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26th July 2012 01st August 2012

IN BRIEF
COVER STORY
INDIAS POWER WOES
ECONOMIC INDICATORS
Rs Vs. Dollar (31st July) Brent Crude (1st Aug)

55.64

$104.41

PERSONALITIES OF THE WEEK

Rajiv Bajaj

Sharad Pawar

CORPORATE INTELLIGENCE

NEWS DIGEST
BUSINESS NEWS GLOBAL & MISC NEWS MARKETING NEWS

RBIs SLR cut may force banks to lower the loan rates

Great Britain likely to fall in to Triple-Dip Recession by next year

Nimbuzz: Getting personal with marketing

ECONOMIC INDICATORS 2 COVER STORY 3 PERSONALITIES OF THE WEEK 4 CORPORATE INTELLIGENCE 5 NEWS ANALYSIS 6 NEO CORNER 11 MKTG NEWS

PART TWO

KNOW YOUR BASICS: INDIAN PORTS TRAFFIC (2012 tentatiive) KNOW YOUR BASICS: INDIAN PORTS TRAFFIC (2012 tentat ve)

in '000Tonnes

ECONOMIC INDICATORS ECONOMIC INDICATORS

Rs Vs. Dollar 55.64 (31st July) Source: BS The value of the national currency can be a somewhat effective tool to gauge the international outlook on a countrys economy. As a rule of thumb, the cheaper the currency the better for exporters. It is the other way round for importers. However too cheap and you end up with a meaningless currency that is just so much paper. The Indian rupee has been having a tough time this past month. At the end of July 31st, the rupee continued to show weakness as the RBI didnt budge from its hard stance and left key interest rates unchanged. With lowering international investor confidence, the rupee is not out of the woods yet. With global economic uncertainty on the rise, the outlook for the rupee depends on global risk perception. The paralyzing power cuts arent exactly filling investors with confidence either! Brent Crude - $ 104.41 (1st Aug) Source: Reuters Crude Oil can easily be considered the lubricant that ensures the gears of the global economy dont grind to a halt. Therefore the prices of Crude oil influence economic outlooks to a very large extent. For India considering that the majority of our imports consist of crude oil, tracking crude prices is a good way to understand what lies ahead for the Indian economy as indirectly it influences inflation and is also related to the value of the rupee as a cheaper rupee makes buying crude all the more expensive. The US & China are top oil consumers and thus how their economies are doing influences crude oil prices. The latest data shows that manufacturing outlook in China is down (Chinas Purchasing managers index went to 50.1 which is below expectations). The US is already in a slump and there were expectations of a stimulus package, but as consumer confidence rises in the US, the chances of that happening have also dropped. As a result, Crude oil prices saw a marginal drop. How much the global economy slows down will decide how far crude prices will in turn, drop.

CHARTS & GRAPHS INDIA BUSINESS CONFIDENCE (1995-2012) CHARTS & GRAPHS INDIA BUSINESS CONFIDENCE (1995-2012)

Tradingeconomics

n India, business confidence declined to 134.9 in April of 2012 from 145.2 in January of 2011. In India, the NCAER (National Council of Applied Economic Research) - MasterCard Worldwide Index of Business Confidence measures the level of optimism that people who run companies have about the performance of the economy and how they feel about their organizations prospects. The survey incorporates four indicators: overall economic conditions six months from now, financial position of firms six months from now, investment climate and capacity utilization level. The data is collected through personal interviews and questionnaires sent to a diverse range of businesses across various regions in India. Historically, from 1995 until 2012, India Business Confidence averaged 129.2900 reaching an all time high of 162.1000 in October of 2010 and a record low of 68.3000 in June of 1998.

COVER STORY- INDIAS POWER WOES COVER STORY- INDIA S POWER WOES In the heart of darkness: India witnessed a power outage on 30 July 2012 in northern India followed by
another on 31 July due to northern and eastern power grid failures. The collapse threw almost twenty states in sudden darkness. It disrupted metro and train services, threw water distribution network out of order and choked roads due to dysfunctional traffic lights. For some time, the country came to a standstill as most of the Indians commonly shared a problem that is by and large taken to be the prerogative of the poor.

hat leads to a grid failure? The blackout may have occurred due to a host of reasons. Coal

shortages on the grid and excessive drawing of electricity by some states may have increased the load on power grids. The delayed monsoon kept the hydroelectric generation low, further exacerbating the problem. Hydropower accounts for about 20 per cent of installed power capacity but reservoirs have only 24 per cent of the water they can hold. It is just about half of what they carried at this time last year. Farmers relying more on water pumps to irrigate their fields in the absence of rains have further led to increased electricity consumption.

India's power shortage: Those who are trying to find an immediate solution to
address the power issue are either fooling themselves or trying to save face. The reality is that the malaise afflicting the power sector runs very deep. In simple terms, the power sector has just not kept pace with a fast growing economy. Between 1980 and 1990, Indias power generating capacity grew by 124 per cent, however in the subsequent decades it has grown by 58 per cent and 75 per cent respectively. The pace of capacity addition was particularly slow in the 1990s, a decade in which policy planners somewhat wishfully assumed that the private sector would step in to add a large chunk of capacity, but even the pick-up in recent years has been far from adequate. In the 11th Plan period (2007-12), for instance, the targeted capacity addition was 78,700 MW. What was actually achieved was closer to 50,000 MW, a shortfall of about 36 per cent.

hy has power generation not gone up proportionately? Our state electricity boards

(SEBs) are reeling under a combined debt of around Rs 2 lakh crore. They are finding it hard to keep themselves running, leave alone investing in capacity creation. The financial mess of these SEBs is a result of government populism which forces them to offer free or near free electricity to farmers and some sections of the society. Offering free electricity often features as the most basic giveaway by political parties in their poll promises which makes matters worse for SEBs. In theory, state electricity regulators have the right to fix tariffs on a rational basis and without any political influence. However, it is common knowledge that state governments finally have their way by appointing their own regulators. The changing pattern of consumption has further deteriorated the situation. While in the 1980s, commercial and industrial consumers accounted for 66 per cent of total consumption, the numbers declined to 48 per cent by the end of 2000s. During the same period the share of domestic consumers increased from 11 to 21 per cent. Given the fact that tariff for commercial and industrial consumers is much higher than for domestic consumers, the SEBs further went into financial abyss. The farm sectors share in power consumption rose from 17.6 per cent in 1980-81 to 31.4 per cent in 1998-99 and came down to 21 per cent by the end of 2000s. This suggests that even though the government has made power cheap or free for the sector, farmers are not benefitting much due to erratic supply. Even though we have serious dearth of power and immediately require capacity creation, the existing power situation could have been significantly better were it not for two major factors. First is called transmission and distribution (T&D) losses. Simply, it means theft of electricity. Since somebody has to pay for that power, legitimate consumers end up doing so by way of tariffs calculated using the T&D losses as a given. Second is called plant load factor (PLF). If a plant has an installed capacity of 2 lakh MW and the PLF is increased by 10%, it would result in the generation of 20,000 MW of more power. But the sorry state of affairs of SEBs ensures that they cant invest even this much in their plant equipment. So at the end, SEBs are left with the option of drawing more power from the grid; and when everybody plays the same game, blackouts like these is the obvious result.

The road ahead: Experts believe if India is to grow at 8 per cent, the
power sector needs to grow at 6.5 to 7 per cent. Government must introduce competition in the generation, transmission and distribution of electricity to enhance productivity. Abolition of 1973 Act which nationalized coal mining may pave way for efficient miners to scout for coal. An independent watchdog which can withstand political pressure and oversee efficient distribution of power is highly required. And more importantly, electricity must let not be held hostage to populist tendencies. Instead of gifting it away, one should make people earn it.

