“A collection of rare

Japan tries to avert nuclear meltdown; tsunami

thoughts is nothing may have killed 10,000
less than a cabinet of The world's third-largest economy is
intellectual gems.” struggling to respond to a disaster of
epic proportions, with more than 1
INSIDE THIS million without water or power and
whole towns wiped off the map.
ISSUE: Officials are working desperately to
stop fuel rods in the damaged reactors
from overheating, which could in turn
JAPAN TRAGEDY melt the container that houses the
core, or even explode, releasing
CORPORATE watch radioactive material into the
atmosphere.
ECONOMY watch
The government said a building
INDUSTRY watch housing a second reactor at the same complex in Fukushima was at risk of exploding
after a blast blew the roof off the first the day before. The complex is 240 km (150
FACT OF WEEK miles) north of Tokyo.

INTERVIEW
Later it said it was pouring seawater into a third reactor to release a build-up of
ZARGONOMICS pressure.
The International Atomic Energy Agency (IAEA) said the lowest state of emergency
ENTREPRENEUR had been declared at a separate nuclear power plant north of the town of Sendai,
which bore the brunt of the tsunami.
ANSWERS TO BIZ WIZ-8
However, Japan's nuclear safety agency said there had been a rise in radiation at the
Onagawa facility due to leakage from the Fukushima plant and there was no problem
with the cooling process there.
Fukushima's No. 1 reactor, where the roof was ripped off, is 40 years old and was
originally scheduled to go out of commission in February but had its operating licence
extended another 10 years.
But Kan said the crisis was not another Chernobyl, referring to the nuclear disaster of
1986 in Soviet Ukraine.
Nevertheless, France recommended its citizens leave the Tokyo region, citing the risk
of further earthquakes and uncertainty about the nuclear plants.
 THE DERRICK

CORPORATE WATCH
MARUTI AIMS TO PRODUCE 1 CR CARS IN 6-7 YEARS
The country‘s largest carmaker Maruti Suzuki India on Sunday said it expects to
achieve the feat of producing 1 crore vehicles for the second time in the next 6-7
years with the opening of its two new plants at Manesar. The company is likely to
cross the milestone of producing the first 1 crore vehicles since its inception,
nearly 27 years since it first rolled out M800 from Gurgaon. The company had
announced an investment of over Rs3,625 crore to set up two new plants with
2.5 lakh annual capacities each inside the Manesar facility. The carmaker had
said it ramped up production by about 10% to over 1.1 lakh units every month
from October 2010, taking its total annual output to 14 lakh units for 2011-12.
SMC has made Rs9,000 crore investment in new facilities during 2005-10. In
addition, the company is investing Rs2,500 crore for its K-series engine plant and setting up a dedicated R&D
facility at Rohtak.

GOOGLE DOLES OUT $8.9 MN IN BONUSES TO TOP 4 EXECUTIVES

Appreciating their good showing, Google has awarded bonuses worth $8.9 million for its four top executives.
Apart from the bonuses, these executives have also received equity awards worth $50 million. Bonuses have
been given to chief business officer Nikesh Arora, chief financial officer Patrick Pichette, senior vice president
(engineering & research) Alan Eustace, senior vice president (product management) Jonathan J. Rosenberg.
Arora and Pichette, who are also senior vice presidents, have each received bonus of $2.7 million, Google
said in a recent regulatory filing.Equity award worth $20 million has been given to Arora, while that for Pichette
it was $15 million. As per the filing, Eustace received $1.8 million bonus as well as equity award of $10 million.
Rosenberg got a bonus of $1.7 million apart from equity to the tune of $5 million.

KINGFISHER AIRLINES RECONFIGURES FLEET TO CARRY MORE SEATS

Kingfisher Airlines Ltd is reconfiguring its fleet to accommodate more seats even as the traditional lean travel
season gets over by the end of March. India‘s second largest airline by passenger carried also plans to fly
more international routes without adding planes to its fleet. The plan assumes significance as in a weak travel
season, carriers are under pressure with brent crude crossing $100 per barrel to hit the highest level since
mid-2008. Jet fuel, the single biggest expense for carriers, accounts for about 40% of their operating cost. The
airline will increase the frequencies on the existing international routes to increase the flight utilization rate.
The reshuffle of aircraft layouts is applicable only to Kingfisher Airlines fleet, not Deccan Aviation Ltd.
Kingfisher Airlines, owned by liquor baron Vijay Mallya, in 2007 bought Deccan Aviation.
BHEL TO DECIDE ON FLOATING NBFC BY APRIL

Power equipment maker BHEL is likely to take a final decision on floating a non-banking finance company
(NBFC) next month, with a view to cash in on the business potential of funding power projects and acquisitions
in overseas markets. Cash-rich Bharat Heavy Electricals Ltd (BHEL) is looking at creating a NBFC to mainly
fund projects in the power sector. BHEL had appointed financial services firm Crisil to advise the company on
floating a non-banking finance company. The state-run entity in a recent regulatory filing said that its board of
directors would meet on March 15 to consider ―the report of the consultant regarding formation of a non-
banking finance company‖. BHEL is estimated to have a cash surplus of over Rs 9,000 crore. The order book
of the company stood at Rs 1,58,000 crore at the end of the third quarter of the current fiscal and the company
expects to achieve robust growth in 2010-11 and beyond, according to BHEL‘s third quarter financial
performance statement. The company had reported a turnover of over Rs 34,000 crore in the 2009—10 fiscal,
with a net profit of over Rs 4,310 crore. In the first nine months of this fiscal, BHEL‘s net profit stood at Rs
3,213.2 crore. The firm may go for a separate investment arm for funding power sector projects and the NBFC
can target opportunities in overseas markets. BHEL‘s operations are organized under three business verticals
— power, industry and overseas business. The industry segment includes transmission, transportation and
renewable energy. It has installed equipment with a total generation capacity of over 1, 00,000 MW for utilities
and captive and industrial users, according to the company Website.

