, but at much lower prices.

Result: Brands like Micromax, GFive, Spice, among others have already grabbed a sizeable chunk of the domestic handset market.

Korean electronics giants LG and Samsung have already upped their R&D focus to make value additions for Indian mobile users.

Samsung says it has made significant investments in its software R&D centre in Noida and has a team of 20 engineers working on customising smartphone platforms for Indian users. Samsung India Software Operations Vice-president Dipesh Shah says, "We are sure to capture a market share of at least 40 per cent in 2011."

Shah is hopeful that the company's Andriod-based smartphones as well those running on Bada, its own mobile operating system, will provide the brand enough differentiation to give it a big market push in 2011.

The confidence stems from the fact that Samsung puts over 8 per cent of its global spends into R&D every year and India is amongst the only four markets to have a dedicated product innovation team outside the US, UK and China.

LG, too, is betting big on smartphones. It plans to launch 10 handsets under its Optimus smartphone brand this year, which will include a 3D phone as well as a dual-core processor (faster processing power) phone.

"With Optimus models we will have smartphones in the high end as well as for the first-time smartphone users. Since the demand for smartphones is accelerating with 3G in India, LG expects to generate 20-25 per cent revenue from new smartphones," says Vishal Chopra, business head, mobile communications, LG India.

Nokia had announced its new strategy, leadership team and operational structure for devices and services business on February 11, 2011, designed to focus on speed, results and accountability.

Effective April 1, 2011, there will be two business units: Smart Devices, focused on smartphones, and mobile phones, focused on mass-market mobile phones.

"The new strategy also involves changing our mode of working and culture to facilitate speed and agility in our innovation, product development and execution and accountability for results," lists Shivakumar.

The Micro (soft) bite

Last month, a broad strategic partnership was announced between Microsoft and Nokia. Microsoft's Windows Phone would serve as Nokia's primary smartphone platform, announced Nokia's new CEO Stephen Elop, himself an ex-Microsoft employee.

"A renewed approach to capture volume and value growth to connect 'the next billion' to the internet in developing growth markets," underlined Elop.

What he didn't say was that other smartphone platforms with their related ecosystems have continued to gather momentum and market share, specifically Apple's iOS proprietary platform and Google's open source Android platform.

Until very recently, Nokia believed its competitive position in smartphones could be improved with Symbian - that's when it launched the Nokia N8 device that supported Symbian 3 OS.

Shivakumar too concurs that for the long term the Symbian platform will not be sufficient in pocketing the smartphone users.

Last month, Nokia even outlined the risks of its decision to partner with Microsoft, in a regulatory filing highlighting many of the issues raised by critics, primarily the hiatus period before it can launch devices running Windows Phone 7 (WP7) - a period that condemns the company to another year in the smartphone wilderness.

Nokia says it is aiming to expand the Microsoft operating system into mass markets, and even wrote in the regulatory filing that, "This strategy recognises the opportunity to retain and transition the installed base of approximately 200 million Symbian owners to Nokia Windows Phone smartphones over time. We expect to sell approximately 150 million more Symbian devices in the years to come, supported by our plan to deliver additional user interface and hardware enhancements."

Other risk factors highlighted by Nokia include the relative immaturity of the Windows Phone 7, a mobile operating system developed by Microsoft as the successor to its Windows Mobile platform.

"The Windows Phone platform is a very recent, largely unproven addition to the market focused solely on high-end smartphones with currently very low adoption and consumer awareness relative to the Android and Apple platforms, and the proposed Microsoft partnership may not succeed in developing it into a sufficiently broad competitive smartphone platform," says the document, which acknowledges that other "more competitive alternatives" might have delivered market share more rapidly.

Back in India, Shivakumar does not even bat his eyelids as he replies to a query on effect of the partnership in India. "It's a win-win deal," he quips.

"India is set to become a 4 million unit smartphone market by 2014 and the Windows 7-Nokia platform is intended for the smartphone devices."

And while Shivakumar admits that older mobile operating systems like Symbian didn't stand a chance against new mobile OSes like Android and Apple iOS, Nokia is certain the new Windows 7 platform will be the key to