PERSONALITIES OF THE WEEK PERSONALITIES OF THE WEEK

Rajiv Bajaj

Managing Director, Bajaj Auto

In my view, the word that Honda owns is Quality, Hero owns is Mileage, Bajaj owns is Power, Yamaha owns is Style, & TVS owns is Cheap (not in a bad sense) but as in least expensive.

Bajaj Auto in the past six decades has witnessed a constant upward evolution which is second to none; through four generations of leaders. The Managing Director of the worlds third largest motorcycle manufacturer is surely taking his family legacy ahead. His great grandfather Jamnalal Bajaj founded the Bajaj Group; his grandfather initially started the business of selling imported motorcycles in India & then moved on to manufacturing them; his father gave India its first & most reliable scooter - Chetak & created the Hamara Bajaj brand; and now, the fourth generation leader Rajiv Bajaj gave the Indian youth their first powerful yet affordable bike Pulsar, in the era that was dominated by small & fuel efficient bikes, thus completely transforming the companys image from being a reliable scooter maker to powerful bike maker. Getting over with Hamara Bajaj!!! Rajiv Bajaj holds a bachelors degree in Mechanical engineering from the University of Pune and masters in Manufacturing Systems Engineering from Warwick University, UK. Soon after he finished his masters he joined Bajaj Auto in 1990 and worked in the manufacturing & supply chain department for five years. He then moved to the R&D department where he oversaw the development of new bikes. Under his stewardship Bajaj built the premium bike Pulsar which was launched in 2001. He headed the Marketing & Sales department of Bajaj in 2000-2005 and was the man behind the extensive marketing of Pulsar which instantly became a hit amongst the youth. He was elevated to the position of MD in 2005. Trouble in Paradise!!! In 2008, Bajaj was in trouble with failures like Caliber, XCD & Wind. His father & Bajaj Auto chairman wanted the company to go back to its comfort zone and start producing scooters again. But he was firm on his stand to remain in the bike segment and designed a turnaround strategy that brought back the company to its numero uno position. Today Bajaj is Indias second largest bike manufacturer and a market leader in the premium segment of bikes with a 48% percent market share. The young leader, who heads the company that came up with the DTSi technology, always believed that innovation comes from within & that acquired technology does not work in the long term. Like his fore-fathers he is also a visionary who has seen opportunities no one else noticed and leveraged them. The Bajaj scion has now bigger dreams - to increase the brand presence of Bajaj across the world and ultimately achieve his fathers dream - to make Bajaj Auto one of the finest motorcycle manufacturers in the world.

Sharad Pawar

Minister of Agriculture, Government of India

Indian farmers are really worried. They have been badly hit by inadequate rainfall in the past two months making their future uncertain. If the drought like situation occurs, many would resolve to commit suicide. Their minister - Sharad Pawar, who has hinted at a relief package for the distraught farmers, however is more worried about other issues. The reasons that have caused discomfort to the agriculture minister are Pranab Mukherjees selection as President of India, rising status of Rahul Gandhi in Indian National Congress, his declining power in the Cabinet & he was not a part of the committee that elected the President and finally his enemy - Sushil Kumar Shindes possible appointment as the Home Minister & leader of Lok Sabha. Pawar who is known to be a workaholic, abandoned cabinet meetings to protest the ongoing scuffle in the cabinet. He demanded that being a senior politician he should be given number two position in the cabinet and NCP should be involved in the decision making process for the nominees selection for Prime Minister & President post. The Indian National Congress could not deny the influence this warlord from Baramati has on politicians and the repercussions of ignoring his demands. They finally selected him as head of the non-Congress partners in the UPA. Biography in Brief... Pawar was born in Baramati, Maharashtra and he completed his graduation from BMCC in Pune. Soon after finishing college he entered politics and joined the undivided Congress Party. After a brief stint, he left the party to form a coalition with Janata Sangh and became the Chief Minister of Maharashtra in 1978. Since then Pawar has been appointed as the CM of Maharashtra four times. He has served as the Minister of Defence, Chairman of the Board of Control for Cricket in India (BCCI) and as the President of International Cricket Council (ICC). He was amongst the candidates considered for nomination of Prime Minister in 1991 but the post ultimately went to P.V. Narasimha Rao. He is the founder & current President of Nationalist Congress Party (NCP) & joined the UPA government in 2004 to become the Agriculture Minister. Corruption, Scandals & much more... Pawar has been accused in the past of corruption & aiding criminals. He has also been allegedly involved in stamp paper & land allotment scams. He has been in the limelight for controversies like IPLs exemption from tax, assets declaration, Lavasa & hike in the prices of agricultural produce. The agriculture minister is also known for his infamous quote wherein he stated the rate of farmer suicides in India is a normal thing.

With the monsoon playing hide and seek, it is a challenge for our farmers and scientists to maintain the food-grain output achieved in the last two years

CORPORATE INTELLIGENCE - PIONEERS OF FOOD & BEVERAGE INDUSTRY CORPORATE INTELLIGENCE - PIONEERS OF FOOD & BEVERAGE INDUSTRY
BAKED FOOD INDUSTRY: According to a report by Research and Markets, the Indian baked goods industry ranks
third in the processed food sector with market size of around Rs. 27,500 cr. It also mentions that the shining star of the sector remains the biscuits industry. Within biscuits, 3-4 large-sized players viz. Britannia, Parle, ITC, Cadburys comprise three-fourths of the market & the rest is covered by breads & cakes. The ratio of organized & unorganized sector in biscuit industry is 65:35.

Britannia Industries Limited (Biscuits, Dairy Products, Ready to cook food)

Overview: Britannia has a vast repertoire of products serving both mass & premium segments. It has continuously innovated with its products according to changing customers needs. Britannia entered the dairy products market by forming a joint venture with New Zealands Fonterra which is the worlds second largest dairy firm. Today, its not only a leading name in the biscuit industry but also growing rapidly in the dairy industry & ready to cook food segment. Founded: 1892 Key people: Nusli Wadia (Chairman), Vinita Bali (MD) Revenues: Rs. 5,553 cr

Strong Brand Presence: Britannias ad campaigns have been very successful & effective; its famous campaigns include Britannia khao world cup jao & Subah nai, nai hai shuruwaat. Its glucose biscuit Tiger for the mass market is very popular & competes with Parle G which is the largest selling biscuit in India. Today it has a stronger brand presence than its competitors such as Parle G, Amul, Nestle & ITC, in certain categories.

BEVERAGE INDUSTRY: The Indian non-alcoholic drinks market was estimated at around Rs. 33,000 cr. There are
numerous factors driving the growth of non-alcoholic drinks market in India like increasing disposable incomes and urbanization. Aerated & fruit juices are the fastest growing segments in the beverage industry followed by energy drinks.

PepsiCo India (Pepsi & other aerated drinks, Energy drinks-Gatorade, Fruit Juices-Tropicana, Snack Food-Frito lays, Quaker Oat)
Overview: PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, PepsiCo has since then expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include the acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001which added the Gatorade brand to its portfolio. Key people: Praveen Someshwar (CEO, India Foods), Gautham Mukkavilli (CEO, India Bev.) Revenues: Rs. 4,015cr (FY11) Game Changer: PepsiCo India which is part of PepsiCos Asia, Middle East & Africa division which contributed 11% total to global revenues, showcased double digit revenue growth in the most recent quarter. PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage businesses in India. With an investment of over Rs. 5500 cr, PepsiCo India has built an expansive beverage and snack food business. Interestingly the snack business is more profitable than beverages. In India, it is competing with Coca-Cola in aerated beverage market, ITC in snack segment & Dabur in fruit juice market. In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to achieve Positive Water Balance in the beverage world.