MARUTI KIZASHI GETS 400 BOOKINGS IN FIRST MONTH

Maruti Suzuki's entry into the luxury sedan segment, aptly named ‗Kizashi' (‗omen' in English), may turn out to
be a good sign indicative of the small car major's future in the premium segment. Going by the first response
from car buyers, the sports sedan seems to have generated good demand in only a month of launch. The
Kizashi has already recorded around 400 bookings and now carries a waiting period of up to three months.
Deliveries are to start on March 10. The Kizashi's early popularity contrasts with the Suzuki Grand Vitara, a
petrol-powered sports utility vehicle (SUV) that hardly created a stir in the diesel-dominated UV market on
single-digit monthly sales. Interestingly, both the sedan and the SUV share the same 2.4 litre petrol power plant.
The New Delhi-based car market leader is now set to order the second shipment of around 350 units for the
Kizashi from parent Suzuki Motor Corporation, Japan. The sedan is manufactured in Sagara, Japan, and
imported into India as a completely built unit. It has been disclosed that there has been no production constraint.
Launched on February 2 with a price of Rs 16.5 lakh (manual) and Rs 17.5 lakh (automatic), the Kizashi is pitted
against the petrol sedans in the A4 (Honda Civic, Toyota Corolla) and A5 (Honda Accord, Toyota Camry)
segments in terms of both features and price. While the Honda Civic sells around 300 units a month, the Accord
does sales of close to 200 units. According to industry experts, with luxury car sales growing on buyers getting
richer, Maruti's huge customer base and brand goodwill is likely to push its growth in the premium segment as
well. An added benefit is a huge servicing network, which will push sales in smaller towns where many have the
resources but, hitherto, no access to luxury products.
ONGC SHARE SALE DELAYED TO 2ND HALF OF 2011
The share sale, expected to raise up to $2.8 billion, was likely to be delayed to the first week of April from an
earlier launch date of 15 March. A share sale in explorer Oil & Natural Gas Corp (ONGC) may be deferred to the
second half of 2011 as the Indian state-run firm reconstitutes its board of directors to meet regulatory needs. The
government plans to withdraw both its nominee directors and will set up a committee to select new candidates to
the board, as it seeks to raise the number of independent directors.ONGC‘s board provides for nine functional
directors including two government nominees, and it currently has only four independent directors. The
Securities and Exchange Board of India (Sebi) requires listed firms to have an equal number of functional and
independent directors. The share sale, expected to raise up to $2.8 billion, was likely to be delayed to the first
week of April from an earlier launch date of 15 March. ONGC‘s share sale is part of a wider plan by the
government to sell stakes in about 60 state-run firms over the next few years to cut its fiscal deficit and garner
funds for social welfare programmes.ONGC is not the only firm to have delayed its share sale. Steel Authority of
India and Indian Oil Corp have also deferred their share sales to the next fiscal year due to weak market
conditions.

ANIL AMBANI‟S VC ARM TO INVEST UP TO $150 MN IN FY12

Anil Ambani group‘s venture capital arm, Reliance Venture Asset Management (RVAM), has drawn up plans to
invest up to $150 million in around a dozen companies in FY12.The chief executive Harshal Shah stated that the
company is looking to invest $100-150 million in 6- 12-deals next fiscal. Education, infrastructure ancillaries,
healthcare, aerospace and defence are the sectors which the fund is bullish on. RVAM, which typically invests
up to $15 million per company, is fully sponsored by the Anil Ambani group and currently has over 18
investments in Indian and American start-ups.The firm is looking at innovative companies in the defence sector,
where private sector participation is set to increase, while the prospect of higher spends (up to $100 billion) in
airport infrastructure is making it interested in aerospace. Considering the demographics, healthcare and
education continue being very alluring in India. When asked if VC investing in India is losing out to investing in
public equity, Shah replied in the negative saying only newer ventures have the power to create employment
and drive the economy. This is the ideal time for VC investing...we are passing through our own baby-boomer
era.

AIR INDIA‟S POSSIBLE ENTRY INTO STAR ALLIANCE WILL BOOST REVENUES
The carrier‘s expected entry into the elite Star Alliance later this year will expand its global footprint and boost its
revenues. India‘s national carrier Air India‘s expected entry into the elite Star Alliance later this year will expand
its global footprint and boost its revenues, according to the airline‘s Frankfurt-based regional manager for central
Europe Ratan Bali. He further added the last major hurdle for Star Alliance membership was removed when Air
India and the Indian Airlines completed the integration of their codes and began using a common code two
weeks ago. A common code for both the airlines was a condition for Air India to join the alliance. The airline also
started using a new reservation system in preparation of joining the alliance. Air India has recouped its revenue
losses from the closure of the European hub at the Frankfurt airport last year, by increasing the passenger
volume and reducing its operational costs in Frankfurt. As part of its operational restructuring process, the airline
rerouted four flights operating from Delhi to Chicago and from Mumbai to New York via Frankfurt airport as direct
flights on the India-US routes. It closed down its European hub in Frankfurt at the end of last year. Since then,
the airline has been operating a daily non-stop flight between Delhi and Frankfurt Air India lost some passengers
after it took out four flights from the commercially important India-Germany route. But the loss of revenue was
recovered by a higher utilization of the seat capacity in the economy class and by increasing the number of first
and executive class passengers on board the Boeing 777 200LR aircraft.
 THE DERRICK

ECONOMY WATCH
INDIA IS THE WORLD‟S LARGEST ARMS IMPORTER

The Swedish think tank Stockholm International Peace Reaearch Institute (SIPRI) has said that India is the
world‘s largest arms importer, according to data on international arms transfers that the think tank has collated.
SIPRI published this in a report released on Monday. India received 9% of the volume of international arms
transfers during 2006-10, with Russian deliveries accounting for 82% of Indian arms imports. The four largest
importers of conventional weapons in 2006–10 are located in Asia: India (9% of all imports), China (6%),
South Korea (6%) and Pakistan (5%). These states have imported, and will continue to take delivery of, a
range of major conventional weapons, in particular combat aircraft and naval systems. The USA remains the
world‘s largest exporter of military equipment, accounting for 30 % of global arms exports in 2006–10.

GROWTH-INFLATION DYNAMICS A WORRY, SAYS RBI GOVERNOR

Reserve Bank of India (RBI), widely expected to raise interest rates again next week, is struggling with its dual
objectives of containing inflation and promoting growth, its governor said on Thursday. The RBI has raised its
key lending rate, or repo rate, seven times by a total of 175 basis points since March 2010, and is expected to
raise it by another quarter point on 17 March at its mid-quarter review. The central bank expects the economy
to grow at 8.5%, with an upward bias, for the fiscal year that ends this month. For 2012, finance minister
Pranab Mukherjee said last week he expects the economy to grow at 9%, plus or minus 0.25%, in the next
fiscal year, which is above many private forecasts. High inflation has been the key driver for the central bank‘s
recent policy moves. Food price index rose an annual 9.52% in the week to 26 Feb., slower than a 10.39%
rise in the previous week as prices of vegetables, potatoes and rice declined, data showed on Thursday. With
crude oil prices near a 2-1/2-year high, central banks across Asia are under pressure to act for fear that these
costs will fuel broader inflationary pressures in the economy.

INDIA‟S BULGING GRAIN STOCKS RAISE EXPORTS HOPES

India‘s bulging grain stocks prior to end-March harvest season make a strong case for lifting export curbs, but
analysts say it is unlikely due to political compulsions ahead of state elections in coming months. The sources
said they believe India, the world‘s second-biggest rice and wheat producer, can now afford to allow grains
exports, banned since 2007. India is on course for its second-highest food grains harvest in 2010-11, including
a record 81.47 million tonnes wheat, which could help the government rein in food prices and allow overseas
sale of wheat and rice. High food prices pose a political challenge, drawing voter ire ahead of state elections in
coming months that will help determine the strength of the ruling Congress party-led coalition for the rest of its
term. State-run Food Corp of India, the main grain procurement agency, buys wheat from local farmers
between March and May, while it procures rice throughout the year from October. The government buys rice
and wheat from farmers to build reserves for emergency, run various welfare programmes and protect farmers
from distress sale.
KEY OFFICIALS‟ TERMS ENDING, STAGE IS SET FOR SEBI TOP DECK
RESHUFFLE
India‘s capital market regulator may see a change at the top because the terms of five key officials come to an
end by August. While the finance ministry has already begun hunting for two whole-time members at
Securities and Exchange Board of India (SEBI) to replace M.S. Sahoo and K.M. Abraham, terms of three
executive directors, too, are coming to an end in July and August. SEBI‘s new chief U.K. Sinha has indicated
reconstitution of some advisory committees under the regulator. With the terms of top officials ending in the
new fiscal, Sinha may get a new team to run the organization. Appointment of whole-time members of SEBI
are done by the department of economic affairs under the ministry of finance. SEBI has three whole-time
members and seven executive directors. All five officials whose terms are coming to an end in the new fiscal
year are eligible for extensions. The finance ministry can extend tenures of Sahoo and Abraham, while the
SEBI board appoints executive directors.

DISMANTLING TRADE BARRIERS OF 6 TRADING PARTNERS IS EU'S TOP

PRIORITY
Though India and the European Union (EU) have been holding negotiations to wrap up a free trade agreement
(FTA) on goods and services since 2007, the EU is now moving the dismantling of trade barriers in the markets
of six strategic economic partners including India to the ‗top of its political agenda‘. The European Commission
has highlighted market access barriers in six of its strategic economic partners – China, India, Russia, Japan,
Mercosur (Brazil/Argentina) and the US. These countries together cover 45 per cent of the EU's trade in goods
and commercial services and 41 per cent of the EU's foreign direct investment. Terming India as an ‗important
trade partner' and ‗a growing economic power', the EU said in just four years EU-India trade increased by 31 per
cent to over €53 billion in 2009. Pointing out that India's trade regime and regulatory milieu still remain
comparatively ‗restrictive', it said that over and above high tariff barriers, India also slaps a spate of non-tariff
barriers (NTBs). These are in the form of quantitative restrictions, import licensing, burdensome mandatory
testing such as for tyres and certification for a large number of products as well as ―complicated and lengthy
customs procedures‖. Finally the EU said India's investment policy continues to obstruct foreign investments in
many important segments such as multi-brand retail which is closed to foreign investment. India has also
adopted a series of steps to control foreign capital flows and ensure maximum benefits for local companies
through technology and know-how transfers. The report suggested concrete action such as the launch of an
initiative to open government procurement markets, possible dispute settlement action and continuing dialogue
with strategic partners but also raising the bar at the highest political level in bilateral summits with the countries
concerned to bring down trade and technical barriers.

UNDER DEVELOPED, SPECIAL STATES TO BENEFIT FROM BUDGET: FITCH

The Union Budget 2011-2012 is likely to be more beneficial for the special and underdeveloped states, including
J&K, Himachal Pradesh and Bihar, rating agency Fitch said. The Union budget 2011-2012 is a credit positive for
special-category states, who receive a larger share of their revenues from the central government.
Underdeveloped states are benefited from higher allocation to Backward Region Grant Fund in FY12.The report
attributed the benefits to the backward and special states to the higher growth expectations in 2011-12 (9 per
cent), which has led to the increase in the budget forecasts for overall net transfers (share in central taxes, and
grants and loans) from the central government to states by 23.7 per cent.
„GOVT AIMING TO INCREASE EXPORTS TO $450 B IN THREE YEARS'

In its bid to ensure that the country's trade deficit does not go up, the Government is looking at doubling exports
to $450 billion in the next three years. By March 31 this year, the Government of India thought exports should be
$200 billion. However, in February itself the country has crossed that figure and therefore by March-end it will do
around $225 billion of export. This year's deficit is likely to be around $120 billion. The country's trade deficit this
year is likely to be around $120 billion, which is less than 2.5 per cent of our GDP and over the years we would
like to bring it down as a percentage of GDP. And in order to see that in the future our trade deficit does not
increase, the Government wants to increase the exports in the next three years by doubling it from this year's
export figure. So, the govt. will try to reach $450 billion of export in the next three years.