DAIRY INDUSTRY: According to ASSOCHAM, India is the largest producer of milk in the world & is expected to
touch Rs. 5 lakh crore by 2015, with milk output pegged at 190 million tonnes at the end of the period. It is growing at a rate of 10% & accounts for 20% of global milk production. Biggest entry barriers are poor infrastructure & fluctuating milk prices. The private sector can play a pivotal role in reducing the cost of milk production by employing advanced techniques to enhance productivity, providing breeding facilities for cattle and by developing processing and marketing infrastructure.

Amul (Milk & milk products, Dairy Whiteners, Ice-cream & confectionaries)
Overview: Amul is an acronym of Anand milk union limited; it is a brand name managed by Gujarat Cooperative Milk Marketing Federation ltd. Amul is the largest food brand in India and world's largest pouched milk brand. Founded: 1946 Key people: P G Bhatol (Chairman), Dr Verghese Kurien (Founder) Revenues: Rs. 12,000 cr

Taste of India: The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. It established a direct linkage between milk producers & consumers by eliminating middlemen. Amul has a very good brand presence & is popular for its witty ads. With the increasing demand for dairy products Amul has braced itself & is competing both domestically & globally with brands such as Britannia & Nestle.

NEWS ANALYSIS NEWS ANALYSIS

1) Indian Government rejects ZARA brands proposal to launch Massimo in India Reuters/ET IMPACT: The Foreign Investment Promotion Board (FIPB) has rejected ZARA Holdings proposal to launch the high end Massimo Dutti brand in India. Inditex S.A., a Spanish fashion group, owns both the ZARA & Massimo Dutti. Zara Holdings plans to launch Massimo apparel brand in a 51% joint venture with Tatas retail subsidiary Trent Ltd which operates the Westside apparel chain in India. Although FIPB has not given any specific reasons, it is speculated that the FDI policy clause which states that the foreign investor must own the brand it proposes to retail has created a roadblock for Inditex. ZARA a wholly owned subsidiary of Inditex, wants to launch its parent groups subsidiary Massimo. The Department of Industrial Policy and Promotion (DIPP) is now considering making changes in the FDI policy. The department understands that many large conglomerates operate in this manner and thus India may lose out on investments if it does not change the direct ownership clause. KEY PLAYERS: ZARA, FIBB, DIPP, IKEA WHY IT IS IMPORTANT? Many foreign investors have raised the issue of lack of clarity in the FDI policy. India in November 2011 allowed 100% FDI in single brand retail with a clause of compulsory sourcing of 30% of raw materials from Indian MSMEs. Swedish furniture maker IKEA, who wants to invest up to $1.5 billion euro in India, recently, asked officials to relax the sourcing norm. India wants to attract more investments but foreign investors are making demands that the government cannot fulfill without hampering domestic small scale industries. 2) Yamaha Motors to sell Indian made deluxe bikes in Japan ET/BS IMPACT: The Indian subsidiary of Japanese motorcycle giant - Yamaha Motors will export superbikes like R15 & FZ manufactured in India back to Japan. Yamaha, which had set up its first manufacturing facility in India in mid 90s, will first launch the R15 and then FZ in Japan. The 150 cc superbike R15 which costs around Rs. 1.15 lakh in India will be sold at around Rs. 2.45 lakh in Japan. If the response is good it shall take these superbikes to European countries like Spain & Portugal and to Eurasian country Turkey. Yamaha has joined the likes of Royal Enfield Motors who have managed to export two-wheelers made in India to developed nations. The motorcycle standards for developed nations are much higher than that of developing countries. However, analyst say that cars manufactured in India have already made their way in to the developed countries, so Yamaha does not have to worry in terms of quality. Indias second largest automaker Bajaj Auto is also amid talks to export its bikes in Latin American countries & TVS Motors, known as the least expensive bike maker, exports to African & ASEAN nations. KEY PLAYERS: Yamaha Motors, Bajaj, TVS WHY IT IS IMPORTANT? In the 1990s when the Indian motorcycle market was booming, major Japanese motorcycle manufacturers partnered with Indian companies. Yamaha chalked out a strategic partnership with Escorts Group, Suzuki with TVS and Honda with Hero Group. However by 2012 all these joint ventures fell apart & the Japanese companies launched their wholly owned Indian subsidiaries. Currently India Yamaha Motors is the fourth largest exporter of motorcycles with over one lakh unit exports, way behind top exporter Bajaj Auto which shipped over 1.94 million units in FY12. 3) Great Britain likely to fall in to Triple-Dip Recession by next year Reuters/Bloomberg IMPACT: The second quarter results have showcased a gloomy picture of the UK. The country which has its austerity policy in place is getting into deeper economic troubles. The GDP in second quarter fell by 0.7% from the first quarter its steepest fall since 2009. The service sector which accounts for almost 73% of the GDP also decreased by 0.1%. The construction sector in particular, which was the fastest growing sector since 2010, also contracted by 5.2%. Finance Minister George Osborne has said that the economy has been sinking at a rapid rate since last year. The austerity measures, which have been touted as flat-lining economic recovery by opposition leaders, are not showing results as fiscal deficit still remains at 8% of the GDP. Analysts said that the Olympics could help boost the economy as foreign nationals would spend in the UK during the games. But this is not a major relief and the country is still struggling to survive the economic slowdown. It is also predicted if the exit of the Greek currency would further increase UKs troubles and it might again fall in to its third depression since 2009. KEY PLAYERS: United Kingdom, Eurozone WHY IT IS IMPORTANT? UK has implemented some of the toughest austerity measures. It has the lowest interest rate at 0.5% and the government had last month ordered the printing of more money, worth 50 billion euros. The Bank of England aimed at buying outstanding bank loans by paying in cash. After the results, Osborne said the government does not have any more funds to induce into the economy.

4) The Olympics effect on world economies TOI/FT/DNA IMPACT: According to a new report by Grant Thornton International, developing economies perceive big sporting events like the Olympics as helping them attract foreign investments. BRIC & Latin American nations have voiced their opinion that hosting sporting events do attract inwards investments. But on the contrary, developed countries do not think such events make any difference in their inward investments pattern. Developing economies lack infrastructure like sports venue, hotels, transport; & attract investments in those areas. Besides it gives them a chance to showcase their capabilities like better infrastructure, consumer base and willingness to be a part of the global village, thus attracting future investments and tourists. In case of developed economies, the infrastructure is already in place and there is no need of major additional investments. Analysts had predicted that the 2012 Olympics would boost UKs economy which entered a double-dip recession in first quarter of 2012. Although the viewership of Danny Boyles spectacular Olympics opening ceremony was about one billion worldwide, it is reported that London has not attracted many tourists during the ongoing games. KEY PLAYERS: Olympics, UK, Athens, Australia WHY IT IS IMPORTANT? If past data is studied, it comes to light that along with positive effects, Olympics do have negative effects on the economy of the host country. When Athens hosted Olympics in 2004 it invested hugely in the infrastructure and the event was a grand success. However, it was seen that in following months the industry saw loss of over 70,000 jobs mainly in the construction sector. The venues that were built were of not much use to the country as it could not be utilized for any economic activity. 5) Snapdeal seals a deal with General Atlantic ET/BS IMPACT: Indias e-commerce company, Snapdeal is in the process of signing a deal with the global equity investment firm General Atlantic. The investment company which has in recent years invested over $1 billion in Indian firms will acquire a stake in Snapdeal. General Atlantic along with existing Snapdeal investors Nexus, Bessemer & IndoUS Venture Partners will raise an amount of Rs 440-550 crores. Last year, Flipkart was planning to sign a deal with General Atlantic, but the talks went sour as the investment firm under-valued Flipkarts stake.Banking experts say valuations of stocks have dropped to 1-2 times of revenue from earlier 4-10 times. Snapdeal has targeted revenues of Rs. 600 crore in FY13. This is the first time General Atlantic is investing in an Indian e-commerce industry. KEY PLAYERS: Snapdeal, General Atlantic, Flipkart WHY IT IS IMPORTANT? Rivals Snapdeal & Flipkart - the key players driving online retail industry have different business models. Snapdeal follows e-bays model wherein it provides a platform that connects consumers to retailers, Flipkart uses Amazons inventory based model. Flipkart was launched in 2007 & Snapdeal in 2010. But Snapdeals generated higher revenues within two years whereas Flipkart took over four years to generate substantial revenues. It is believed that Snapdeals no inventory model led to its early success. 6) Job-snatcher turned employment generator Indian IT cos gain popularity in US- The Hindu/ET IMPACT: Recently while addressing the Asia Society in USA, Indias Ambassador to the U.S, Nirupama Rao dismissed talks about India growth story being oversold which gained buzz in last one month after former US Secretary of State Madeleine Albrights comments. She also commended the role of Indian IT companies in US. This is clearly visible in the hiring trends of Indian giants like Infosys, TCS, Wipro & HCL. Wipro currently employs 3,500 local staff in its US operations, while the number stands at 1600 for Infosys. Both Infosys & TCS are expected to employ 2,000 more Americans this year. Wipro aims 50 per cent of its operations to be carried out by locals while HCL's North America office already consists of more than two third local employees. Even smaller firms like MindTree, NIIT and Zensar Technologies are seen following the same trend. KEY PLAYERS: IMF, US Government WHY IT IS IMPORTANT? The shift in hiring-strategy might not seem significant on comparing the size of software companies; nonetheless it makes great business sense as pointed out by one of the Ernst & Youngs analysts. Indian IT companies have faced several hurdles in past few years over the outsourcing issue. Total number of H-1B visas (required by IT firms) has been restricted to 65,000 from the peak of 195,000 in 2001. Last year in August, the fee on H-1B visas was doubled by US. Hence, the companies have started shifting bases to USA, an approach supported by the US government in the form of tax incentives and grants. Further, they have been able to enter government and healthcare sectors in US by employing local people as outsourcing of these jobs is restricted by US laws. Plus locals are anyway preferred in such permanent jobs as these require deep local knowledge and domain expertise.