CHINA'S INFLATION STEADIES ON GOVERNMENT PRICE MEASURES

Chinese inflation stabilized in February, helped by government and central bank measures to rein in price
growth. Analysts had forecast a figure nearer 4.7%, but said it was more significant that the rate of growth had
steadied and also estimated that it may show that China was managing to rein in inflation without hurting
economic growth. However it was too early to say for certain that the inflationary trend had broken, and that they
expected the government and central back to keep taking measures to contain price growth. The Chinese
government has set a target of 4% inflation for this year. Rising food prices are of major concern in China, where
poor families spend up to half their incomes on food. The central bank has raised interest rates three times in
recent months to battle high inflation. It has also increased bank reserve requirements in an effort to stop them
lending as freely. Analysts had worried that these tightening measures would slow down the booming Chinese
economy. However, these concerns eased after separate economic figures out today showed that industrial
production accelerated in the first two months of the year.

QUAKE SELLOFF WIPES $287 BN OFF TOKYO STOCK MARKET

A massive selloff on the Tokyo Stock Exchange wiped out some 23.5 trillion yen ($287 billion) from the market's
value with investors dumping stocks as the country recoiled from a devastating earthquake and struggled to
avert nuclear disaster. The selloff triggered record volumes and slashed the market's value to roughly 289 trillion
yen. Volume was pushed up by window-dressing selling by domestic institutional investors for the March 31
financial year-end and by domestic investment trusts and anxious retail buyers, while long-term foreign players
who have piled into Japanese shares since November also rushed for the exit. Fears of more quake aftershocks
and further repercussions from damaged nuclear reactors were cited as the most important factors behind the
sell-off. Domestic investment trusts and funds are dumping everything today. Sell orders for tens of billions of
yen were detected. The Mothers market tumbled 17.2 percent, with social networking site Mixi Inc. and Japan's
third-biggest airline Skymark Airlines Inc both down around 18 percent.
 THE DERRICK

INDUSTRY WATCH

PRICIER LOCAL APPARELS MAY MAKE FOREIGN BRANDS ATTRACTIVE

It may be advantage videshi apparel retailers vis-à-vis their swadeshi counterparts. Domestic garment
manufacturers are facing a double-whammy of spiralling cotton prices and the 10 per cent excise duty levy by
the Budget on their branded products. This has narrowed the gap between brands manufactured in India and
those imported. Domestic garment manufacturers and retailers such as Pantaloons, S Kumars and Arvind
Brands have hiked or are looking to raise prices of their branded products by between 10 and 18 per cent to
offset costs. Cotton prices, too, have increased nearly 40 per cent in the last two months. This could also lead
to urban shoppers shifting from local brands to foreign marquees as prices become more competitive in the
premium segment. While at the lower end of the spectrum consumers will clearly opt for value brands.
Interestingly, the excise duty levy comes at a time when several international brands are making a beeline for
India. Many are tweaking their pricing strategies to attract consumers. President of Madura Fashion and
Lifestyle stated that if raw material prices continue to rise we could hike prices by another 10-12 per cent in the
winters. This could result in a 30 per cent effective hike in retail prices. It could also push people towards value
brands.

PUBLIC SECTOR BANKS ASKED TO TONE UP CREDIT DELIVERY

MECHANISMS The Finance Minister, Mr Pranab Mukherjee asked public sector banks to tone up
their credit delivery mechanisms so as to ensure that the targeted groups get the benefit of government
policies. He stated that delivery system must improve and financial inclusion was ―absolutely necessary‖ to
ensure that people get the benefit of economic growth. This could be achieved only through a strategy of new
paradigm where people are empowered and empowerment is followed by entitlement and entitlement must be
backed by legal enactment. Despite more than 40 years of bank nationalization, we have not been able to
establish more than 32,000 plus bank branches in rural India with 6 lakh villages. We are in extremely difficult
and at the same time encouraging and challenging times. The target of credit flow to the farmers has been
raised to Rs 4.75 lakh crore in 2011-12. Banks have been asked to step up direct lending for agriculture and
credit to small and marginal farmers. At the same time the Union law Minister viewed that banks need to
promote entrepreneurs, particularly in rural India and also suggested that banks need to look at moving away
from collateral based lending to rural entrepreneurs. The Government has agreed to infuse Rs 309 crore into
the bank, taking the Centre's stake in the bank to little over 58 per cent.

IT SECTOR TO HIRE 2.25 LAKH IN 2011: DELOITTE

The Indian IT industry will add over 2.25 lakh employees in 2011 and will clock revenues of $71.7 billion by the
end of the year, consulting firm Deloitte estimated. Revenues from the information technology and business
process outsourcing industry will reach $71.7 billion for 2011 and account for 5.8 per cent of the country‘s
GDP. The total number of employees working in the IT/ITeS (IT enabled services) sector will grow to 22.3 lakh
this year, which translates into the addition of 2.26 lakh personnel, adding that an additional 80 lakh people will
get employment indirectly from the sector. The Deloitte prediction follows a spate of announcements by IT
majors like Infosys and TCS, among others, of stepping up recruitment in the current season as the global
economy is going into a recovery mode. Deloitte expects a higher growth in revenues from European and
Asian markets compared to the traditional North American market this year. It also added that the under-
penetrated SME (small and medium enterprises) space will emerge as a ―significant opportunity‖ in 2011. Of
the total $71.7 billion, up to $60 billion will come from the core software and services vertical, while exports
from this segment will grow up to 17 per cent to $47 billion.

FOREIGN BANKS MAY SEEK MORE SOPS TO SUBSIDIARISE OPERATIONS

Foreign banks are likely to seek some regulatory sops for converting to subsidiaries here, although most large
ones had already indicated their keenness to go in for subsidiarisation. The subsidiary model that the RBI
discussion paper on foreign banks entry talks about is ―not a big incentive‖ for foreign banks to ―massively come
to India. It (allowing subsidiary model) is not a big incentive. It will be an additional burden because they (foreign
banks) have to commit real capital to a country. It's not like you can bring the capital today and you can take the
capital out tomorrow. A subsidiarisation is less efficient use of capital. With the banking sector in the developed
world facing problems on account of the financial crisis, many foreign banks would not readily go in for this
(subsidiary model) as it would require more capital. A subsidiary model was better from regulatory perspective,
but not from the bank's standpoint. At the same time, Mr van Loo,Banking & Capital Markets Leader (EMEIA -
Europe, Middle East, India, Africa), maintained that it was for each individual foreign bank to consider whether it
was any worth for them to be in India or not. ―If they are convinced about the growth potential of India, then they
could be interested to come here. Many banks in Europe are still in the process of regaining standalone
strength, Mr van Loo said, adding that their priorities after the crisis are survival, recovery and not the perfect
situation to go and manifest in newer markets.

“ADITYA BIRLA RETAIL PLANS EXPANSION PUSH”

Aditya Birla Retail, the retail arm of the USD 29 billion diversified Aditya Birla Group, plans to open as many as
130 supermarkets and a dozen hypermarkets in the fiscal year starting in April, to take advantage of the surging
spending power of Indian consumers. It aims to expand its business and revenue share from its in-house labels,
which offer higher margins. The company also expects an announcement in the next six months on rules that
would expand foreign direct investment in India's retail sector as India looks to battle high inflation. Organized
retail accounts for just 6% of overall retail sales in India. The organized retail sector is growing at 20%, more
than twice the rate of the overall economy so it would be a good opportunity for the company in near future.

LOCKHEED KEEN TO SET UP FACILITIES IN INDIA

U.S. aerospace giant Lockheed Martin is keen on doing business in the defense sector and the private industry
in India and exploring possibilities for tie-ups to this effect. Lockheed Martin was already working with Bharat
Dynamics and other component suppliers and those in the sub-contracting business in the defense sector. The
company hoped to go ahead in the anti-tank guided missiles area, clearances for which were awaited. The
proposals were in the initial stages but once the nod was received, they would look around to setting up facilities
here and the places that were likely to be narrowed down, included Hyderabad, Bangalore and Chennai.
Lockheed Martin is one of six global corporations in the race to bid to supply 126 fighter aircraft to India under
the Medium Multi-Role Combat Aircraft (MMRCA), a deal estimated to cost $10.2 billion and expected to be
finalized by September this year. They are to offer F-16 IN Super Viper planes to India which was state-of-the-
art and the most advanced technology currently available.

TELECOM, TECHNOLOGY TO FOCUS ON RURAL AREAS

The thrust of the government and corporates in areas of technology and telecom in 2011 will be to help
empower the rural population. The teledensity in India reaching over 128 percent in the urban markets, the
telecom industry now has its eyes set on the rural market which holds a great potential with a teledensity of less
than 26 percent. With most of the population living in villages in India, there is huge opportunity for technology,
media and telecom sectors to bring services such as healthcare, education, entertainment, banking and finance
to the rural doorsteps. The variety of programmes around the National e-Governance Plan and the funding from
donor agencies in this region will be key in taking this forward. The study also predicted that in 2011, more than
50 percent of computing devices sold globally will be smartphones, tablets and non-PC (personal computer)
netbooks, breaking the PC's decades-long market dominance. In India, 80 percent of the Smartphone market is
still untapped, the study said. The price of handsets and cost of data usage will decide the penetration of
smarphones in these areas.

AOL TO CUT 700 JOBS IN INDIA; BUT TO OUTSOURCE 300

American Internet giant, AOL, is cutting 700 jobs in India, but is outsourcing 300, a top company official has
said. As a company, there's about 200 (job cuts) in the United States and about 700 in India, although about 300
of those are going to go an outsourcer. AOL CEO Tim Armstrong told a television channel in an interview that
effectively, it's about 400 to 600 (job cuts) between India and the US.. The company currently has about 5,000
employees, which includes employees from the recently acquired Huffington Post. They've dynamically changed
AOL over the last couple of years to really focus on content and restructure the organization starting with Europe
and the US.

JAPANESE COMPANIES MAY SET UP STEEL PLANTS IN INDIA

After deadly earthquake in Japan could likely push steel companies from that country to speed up plans to build
manufacturing presences in safer and low-cost countries such as India, said industry executives who have
collaborated with Japanese steelmakers for joint ventures here. Indian steel companies, that make construction
grade products, however said it is early to assess the opportunity to supply products to Japan to assist in
reconstruction of regions affected by the earthquake. Japan's top four steelmakers – Nippon Steel, JFE Steel,
Sumitomo Metals and Kobe Steel – already have a presence in India through joint ventures. According to C S
Verma, chairman of state-owned SAIL it is too early to say anything, but definitely, Japanese companies should
explore the idea of having larger manufacturing plants in India as we have the market as well as resources here
in India.

BURDENED HOSPITALITY INDUSTRY LOSING OUT TO SE ASIA

Out-priced by cheap packages offered by Southeast Asian destinations, Indian hotels and restaurants may well
lose the race in luring foreign and domestic travellers if the new service tax proposal is
implemented. The hospitality industry has termed the tax "retrograde" and the tourism ministry is inundated by
demands of a rollback from states and industry associations.
Hotel associations say the new tax will be a death blow. According to Federation of Hotel and Restaurant
Association of India (FHRAI) this is retrograde step .The intent of taxation is to bring businesses that are not
tapped in the tax net. Hotels are paying luxury tax while restaurants are paying value added tax. So this in a
sense is double taxation. Gupta added that Indian taxes on hospitality were more than six times those paid by
their counterparts in Thailand and Malaysia. The World Tourism and Travel Council (WTTC) have also sought
withdrawal of the Budget proposal. This would translate into a hefty 23.5% tax on room rates in Delhi and Tamil
Nadu (including service tax and luxury tax) and 17.5% in Kerala and Goa. In comparison, other tourism
destinations like Singapore, Malaysia and Indonesia levy only 3% tax.
 THE DERRICK

FACTS OF THE WEEK

1) Duration of ICC World cup :

 Cricket World Cup will be played from Feb 19 to April 2.
 Qualifying round matches will be till March 20
 Quarter Final matches will be played between March 23 to March 26
 Semi Final matches on March 29 and March 30
 Cricket World Cup Final will be held April 2
2) Host nations :
This world cup will be jointly hosted by 3 countries – India, Bangladesh and Sri Lanka.