7) ECB struggles to find formula for resolving Eurozone crisis- ET/Reuters IMPACT: European Central Bank (ECB) president Mario Draghi tried to improve investors mood after hinting that he would take steps towards lowering Spanish and Italian borrowing costs. It has been speculated that ECB, which will announce its latest interest rates on Thursday (Aug 02), will probably find a way to resume bond-buying from weaker economies such as Italy & Spain. However, it will have to face serious opposition from Germany. The economic powerhouse of Europe says that such steps would release pressure from debt ridden governments of Italy & Spain, which already find it difficult to stick to their austerity measures and economic reforms. Italian Prime Minister Mario Monti & French President Francois Hollande have meanwhile tried to convince European leaders to allow European Rescue fund be used for buying bonds, a step which Germany again finds on the wrong side of European Union treaty. KEY PLAYERS: ECB, Mario Draghi, Germany WHY IT IS IMPORTANT? ECBs worries have increased in recent days as economic data shows increased outflow of capital from Spanish banks while unemployment has reached at its peak level of 11.2 per cent across the 17 nation Euro-block. Though the country faces internal resistance from applying for a bailout, it is the most likely solution for its crisis. Analysts say that if that happens, Italy, an economy twice the size of Spain would be more than eager to follow suit. Greece on the other hand is already waiting for the next instalment of aid from international lenders. 8) RBIs SLR cut may force banks to lower the loan rates- Hindu Business Line/ BS IMPACT: Despite a coherent demand for a cut in policy rates from industry and banks, RBI in its much awaited policy review refrained from doing so. Instead it has cut statutory liquidity ratio (SLR) by 100 basis points to 23 per cent. CRR is also left unchanged. Updating its projections the central bank has stated inflation to be at 7 per cent in FY13 up from 6.5 per cent projected in April monetary policy review. Projections for GDP in FY13 also see a sharp change from 7.3 per cent to 6.5 per cent. The cut in SLR is expected to lower the bulk deposit rates, allowing banks to cut loan rates in retail space and working capital finances. Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan has come out in support of RBIs move. He said that as inflation remains high, changing the repo rate would have sent a wrong signal. KEY PLAYERS: Reserve Bank of India WHY IT IS IMPORTANT? Statutory liquidity ratio refers to the amount of (such as Gold and Central/State government securities) that banks must reserves other than cash. RBI, which is entitled to increase this ratio up to 40 per cent, often uses inflation and fuel growth. It is expected that SLR cut will release around Rs 65,000 crore in the banking in turn will ease credit flow which eventually would benefit the retail and corporate borrowers. liquid assets maintain as it to contain system. This

9) Its boom time for event management business in India- ET/ EEMA IMPACT: Event and Entertainment Management Association (EEMA) along with Ernst & Young has released its first ever white paper on Indian events and activation industry. Estimated to witness a remarkable 50 per cent growth in next two years the industry might reach a size Rs 4,375 crore, up from its current size of Rs 2800 crore. The size excludes the major revenues from telecast rights of sporting events. The growth is driven by events like weddings, sports and below-the-line (BTL) promotional events. The report categorises the services offered by event management companies under three key segments: Intellectual Properties (IPs) (such as IIFA and Mirchi Music Awards) Managed Events (managed by third parties) Activations and promotional campaigns for brands Analysts say that the margins in managed events and activations are very thin while IPs provide maximum opportunity for making profits. The white paper also proposes a model for measuring RoI (return of investments) in case of heterogeneous services, as BTL promotions lack any universally accepted measurement metric till date. KEY PLAYERS: EEMA, Ernst & Young WHY IT IS IMPORTANT? The Indian event management industry has seen a CAGR of more than 15 per cent in last four years. However, largely its still unorganised and hence faces challenges in getting finances from PE firms. At the same time larger players which have acquired smaller ones in last few years have been able to raise capital from the same PE firms. Moreover, despite inherent challenges some of the Indian firms have gained expertise in handling global events.