3) Participating Teams :
There are total of 14 teams participating in this world up comprising of 2 groups with 7 teams each

Group A Group B

 Australia  India
 Sri Lanka  England
 Pakistan  South Africa
 New Zeeland  Bangladesh
 Zimbabwe  West Indies
 Canada  Netherlands
 Kenya  Ireland
4) Total number of World Cup matches
Total of 49 matches will be played (incidentally one of the highest compared to any previous world cup). There
will be 42 qualifying matches, 4 Quarter Finals, 2 Semi finals and 1 Final

Out of total 49 matches India will host 29 matches (including a Quarter Final, a Semi Final and the Final).
Bangladesh will host 8 matches (including 2 Quarter Finals) and Sri Lanka will hold 12 matches (including a
Quarter Final and a Semi Final)

5) Total venues in all :

There will be Total of 13 grounds used for this tournament

India – 8

 Eden Gardens, Kolkata, Capacity – 90,000 (3 matches)

 Feroz Shah Kotla, New Delhi, Capacity – 48,000 (4 matches)
 Chinnaswamy, Bengaluru, Capacity – 42,000 (5 matches)
 Chidambaram, Chennai, Capacity – 50,000 (4 matches)
 Mohali, Chandigarh, Capacity – 35,000 (3 matches including a Semi Final)
 Motera, Ahmedabad, Capacity – 50,000 (3 mathces including a Quarter Final)
 Jamtha, Nagpur, Capacity – 45,000 (4 matches)
 Wankhede, Mumbai, Capacity – 45,000 (3 matches including the Final)

Bangladesh-2

 Zahur Ahmed Stadium, Chittagong, Capacity – 20,000 (2 matches)

 Shere Bangla Stadium, Mirpur, Dhaka Capacity – 25,000 (6 matches including 2 Quarter Finals)

Sri Lanka-3

 Rajapaksha Stadium, Hambantota, Capacity – 35,000 (2 matches)

 Muralidharan Stadium, Kandy, Capacity – 35,000 (3 matches)
 Premadasa Stadium, Colombo, Capacity – 35,000 (7 matches including a Quarter Final and a Semi Final)
The Quarter Finals will be held at Mirpur, Dhaka (2 matches), Ahmedabad and Colombo. Semi Finals will be
held at Colombo and Chandigarh. The finals will be held at Wankhede Stadium in Mumbai

6) ICC World Cup Trophy and Prize Money

There are two original Trophies with ICC. One would be held in its Head
Quarters in Dubai and the other is given to the Winning team. Both the
trophies are identical, the only difference would
be, the Trophy in ICC Head Quarters will have
the names of all the previous World Cup
winners inscribed on it.

Prize Money :

 Winner – 3 Million US Dollars,

 Runner Up – 1.5 Million US Dollars,
 Total Prize Money – 10 Million US Dollars.

7) ICC World Cup 2011 official Mascot

The official Mascot of ICC world Cup 2011 is Stumpy, the Elephant.

8) ICC World Cup 2011 official Song :

The official theme / song of ICC World Cup is De Ghuma ke (3 Min 56 Sec). It is composed by Shankar
Mahadevan, Ehsaan Noorani and Loy Mendonsa. It is sung by Shankar Mahadevan and Divya Kumar while
the lyrics are given by Manoj Yadav

9) ICC World Cup 2011 Official Event Ambassador :

Sachin Ramesh Tendulkar

 THE DERRICK

INTERVIEW
‘I'm more than fully satisfied with how Gamesa is developing in India'

Spanish wind turbine manufacturer Gamesa started operations in India a

little over a year back through a subsidiary. It has set up an assembly
plant near Chennai and has announced plans to put up three more
facilities to make different parts. The additional investment in India (the
company plans to pump in more than Rs 600 crore) demonstrates the
importance of India in Gamesa's global plans. In 2010, India accounted
for 8 per cent of Gamesa's total wind turbine sales.

“I can say that I am more
developing in India,” says
Gamesa. During a recent
Gamesa's operations, both
status of the wind turbine industry. Excerpts from the interview.
than fully satisfied with how Gamesa is
Mr Jorge Calvet, Chairman and CEO,
interview here, Mr Calvet spoke about
in India and across the world, and the

How is the market in India?

The two markets in the world that have been consistent for the last year are China and India. They are
growing consistently, which is absolutely critical for any economy. You have been able to see this especially
in the last couple of months with the upheavals in North Africa and West Asia, how important renewable
energy is to the world of power. Oil prices have gone up dramatically in the last three months and will go
further up. That is why renewable energy has always been important . India has done a tremendous job in
the last year by supporting renewable energy, especially wind.

How about Gamesa's operations here?

I am more than fully satisfied with how Gamesa is developing in India. We have been in operation for a little
over a year and it has exceeded our expectations. This year looks also nice. As I have explained to the
team here, India is going to become a significant part of the overall sales effort and portfolio of Gamesa
worldwide.

I am here reviewing and confirming all the investments that we are going to be doing in India, not only this
year, but also next year. This is significant to us because we are going to have a big slice of the overall
investment that we are going to do worldwide in India. The investments will be in three new plants to make
blades, towers and nacelles. We will also introduce a 2 MW turbine and we will double the number of
employees.

In 2010, China topped in wind power capacity addition. What has been driving this growth in China?

Three factors. One, they are conscious about energy independence. Obviously, renewable energy will not
give them full energy independence, but it is going to be an important component. Second, the commitment
the Chinese Government has made in reduction of CO2; renewable energy is a part of that. The Chinese
Government has been intelligent in creating an industrial base of renewable energy that is also driving the
growth trends.