10) July auto sales up despite road-brakes- HT/The Hindu Business Line IMPACT: Tata Motors has emerged as an unlikely leader as all major domestic car makers reported higher sales in July compared to sales in same period last year. Continuing its strong performance this year Tata motors dominated the passenger vehicles market where it posted a 53 per cent growth (y-o-y). In comparison Hyundai Motor & Maruti Suzuki could post 7.6% & 6.8% growth in sales respectively. Riding on the success of its SUVs, Mahindra and Mahindra (M&M) posted its second highest monthly sales with a growth figure of 27%. Analysts say that its remarkable that despite inflation, high fuel prices and costly auto loans the Indian automotive industry has continued to show a positive trend. KEY PLAYERS: Indian Automotive Industry WHY IT IS IMPORTANT? Indian automotive industry has seen some significant transition in trends in recent days. The utility vehicle market has grown at a remarkable rate. Moreover, it has now started affecting the sales of entry level car segment in India, where Maruti is considered as a specialist. Marutis entry-level models (Alto, M800, Alto, Astar) have posted a 24 per cent drop in July sales, whereas its sedans and premium compacts have shown considerable growth in the same period. This reversal in trend might be of great interest to Renault which plans to launch an 800 cc car in India by 2014-15. 11) China will approach the Lewis Turning Point (LTP) by decade-end: IMF- Imf.org/The Economist IMPACT: An IMF report on China discusses future demographics in the region employing the dual sector model or what is commonly known by the name Lewis Model. The report suggests that the country would cross Lewis Turning Point (LTP) in the next decade. The model is based on various demographic factors and predicts the approximate time after which cheaplabour supply would become scarce, eventually causing a slowdown in the economy. Its known that Chinas current economic prowess is based on its manufacturing sector, which derives cheap-labour from Agricultural sector. However, improvement in living standards, financial sector reforms as well as contraction of agricultural sector would deplete this excess labour supply in coming years. This excess labour which is 150 million at present is projected to fall to just 30 million in 2020. The report hints that China could marginally defer this eventuality by: Relaxing the one child policy (with benefits only in longer time passage) Raising labor force participation rates ( providing migrant workers urban residency permits & other benefits) KEY PLAYERS: IMF, Chinese Government WHY IT IS IMPORTANT? Its not only the Lewis Model which points towards the work force related issues; Chinas Old Age Dependency Ratio is also a big concern. Projections suggest that number of pensioners in China would rise to 20 per cent in 2020 and nearly 39 per cent of its labour force in coming 40 years. India on the other hand seems to be well poised with this ratio projected to be around 20 per cent in 2050. 12) Panasonic posts first profits after a gap of six quarters- FT/Reuters IMPACT: Panasonics new president, Kazuhiro Tsuga, is proving to be lucky for the company, as it comes out of losses that continued for six quarters. Restructuring of its ailing television business, which broadly means not selling any of those, has done the trick. The companys audio-visual division, (which includes TVs) has posted a 7.4bn yen profit in Apr-Jun quarter against a 3.8bn yen loss in the same period last year. Like Panasonic, another Japanese company Sony has struggled to make profits amidst strong competition from Korean & Taiwanese technology giants. Additionally, the strong position of Japanese currency has made exports costlier, which eventually depleted the companys profits. As a result, Panasonic has shifted its focus to specialised products such as image sensors for cameras. The company is also planning to move production activities out of Japan. It also reduced its workforce by 10 per cent (around 36,000 workers) globally. KEY PLAYERS: Kazuhiro Tsuga, Panasonic WHY IT IS IMPORTANT? In last four years Panasonics combined losses crossed $15 billion mark and its market value is now down 80 per cent to less than $16 billion. Somehow the companys restructuring has started showing positive results, though analysts say a lot still needs to be done. Hence, in short term the company will be happy with its diminished revenue.

MISCELLANEOUS NEWS MISCELLANEOUS NEWS

6) Bronze medal at Olympics might open golden gates of endorsements for Narang- ET/TOI/NDTV sports IMPACT: Gagan Narang might have joined the extending list of non-cricket celebrities in India, whose brand endorsements get bigger every time they come out of a major sporting event. After winning a bronze medal in 10 metre Air Rifle event he has signed a deal with Milagrow, a company which claims to be Indias No.1 home cleaning robot makers. The company is also in the business of making tabs which it likes to call table top PCs. Media experts believe that the brand endorsement would make Narang richer by anywhere between Rs 10 lakh and Rs 20 lakh. More such endorsements are expected to follow in coming days. Its noteworthy that similar brand endorsements by cricket stars (even if out of form) in India are valued in a range of 25 to50 Lakh. Moreover, popularity- which is a main criterion for such brand endorsements- is not essentially linked to the performance at games. This fact is quite clearly visible in the popularity charts of Google which place Sania Mirza & Jwala Gutta above Saina Nehwal. KEY PLAYERS: Gagan Narang, Advertising Industry WHY IT IS IMPORTANT? Most companies realize that they have to design special marketing strategies, probably targeting a niche, when it comes to cashing the brand appeal of non-cricket stars in India. These endorsements cannot be compared with those done by cricket stars in India, which generally have a mass appeal. 6) Indian brands with Foreign Labels on rise - ET IMPACT: The Indian government last year enthusiastically announced 100% FDI in single brand retail expecting a downpour of foreign investments into the country. But India was surprised as it received a lukewarm response from foreign investors. UK shoemaker Pavers Ltd, Swedish furniture maker IKEA, Spanish fashion brand ZARA were amongst the few who wanted to invest in India. Many believe the 30% compulsory sourcing clause has affected the investors decision. Amid all this, there are certain players who are benefitting from all the chaos - Indian apparel manufacturers who operate with foreign labels. Indians have always been fascinated by foreign brands and the rising income has led to a substantial increase in Indians opting for foreign brands. To tap this market, more Indian manufacturers are labelling their products as foreign brands. Munich Polo is one such Indian company that sells kids wear and positioned itself as a German brand. Da Milano a high end luxury accessories brand which is perceived to have Italian origins is also a local brand. Footwear maker Franco Leone & crockery maker La Opala are also domestic brands. KEY PLAYERS: Munich Polo, Da Milano, Franco Leone, La Opala & Monte Carlo WHY IT IS IMPORTANT? Indian consumers are expecting more foreign brands to enter India. If given to choose between options- Tommy Hilfiger, Pavers, Munich Polo and Zara- consumers would hardly be able to find out which is an Indian brand. Thus local companies with foreign labels definitely would be in an advantageous position. Ludhiana based Nahar Group, which has been operating the Marco Polo brand since past 25 years accepts that there are benefits of using foreign labels but also risks associated are high while delivering products with international quality. 7) Global companies eager to enter India. FDI in multi-brand retail still uncertain Reuters/DNA IMPACT: According to a report released by the House of Representatives & the Senate, American companies have spent millions of dollars lobbying to the US government for their entry into India. The worlds biggest retailer, WalMart Stores has spent almost $1.5 million on lobbying in the past quarter that ended in June 2012. American companies are seeking the help of the US government on resolving issues like the multi-retail FDI policy in India, retrospective tax amendments, GAAR and other trade related matters. Wal-Mart, which has been planning to enter India since 2007, had temporary relief when the Indian government announced the FDI policy in multi brand retail last year. But due to opposition from various political parties the decision was deferred. Prudential Financial Inc has also spent over four million dollars in lobbying for entry of foreign banks into financial services in India & equity ownership issues. US based Dow Chemicals - responsible for the Bhopal Gas Tragedy, Morgan Stanley, Xerox and Honeywell International have also been lobbying to resolve trade related issues. KEY PLAYERS: Walmart, Prudential Financial Inc, the US government, the Indian government WHY IT IS IMPORTANT? Although the multi retail FDI policy has been finalized, it has not been implemented due to opposition. It is argued that the domestic retail sector is still in its early stage of development & any liberalization would hamper the growth of domestic retailing. Along with its positive effect on the economy, FDI may cause monopoly of large multinational retail giants, displacement of small retailers & loss of jobs.

NEO CORNER NEO CORNER Part 2

PART TWO

Continued from last week

Retailing fashion the e-way:

In the hard sell Indian e-retailing scene, discounts are considered a de-facto mode of survival. Guaranteeing great service with great discounts is one of the major reasons that e-commerce firms in India burn through funds as if there were an unlimited supply. Myntra has taken a different tack as mentioned earlier. Myntra relies on providing the latest season fashion and the greatest possible variety. This has translated to 21,000 unique product offerings spread across 350 brands. While discounts do play their part but Myntra doesnt display an overdependence on them. That the strategy is working is testified by the fact that Myntra receives around 8000 orders per day and has a customer base of over two million which translates to roughly 20-30 per cent market share. The revenue figures have also been doubling every five to six months. Delivery schedules are critical for any e-commerce site and the faster and accurate the delivery the better reputation it has amongst consumers. Flipkarts reputation is directly related to its impressive delivery timelines. Myntra has consistently tried and achieved at least a 48 hour or less delivery timeline which has earned it the admiration of many a customer. A lot of growth in Myntras customer base is being driven by Tier II and III cities. Considering that store penetration is still a problem for many brands in India, Myntra provides an alternative platform without the associated physical commitments and costs.

Overcoming touch and feel:

As mentioned earlier, touch and feel are considered critical factors influencing purchase, at least in India. Needless to say, on a digital platform touch and feel are the first casualties. How Myntra has overcome this problem is by making significant investments in putting up high quality high resolution photographs of the merchandise.

Marketing & Advertising:

E-commerces true arrival in India has been heralded by the jump in the number of e-commerce website ads that have begun to jostle for space on our TV sets. Be it Flipkarts kids in adult avatars or Snapdeals Yam Dude or the sell it tag line of OLX, e-commerce has produced some good advertising on TV. Detractors are saying that burning cash on advertising is not such a great idea at this stage of e-commerces nascent growth. Myntras transition into Lifestyle meant that TV ads werent far behind considering TV is the best way to reach Indias masses. Characterized by quirky messaging, the latest series of ads for Myntra by Happy Creative Services brings together new age fashion with old world grit. From style to humour, Myntras messaging has moved in a manner that brings it closer to its goals and consumers as well.

Talent:

Myntras talent acquisition is governed by the lineage of its founders, who are all IITians. Experienced professionals like Sanjay Ramakrishna who has experience with companies like Google and Intel, Deepak Rishi who earlier headed the supply chain function at VF Arvind, were hired to ensure that Myntra becomes and maintains its leadership in the lifestyle space. A look through the websites career section makes it clear that the company is looking for the best. Myntra has also been part of the relatively recent trend which has seen ecommerce start-ups visiting IIMs for their talent needs. Most of the jobs at Myntra are technology, business development or logistics and supply chain related. The company offers best in the industry salaries which make it a workplace of choice. Their HR policies have also been deemed employee friendly by many experts.

Logistics:

Myntra.com relies on a hybrid system for its logistics operations. This means that it is working at developing its own in-house logistics team as well as currently relying on third party logistics service providers for order delivery from its warehouses.

Payment options:

Apart from the usual credit/debit card based payment, Myntra also offers Cash on Delivery (COD) as an option. Myntra believes that considering cashs relative importance in the economy, COD goes a long way in helping meet customer needs. This is a good penetration strategy that most Indian e-commerce players are buying into. However, recent reports suggest that COD is turning out to be a bane for most e-commerce firms as it increases payment cycles and leads to higher than normal returns. Though major players like Flipkart and Myntra have stated that their returns are still within single digit percentages, experts are skeptical about how long before cash on delivery ceases to be sustainable.

On competition:

Myntras primary competitor remains smile groups fashionandyou.com which offers high fashion at deeply discounted prices via its flash sales. However, considering Myntras funding success and current market leader status, the Bengaluru based company is unlikely to face tough competition soon. New players like Jabong are burning oodles of cash via their TV ads to try and capture market share, however the situation is still not clear enough to take a call on the success of such tactics.

The Future:

Mukesh Bansal had this to say in a recent interview with Alootechie, Nearly 40 per cent of our business comes from outside top 10 metros and two years down the line we expect this to be around 60 per cent. Many brands in India still have around 20 stores across the country, which is still small for a country like India. Hence online gives these brands a good platform to reach consumers across India. Myntras continued success has led Mukesh Bansal to believe that the firm can possibly become a billion dollar business in the next four to five years. In the light of recent news reports casting doubt on the Flipkart growth story, Myntra can only hope that it is not next in line.

MARKETING NEWS MARKETING NEWS

1) Nimbuzz: Getting personal with marketing- Business Standard 30 July Despite the hype around location-based advertising, new research seems to suggest that mobile users want to see ads that reflect who they are not where they are at a given point in time. In other words, personalisation trumps things like timing or location. Keeping this insight in mind, Nimbuzz, a leading player in instant messaging and mobile communication, has turned its focus on tailoring interactions via mobile to consumers tastes and interests. This is in line with Nimbuzzs new strategy to focus on the B2B segment while not taking its eyes off its traditional client base on the B2C side. Alongside, Nimbuzz has collaborated with publishers to increase their catalogue of Chat Buddies in NWorld, the Nimbuzz app store. Some of these are IBNLive for news update, Cricbuzz for live cricket update, Twitter for tweeting from within Nimbuzz, VantageTrade for stock updates, Wikipedia for ready information, YouTube for searching and viewing videos, IMDB for movies reviews, Car Dekho for car prices and reviews, to name a few. 2) Arena Multimedia: 3D commercials enter the arena- Business Standard 30 July Arena Multimedia, the multimedia and animation education arm of Aptech has created the countrys first 3D ad, Dudolls. Using 3D stereoscopy technology, Arena wants to create a high brand recall for animation and multimedia as compelling career options. The ad depicts alphabets used to spell Arena as one-eyed cartoon characters, or Dudolls. These come alive with energy and animate their own performance, even as a young man makes a promising career with his knowledge of animation. Ninad Karpe, MD and CEO, Aptech credits foresight for launching a 3D ad that showcases the product offering in the ads execution itself. But a television commercial in 3D would restrict it to mainly theatres as of now, which are fitted with the needed technology, unlike TV sets in most households. Karpe justifies, Since we are future ready, once the mass media are available, we shall be able to run these 3D commercials on new-age devices too. 3) Hindustan Unilever Limited to launch hair care brand TRESemme in India soon- ET 1 Aug Unilever will launch its premium hair care brand TRESemme in India to target salonfrequenting consumers in the urban market. India is the second market after Brazil where Unilever will launch TRESemme after inheriting the brand as part of its acquisition of Alberto Clulver for $3.7 billion in 2010. In a market flooded with hair care products, TRESemme will try to differentiate itself with its focus on salon like experience at home with its shampoo and conditioner range, Hindustan Unilever officials said. Analysts feel that HUL is looking to complete all price points in the hair-care portfolio with TRESemme. Personal care segment with brands such as Dove, Sunsilk and Lux earns the highest margin for the Anglo-Dutch firm's Indian subsidiary at over 25%. While, personal care accounts for about 30% of HUL's revenues, its contribution to net profit was over a fifth last fiscal. HUL has been diversifying its personal care product portfolio across price-points through brand extensions. 4) Samsung adopts mobile phone business strategy for consumer durables- ET 27 July Samsung has restructured its electronics and appliances business to create two sales verticals in a bid to replicate its mobile phone success in the Indian consumer durables market where it trails LG Electronics. Samsung Electronics India now has two sales verticals-one selling products to distributors, stand-alone multi-brand outlets and Samsung brand stores, and other focusing only on national and regional retail chains. The restructuring is the brainchild of BD Park, who took charge as MD of Samsung India in January, after successfully building the South Korean firm's mobile phone business as the second largest brand in the country and overtaking market leader Nokia in the smartphone market. The move is a first of its kind in the Rs 37,000-crore Indian durable industry, where companies organise their business on product segments. Samsung Electronics, for example, earlier had two verticals-one for audio-visual products like television and music players and the other for home appliances such as refrigerators, washing machines and air-conditioner. 5) Delayed monsoon powers sales of inverters, batteries- ET 30 July Sales of inverters and batteries jumped about 30% for the quarter to June, as a delayed monsoon pushed up power consumption in energy-deficient India. Manufacturers of power backup systems say they expect good profits this year, as the increase in sales will offset the rise in input costs due to a weak rupee. The country's largest battery maker Exide Industries said growth was robust despite a 4%-5% rise in prices. In the power inverter market, including batteries, growth has been 25%-30% in the first quarter compared with the corresponding quarter of the last fiscal. India does not generate enough electricity to meet the rising demand from urban areas and industry. The shortage becomes acute during the summer months, forcing households to switch to power inverters. The domestic market for inverters this year is expected to touch Rs 2,000 crore while that for batteries is estimated at Rs 5,000 crore.