Has Europe recovered from the slowdown in terms of the wind energy industry?

You have to distinguish between Western Europe and Eastern Europe. Western Europe has been suffering
from some problem called Budget deficits. That has had a bearing in the development of wind industry.
There will be growth in Western Europe, but perhaps not as steep as you can see in the rest of the world.
Eastern Europe is a different situation. The growth there is going to be significant. It is in Poland, Romania,

Hungary and perhaps Bulgaria. For Europe in general, for Western Europe in particular, something
interesting is developing, it is a kind of a substitution effect for onshore wind, which is offshore. There are
huge offshore plans for Europe based in the North Sea.

That is driven by the United Kingdom. Germany, Holland, Belgium and France are also looking at it. The
North Sea basin is going to become a significant part of the overall energy supply that will be focussed
towards Europe. The European Union plans to create a North Sea underground infrastructure so that
Europe can bring all the energy that will be produced offshore into the mainstream. The North Sea basin
potential is huge — about 50-70 GW.

And Gamesa is present in the offshore market?

We have developed an aggressive plan for being able to have the prototype of our first offshore turbine next
year. That will enable us to be present when the round three in the UK starts, which will be 2013. That will
be with a 5 MW turbine. It has been developed by Gamesa. We have a technological agreement with
Northrop Grumman. They know a lot about marine environment and their support is going to be critical for
Gamesa to have the best offshore turbine available in the market. Their expertise would be with regard to
control systems, you need to understand the performance of a turbine 50 miles into the sea. And on issues
related to corrosion, salt and humidity.

An overview of the Americas?

The US is a complicated situation because of the regulatory environment for one and because of the gas
prices. The gas prices are low and the utilities do not have a lot of incentive to look at other types of energy.
The US has been able to recover huge quantities of shale gas.

The other thing is the lack of regulation or visibility of regulation going forward. The Obama administration
has renewed the 1603 section of the tax code, which for manufacturing in the US, you get tax breaks. But
what you still need is a renewable energy standard on a federal basis to jumpstart the industry again.

It is a pity because the industry in the US could be the main driver of job creation and also to become an
export driver. I am a bit cautious about that. Last year, the US was a market of just over 5,000 MW and it
could be double that and this year at best would be 5,000 MW. My expectation is that next year it would be
going down.

Could you elaborate on your 2011-13 business plan.

Other than what I have explained to you with regard to India, in China we have made investments for two
assembly plants outside of our main plant. One is Inner Mongolia and the other in Jilin. We are also
investing in a factory in Brazil. A lot of that investment has two major components. One is the development
of a full new set of family of turbines that we will bring out in the next couple of years; 80 per cent of the
turbines that we are going to be selling in the next two years are going to be new turbines.

The second part is the development of our offshore capability. We have opened an R&D centre for offshore
in Glasgow. Our global headquarters for offshore will be in London.

We will have one or two factories in the UK, one in Scotland and one in England. But that will depend on
the business.
 THE DERRICK

ZARGONOMY
Owner of record
The name of an individual or entity that an issuer carries in its records as the registered holder(not
necessarily the beneficial owner) of the issuer's securities. Dividends and other distributionsare paid only to
owners of record. also called stockholder of record or holder of record orshareholder of record.

Back letter
Subsidiary or supplemental agreement (contract) between two or more parties drawn up
to document theirobligations and/or rights that (for whatever reason) could not be included in
the original or principal agreement. Aletter of indemnity, for example, is a back letter because it backs up a
specific claim of a contracting partyagainst the other.

Defensive investment strategy

Investing a high percentage of resources in safer investments such as debt securities (see Debt Security),
and a lower percentage in high yield but risky equities. This strategy follows
conservative policies regarding margin and options-trading, and arbitrage

Conversion privilege
An insurance policy in which the insurer is required to renew the policy for a specified amount of time
regardless of changes to the health of the insured. The agreement requires that premiums are paid on time
and that the insurer makes no changes except if a premium change is made for an
entire class of policyholders. Also called guaranteed renewable or convertible term insurance
or guaranteed insurability.

Quality circle (QC)

Participative management technique within the framework of a companywide quality system in which
smallteams of (usually 6 to 12) employees voluntarily form to define and solve
a quality or performance relatedproblem. In Japan (where this practice originated) quality circles are an
integral part of enterprise managementand are called quality control circles.

Yankee market
A term for forign market in the USA.

Default risk
The risk of failure by a party to fulfil its obligations on a loan repayment, future or options contract when they fall due.

Real Wage Flexibility

Describes how rapidly real wages (the pay of an individual after adjusting for inflation) respond to imbalances between
labour demand and labour supply.
 THE DERRICK

ENTREPRENEUR
VIJAY MALLYA

Vijay Mallya (born 18 December 1955) is an Indian liquor baron

and Rajya Sabha MP. The son of industrialist Vittal Mallya, he is
the Chairman of the United Breweries Group and Kingfisher
Airlines, which draws its name from United Breweries Group's
flagship beer brand, Kingfisher.

He also owns the Formula One team Force India, the Indian
Premier League team Bangalore Royal Challengers, and the I-
League team East Bengal FC and Mohun Bagan AC.

According to Forbes.com, as of March 2010, Mallya, is worth US

$1 billion. He is ranked 937 in The Forbes World Billionaires
Ranking (2010). He receives substantial press coverage that focuses on his lavish parties, villas, automobiles,
Force India, Royal Challengers Bangalore and his yacht, the Indian Empress.

Personal life
Mallya was born into a Konkani Gowda Saraswat Brahmin family originally from the town of Bantwal, near
Mangalore, in Karnataka. He is the son of Vittal Mallya and Lalitha Ramesh. He was educated at La Martiniere
for Boys School, Calcutta and completed his degree at St. Xavier's College, Calcutta

BUSINESS

Breweries

Mallya took over as Chairman of United Breweries Group in 1984 from his father Vittal Mallya. Since then, the
group has grown into a multi-national conglomerate of over sixty companies, with an annual turnover which
increased by 63.9% over 15 years to US$11.2 billion in 1998-1999 . The focal business areas of the group
encompass alcoholic beverages, life sciences, engineering, agriculture, chemicals, information technology,
aviation and leisure.