6) Reliance Footprint plans to capture 15% share in India's footwear market- ET 26 July Reliance Footprint, a footwear specialty store from Reliance Retail plans to capture over 15% of India's footwear market by doubling retail stores each year and adding more brands in its portfolio. So far, the retailer has opened 100 stores at an average size of 5000 sq ft each since 2007 and has around 5% market share. However, they opened as many as 50 stores just last year and the company says that the aggression to ramp up outlets will intensify each year. "Going forward, the pace of opening stores will only increase. Footwear is a good margin business and we are already EBITDA positive last year," said Gopalakrishnan Sankar, Chief Executive, Reliance Footprint, which is now India's largest footwear company with 0.5 million space. The specialty retail format sells a range of 20,000 footwear, luggage and accessories products from over 50 international and national brands. In addition, they have an exclusive agreement with Japanese footwear firm ASICS alliance to sell their products exclusively in India. 7) Now, go Mad Over Donuts in cafs- The Hindu Business Line 31 July It is only in India that customers ask for warm doughnuts. Based on this feedback, Mad Over Donuts serves warm doughnuts to its Indian clientele, the company said. Besides tweaking its menu, the company is also experimenting with its formats. Buoyed by the success of its kiosks, the Singapore-based chain said it would widen its portfolio by entering the caf segment by year-end. The company started operations in 2008. It has 38 stores and will add another 40 by the end of the fiscal. The Mirah Group, the owners of restaurant chains Rajdhani and Falafels and Himesh Foods own the brand in India. Asked if raw material prices were pinching, COO Mr Bhattacharya said all proprietary products were imported from Singapore and the company only baked and sold them. He said the company has no plans to set up a manufacturing unit in India. The quick service restaurants (QSR) business in India is estimated at Rs 5,000 crore with an estimated growth of 40 per cent annually. 8) Online retailers perk up offerings to click with women- The Hindu Business Line 30 July Women shoppers are the next big thing in online retail. Boosted by the tremendous growth in orders placed online, e-tailers are now trying to attract women with niche offerings. These include women-only platforms, virtual trial rooms, celebrity endorsements and easy return policies. The market for non-store retailing is estimated at $3.2 billion, registering a growth of 23 per cent annually. Even though currently men account for 60 per cent of the buys, the womens business is growing significantly. Platforms such as Myntra.com, Fashion&You, Zovi.com also offer convenience in terms of variety of apparel, display, choice, discounts and ease of delivery. Mr Mukesh Bansal, Founder, Myntra.com, notes that, Women are influential shoppers. They start with low-risk and low value items such as an accessory and from there move on to bigger purchases such as dresses and bags, among others. Myntra has tied up with Bollywood actor Kalki Koechlin for celebrity endorsement. The actor will write blogs and share style tips to prospective buyers. 9) Online retailer eBay looks to give exports a leg-up- The Hindu Business Line 1 Aug Small-time horse saddle makers from Kanpur are finding new markets in Germany and the UK. Thanks to a simple listing on eBays sites in the two horse-loving markets. Online retailer eBay wants to give a big push to more exporters such as the Kanpur saddle makers. While domestic retail will remain the mainstay for eBay, we also want to accelerate the export business on our site. Currently, there are 30,000 domestic sellers and 15,000 exporters registered on eBay India. In April, eBay tied up with the Federation of Indian Export Organizations (FIEO) to give a fillip to small and medium exporters across the country. While FIEO is engaged in exporter education, eBay provides exporters a platform to sell their goods. Using one user id, sellers can list their products on any of the 39 country sites of eBay. For instance, we have manufacturers of horse saddles from Kanpur listed on our Germany and UK sites as equestrian sports is very popular in these countries, says Thomas. 10) AVT Natural Products starts subsidiary in London to sell decaffeinated tea and instant tea- ET 1 Aug AVT Natural Products Ltd. is starting a wholly owned subsidiary called AVT Tea Services Ltd. in London to sell decaffeinated tea and instant tea. The unit will go operational on October 1. AVT Natural Products is a part of AV Thomas Group, specializing in extraction of natural products like marigold, spices and value added teas. It also market specialty spice oils and oleoresins. Richard Darlington, a tea veteran, will head the AVT TSL operations as managing director. AVT TSL is a logical extension of AVT natural's proven competency in value added beverages manufacturing in India,'' said Ajit Thomas, chairman of AVT Natural and AVT Group of companies. AVT Natural's net profit for Q1, 2012 rose 23 % to Rs 14.28 crore compared with Rs 11.58 crore in the same quarter last year. The sales grew to Rs 72.44 crore from RS 47.84 crore.

MARKETING FEATURE MARKETING FEATURE

Brand police on the prowl at Olympics

http://www.business-standard.com/india/news/brand-policethe-prowl-at-olympics/481499/

SOURCES Charts & Graphs:

: http://www.tradingeconomics.com/india/business-confidence

SOURCES FOR COVER STORY

http://news.outlookindia.com/items.aspx?artid=770516 http://timesofindia.indiatimes.com/india/Power-grid-failure-40-crore-Indians-still-in-dark-age/articleshow/15303227.cms http://en.wikipedia.org/wiki/2012_northern_India_power_grid_failure http://in.news.yahoo.com/what-is-causing-power-grid-failure-in-india-.html http://www.bloomberg.com/news/2012-07-31/india-power-grid-collapses-for-second-time-in-two-days.html http://timesofindia.indiatimes.com/india/Why-power-is-a-perennial-problem/articleshow/15299462.cms http://www.firstpost.com/economy/why-you-should-prepare-for-more-power-grid-collapses-397813.html http://www.firstpost.com/economy/groping-in-the-dark-power-crisis-is-a-metaphor-for-india-399323.html http://economictimes.indiatimes.com/opinion/editorial/power-grid-collapse-political-spine-must-penalise-violation-of-griddiscipline/articleshow/15304731.cms http://www.business-standard.com/india/news/powerless-at-noon/481965/
SOURCES FOR PERSONALITIES OF THE WEEK:

http://www.bajajauto.com/profile/profile_rajiv.html http://articles.economictimes.indiatimes.com/2012-03-22/news/31225047_1_pulsar-150cc-100cc-rajiv-bajaj http://www.bsmotoring.com/news/motorcycles-will-drive-growth-in-two-wheeler-segment-not-scooters-rajiv-bajaj/5206/1 http://great-indian-companies.blogspot.in/ http://www.business-standard.com/india/news/opportunity-in-failures/469453/ http://www.bajajauto.com/bajaj_corporate.asp http://en.wikipedia.org/wiki/Bajaj_Auto http://timesofindia.indiatimes.com/topic/Sharad-Pawar/quotes http://www.dnaindia.com/india/report_congress-bends-to-sharad-pawar-ways_1719738 http://www.hindustantimes.com/News-Feed/ColumnsOthers/What-s-the-deal-Mr-Pawar/Article1-903535.aspx http://articles.timesofindia.indiatimes.com/2012-07-27/india/32888324_1_sharad-pawar-supriya-sule-senior-ncp-leaders http://timesofindia.indiatimes.com/city/pune/Sharad-Pawars-supporters-unhappy/articleshow/15295843.cms http://en.wikipedia.org/wiki/Sharad_Pawar http://www.iloveindia.com/indian-heroes/sharad-pawar.html
CORPORATE INTELLIGENCE

http://www.ibef.org/industry/foodindustry.aspx http://www.britannia.co.in/ www.amul.com/ www.pepsico.com/ http://www.fnbnews.com/article/detnews.asp?articleid=30083&sectionid=49 www.in-beverage.org/ http://www.fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us

SOURCES FOR NEWS ANALYSIS (1-15)

1) Indian Government rejects ZARA brands proposal to launch Massimo in India Reuters/ET http://in.reuters.com/article/2012/07/25/india-inditex-zara-idINDEE86O05J20120725 http://articles.economictimes.indiatimes.com/2012-07-27/news/32889481_1_massimo-dutti-brand-pavers-englandinditex 2) Yamaha Motors to sell Indian made deluxe bikes in Japan ET/BS http://articles.economictimes.indiatimes.com/2012-07-26/news/32869810_1_india-yamaha-motor-fz-big-bikes http://www.business-standard.com/india/news/bajaj-auto-expects-50sales-to-comeexports-in-3-yrs/179610/on 3) Great Britain likely to fall in to Triple-Dip Recession by next year Reuters/Bloomberg http://in.reuters.com/article/2012/07/25/britain-economy-recession-idINDEE86O0K120120725 http://www.bloomberg.com/news/2012-07-29/new-u-k-strategy-urged-as-triple-dip-recession-predicted.html 4) The Olympics effect on world economies TOI/FT/DNA http://timesofindia.indiatimes.com/business/international-business/Big-sporting-events-key-to-attracting-investmentsay-emerging-economies/articleshow/15164862.cms http://www.ft.com/intl/cms/s/0/536c65e4-da79-11e1-902d-00144feab49a.html#axzz22BXWMIAn http://www.thedailybeast.com/articles/2012/07/30/do-the-olympics-boost-the-economy-studies-show-the-impact-islikely-negative.html 5) Snapdeal seals a deal with General Atlantic ET/BS

http://economictimes.indiatimes.com/tech/internet/general-atlantic-in-talks-to-acquire-stake-insnapdeal/articleshow/15285379.cms http://www.business-standard.com/india/news/flipkarts-competitors-tweak-inventory-based-model/481796/
6) Job-snatcher turned employment generator Indian IT cos gain popularity in US- The Hindu/ET http://www.thehindu.com/news/international/article3693255.ece http://articles.economictimes.indiatimes.com/2012-07-30/news/32942473_1_indian-companies-software-companies-locals http://www.cxotoday.com/story/us-firms-generate-five-jobs-for-every-h-1b-visa-issued/ 7) ECB struggles to find formula for resolving Eurozone crisis- ET/Reuters http://economictimes.indiatimes.com/news/international-business/euro-crisis-eurozone-unemployment-at-record-high-hope-fadesfor-quick-ecb-cure/articleshow/15294235.cms http://in.reuters.com/article/2012/07/30/ecb-options-idINDEE86T0AN20120730?type=economicNews 8) RBIs SLR cut may force banks to lower the loan rates- Hindu Business Line/ BS http://www.business-standard.com/india/news/slr-cut-may-reduce-bulk-deposit-rates/481987/ http://business-standard.com/india/news/cut-in-repo-rate-would-have-sentwrong-signal-c-rangarajan/482042/ http://www.thehindubusinessline.com/industry-and-economy/banking/article3708318.ece?homepage=true 9) Its boom time for event management business in India- ET/ EEMA http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/event-management-business-to-grow-50-in-2years-study/articleshow/15286951.cms http://eemaindia.in/pdfs/white%20paper.pdf 10) July auto sales up despite road-brakes- HT/The Hindu Business Line http://www.thehindubusinessline.com/companies/article3710897.ece http://www.hindustantimes.com/News-Feed/Auto/July-auto-sales-up-despite-woes/Article1-906683.aspx http://articles.economictimes.indiatimes.com/2012-08-01/news/32981232_1_maruti-suzuki-s-alto-small-car-low-cost-car 11) China will approach the Lewis Turning Point (LTP) by decade-end: IMF- Imf.org/The Economist http://www.economist.com/node/13611235 http://www.imf.org/external/pubs/ft/scr/2012/cr12195.pdf 12) Panasonic posts first profits after a gap of six quarters- FT/Reuters http://www.ft.com/intl/cms/s/0/328b67ec-dae9-11e1-8074-00144feab49a.html#axzz22MvVv9hN http://in.reuters.com/article/2012/07/31/panasonic-earnings-profits-idINDEE86U03Q20120731 13) Bronze medal at Olympics might open golden gates of endorsements for Narang- ET/TOI/NDTV sports http://economictimes.indiatimes.com/news/news-by-industry/services/advertising/london-olympics-2012-gagan-narangs-winningshot-may-hit-bulls-eye-in-advertisements/articleshow/15307708.cms http://sports.ndtv.com/othersports/badminton/item/193799-jwala-gutta-pips-saina-nehwal-in-popularity-charts http://articles.timesofindia.indiatimes.com/2012-07-31/gadgets-special/32961005_1_gagan-narang-milagrow-tablet

14) Indian brands with Foreign Labels on rise - ET http://articles.economictimes.indiatimes.com/2012-07-27/news/32889547_1_indian-brands-foreign-brand-da-milano 15) Global companies eager to enter India. FDI in multi-brand retail still uncertain Reuters/DNA http://in.reuters.com/article/2012/07/23/retailers-drop-on-multi-brand-reform-dou-idINDEE86M02Z20120723 http://www.dnaindia.com/money/report_nitish-kumar-also-says-no-fdi-in-multi-brand-retail_1721805

http://www.thehindubusinessline.com/industry-and-economy/article3699676.ece
NeoCorner : Myntra.com

1) http://www.business-standard.com/india/news/dressed-totee/413537/ 2) http://businesstoday.intoday.in/story/e-commerce-myntra-aims-to-dominate-fashion-merchandising/1/15058.html 3) http://brandalyzer.wordpress.com/2011/08/20/myntra-com/ 4) http://yourstory.in/2012/02/myntra-com-targets-rs-500-crores-revenue-for-the-next-fiscal/ 5) http://yourstory.in/2009/11/mr-mukesh-bansal-founderceo-myntra-designs-pvt-ltd/ 6) http://dare.co.in/people/75-startups-you-can-bet-on/myntra.htm 7) http://www.thesmartceo.in/magazine/cover-story/move-into-fashion-e-commerce.html 8) http://business-standard.com/taketwo/news/struggling-to-survive-e-commerce-reinvents-itself/477266/ 9) http://www.afaqs.com/community/blog/index.html?blogID=130_Building+e-commerce+brands+the+FMCG+way 10) http://www.indiadigitalreview.com/interviews/real-growth-ecommerce-india-will-come-tier-i-tier-ii-cities-mukeshbansal-founder-ceo-myn 11) http://www.thehindubusinessline.com/industry-and-economy/marketing/article2875570.ece 12) http://www.business-standard.com/india/news/myntracom-targets-rs-500-cr-revenue/468553/ 13) http://www.business-standard.com/india/news/myntra-plans-reach-rs-500-cr-sales-in-fy13/162446/on 14) http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fashion-/-cosmetics-/jewellery/accel-tiger-to-pump-25-mn-more-into-myntra/articleshow/14661748.cms 15) http://techcircle.vccircle.com/500/%E2%80%98myntra-aims-to-be-a-billion-dollar-biz-in-4-5years%E2%80%99/ 16) http://www.nenonline.org/startup-profile/myntra-designs

MKTG SOURCES: 1. http://www.business-standard.com/india/news/nimbuzz-getting-personalmarketing/481730/ 2. http://www.business-standard.com/india/news/arena-multimedia-3d-commercials-enterarena/481729/

3. http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fashion-/-cosmetics-/jewellery/hindustan-unilever-limited-to-launch-hair-care-brand-tresemme-in-indiasoon/articleshow/15302460.cms 4. http://economictimes.indiatimes.com/news/news-by-industry/cons-products/durables/samsung-adoptsmobile-phone-business-strategy-for-consumer-durables/articleshow/15175554.cms 5. http://economictimes.indiatimes.com/news/news-by-industry/cons-products/electronics/delayed-monsoonpowers-sales-of-inverters-batteries/articleshow/15265566.cms 6. http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fashion-/-cosmetics-/jewellery/reliance-footprint-plans-to-capture-15-share-in-indias-footwear-market/articleshow/15162925.cms 7. http://www.thehindubusinessline.com/industry-and-economy/marketing/article3708072.ece 8. http://www.thehindubusinessline.com/industry-and-economy/marketing/article3703983.ece 9. http://www.thehindubusinessline.com/industry-and-economy/marketing/article3712841.ece 10. http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/avt-natural-products-startssubsidiary-in-london-to-sell-decaffeinated-tea-and-instant-tea/articleshow/15315830.cms