In May 2007, United Breweries Group announced the all-cash acquisition of scotch whisky maker Whyte &
Mackay for £595 million (approximately Rs 6000 crore). In 2005 he took over Millennium Breweries Ltd
(formerly known as Inertia Industries Ltd), which owned the two premium beer brands named Sandpiper and
Zingaro.

Airlines

In 2006, Mallya established Kingfisher Airlines. At present, the airline connects 32 cities. Kingfisher Airlines
obtained a 26% stake in Air Deccan, a low cost Indian airline which Mallya later acquired fully and rebranded
as Kingfishers Red. Vijay Mallya and his Jet Airways counterpart Naresh Goyal announced an alliance after a
marathon meeting on 13 October 2008 at Mumbai, India.

Media
Mallya owns the MarinScope Newspapers which serve Marin County, California where he maintains a home
and stores a portion of his car collection.

Investment in sports

Formula One

Vitantonio Liuzzi driving for Mallya's Formula One team, Force India, at the 2009 Japanese Grand Prix.

In 2007, Mallya and the Mol family from The Netherlands bought the Spyker F1 team for 88 million euros. The
team changed its name to Force India F1 from the 2008 Season. Team's car VJM-01 was named after its
owners Vijay Mallya, Jan Mol and Michiel Mol.

Mallya also represents India in the FIA World Motor Sport Council, where he has a seat from 2009 to 2013.

Football

Mallya's United Breweries sponsors the East Bengal and Mohun Bagan football clubs in Kolkata where Mallya
spent his childhood. He also was part of the consortium that acquired Queens Park Rangers FC; the
consortium also included Bernie Ecclestone, Flavio Briatore and Lakshmi Mittal.Vijay Mallya has recently
indicated his intention to buy AS Bari, a football team which plays in the Italian Serie A.

Cricket

Mallya's flagship firm UB Group owns the Royal Challengers Bangalore team in the Indian Premier League.
He won the team in an auction paying US $111.6 million for it.

Political career

Mallya entered politics in 2000 and replaced Subramanian Swamy as the president of the Janata Party. His
party contested almost all of the 224 seats during the Karnataka State legislative election. He campaigned
vigorously through the media, but his party failed to make any impact and did not win a single seat. Following
the party's failure in the elections, it has been largely ignored by the media, although Mallya recently became
an MP independently.

Auction purchases
Vijay Mallya is noted for his successful bidding in auction of items that are considered of great historical value
to India.[citation needed] In 2004, he placed the winning bid of £175,000 for the sword of Tipu Sultan at an
auction in London, and brought it back to India. In March 2009, Mallya successfully bid for the belongings of
Mahatma Gandhi at US$1.8 million, in a New York auction that initially caused an uproar in India and its
government tried and failed to prevent it from going under the hammer.

Other businesses

Establishment of Mallya Hospital in Bangalore. The hospital is located on Vittal Mallya Road, named after his
father.Helped to fund the Mallya Aditi International School, a private school in Bangalore.
 THE DERRICK

ANSWERS TO BIZ WIZ-8

Q1) WHICH INDIAN CO. HAS A CUSTOMER RELATIONSHIP PROGRAMME CALLED PASSPORT
PROGRAMME?
Ans : Hero Honda

2) IN 2003, WHICH BRAND HAD CREATED AN ADVERTISEMENT CHARACTER CALLED TERRY TATE?

Ans: Reebok

3) IN 2003, WHICH BRAND HAD CREATED AN ADVERTISEMENT CHARACTER CALLED TERRY TATE?

Ans: Google

4) WHICH COMPANY'S PHILOSOPHY IS REPRESENTED BY THE FIGURES ' 9+1+23 '?

Ans: Xerox

5) WHO HAS PROPOUNDED THE 4 A'S OF MARKETING (ACCEPTABILITY, AFFORDABILITY,

ACCESSIBILITY, AWARENESS?

Ans: JAGDISH SETH

6) WHICH FAMOUS INVESTOR RAISES MONEY FOR THE CHARITY ORGANISATION 'GLIDE
FOUNDATION' THROUGH ONLINE AUCTIONS TO HAVE A MEAL WITH HIM?
Ans: Warren Buffet

7) KARO SIFAARISH' PROGRAMME IS THE NAME OF AN EMPLOYEE REFERRAL SYSTEM IN WHICH

INDIAN BANK ?
Ans: HDFC bank

8) CEO OF Whole foods

Ans: John Mackey

9) SHOP EAT CELEBRATE is the tagline of

Ans:Central Mall

10) Who was the German engineer responsible for creating the Volkswagen?
Ans: Ferdinand Porsche

11) Tagline of "Its all about Imagineering "

Ans: Larsen and Toubro

12) Find out the wrong link of the subsidiaries and the parent companies
Ans: Nissan ¬ - Honda

13) If Karsanbhai Patel founded the brand Nirma, what did Tribhovandas Patel establish?
Ans: Amul

14) Who said: "If contact between people is based on trust and absolute integrity, then it is of benefit for both
sides."
Ans: Julius Baer
15) 'Latitude' is a range of notebook computers from which company?
Ans:Dell

16) Launched in India in 1933, this brand was quick to become a product relevant to the lives of every Indian.
It is manufactured by UK based Reckitt Benckiser. What product?
Ans:Dettol

17) Maggi, an array of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant
noodles is a brand of which company?
Ans: Nestle

18) Goldman Sachs' coinage 'BRIC'(Brazil, Russia, India and China) has gained prominence in describing high
growth economies. Late last year, A new nation has joined the four-nation grouping, which is now known as
BRICS.Name the nation.
Ans: South Africa
19) Identify logo?

Ans:Mercury

20) Identify the personality

Ans: U.K.Sinha

If you have any feedback, suggestions then mail us on newsderrick@gmail.com . Disclaimer: Derrick does
not have own reporters. These are the news collected from different sources. ................TEAM SYNAPZ